The minute
- Scale: projects usually make sense from around 500 hectares; below that, through pools
- Paperwork: land registry in order, proven title and no live contract with a developer
- Project type: standing forest, restored pasture, tillage or biogas change the economics completely
Why it matters: A lot of bad long-term contracts are circulating; understanding your own asset before the conversation is the only real protection.
What on a farm becomes a credit
Surplus legal reserve and standing forest (conservation), restored degraded pasture, no-till and nitrogen management, and manure biodigestion. Each route has its own methodology and cost.
What it costs to enter
Certification means a feasibility study, documentation, auditing and years of monitoring. That is why scale matters and why smallholder pools exist.
Signs of a bad contract
Decades-long terms, broad exclusivity, rights over the land beyond carbon, and no clear exit clause. Have the contract reviewed by someone who knows the market before signing.
Frequently asked questions
Do I need to plant more or clear less?
It depends on the project: conservation pays for keeping forest standing; restoration pays for planting and proving growth.
How long until revenue?
Rarely under 12 to 24 months, because issuance depends on verification.
Can I leave the project later?
Only under the contract you signed, which is exactly why it must be read carefully.
Read next: what changes with the compliance market.
Read next: how carbon credits work.