How might carbon pools work?
Carbon credit providers, such as landowners/forest growers, may wish to participate in this market through a carbon pooling arrangement with other carbon providers. There are several benefits associated with being involved in a carbon pool. Carbon pool managers would be responsible for contractual relations with pool members, managing carbon accounts and ensuring the carbon integrity of the pool is maintained. State Forests of NSW has begun working with other growers to explore the design and operation of such a pooling approach. Several private sector market participants have begun to explore the development of carbon pooling arrangements. A pooling arrangement would serve to reduce the risk of carbon losses (e.g. fires, pests, diseases) as well as allow some flexibility in timber harvest because any emission acquittal requirements from harvest could be offset by plantings in other parts of the pool structure.
