How Carbon Trading Works
Landowners earn annual payments for storing carbon in their forests and soils via Dogwood Carbon’s linkages with a variety of private markets. When possible, Dogwood coordinates a sale directly to buyers for the maximum price. Dogwood Carbon also provides a linkage with the Chicago Climate Exchange (CCX) through its partner aggregator, Tatanka Resources. Founded in 2003, the CCX is a market-based mechanism for reducing greenhouse gas emissions. Large-scale greenhouse gas producers (energy companies, paper mills, factories, etc.) voluntarily participate in the CCX as carbon credit buyers. These companies look to landowners, farmers and other carbon sequestering projects as carbon credit sellers to offset greenhouse gas emissions. Carbon credits are traded between buyers and sellers on the Chicago-based CCX much like soybeans and pork bellies are traded on the Mercantile Exchange. For more information, go to www.chicagoclimatex.com.
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