Chestnut Carbon, a leading developer of nature-based carbon removal solutions, today announced the sale of its first Improved Forest Management carbon removal credits to a large corporate buyer at a price of $34 per credit, a premium to recent publicly announced transactions. These IFM credits are exclusively removal credits sourced from Chestnut’s forested properties in the southeastern United States.
The higher price point of Chestnut’s IFM credits reflects the exceptional quality of the company’s offerings and an increasing appreciation for removal credits that can demonstrate true additionality and durability. Chestnut’s conservative crediting approach ensures additionality, and the company’s direct ownership of the land underpins their durability. Furthermore, these credits are certified through Verra on the voluntary carbon market (VCM) and undergo rigorous third-party audits. The sale marks a significant milestone for Chestnut Carbon and the broader climate action community.
Key Highlights:
- 100% Carbon Removal: Unlike most IFM credits which are a blend of avoidance and removal methodologies, Chestnut only sells removal credits. These represent emissions removed from the atmosphere and sequestered in new growth, and align with what many sustainability-focused buyers are looking for today.
- Long-Term Sequestration: Chestnut Carbon’s IFM program stands out due to its carbon sequestration terms of 60+ years. This extended timeframe surpasses many existing IFM programs available in the market, providing buyers with a reliable and lasting impact on carbon reduction. Later this year, Chestnut will bring additional IFM credits to market, including those sourced from its US-based private forestland conservation program, Forest Carbon Works. These credits will be offered on contractual duration terms ranging from 60-125 years.
- Market Demand: Chestnut Carbon’s IFM credit sale demonstrates the growing interest from corporate organizations that understand nature-based solutions will be required to meet their near-term carbon goals. As more buyers enter the voluntary carbon market, Chestnut will meet increasing demand with high-quality removal credits.
- Environmental Impact: The sale of these credits directly supports Chestnut Carbon’s forest conservation efforts. By managing forests sustainably, Chestnut Carbon ensures the long-term storage of carbon dioxide and continued growth and sequestration of existing forests.
“We are thrilled to announce the inaugural sale of Chestnut’s IFM carbon credits on the VCM,” said Ben Dell, Managing Partner and Co-Founder of Kimmeridge and CEO of Chestnut Carbon. “This milestone not only represents the demand that exists for IFM credits, but also the quality of Chestnut’s offering and our enduring commitment to the highest standards across our product mix. For Chestnut, the objective is simple: offer premium credits that help our customers meet their emissions reduction goals and make a lasting impact on our planet. This transaction represents a significant step toward achieving that goal.”
About Chestnut Carbon:
Founded in 2022 with the support of energy-focused alternative asset manager, Kimmeridge, Chestnut Carbon (“Chestnut”) is a leading developer of nature-based carbon removal credits. It generates US-based, high-quality forest carbon offsets that are additional, verifiable and durable, to accelerate the path to net zero across a range of industries. Chestnut’s expertise is bolstered by its acquisition of Forest Carbon Works, a public benefit corporation, with a proprietary approach to developing US forest carbon offset projects on family-owned forestland. The Chestnut team is uniquely positioned to address carbon removal, with diverse backgrounds including forestry, carbon regulation, environment, finance and land. For additional information on Chestnut, its strategies and environmental stewardship, please visit https://chestnutcarbon.com/.
About Kimmeridge:
Founded in 2012 by Ben Dell, Dr. Neil McMahon and Henry Makansi, Kimmeridge is an alternative asset manager focused on the energy sector. The firm is differentiated by its direct investment approach, deep technical knowledge, active portfolio management, proven sustainability track record and proprietary research and data gathering.
