SelvaFlux

Impact

Modeled Effects of Methane Revenue on Reforestation

Trees remove methane through their bark. A restoration claim would require evidence that a payment changed a documented project decision. The spatial model estimates which grid cells meet a 12% required return. The spatial model also estimates peak funding need. A separate completion scenario applies an assumed response that has not been fitted to observed project data.

16.8 kg

CH₄/ha/year

Upper-end tropical uptake used in the model

0.45 t

CO₂e/ha/year

GWP100 value before project deductions

+1.7 Mha

at $50, GWP100

Increase in modeled bankable area

+6.5 Mha

at $50, GWP*

New-sink scenario with full uptake from year one

The area figures report modeled bankability. They do not report planted or delivered forest. No carbon registry currently credits bark methane. The GWP* results are a separate accounting scenario.

Project causation

Purchase Claims Depend on Project Stage

A restoration claim requires a future project decision. Project records must show that the payment changed that decision.

Before financial close

An advance purchase can contribute to a documented financing gap. A restoration claim would require evidence that the purchase changed the planting decision.

Evidence needed

Affected hectares, budget gap, planting schedule, and financing decision

Restoration underway

New funding can support remaining planting, maintenance, monitoring, or continuation when those activities still depend on finance.

Evidence needed

Unfunded work, timing, use of proceeds, and the consequence without the purchase

Fully financed or mature

A new purchase cannot be credited with past planting. It can fund methane measurement or affect a later expansion or a separate project.

Evidence needed

Existing uptake reported separately from any later restoration decision

Developer portfolio

A modeled methane price changes which sites meet the required return. Developer records would be needed to show that the price changed site selection or delivery.

Evidence needed

Pipeline budgets, site decisions, capital allocation, and project outcomes

Advance purchase before planting

Timing of an Advance Purchase

A prepayment can contribute to financial close or a defined expansion. The study does not model an advance-purchase transaction.

Revenue from issued credits

Timing of Issued Credit Revenue

In the spatial model, credit revenue arrives one year after removal. Under that assumption, methane reduces peak funding need across land already bankable at $50 by 1.3% under GWP100 and 4.5% under GWP*.

Additionality

Five Claims Require Separate Evidence

Field measurements establish physical uptake. The host-project method must establish the forest counterfactual. An approved methane method must define credit eligibility. Project records must connect a purchase to a decision. Separate models estimate the wider market response.

Physical Uptake

Are the trees removing methane, and how much? Field measurements estimate the flux, and the forest inventory scales it across the eligible area.

Host-Project Counterfactual

Would the forest have been restored or protected without the underlying project? The host forest method must answer this question.

Methane Credit Eligibility

An approved method must define the methane baseline, uncertainty, leakage, permanence, and controls against overlapping claims.

Purchase Causation

Which present decision changes because of this purchase? The answer may concern planting, completion, expansion, or measurement.

Market Effect

How does a methane price change later project development across many sites? The spatial and finance models test this effect under stated assumptions.

For trees already growing, a buyer did not cause the original planting. We report uptake on those trees separately. A claim for additional restoration would require the host project to meet additionality rules, an approved methane method, and project records showing that the purchase changed a financing or planting decision.

Spatial model

The Supply Curve Estimates Bankable Tropical Land

The model evaluates a 30-year reforestation project in 5.35 million one-kilometer grid cells covering 89.0 million hectares of constrained tropical restoration land. Each cell uses mapped forest growth and net agricultural income. The model assigns a project type and its fixed costs, then calculates a break-even carbon price with and without prospective methane revenue. Across the modeled area, methane increases the present value of credit revenue by an area-weighted average of 2.9% under GWP100 and 10.8% under GWP*.

Assumptions Used in the Supply Curve

  • Methane and biomass credits receive the same price per tonne.
  • The headline curve assigns 100% of credit revenue to the developer.
  • The model assigns natural regeneration and active restoration in a 70 to 30 area split, with fixed costs for each type.
  • Methane MRV costs are excluded from project costs because SelvaFlux bears them.
  • The GWP* result assumes a newly established sink and the full mature uptake rate from year one.

