What happens if carbon stored in soils and sold as a credit, is released?
If the amount of carbon stored in those fields and forests is reduced and GHG credits have been issued based on that sequestered carbon, then the purchaser of the credits must be liable for the loss. So, for example, if a utility purchases GHG offsets from a tree planting project and the trees later burn up in a fire, then the utility must monitor those credits and replace an equivalent amount of GHG offsets as were lost in the fire. One way to standardize this on-going monitoring and liability is the concept of carbon “leasing” or “renting”. Instead of purchasing permanent carbon sequestration credits, utilities and others who purchase GHG offsets would lease carbon credits for a 10-20 year period, for example. During the term of the lease, the purchaser would have to ensure that the carbon is periodically monitored and that the carbon remains stored in soils and plants. Because the lease provides for temporary storage, credits will sell at a discount. At the end of the lease contract
