Carbon credits are a game changing tool for modern forestry in Alaska. They make money from what forests already do: accumulate carbon molecules in wood. They can offer a management strategy for generating revenue in areas where timber harvests could put high-value fish and wildlife habitat at risk. The coastal forests of Southeast Alaska are particularly well suited for selling carbon credits because the cold and wet climate helps protect them from wildfires, giving buyers higher confidence in the durability of the credits.
Evaluating the benefits of traditional timber harvest compared to carbon credits requires a thoughtful site-specific process, but a wealth of examples illustrate the potential benefits of selling carbon credits in Alaska. For example, in 2016, Sealaska Corporation put approximately 165,000 acres into a forest carbon project. Sealaska in 2020 reported earnings of more than $100 million from its carbon project, or over $600 per acre. The corporation used $10 million of the proceeds to help establish the Seacoast Trust, which supports ongoing local jobs and economic development throughout southeast Alaska.
Carbon prices and demand for carbon credits are continuing to rise. In 2022, the State of Alaska commissioned a report to assess opportunities for generating carbon credits on State land. The study identified 76,900 acres centered on the Haines State Forest as the best opportunity, with projected revenue of more than $103 million, or $1,351 per acre. By comparison, a timber sale advertised on the same lands in 2015 was expected to earn $300 per acre in one-time royalties to the State, or $400 in today’s dollars. These estimates suggest carbon credits could generate more revenue to the State than traditional timber harvest on the Haines State Forest.
What about broader economic impacts? The timber sale was expected to generate an estimated $2,000 per acre statewide economic impact through job creation and value-added processing. The statewide economic impacts of carbon credits, such as the value to tourism, subsistence hunting and commercial and subsistence fishing have not been formally evaluated, but our analysis suggests the economic benefits would be significant. And unlike what can be short-lived benefits associated with traditional timber harvest — because forests can take decades to regrow — the benefits of an intact forest continue to accrue over time.
The Haines State Forest supports several important commercial and subsistence fisheries, such as the Chilkat Lake sockeye. According to ADF&G reports from 1976-2007, an annual average of about 85,000 fish was commercially harvested in the Chilkat Lake area. Subsistence harvests from 1990-2004 averaged about 6,700 fish annually. This data suggests over 90,000 sockeye salmon are harvested each year. Using an average weight of 5.2 pounds and ex-vessel price of $1.52 per pound, the Chilkat Lake fishery conservatively generates $711,360 a year, not including job creation, value-added processing, or cultural and health benefits. New road development and forest cover loss associated with traditional timber harvest in this high-value watershed could harm the fishery spawning grounds through degraded water quality.
About 6,835 acres are zoned for timber harvest around Chilkat Lake. Using the highest multiplier value of $2,000 per acre for traditional timber harvest, this would generate approximately $14 million. The State-commissioned report’s range of $12-22 per carbon credit and a forest carbon model published in 2025 suggests the Chilkat Lake watershed could hold in the neighborhood of $16-29 million in carbon credits—revenue that would be generated without jeopardizing other long-term economic values. The carbon credit revenue is a conservative estimate that accounts for a 50% discount given to these types of projects to ensure the carbon savings are additive.
Forest carbon credits are a powerful alternative to timber harvest for generating revenue in some of the most productive fish and wildlife habitats without negative impacts to habitat and water quality. The numbers presented in this article are coarse and are meant to illustrate some of the considerations and opportunities for balancing traditional timber harvest with carbon credits to maximize economic returns on the State’s resources.
The State showed foresight with the 2022 study, and in collaboration with locally affected Tribes and communities should pursue strategic use of carbon credits to maximize benefits for all Alaskans.
Colin Shanley is the founder of Northwest GIS, an environmental research consulting company based in Juneau, Alaska, that specializes in geospatial analysis of natural resource data.
Rebecca Braun came to Alaska in 1994 for a job with the U.S. Forest Service Pacific Northwest Research Station. She has since worked as an educator, journalist, researcher and policy advisory. She lives in Juneau.
