Forest carbon credits
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France Valley offers individual and institutional investors a unique opportunity to diversify their assets through shares in forestry funds. With more than 20,000 investors having chosen this route, these investments meet a variety of objectives: decorrelation with financial markets, protection against inflation, asset structuring, all while respecting an environmental imperative. But what about carbon credits?
What are carbon credits?
Contrary to popular belief, the acquisition of existing forests does not directly generate carbon credits. Why not? Because this acquisition does not alter the pre-existing situation, either in terms of CO₂ capture, or in terms of emissions reduction.
One carbon credit is equivalent to one tonne of CO₂ avoided or captured.
These credits come from:
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Additional actions (for example, planting new forests or afforestation).
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Emissions reductions in industrial or energy projects.
But beware: their use raises complex issues (legal, accounting, methodological). Investors and companies need to be well informed to avoid any risk of greenwashing or misinterpretation.
A lever against global warming
The fight against global warming rests on two pillars:
- Reducing greenhouse gas emissions.
- Increase natural and technological carbon capture capacities.
Forests, the world's second-largest carbon sink after the oceans, play an essential role in this balance. They capture around 29% of global emissions, but this is not enough. Europe, with programs such as LIFE, is mobilizing resources for afforestation, but public funding alone will not suffice. The involvement of the private sector is imperative.
The evolution of the carbon credits market
Since the launch of the European Union Emissions Trading Scheme (EU-ETS), emissions from the sectors concerned have fallen by 47%. This mechanism proves the effectiveness of well-regulated tools. However, growing demand for carbon credits, particularly for ecosystem projects, is likely to outstrip supply. This will lead to a substantial rise in prices, reinforcing the importance of taking action now.
Conclusion:
Faced with such a strategic and complex subject, France Valley is committed to:
- Explain carbon credits and the issues involved.
- Promote best practices in forest management.
- Encouraging responsible and sustainable investment.
Our pan-European afforestation fund is fully in line with this approach, helping to create new carbon and biodiversity sinks.
Limiting global warming to 1.5°C or 2°C requires unprecedented efforts. Carbon credits should not replace emission reductions, but complement them. At the same time, preserving ecosystems and creating new natural habitats for biodiversity are essential. France Valley is already exploring future solutions, including biodiversity credits.
France Valley expertise at Nature's service
Our sustainable approach to Natural Assets
Certified French forests and vineyards:
Label funds:
Charter for the sustainable management of French forests
Our team of forestry experts has developed a management charter designed to ensure sustainable forest management, integration into the local economy and social acceptance.
Forest Carbon Index
Our team of experts has developed the Indice de Carbone Forestier (ICF), an indicator that quantifies the amount of carbon dioxide sequestered by France Valley's forests. The objective of the funds is for the FCI to progress from one year to the next.