Carbon offsets are one of the many tools for achieving carbon neutrality, particularly for sectors with high emissions, or sectors with hard-to-abate emissions. In states like Michigan, few resources on state-based offsets currently exist. Thus, our project asks: what is the sequestration potential, cost, and co-benefits of carbon offset projects using Michigan agricultural lands and forests? How can organizations evaluate and compare Michigan-based offsets?

To answer these questions we quantify the potential sequestration ability of different land types, analyze the costs given the programmatic and policy constraints of offset markets, and evaluate the social and environmental co-benefits of nature-based offsets in Michigan. This information is organized into deliverables (1) geospatial models that identify the spatial distribution of financial costs and sequestration potential, (2) a benchmarking analysis of major carbon registries, (3) a final report which synthesizes our findings and presents an overview of carbon offsetting potential in the state of Michigan. To develop these tools we draw on a variety of methodologies, including a literature review, geospatial analysis, a sequestration analysis, a cost analysis, and a benchmarking analysis.

Through this work, we find that there are geographic differences in the financial viability of reforestation and agriculture based offsets within the state of Michigan. Ultimately, we hope our project will be used by DTE and other interest groups to push development of carbon offset projects to assist in their carbon neutrality goals.