ESG Post

Climate Change

AFF launches first-of-its-kind carbon credit auction for family forests

The American Forest Foundation (AFF) will launch a carbon credit auction for its Family Forest Carbon Program in February 2025. The American Forest Foundation Carbon Auction offers companies a transparent, efficient pathway to secure high-quality carbon credits while supporting family forest owners and rural communities.

The auction aims to address a critical funding gap by providing upfront capital essential for scaling nature-based climate solutions. With AFF estimating that just 1.2% of nature-based solutions’ potential is currently being utilised, this auction model enables corporations to make partial upfront payments tied to project milestones, such as land enrolment and carbon verification. This approach not only aligns investments with tangible progress but also simplifies the transaction process through Prosfora’s centralised platform, where participants can access due diligence data and track bids in real-time.

This hybrid payment model offers an alternative to traditional carbon credit purchases that require payment upon delivery. By allowing partial payments upfront, the auction removes barriers to funding, links financial commitments to measurable outcomes, and offers participants early investment discounts, thus securing competitive credit prices and supporting long-term decarbonisation strategies.

The Family Forest Carbon Programme, a collaborative effort between AFF and The Nature Conservancy, will use these upfront funds to accelerate the deployment of sustainable forestry practices, providing tangible benefits to forest health, biodiversity, and rural economies. Rita Hite, CEO of AFF said, “Family Forest owners are ready to take necessary climate action, and time is of the essence for corporations to invest in nature-based solutions to meet ambitious climate goals. This auction will be a game-changer, offering companies a unique opportunity to secure premium carbon credits while supporting family forest owners.”

Kevin Maddaford, Director of US and Canada Carbon Markets at The Nature Conservancy said, “This groundbreaking auction will redefine how corporations invest in nature-based solutions to combat climate change and biodiversity loss. It will also expand carbon market access for U.S. family forest owners and support woodland health.”

Interested companies can register on the AFF Carbon Auction website to participate. Early registrants will receive access to webinars and resources designed to streamline the auction process. The auction, hosted on the Prosfora platform, utilises Lydion Vault technology for secure and efficient transactions, paving the way for increased investment in impactful nature-based climate solutions.