These 7 steps represent the process, roughly in order, of establishing a carbon project. The area should be large enough that expected, discounted carbon offsets exceed 10,000 metric tons of carbon dioxide so that offsets can be traded directly on the market.
- Landholders and Soils for the Future work together to delineate a potential project area in which land use practices that offset carbon dioxide emissions, such as increased patrols for illegal hunters so as to increase wildlife densities, fire frequency abatement, alterations in livestock husbandry, etc. can feasibly be implemented.
- Soils for the Future estimates carbon offsets and their likely variability over time across the project area. Based on estimated variability, calculate the appropriate discount (as a percentage) to expected carbon offsets in order to mitigate the risk that land use practices will fail to yield expected or higher than expected carbon offsets (performed by).
- Soils for the Future determines the environmental conditions that will be used to verify carbon offsets produced by the project, that is, those expected if prescribed land use practices are implemented, such as levels of grazing intensity, standing biomass, etc.
- Soils for the Future includes analyses from steps 2 and 3 with assurances of commitment from the landholder to apply to certify carbon offsets with the Verified Carbon Standard.
- After certification, Soils for the Future and landholder draft and sign a 5 year contract with the CCX that specifies the agreed-upon land use practices that must be conducted, data that will be used by an independent agent to verify carbon offsets, and allocation of revenues to the parties participating in the contract.
- Landholder implements agreed-upon land use practices, Soils for the Future gathers, interprets data and supplies data to verifying agent.
- Sales of carbon offsets generated by the project are paid, minus brokerage fee, by the CCX directly to the participating parties, allocated as specified in the contract.