Carbon credits could be a winner for Haines State Forest
Carbon credits are a game changing tool for modern forestry in Alaska. They make money from what forests already do: accumulate carbon molecules in wood. They can offer a management strategy for generating revenue in areas where timber harvests could put high-value fish and wildlife habitat at risk. The coastal forests of Southeast Alaska are particularly well suited for selling carbon credits because the cold and wet climate helps protect them from wildfires, giving buyers higher confidence in the durability of the credits.
Evaluating the benefits of traditional timber harvest compared to carbon credits requires a thoughtful site-specific process, but a wealth of examples illustrate the potential benefits of selling carbon credits in Alaska. For example, in 2016, Sealaska Corporation put approximately 165,000 acres into a forest carbon project. Sealaska in 2020 reported earnings of more than $100 million from its carbon project, or over $600 per acre. The corporation used $10 million of the proceeds to help establish the Seacoast Trust, which supports ongoing local jobs and economic development throughout southeast Alaska.
Carbon prices and demand for carbon credits are continuing to rise. In 2022, the State of Alaska commissioned a report to assess opportunities for generating carbon credits on State land. The study identified 76,900 acres centered on the Haines State Forest as the best opportunity, with projected revenue of more than $103 million, or $1,351 per acre. By comparison, a timber sale advertised on the same lands in 2015 was expected to earn $300 per acre in one-time royalties to the State, or $400 in today’s dollars. These estimates suggest carbon credits could generate more revenue to the State than traditional timber harvest on the Haines State Forest.
What about broader economic impacts? The timber sale was expected to generate an estimated $2,000 per acre statewide economic impact through job creation and value-added processing. The statewide economic impacts of carbon credits, such as the value to tourism, subsistence hunting and commercial and subsistence fishing have not been formally evaluated, but our analysis suggests the economic benefits would be significant. And unlike what can be short-lived benefits associated with traditional timber harvest — because forests can take decades to regrow — the benefits of an intact forest continue to accrue over time.
The Haines State Forest supports several important commercial and subsistence fisheries, such as the Chilkat Lake sockeye. According to ADF&G reports from 1976-2007, an annual average of about 85,000 fish was commercially harvested in the Chilkat Lake area. Subsistence harvests from 1990-2004 averaged about 6,700 fish annually. This data suggests over 90,000 sockeye salmon are harvested each year. Using an average weight of 5.2 pounds and ex-vessel price of $1.52 per pound, the Chilkat Lake fishery conservatively generates $711,360 a year, not including job creation, value-added processing, or cultural and health benefits. New road development and forest cover loss associated with traditional timber harvest in this high-value watershed could harm the fishery spawning grounds through degraded water quality.
About 6,835 acres are zoned for timber harvest around Chilkat Lake. Using the highest multiplier value of $2,000 per acre for traditional timber harvest, this would generate approximately $14 million. The State-commissioned report’s range of $12-22 per carbon credit and a forest carbon model published in 2025 suggests the Chilkat Lake watershed could hold in the neighborhood of $16-29 million in carbon credits—revenue that would be generated without jeopardizing other long-term economic values. The carbon credit revenue is a conservative estimate that accounts for a 50% discount given to these types of projects to ensure the carbon savings are additive.
Forest carbon credits are a powerful alternative to timber harvest for generating revenue in some of the most productive fish and wildlife habitats without negative impacts to habitat and water quality. The numbers presented in this article are coarse and are meant to illustrate some of the considerations and opportunities for balancing traditional timber harvest with carbon credits to maximize economic returns on the State’s resources.
The State showed foresight with the 2022 study, and in collaboration with locally affected Tribes and communities should pursue strategic use of carbon credits to maximize benefits for all Alaskans.
Colin Shanley is the founder of Northwest GIS, an environmental research consulting company based in Juneau, Alaska, that specializes in geospatial analysis of natural resource data.
Rebecca Braun came to Alaska in 1994 for a job with the U.S. Forest Service Pacific Northwest Research Station. She has since worked as an educator, journalist, researcher and policy advisory. She lives in Juneau.