Bankable at $50 without methane

32.0 Mha

This is the modeled base at a 12% required return.

Newly bankable under GWP100

+1.7 Mha

This is the modeled increase at $50 per tonne.

Newly bankable under GWP*

+6.5 Mha

The model treats GWP* as a separate new-sink scenario.

Modeled bankable area at three carbon-credit prices.
Credit priceWithout methaneWith GWP100With GWP*
$205.1 Mha5.5 Mha6.4 Mha
$5032.0 Mha33.7 Mha38.5 Mha
$7559.9 Mha61.7 Mha66.3 Mha

Across three assumed price distributions

GWP100+0.8 to 1.7 Mha

Separate GWP* scenario

GWP*+3.1 to 6.3 Mha

The weighting uses assumed carbon-price distributions. Observed transaction volumes are not an input. At higher prices, more land is bankable without methane, so methane adds fewer newly bankable hectares.

Coarse map of tropical regions grouped by modeled reforestation bankability
The geographic pattern reflects mapped forest growth and net agricultural income, model-assigned project costs, and credit deductions. The public map uses broad tiers and does not show site-level results.
See the spatial bankability analysis

Project delivery

Bankability and Completion Use Separate Calculations

A bankable grid cell meets the required return. Financing and completion are two factors that affect delivery. The model reports them separately, and the results below should not be added.

Prospective methane revenue
Changes modeled project cash flow
Could change a financing or planting decision, if project records show it
Could change delivered forest area

Each step is conditional. The model does not estimate advance-purchase effects, and a project claim requires records showing that the purchase changed the decision.

01Spatial model and demand scenarios

Bankable Land at the Prices Tested

Prospective methane revenue lowers each grid cell's break-even carbon price. Some marginal sites then meet the model's 12% required return.

The modeled increase is 0.8 to 1.7 Mha under GWP100 across the demand scenarios tested.

02Spatial cash-flow result

Peak Funding Need With Issued Credit Revenue

In the spatial cash-flow model, annual methane revenue reduces peak funding need. The model assumes that credit revenue arrives one year after removal. It does not estimate an advance-purchase transaction.

Peak funding need falls 1.3% under GWP100 and 4.5% under GWP*.

03Assumed completion response

Completion Scenario for Land Already Bankable

The scenario assumes that completion rates rise with project returns on land that was already bankable. At $50, it applies to about 32 Mha bankable without methane.

The scenario estimates an increase in completed area of 0.3 to 0.5 Mha under GWP100 and 1.2 to 1.9 Mha under GWP* at $50. The completion response has not been fitted to observed project data.

2.6 Mha

per percentage point near a 12% required return at $50

The required return is a major sensitivity. The study does not estimate how much methane revenue would lower that rate. Any methane-attributed reduction remains a labeled scenario.

Finance and land constraints

Effects Under Finance and Land Constraints

The model does not multiply the bankable-area result by the financing result. The cases below are conceptual scenarios. Current evidence does not identify which constraint limits a specific market or project portfolio.

Scenario: finance is scarce

Scarce Finance Limits Delivery From Newly Bankable Land

More land meets the return threshold. Scarce finance leaves much of it unbuilt. The modeled funding need and completion assumptions determine the conditional effect. Advance purchases remain outside the model.

Scenario: capital is abundant

Bankable Land Limits Delivery When Capital Is Abundant

When finance can cover all bankable land, reducing funding need does not add hectares. Bankable land and completion determine the conditional effect.

Methane accounting

GWP* Depends on the Methane Flux History

The reforestation scenario initializes methane uptake at zero and assumes the full mature uptake rate from year one. For that modeled step change, the annual GWP* value is about four times the GWP100 value for 20 years and about one quarter of it after year 20. If uptake began before measurement, the measurement date cannot be used as the sink's establishment date.

Years 1 to 20

~1.81 tCO₂-we/ha/year

This gross value is about four times the GWP100 value for a newly established constant sink.

After year 20

~0.11 tCO₂-we/ha/year

This gross value is about one quarter of the GWP100 value while the sink remains stable.

