The demand for carbon credits originated from Colombia is growing: Vichada, our Gold Standard certified reforestation project, has sold all carbon credits available up to date. Until the new certification round will be completed later this year, the project will remain sold out.
Vichada is located in the Eastern part of the country in the Orinoco region. It promotes to reforest fallow cattle pastures and sustainably manages the new forest cover. Part of the forest area will be used for timber production in the future. The other part will be managed as a conservation forest allowing a biodiverse ecosystem to emerge again.
Background for the carbon credit boom in Colombia is a carbon tax on fossil fuels which came into effect on January 2017 for manufacturing industries and energy production. The tax covers about 24 percent of greenhouse gas emissions in the country. Instead of paying the tax, Colombian companies can also purchase carbon credits generated by climate mitigation projects in Colombia.
The combined carbon tax and offsetting scheme offers in interesting example of how domestic demand can be stimulated by proper environmental regulation.
Vichada reforestation project details
The project covers an area of 76,000 hectares in Eastern Colombia. In addition to the reforestation of grasslands, the project protects the remaining forest land and creates additional conservation areas along riverbanks and lakefronts. The newly established forests provide a larger connected natural habitat for animals and plants, enriche the soil, store and filter water and help mitigating climate change. The project also improves the economic and social conditions of local communities – creating new jobs in forestry, wood-processing; training workers, foresters and farmers; introducing sustainable forest management technologies.