Forestry Rights — Frequently Asked Questions
What does NCRB mean by tokenized forestry rights?
NCRB tokenizes forestry rights and forest-based environmental credits — including sustainable timber harvesting rights, FSC-certified forest management interests, REDD+ credits, and forest conservation easements. Each token is backed by a verified forest asset with a documented sustainable harvesting plan or conservation covenant.
The global forestry rights market is valued at $800 billion with a 7% annual growth rate.
What types of forestry rights does NCRB support?
| Sub-type | Description |
|---|---|
| Timber Harvesting Rights | Rights to harvest timber from a defined forest area under a sustainable harvesting plan |
| Sustainable Forestry Management | FSC/SFI certified forest management interests — combining timber value with certification premium |
| REDD+ Credits | Reducing Emissions from Deforestation and Forest Degradation — avoided deforestation carbon credits |
| Forest Conservation Easements | Permanent or term agreements restricting development and protecting forest ecosystem services |
Which registries and certification standards are supported?
| Standard / Registry | Notes |
|---|---|
| Forest Stewardship Council (FSC) | Gold standard for responsible forest management globally |
| Sustainable Forestry Initiative (SFI) | North American sustainable forestry standard |
| American Tree Farm System (ATFS) | For small and family forest owners |
| Verra (VCS) | For REDD+ credits under the Verified Carbon Standard |
| Gold Standard | For REDD+ credits with SDG co-benefits |
| State Forestry Departments | For jurisdictional REDD+ and state-level forest programmes |
How is timber quality graded?
NCRB uses NHLA (National Hardwood Lumber Association) grades and FSC certification tiers to determine timber quality:
| Grade | Description | Typical Value |
|---|---|---|
| FAS (Firsts and Seconds) | Highest hardwood grade — large, clear cuttings | $2,000–$5,000 / MBF |
| No. 1 Common | Good quality with minor defects | $1,000–$2,500 / MBF |
| FSC Gold | FSC-certified with Chain of Custody | $3,000–$8,000 / acre |
| FSC Mix / Controlled | FSC Mix or Controlled Wood certified | $1,500–$4,000 / acre |
| SFI Certified | Sustainable Forestry Initiative certified | $1,000–$3,500 / acre |
| REDD+ Credits | Avoided deforestation verified carbon credits | $5–$20 / tCO₂e |
What are the minimum requirements to tokenize a forestry right?
- FSC, SFI, or ATFS certification from the applicable certifying body
- A documented sustainable harvesting plan including annual allowable cut (AAC)
- Clear title verification to the forestry right being tokenized
- For REDD+ credits: additional verification under Verra VCS or Gold Standard, plus third-party auditor sign-off
- Forest inventory data dated within the last 5 years
- Token issued as
NC-FORESTRY-{ID}(ERC-7943 uRWA)
How is quality rated?
Forestry rights tokens receive a programmatic quality score (0–100) across six weighted dimensions — the same framework used across all NCRB asset classes (Technical Quality 25%, Additionality 20%, Permanence 20%, Certification Level 15%, Social Impact 12%, Vintage/Condition 8%).
For forestry rights, Permanence captures whether conservation covenants run in perpetuity. Social Impact reflects Indigenous land rights, community employment, and biodiversity co-benefits — all of which attract price premiums from institutional buyers.
| Band | Score |
|---|---|
| AAA | 85–100 |
| AA | 75–84 |
| A | 65–74 |
| BBB | 50–64 |
| Not Eligible | < 50 |
What global frameworks are forestry rights aligned with?
- SBTi FLAG (Forest, Land, and Agriculture) — science-based targets for land-use emissions
- TNFD — Taskforce on Nature-related Financial Disclosures (biodiversity and nature risks)
- Paris Agreement — Article 6 — REDD+ credits with corresponding adjustments tracked on-chain
- CSRD E4 — biodiversity and ecosystem disclosures under EU Corporate Sustainability Reporting Directive
What is the difference between a REDD+ credit and a timber harvesting right?
| REDD+ Credit | Timber Harvesting Right | |
|---|---|---|
| What it represents | CO₂ emissions avoided by preventing deforestation | Legal right to harvest timber under a sustainable plan |
| Traded as | Carbon credit (tCO₂e) | Forestry right (volume or area) |
| Verification | Verra VCS or Gold Standard | FSC/SFI/ATFS certification |
| Buyer | Corporate sustainability/net-zero buyers | Timber industry, institutional land investors |
| Primary value driver | Avoided deforestation + carbon price | Timber volume + certification premium |
NCRB supports both on the same platform, enabling buyers to access either the carbon attribute or the underlying timber value from certified forest assets.
How is token revenue distributed?
| Recipient | Share |
|---|---|
| Asset Owner | 70% |
| Registry Partner | 10% |
| NCRB Platform | 10% |
| Third Party (aggregator / referrer) | 10% |
What fees apply?
- Trading fee: 2.5% per transaction
- AUM fee: 1.5% annually
- BaaS licensing: $50,000–$200,000 for registry partners