Forestry project developer Chestnut has finalized an agreement to supply Improved Forest Management (IFM) carbon credits to Royal Bank of Canada (RBC).
The transaction will provide direct capital to Chestnut’s IFM portfolio, which encompasses more than 200,000 acres of privately owned forestland across 37 US states. Revenue from the carbon credit sale allows participating landowners to implement sustainable forestry practices while offering an alternative revenue stream to resist commercial development pressures.
Supported IFM practices include extending harvest rotation schedules, retaining larger canopy trees, conducting strategic thinning, and executing prescribed burns. These interventions aim to enhance forest health, maintain long-term timber productivity, and improve ecosystem resilience against wildfires and drought.
Brian Hong, Director of the Environmental Markets Solutions Group at RBC, stated: “Directing capital to high-quality, third-party verified climate solutions is important to how RBC can support clients in the transition to a low-carbon and resilient economy. This project is compelling to us because it makes responsible forest stewardship economically viable for landowners while delivering environmental benefits at scale across the United States.”
Brian DiMarino, Chief Commercial and Operating Officer at Chestnut, added: “We’re incredibly proud to be a part of RBC’s commitment to impact through high-quality nature-based carbon removal. Leading financial institutions continue to recognize that nature-based carbon removal is critical in addressing climate change. Lasting conservation happens when economic opportunity is aligned with responsible forest stewardship.”
