Forest Carbon Investment Due Diligence

Analytical support for institutional investors evaluating forest-based climate investments, from acquisition due diligence to portfolio optimization.

Is This For You?

This service is designed for:

  • Climate funds and impact investors evaluating timberland or forest carbon acquisitions
  • TIMOs (Timber Investment Management Organizations) integrating carbon revenue streams
  • Pension funds and family offices seeking forest-based climate investments
  • Investment managers conducting portfolio-level climate risk assessment
  • Analysts requiring independent third-party validation of carbon project claims

Investment Analysis Challenges

Carbon Credit Valuation Uncertainty

Forest carbon offset projects require specialized assessment of carbon accounting methodologies, additionality demonstration, and permanence risk. Standard financial analysis often lacks technical depth needed to evaluate verification requirements under VCS, CAR, or other carbon standards.

Wildfire and Climate Risk Quantification

Climate change is increasing wildfire frequency and severity in many timberland regions. Traditional forest valuation models may not adequately capture these evolving risks or assess costs of fuel treatment and risk mitigation strategies.

Integration of Ecosystem Services

Modern timberland investments increasingly value carbon sequestration, watershed protection, and biodiversity alongside timber production. Multi-objective optimization requires frameworks that quantify trade-offs between revenue streams.

Due Diligence Timeline Pressure

Investment transactions operate under tight deadlines. Technical analysis of forest inventory, carbon accounting, and regulatory compliance must be rigorous while meeting decision timelines.

How Arbos Supports Investment Decisions

Independent Technical Assessment

Arbos provides third-party evaluation of forest carbon offset projects and timberland assets, drawing on experience supporting over $500M in climate and timberland investments. Analysis includes review of carbon accounting methodologies, inventory quality, and verification risk assessment.

Wildfire Risk Analysis

Geospatial analysis of wildfire exposure using fuel loading models, fire history, and climate projections. Assessment includes evaluation of fuel treatment costs and integration of fire risk into forest management planning.

Multi-Objective Portfolio Optimization

Development of optimization frameworks that integrate timber valuation with ecosystem service quantification. Analysis draws on operations research methods including mixed integer-linear programming and scenario analysis.

Experienced Team Coordination

Leadership of cross-functional due diligence teams combining forestry, carbon accounting, geospatial analysis, and financial modeling expertise. Experience managing technical workstreams within transaction timelines.

Relevant Capabilities

Technical Credentials

  • Led analytics team supporting $500M+ in timberland investments
  • Author of VCS methodology for measuring forest biomass using remote sensing
  • Implementation of first LiDAR-based inventory under California compliance carbon protocol (180,000 acres)
  • 30+ peer-reviewed publications on forest biomass, remote sensing, and supply chain optimization
  • PhD in Geography with dissertation on aerial laser scanning for forest biomass management

Engagement Approach

Due diligence projects typically involve:

  1. Initial Assessment: Review of investment thesis, target asset characteristics, and analytical requirements
  2. Data Evaluation: Analysis of forest inventory, carbon accounting documentation, and regulatory compliance materials
  3. Risk Assessment: Technical evaluation of carbon credit permanence, wildfire exposure, and verification requirements
  4. Reporting: Written analysis with findings, risk factors, and recommendations
  5. Investment Committee Support: Presentation of technical findings and response to questions

Timeline and scope are tailored to transaction requirements and decision processes.

Schedule a consultation to discuss your investment analysis needs.