Frequently Asked Questions

Reforestation projects are a type of Nature-Based Solution (NBS) that involves planting trees in areas that have been degraded (either naturally or through man-made actions). Most of these are areas which have been cleared of forest cover, typically within the last 10 to 50 years for other activities such as cow farming, extraction, burning, etc.

There are three primary goals of a well-planned reforestation project: to restore the natural ecosystem by planting back the diverse tree species that were once part of that landscape; to stop land degradation, often a result of annual clearings and burnings to maintain cattle pasture; and to support the return of biodiversity through various other interventions.

Through photosynthesis, these trees will absorb carbon dioxide (CO2) out of the atmosphere. For every metric tonne of CO2 sequestered, the project generates one carbon credit which can then be acquired by anyone (normally large companies) that wants to decrease their carbon footprint .

Other (equally important) goals of reforestation projects include:
– Enhancing biodiversity.
– Stabilising soil and preventing its erosion.
– Protection of watersheds.
– Protection of local ecosystems.

Reforestation can be achieved through various methods including natural regeneration, assisted natural regeneration, and active tree planting.

Carbon credits are measurable, verifiable emission reductions from certified climate action projects. Credits can be issued by projects that remove, reduce, or avoid greenhouse gas (GHG) emissions.

The purpose of carbon credits is to combat climate change by providing organisations with a flexible, market-driven approach to manage GHG emissions. These tradable permits enable companies to offset their carbon footprint by investing in global environmental projects. Projects can include renewable energy developments, reforestation, and technological carbon capture initiatives.

By creating economic incentives for sustainability, carbon credits not only help businesses meet regulatory requirements and voluntary environmental targets but also channel crucial financial resources into transformative green technologies and ecosystem restoration efforts.
Carbon credits serve as a strategic tool that bridges corporate responsibility with global climate action, allowing businesses to take meaningful steps towards a more sustainable future while supporting innovative solutions to one of humanity’s most pressing environmental challenges.

Generating carbon credits through reforestation involves a number of key steps:

Project initiation and design:
Identifying suitable areas for reforestation, such as degraded agricultural land or previously deforested regions.
Developing a restoration plan that maximises environmental and social impact and ensures additionality.
Registering the restoration plan for approval with a verified carbon standard and clearly document your intended actions throughout the project lifetime.

Reforestation operations:
Conducting the reforestation activities, based on your approved restoration plan.

Carbon sequestration:
As trees grow, they will absorb CO2 from the air through photosynthesis. Scientists measure the amount of carbon the growing forest is storing using established methodologies like Verra’s Verified Carbon Standard (VCS).

Credit calculation:
The measured carbon sequestration is converted into carbon credits. One credit represents one tonne of carbon dioxide removed from the atmosphere.

Verification and certification:
Independent third-party auditors check the project to confirm it’s working as claimed. This step ensures credibility and transparency.

Credit issuance and sale:
Once verified, the carbon credits can be issued and sold in carbon markets to organisations or individuals looking to offset their emissions.

Long-term management:
Ensure the forest is well managed and protected so that it continues to grow for the long term, maintaining its carbon storage capacity and permanence.

Successful reforestation projects must demonstrate additionality and permanence while avoiding leakage. Additionality refers to the proof that the project’s direct intervention is resulting in carbon sequestration beyond what would have occurred without the project. Permanence is the assurance that there is a long-term plan (usually a minimum of 40 years) to maintain and manage the forest. Leakage is, on the other hand, unintended negative consequences that come as a result of the project. For example, deforestation that happens as a result of protecting the project site. This has to be avoided.

Reforestation is a powerful tool for combating climate change. While absorbing CO2 from the atmosphere, it also creates new habitats for wildlife, restores soil health, brings back the water cycle and watersheds, and supports the economic wellbeing of local communities.

A developer and operator of reforestation projects is an organisation that is not only responsible for planning a reforestation project, but is also responsible for the project’s implementation and management. As a developer, the organisation designs and initiates the project, whilst as an operator, it oversees the day-to-day execution and long-term maintenance of the reforestation efforts. These organisations can issue carbon credits as a result.

Ponterra is fully vertically integrated as a developer and operator, allowing us to ensure quality, manage risk, and plan for scale.

From the initial scoping to the final issuance of carbon credits, Ponterra orchestrates each project’s development and operations to provide excellence and efficacy.

Development tasks can include planting design, conducting impact assessments, contracting, and land eligibility analysis. Operational tasks include, but are not limited to, seed collection and storage, sapling production, plant maintenance, logistics and distribution, Monitoring, Reporting, and Verification (MRV), and planting operations.

Ponterra’s reforestation projects adhere to VCS VM0047 for project verification.

VM0047 Afforestation, Reforestation, and Revegetation is a quantification methodology for carbon removals from Verra’s Verified Carbon Standard (VCS) that measures all activities that occur from ARR projects.

Released in late 2023, it is the most rigorous and transparent methodology for reforestation and is currently considered as the standard for a high quality nature-based restoration credit.

It was approved by the Integrity Council for the Voluntary Carbon Market (ICVCM) in December 2024 which means that credits issued under this methodology are eligible for the Core Carbon Principles (CCP) label – the ICVCM’s high-quality marker.

VM0047’s standards to ensure that the project is of the highest quality, transparency, and integrity.

You can find more information about VCS VM0047 on Verra’s website here.

ARR stands for Afforestation, Reforestation, and Revegetation.

