The first step in establishing a tree planting project is to identify suitable areas and participating communities in accordance with Plan Vivo criteria. One of these criteria is that the project should be additional and contribute to sustainable development. This means that sites are selected where tree planting is not currently taking place and where it is unlikely that investments to plant trees will be made. Tree planting must also contribute to ecosystem services and climate adaptation, which is why only native tree species adapted to the local climate are planted. Smallholders and communities that want to participate in the project and meet the criteria then sign contracts of between 20-25 years with Plan Vivo that specify how the land use plans, also called Plan Vivos, will be followed and how the payments from the sale of climate credits will be implemented. To ensure that project activities are sustainable and that planting does not compete with other activities, such as food production, participants need to demonstrate land ownership.

The next step is to investigate the reference scenario, i.e. how much carbon will be sequestered per hectare of land if the project is not implemented. Based on the reference scenario, the climate benefit is then calculated by comparing carbon sequestration with the project and without the project. Depending on the climate, vegetation, tree species and planning system, which determines how densely the trees are planted, the carbon sequestration per hectare of land varies.

The picture illustrates how carbon sequestration occurs in trees planted in the Trees for Global Benefit project, Uganda. The total carbon sequestration by mixed indigenous tree species during the contract period with the smallholders (25 years) is 65 tons C/ha. The marketable climate benefit is 58 tons C/ha, equivalent to 215 tCO2/ha. It is calculated by subtracting carbon sequestration without the project (4.5 tons/ha) and with a 10% risk buffer (24 tons/ha).

NOTE: The values in the figure are intended to illustrate an order of magnitude and should not be taken as exact values.

Projects will only succeed in achieving long-term climate benefits if they can deliver sustainable economic benefits to smallholders and communities that go beyond the income from the sale of carbon credits. The income mainly consists of the use or sale of wood products when the trees are regularly thinned and felled but can also contribute to increased production from agricultural products, e.g. coffee plants benefit from growing under the shade of the trees.

Will the trees remain standing?

How can we guarantee that the climate benefits are sustainable and that the trees will not disappear at some point in the future? This is the key issue of risk management. Risk management is inherent in every stage of project development, from the choice of planting area to monitoring and support after the contract period with project participants is over. Also, trees are not meant to be left standing, but regular thinning, felling and replanting are important elements to generate income. In this way, the actual carbon sequestration per hectare varies from year to year, but over time a consistent average increase in carbon sequestration per hectare is created. The main risk to the long-term climate benefits of projects is unpredictable events that cannot be controlled by the project organization. This includes, for example, forest fires, droughts and tree diseases. To address this, Plan Vivo sets aside 10-15% of each climate credit issued in a risk buffer where credits can be canceled in the event that carbon sequestration is reduced.

The best proof that the trees are actually standing is to look at the development of the existing projects. The Trees for Global Benefit project in Uganda celebrated 15 years last year and since its inception with 33 smallholder members, there are now over 6000 smallholder members across 12 districts. Through tree planting, the project has sequestered over 1 million tons of CO2.