Improving Sustainable Tropical Forest Management with Voluntary Carbon Markets

Background

Tropical forests play a vital role in global carbon sequestration, absorbing around 1 petagram (Pg) of carbon annually—more than any other terrestrial ecosystem. However, deforestation and forest degradation weaken their ability to mitigate climate change. While reduced-impact logging and sustainable forest management (SFM) aim to minimize damage, many SFM plans overlook differences in tree growth rates, species characteristics, and local site conditions. As voluntary carbon markets grow, they create new opportunities to fund improved forest practices through “carbon-focused sustainable forest management” (SFM + C), which integrates carbon sequestration goals into existing frameworks.

Goals and Methods

This study evaluates how voluntary carbon markets can drive better tropical forest management by embedding carbon goals into current SFM strategies. The authors propose lengthening timber harvest cycles beyond the legally required 25–35 years—specifically in the Brazilian Amazon—to give forests more time to regain biomass and sequester additional carbon. Using forest growth models and economic analysis, they estimate both the carbon gains and the financial returns from extending the harvest cycle to 40 years, comparing outcomes against the current standard.

Conclusion

The study finds that increasing the harvest cycle from 35 to 40 years boosts carbon storage by 1.26 megagrams of carbon per hectare per cycle and generates approximately $152.60 per hectare in carbon credit value over 40 years. When combined with timber revenue, the extended cycle produces 28.7% more profit than the shorter cycles. The authors conclude that SFM + C strategies can significantly enhance carbon storage, support biodiversity, and improve economic outcomes. However, successful implementation depends on advancing monitoring technologies, refining carbon accounting methods, and ensuring better alignment between national policies and project-level carbon verification standards.