Cultivation | CO₂ Sequestration | Carbon Credit | Opportunity | Feasibility
Agarwood reforestation isn’t just a biodiversity and economic play—it can also unlock carbon credit revenues, especially when implemented at scale using verifiable methodologies.
What Are Carbon Credits?
A carbon credit represents one metric ton of CO₂ equivalent avoided or sequestered. Reforestation projects earn carbon credits by capturing CO₂ from the atmosphere, which can be sold on carbon markets to companies or governments looking to offset their emissions.
Why Agarwood Reforestation Qualifies
While Agarwood (Aquilaria spp.) trees are primarily grown for their resin, they:
- Sequester CO₂ over their ~10–15 year lifespan
- Are planted in previously degraded or marginal lands
- Can be integrated into agroforestry systems, improving ecosystem services
- Often form part of forest rehabilitation or biodiversity corridors
Meets criteria for reforestation/afforestation under many carbon credit standards (Verra/VCS, Gold Standard, Plan Vivo)
Revenue Potential
A 1-hectare agarwood plantation with 1,100–1,200 trees could sequester 20–40 tons of CO₂/year, depending on species, age, and site conditions.
- At $5–15/ton (voluntary carbon market rates):
- That’s $100–$600/year/hectare potential revenue
- Over 10 years: $1,000–$6,000+ per hectare
Stacked benefit: Carbon credits add value on top of agarwood harvest.
How to Access Carbon Markets
To earn and sell carbon credits, you need to:
1. Develop a Carbon Project Plan
- Include GPS mapping, baseline study, biomass modeling
- Choose an approved methodology (e.g. AR-ACM0003 for afforestation)
2. Register under a Carbon Standard
Examples:
3. Monitoring, Reporting & Verification (MRV)
- Use remote sensing, ground truthing, and third-party audits
- Re-certify periodically (often every 5 years)
4. Sell Credits
- Direct sale to buyers (companies seeking offsets)
- Via brokers or carbon marketplaces (e.g., Puro.earth, South Pole, Nori)
Local Integration in the Philippines
- DENR + DA partnerships can align carbon projects with national targets (e.g., Enhanced National Greening Program, Philippine REDD+ Strategy)
- Agroforestry programs can integrate carbon credits as part of the farm’s long-term revenue model
- Ideal for cooperatives, LGU-led initiatives, and CSR-funded community projects