Public guide · For assembly discussion
A basic guide for territorial organizations assessing a forest-carbon proposal
Before you begin
This guide can help an organization prepare for a conversation and an assembly. It does not replace independent legal, technical or financial advice chosen by the organization.
A carbon credit is a unit representing one tonne of greenhouse gases reduced or removed according to a methodology and after verification.
A credit does not exist simply because there is forest. The initiative must show what would have happened without the project, measure results, consider risks and comply with the applicable program rules.
That depends on the contract and methodology. Before approving anything, the organization should receive the duration, permitted and restricted activities, monitoring obligations and consequences of non-compliance in writing.
The organization should not accept a term explained only verbally or an obligation whose duration differs between the contract and the technical document.
Beginning a conversation, receiving information or allowing a preliminary study should not transfer land, territory, autonomy or use rights.
The final contract should state which rights the organization retains, what authorization it grants and which decisions still require assembly approval.
The organization should know the price paid by the final buyer, every deducted cost, the distribution formula, currency, receiving account and payment schedule.
It should also be clear who bears the costs if the initiative is not registered or does not issue units.
The contract should describe the grounds and procedure for termination, notice periods, continuing obligations and dispute-resolution process.
The organization should review those rules with independent advisers before approving the agreement.
The proposal should explain how a carbon loss is detected, who is responsible, whether a buffer exists and how future payments could be affected.
The organization should understand the prevention and response plan, not only the monitoring technology.
Questions to ask any company that approaches the territory
A serious company should be able to answer these questions in writing and give the organization time to review them. Asking questions does not create an obligation to contract.
When an organization needs materials in another language, the translation and the person responsible for validating it should be agreed before an assembly is called.
