Virginia Carbon Dioxide Storage Lease (with Landowner)
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FAQ
Carbon Leasing Landowners can participate in a carbon lease through carbon sequestration that is stored in the soil or through trees on the property. This is known as carbon offsets or carbon sequestration. Landowners can also lease their previously drilled wells to store carbon underground.
Given the tradeable nature of voluntary carbon credits, market participants are increasingly looking to use such credits as a form of collateral for loans or other forms of financing, as they represent a valuable and liquid asset that can be sold or transferred in case of default, similar to shares or commodities.
?Trade? refers to the sales transactions that take place under this program. Businesses that emit less CO2 than their permitted limit can sell their surplus carbon credits to others that need to emit more carbon than they are permitted.
So what is a carbon credit? A carbon credit is created from a carbon offset, which is an activity that prevents the emission of carbon dioxide or another greenhouse gas to the atmosphere that would otherwise be emitted.