Afforestation is the planting of trees in areas that were not previously forested.
Reforestation is the planting of trees in areas that were deforested.
Revegetation is the restoration of vegetation cover in areas where it has been lost.

ARR projects focus on the establishment of new forests or the restoration of degraded lands by planting trees. ARR projects enhance carbon sequestration, improve soil health, and promote ecosystem resilience.

Investable carbon projects are built on four key pillars: integrity, co-benefits, investability, and transparency. These pillars are crucial for ensuring the project’s success and attracting private capital to protect and restore nature.

Biodiversity enhancement is a cornerstone of successful reforestation and carbon removal projects. It addresses not only the climate crisis but also the global biodiversity crisis—a distinct yet interconnected challenge that threatens ecosystems, species, and human communities. Thriving biodiversity is essential for ecosystem resilience, carbon sequestration, and the overall health of our planet.

Although landowners come in all shapes and forms, at Ponterra we typically work with smallholder farmers. These farmers tend to grow a few crops and/or raise cattle for their own subsistence and regard their land as their estate and the estate they will one day pass on to the next generations. Due to decreasing margins on farmland and overall low economic returns, many farmers have been struggling to make a living from their lands.

This cycle of low income often leads to socio-economic challenges for farmers and their families, with many leaving rural areas for cities in search of better opportunities.

Reforestation projects offer landowners a sustainable complement to their practices and, in some cases, even a complete transformation of their primary activity.

Through Ponterra’s leasing model, landowners can become stewards of the land and increase their income with reforestation.

Using our flagship project in Panama as an example, payments to a landowner could be split as follows:
– Fixed Lease Payments: Ponterra leases land from landowners and pays them a yearly lease based on the reforestable hectares that they are contributing to the project.
– Labour and Maintenance Wages: Landowners are paid for maintaining the saplings to ensure their survival.
– Revenue Sharing from Carbon Credits: Landowners receive a percentage of revenue from carbon credit sales for the duration of the project. This can be up to 100 years.

This model not only provides landowners with immediate income but also creates long-term economic stability, enabling them to transition away from unsustainable cattle ranching while supporting their families and local communities. In addition to this, ARC I will provide over $70 million to the local region in the next 30 years as a result of Ponterra’s leasing model.

Reforestation projects are powerful tools to mitigate the effects of climate change, offering a multifaceted approach to environmental restoration and protection. At their core, these initiatives harness the remarkable ability of trees to act as nature’s own carbon capture technology. As forests grow and thrive, they become vast carbon sinks, drawing down enormous quantities of carbon dioxide from the atmosphere through the simple process of photosynthesis. This natural mechanism plays a crucial role in reducing the concentration of greenhouse gases that drive global warming.

The benefits of reforestation extend far beyond carbon sequestration. These projects breathe new life into ecosystems, creating vibrant habitats that support a rich tapestry of biodiversity. As trees take root and flourish, they provide homes and sustenance for countless species of plants and animals, many of which may be endangered or threatened. This enhancement of biodiversity strengthens the resilience of ecosystems, making them better equipped to withstand the pressures of a changing climate.

The positive impacts ripple outward touching every aspect of the local environment. Reforestation efforts help to heal and rejuvenate degraded landscapes, restoring the delicate balance of natural systems. As forests re-establish themselves, they improve soil quality, enhance water retention, and regulate local water cycles. Intricate root systems help to stabilise the earth, preventing landslides and protecting watersheds.

The microclimate benefits of reforestation are equally impressive. The shade provided by a healthy forest canopy creates cooler, more stable temperatures at ground level. This not only offers respite for wildlife, allowing animals to conserve energy and thrive, but also creates favorable conditions for sustainable agriculture. Farmers can benefit from improved soil moisture and reduced heat stress on crops, leading to more efficient and productive farming practices.

Reforestation projects often bring significant economic advantages to local communities. These initiatives can spark a variety of sustainable enterprises, from eco-tourism to the harvesting of non-timber forest products like fruits, nuts, and medicinal plants. The creation of jobs in forest management and conservation provides economic incentives for communities to protect and nurture their newly established forests, ensuring their long-term survival and continued contribution to climate change mitigation.

A vital aspect of Ponterra’s reforestation projects is empowering local communities to become stewards of the forests they help restore. Communities are at the heart of each Ponterra project. This stewardship is essential for ensuring the long-term survival and health of the newly planted trees and the ecosystems they support.

Ponterra invests in training programs that equip community members with the knowledge and skills needed for effective forest management. These programs cover monitoring and maintenance. Training includes techniques for monitoring tree growth and health, allowing communities to identify and address issues before they become significant problems.

Once the trees are planted, local communities take an active role in their ongoing care through regular inspections. Landowners conduct routine inspections of the reforested areas to ensure that the trees are thriving and to address any threats.

By partnering with local landowners, who become stewards of the land, and local communities, Ponterra fosters a deep sense of ownership and responsibility towards the forests. Many community members have a cultural and spiritual connection to the land, which enhances their commitment to protecting it. For many, their land has been in their family for generations.

When communities see the direct benefits of their efforts, such as improved biodiversity, enhanced ecosystem services, and economic opportunities, they are more likely to remain committed to the long-term success of the project.

This collaborative approach not only enhances tree survival rates but also fosters a deep-rooted commitment to environmental conservation that benefits both people and nature.

Ponterra utilizes a standard process for receiving, hearing, responding and attempting to resolve grievances within a reasonable time period, taking into account culturally appropriate conflict resolution methods. Details of this process are included in Ponterra’s Grievance Mechanism Summary.