PORT ANGELES — The forest investment and management company EFM has finalized an agreement with Microsoft for the purchase of millions of carbon removal credits, some of which will be derived from Olympic Peninsula forests.
“Microsoft’s support marks a pivotal step in accelerating support for high-quality improved forest management projects,” EFM’s CEO Bettina von Hagen said in a press release. “Their leadership sets a strong precedent for the carbon market and reinforces the importance of natural forests as a scalable natural climate solution in the U.S.”
The multiyear offtake agreement involves the delivery of up to 700,000 carbon credits from 68,000 acres of recently purchased North Olympic Peninsula forestland.
“Microsoft recognizes the important role of high-quality, nature-based solutions in meeting our carbon negative by 2030 goals,” Brian Marrs, senior director of energy and carbon removal at Microsoft, said in a press release. “We are proud to contribute to climate-smart forest management in Microsoft’s own backyard on the Olympic Peninsula.”
To gain an additional up to 2.3 million future carbon credits, Microsoft also invested in EFM’s Fund IV — the fund that was used to purchase the Olympic Peninsula forestland.
EFM hopes that additional purchases through the fund will secure properties in the western U.S. and other domestic markets. The forests will then be transitioned to carbon-smart management strategies while being used as working timberland.
“For us, carbon financing is sort of a way to help get the short-term cash flows while we continue to grow the forests forward,” von Hagen said.
For future purchases, EFM will look for forests that have similar characteristics to rainforests in the Olympic Peninsula: great timberland, high carbon sequestration, enhanced biodiversity and more, von Hagens said.
“The Olympic Peninsula is emblematic of the type of investment we want to make,” she said.
The Olympic Peninsula forestland, which spreads across Clallam and Jefferson counties and is adjacent to the Olympic National Park, had been industrially managed for nearly a century by Rayonier, Inc.
Now, EFM will handle the forests with Improved Forest Management (IFM), a carbon market methodology that aims to increase or maintain forest carbon stocks and improve forest health through a variety of practices.
Studies have shown that utilizing IFM across the U.S. could result in the additional storage of about 270 million tons of carbon annually, or almost 5 percent of U.S. emissions, von Hagen said.
IFM practices — extending the rotation age of trees, reducing the impact of logging practices and promoting selective harvesting — also aim to improve biodiversity, enhance water and soil quality and provide socio-economic benefits to local communities.
The goal is not to grow old growth forests, von Hagen said. Instead, EFM aims to enhance the profitability and long-term viability of the timber industry through more sustainable practices.
“We’re really excited about working with the whole forest industry, from loggers to haulers to mills,” von Hagen said.
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Reporter Emma Maple can be reached by email at emma.maple@peninsuladailynews.com.
