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Regulatory research publication

US Forest Carbon Credit Risks Underestimated

Analysis based on 6 articles · First reported May 20, 2026 · Last updated May 21, 2026

Sentiment
-50
Attention
6
Articles
6
Market Impact
General
Live prominence charts, article sentiment distribution, and event development timeline available on the Ergen Dashboard

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.

Environmental Services Forestry Carbon Markets

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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Carbon offsets and credits>>> systems are found to be significantly flawed due to underestimation of climate-driven risks to forest carbon permanence, requiring substantial adjustments to buffer pools.
Importance 100.0 Sentiment -60.0
per
William Anderegg>>> is the senior author of the study and a biology professor at the University of Utah. His work highlights the underappreciated risks in carbon markets and proposes solutions.
Importance 95.0 Sentiment 30.0
govactor
The United States — California Air Resources Board>>> manages one of the largest compliance carbon-credit programs in the United States>>>. The study found its buffer pools are far too small, indicating a significant flaw in its current risk assessment.
Importance 85.0 Sentiment -40.0
per
Anna Trugman>>> is a co-author and forest ecologist at University of California, Santa Barbara. Her research focuses on forest resilience and species that can thrive under emerging climate conditions.
Importance 75.0 Sentiment 20.0
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The Wilkes Center for Climate Science and Policy>>> supported the research and is releasing interactive tools to aid in forest management and conservation efforts, aiming to improve climate solutions.
Importance 70.0 Sentiment 20.0
per
Wu Zetian>>> is a co-lead author of the study, formerly a postdoctoral researcher at the University of Utah and now at Tsinghua University. His analysis focused on wildfire as the largest climate-sensitive risk.
Importance 65.0 Sentiment 10.0
cnt
Importance 0.0 Sentiment 0.0
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