The Bluesource/DNR Big Wild Forest Carbon Project will be the first forest in the United States to be state-run and produce carbon credits at the same time.
The forest covers 3.9 million hectares of state-run property in Michigan.
DTE Energy (DTE), the largest power supplier in Michigan, and The Department of Natural Resources (DNR) of Michigan came to an agreement regarding the project.
As a result, DTE will severely reduce its carbon footprint. The DNR will also add around $10 million dollars of revenue streams.
Following the announcement, the Governor of Michigan, Gretchen Whitmer said “To meet our long-term commitment to decarbonization, we need to utilize innovative partnerships to increase revenues for land and climate programs.”
Michigan can increase offsets by producing more carbon credits but also produce further revenue from the sale of carbon credits.
Each tree absorbs up to 48 pounds of carbon emissions. A tree that is 40 years old can store 1 ton of carbon. As a result, 3.9 million hectares of land full of trees would make a significant impact on emissions in Michigan.
DTE is aiming to be carbon neutral by 2050. As well, DTE will start receiving carbon credits in 2022 in exchange for payments to the state of Michigan. With the carbon race heating up, every measure is required.