RBC Buys Carbon Credits from US Forest Management Projects

Royal Bank of Canada has partnered with Chestnut Carbon to purchase carbon credits generated from improved forest management (IFM) projects in the United States. Through this agreement, RBC will provide an injection of capital to landowners participating in Chestnut's IFM portfolio, enabling them to maintain and improve the health of their forests while meeting immediate financial needs.

The credits sourced exclusively from privately owned and endangered forests across the US represent pure carbon dioxide removal (CDR). By partnering with Chestnut, landowners adopt practices such as longer harvest rotations, retention of larger trees, strategic thinning, improved stand structure, and prescribed burns. These activities contribute to healthier forests with improved resistance to wildfires, drought, and other disturbances.

Chestnut's approach includes establishing relationships with landowners, performing land screening and due diligence, signing lease agreements, conducting onsite inventory surveys, and annual verification and audit measurements. This leads to the issuance of IFM carbon credits for sale, which bring in revenue for sharing.