Our 2024 Nature study did not measure how uptake develops as restored forests age. Full mature uptake from year one is an explicit model assumption.

Annual modeled bark-methane accounting values over a 30-year reforestation and forest-protection project under GWP100 and GWP star
The reforestation panel shows the new-sink scenario before project deductions. The figure also shows a separate avoided-deforestation scenario. The methane flux history and the uptake curve affect both results.

Published supply curves

Published Supply Curves Give a Separate Estimate

An earlier calculation estimates a central reforestation supply elasticity near 1.0 from published supply curves. Near the prices tested, this means that a 1% increase in effective project revenue corresponds to about a 1% increase in modeled reforestation supply. The spatial model provides the main estimate on this page. The elasticity result is reported separately.

Central elasticity

~1.0

The estimate is derived from published tropical reforestation supply curves.

Inputs to the Elasticity Check

The calculation applies the modeled revenue change to published global reforestation potential. The high case uses GWP*, the high biological potential estimate, and an elasticity of 2.0. This provides a separate comparison with the spatial result. It is not an estimate of SelvaFlux project delivery or purchase attribution.

Evidence and assumptions

Evidence Type for Each Result

Published measurements provide the methane and forest-growth inputs. Other results depend on model choices or scenario assumptions.

Published or measured inputs

  • Tropical bark-methane uptake from our 2024 Nature study
  • Forest growth rates from published restoration data
  • Mapped land area, forest growth, and net agricultural income

Core model choices

  • 30-year project life and 12% required return
  • One-year delay between removal and credit revenue
  • Performance, buffer, and leakage deductions
  • Natural regeneration and active restoration assigned in a 70 to 30 area split
  • 100% of credit revenue assigned to the developer on the main curve

Scenario assumptions

  • Carbon-price distributions used to weight the supply curve
  • Completion response to a higher project return
  • Future adoption of GWP*

Evidence still needed

  • Methane uptake as restored forests age
  • Reforestation project failure and completion data
  • Financing decisions changed by an advance purchase

The Single-Project Calculation Is Illustrative

A separate illustrative project calculation uses simplified costs and timing. Under its selected inputs, methane reduces peak funding need. We do not use that result as a study estimate. The spatial cash-flow model provides the funding-need figures on this page.

Sources

References

  1. Gauci, V. et al. (2024). Global atmospheric methane uptake by upland tree woody surfaces. Nature 631. doi:10.1038/s41586-024-07592-w
  2. Allen, M. R. et al. (2018). A solution to the misrepresentations of CO₂-equivalent emissions of short-lived climate pollutants. npj Climate and Atmospheric Science 1. doi:10.1038/s41612-018-0026-8
  3. Cain, M. et al. (2019). Improved calculation of warming-equivalent emissions for short-lived climate pollutants. npj Climate and Atmospheric Science 2. doi:10.1038/s41612-019-0086-4
  4. Cook-Patton, S. C. et al. (2020). Mapping carbon accumulation potential from global natural forest regrowth. Nature 585. doi:10.1038/s41586-020-2686-x
  5. Busch, J. et al. (2019). Potential for low-cost carbon dioxide removal through tropical reforestation. Nature Climate Change 9. doi:10.1038/s41558-019-0485-x
  6. Busch, J. et al. (2024). Cost-effectiveness of natural forest regeneration and plantations for climate mitigation. Nature Climate Change 14. doi:10.1038/s41558-024-02068-1
  7. Fesenmyer, K. A. et al. (2025). Addressing critiques refines global estimates of reforestation potential for climate change mitigation. Nature Communications. doi:10.1038/s41467-025-59799-8
  8. Favero, A. and Austin, K. G. (2026). Charting our forest future: national supply curves for forest-based CO₂ mitigation. npj Climate Action 5. doi:10.1038/s44168-026-00335-9
  9. IPCC (2021). Climate Change 2021: The Physical Science Basis, Chapter 7. Cambridge University Press. https://www.ipcc.ch/report/ar6/wg1/chapter/chapter-7/