Green Diamond Resource Company: Climate Change Protocols and Provisions
We have counseled Green Diamond, one the largest timberland owners in California, on development of California’s protocol for forestry-based emission offsets, and on emission offsets provisions in pending federal legislation.
Emission offset markets have the potential to offer significant economic opportunities to companies with carbon sequestration resources, and to provide alternatives for companies seeking to reduce their GHG emissions, either voluntarily or in response to emerging regulatory regimes. However, to create bankable emission offsets, companies must be willing to take on significant restrictions on future land use. The legal issues presented by these transactions are evolving and forest land owners must weigh the potential revenue from offsets against the accompanying long-term obligations.