FAQ
What are the Forest Carbon Offset Scheme Operating Standards?
The Act on the Management and Improvement of Carbon Sink, Article 27, notifies suitable operation standards for UNFCCC and other international standards for Forest Carbon Offset projects. The main contents of the operation standards (Notice ’14.11.10) are as follows. For more information, please visit the Korea Forest Service website (www.forest.go.kr).
- The Forest Carbon Offset Scheme Operating Standards
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- Sets the Project types for the Forest Carbon Offset Scheme : Forest Development Project, Forest Management Project, Revegetation Project, Wood Product Utilization Project, Forest Biomass Energy Utilization Project, Restraining Forest Conversion Project, and Multipurpose Project. Regulatory requirements for each type are also provided
- Separates the Forest Carbon Offset Scheme into General Projects, Small Projects and Bundle Projects depending on the volume of Forest Carbon Uptake involved, and the regulations for each type are provided.
- Divides the types of transactions for the Forest Carbon Offset Scheme into “transactional” and “non-transactional”, and criteria for each type is defined.
- Provides the considerations which must be taken account in creating the Forest Carbon Offset project plan, as well as provides the project registration process via feasibility assessment.
- Provides the monitoring process and methods which make the project implementing entities to implement the project and report after monitoring the project in each cycle.
- Provides the rules and procedures of the verification process so that the verification would be facilitated based on the results of monitoring reports submitted by project implementing entities. and.
- Provides the process of which the Head of the Korea Forestry Promotion Institute facilitates the certification process of the volume of forest carbon uptake using test results.
What is the reason that the Forest Carbon Offset Scheme is separated into “transactional” and
“non-transactional” participatory types?
The Forest Carbon Offset Scheme has diversified participatory types in order to attract voluntary participation from the private sector. Namely, project implementing entities who participate in “transactional” projects are able to trade on the Voluntary Carbon Market for forest carbon uptake obtained through the Forest Carbon Offset Scheme.
On the other hand, in the case that project implementing entities do not intend on carrying out transactions, it will be easier to participate in “non-transactional” type projects where more moderate standards are allowed. When comparing the different participatory types, “non-transactional” projects have more procedures and mitigation requirements than “transactional” projects.
- Transactional project procedure
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- Non-transactional project procedure
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Is it possible to register a Forestry Project that was started before the Act on the Management and Improvement of Carbon Sink (February 2013) was passed?
A project can be registered as a project with the Forest Carbon Offset Scheme if that project’s start date was on or after April 14, 2010 (the effective date of the Framework Act on Low Carbon, Green Growth). The start date is when the project begins, and this should be the earliest among the following dates. A start date cannot be the date with an expenditure with no direct relation to the project implementation, such as the cases of feasibility assessment for Forest Carbon Offset projects, contract dates for pilot research, or the payment dates for these activities.
- A contract date directly related to the project implementation.
- A start date for project activity or setting up relative equipment; or
- The first expenditure date related to project implementation.
What are the basic requirements for a Forest Development Transactional project? What is the difference between a Carbon Offset Scheme-Forest Development and an A/R CDM project?
Transactional type project requirements for A/R CDM and Forest Development projects are outlined in the UN Climate Change Agreement in order to maintain the integrity of international standards.
The Forest Carbon Offset Scheme-Forest Management and A/R CDM are the same type of projects.
Even if an individual or company does not own the forest lands, is it possible to apply for a project?
Yes, it is possible. Interested parties who would like to participate can sign a contract with the landowner and specify the distribution rates (project implementing entities, land owner) of forest carbon uptake in the project plan.
When the target project area is separated into several different locations, is it possible to apply for an integrated project?
Yes, it is possible for the Carbon Forest Offset Scheme to be divided into several different locations if needed. Therefore, it is possible to promote a project by compartmentalizing the site into different sections.
For Transactional Forest Management projects with designated requirements, why is it necessary to have a Forest Certification or develop a Forest Management Plan?
Forest Management projects are aimed at increasing the carbon absorption in a sustainable manner. International Forest Carbon Offset Standards require that a Forest Certification as a means to prove whether the project has sustainable forest management or not. In the Republic of Korea, projects with designated requirements for domestic circumstances are defined as the projects which acquired National Forest Certification or as the section which established the Forest Management Plan.
What is the basis for recognizing wood products as carbon sinks?
When timber is harvested in the forest, all of the carbon stored in the wood is emitted into the atmosphere. However, at the 17th Conference of the Parties to the Convention on Climate Change, it was officially recognized that the amount of carbon stored in trees can be stored for a long time in carbon sinks.
What are the benefits of promoting a Multipurpose Project compared to the Single-purpose Project?
If you are planning on promoting a Multipurpose project, the administrative costs and effort required for creating the monitoring report can be reduced compared to Single-purpose projects. However, in the case of promoting Multipurpose projects compared to Single-purpose projects, the project boundaries may vary. For example, in the case of a Multipurpose project, wood or forest biomass energy production process can be included in the project boundaries. Therefore, carbon storage (or carbon absorption) may be different from that of Single-purpose projects.
How is the Forest Carbon Offset Project Scale divided up?
The Forest Carbon Offset Project Scale is based on the expected annual net absorption of carbon dioxide and is divided up as follows:
- General projects: Projects of which the estimated annual net absorption of carbon dioxide is expected to exceed 600 tons of CO2.
- Small projects: Projects of which the estimated annual net absorption of carbon dioxide is expected to be less than or equal to 600 tons of CO2.
- Bundle projects: Projects which group several small projects into a single project without project type limitation. Estimated annual net absorption of carbon dioxide of a Bundle project cannot exceed 3,000 tons of CO2.
What is the reason for the additional analysis?
The Forest Carbon Offset Scheme is in addition to the routine activities taking place in the existing system and therefore, additional efforts by operators to calculate the amount of carbon dioxide absorbed needs to be recognized. Therefore, applicants should explain further efforts compared to existing similar project activities by analyzing whether the project they want to promote has legal obligations or is eligible to receive government subsidies. If a project’s profitability can be proven to be low, it is possible to receive a government subsidy..
What is the reason for having to establish a Non-persistence Management Plan?
Non-persistence refers to the possibility of an implementing entity no longer being able to continue the project due to natural disasters, such as forest fires, forest pests and diseases, landslides, and illegal logging during the Forest Carbon Offset project period. Implementing entities should strive to ensure the sustainability of the project through the planning and implementation of the Non-persistence Management Plan.
In addition, a portion of the carbon dioxide net absorption should be deposited into the buffer to protect against inevitable absorption losses, despite the implementing entities taking appropriate measures for Non-Persistence Management. Buffer deposit rates can account for up to a maximum of 30%. However in the case of Non-transaction types, buffers are not set aside.
