US Forest Carbon Credit Risks Underestimated
Analysis based on 6 articles · First reported May 20, 2026 · Last updated May 21, 2026
The research reveals that current Carbon offsets and credits>>> systems, particularly those managed by the United States — California Air Resources Board>>>, significantly underestimate climate-driven risks to forest carbon permanence. This could lead to a re-evaluation of carbon offset values and increased scrutiny on companies relying on these credits, potentially impacting their environmental, social, and governance (ESG) ratings and financial liabilities. The findings suggest a need for larger buffer pools and more robust risk assessments, which could increase the cost of carbon credits and shift investment towards lower-risk forest projects.
A collaborative research study led by the University of Utah and University of California, Santa Barbara, published in Nature (journal), reveals that current forest carbon offset programs in the United States>>> significantly underestimate the risks of carbon loss due to climate-driven disturbances like wildfires, droughts, and insect infestations. The study found that buffer pools, designed to compensate for such losses, are woefully inadequate, needing to be approximately six times larger on average for programs like those managed by the United States — California Air Resources Board>>>. William Anderegg>>>, a senior author, emphasized that these underappreciated risks in multi-billion-dollar carbon markets undermine the efficacy of Carbon offsets and credits>>> systems. The research provides maps showing increased carbon reversal risks, particularly in the American West, and offers solutions by integrating climate-informed science into policy and strategically guiding new forest projects to low-risk areas. The Wilkes Center for Climate Science and Policy>>> is releasing interactive tools to aid in this effort.
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