Why buy Skógarkolefni – Forest Carbon Units

Before you buy credits from Skógarkolefni – The Icelandic Forest Carbon Code (FCC):

Forest carbon projects contribute to just one of a hierarchy of actions that can help to combat the effects of climate change. Before considering buying carbon credits, including Forest Carbon Units, businesses and other organizations should:

  • Understand and measure their carbon footprint (Scope 1, 2 and where possible Scope 3 emissions), in line with the ÍST TS 92:2022 Carbon offsetting: Specification with guidance.
  • Set science-based targets to reduce emissions in line with the Iceland’s commitment to be Net Zero by 2040.
  • Take action to reduce Scope 1, 2 and where possible Scope 3 emissions in line with your emissions reduction plan.

Expectations of high integrity buyers in the carbon market are being set out by the Voluntary Carbon Markets Integrity Initiative (https://vcmintegrity.org/), and Nordic Dialogue on Voluntary Compensation (https://nordicdialogue.com/).

Once you're reducing emissions in line with your reduction plan:

We all know the daily operations of our businesses can come at an environmental price: whether it’s the consumption of raw materials, our energy use, or the emissions in our supply chains, it’s our duty to recognize and reduce our environmental impact.

Then there are our unavoidable greenhouse gas emissions. Some Icelandic businesses are now required to report these emissions by law, but we believe all companies should have the opportunity to compensate for their emissions in the best possible way: by making positive changes to land use traditions in Iceland by creating new forests.

Your investment in new forest creation in Iceland now will have positive impacts for generations to come. And your business will benefit too: showing your customers, clients, and suppliers exactly what you mean when your business talks about reducing its environmental impact. Your involvement in Forest Carbon Code Projects can demonstrate leadership in your sector.

The Forest Carbon Code

The Forest Carbon Code (FCC) is the quality assurance standard for forest creation projects in Iceland and generates independently verified carbon units. Backed by government, the forest industry and carbon market experts, the Code is unique in providing verified carbon units right here in Iceland. The Icelandic Forest Service is internationally recognized for high standards of sustainable forest management, carbon management, and forest science.

Supported by robust science from Icelandic Forest Research, independent validation and verification and a transparent registry where you can track ownership, transfer, and use of credits, it allows you to:

  • Reduce your net emissions: The ÍST TS 92:2022 Carbon offsetting: Specification with guidance show how you can use verified Forest Carbon Units to compensate for your company's gross emissions.
  • Claim Carbon Neutrality:
    • ÍST TS 92:2022 Carbon offsetting: Specification with guidance shows how verified Forest Carbon Units can be used in claims of carbon neutrality of an activity, product, service, building, project, or event in Iceland.
    • ÍST TS 92:2022 Carbon offsetting: Specification with guidance also demonstrates how to define and measure your footprint, set targets to reduce it and then deliver reductions internally or through purchasing verified emissions reductions and removals. Forest Carbon Code verified units can be used.
  • Buy in advance and help with your pathway to Net Zero by 2040: Purchase units in advance of sequestration helping to plan your pathway to net zero over the years to come.


Companies can compensate for their emissions using carbon units from FCC projects, but not for emissions from international aviation or shipping.

Many social and environmental benefits

Creating new forests soaks up carbon dioxide (CO2) from the atmosphere and provides many other social and environmental benefits, including:

  • biodiversity and habitat creation
  • flood prevention, water quality
  • air quality
  • health, wellbeing, and enjoyment
  • shelter for livestock
  • timber and wood fuel
  • skilled jobs
  • community engagement and staff volunteering, education, and development

The Woodland Carbon Code in the UK commissioned EFTEC Consulting to Assess the Wider Benefits of Woodland Carbon Code Projects in 2016. They estimated that, on average, each carbon unit (tCO2e) purchased from a Woodland Carbon Code project also delivers at least a further £100/tCO2e of value through recreation, biodiversity, air quality and benefits to the local economy. EFTEC also estimated that 12.5% of projects were within areas identified as priority to reduce water pollution/ flood risks, and that a small percentage were accessible to communities in the lowest 20% of social deprivation areas.

Other benefits to your company

Other benefits of buying forest carbon units in Iceland include:

  • Local & Tangible: All the FCC projects are based in Iceland, you could find a project near to you, and forest carbon is a tangible product which you can visit and touch.
  • Employee and customer engagement: Some FCC projects offer companies the opportunity to get involved in creating forest, by holding tree planting days, using the site for other employee events, or engaging customers with competitions and prizes relating to the new forest.