Turning pasture back into forest – and locking away CO₂ for the long term
Tropical Mix, Panama
The Tropical Mix afforestation and reforestation project in Panama aims to convert degraded or previously farmed land into permanently managed mixed forests. By establishing new forest cover, the project removes CO₂ from the atmosphere, stores it over the long term, and improves overall landscape stability.
Through afforestation and reforestation, long-lasting tree and forest structures are rebuilt on formerly used or degraded land. As trees grow, carbon is stored in biomass (wood and roots) and – depending on site conditions – also in soils. The climate impact does not come from “avoided deforestation”, but from additional carbon removals: measurably more carbon is stored than would be the case on these areas without the project.
The measures are designed as a long-term land management approach. The project combines the establishment of mixed forest and forestry systems with ongoing maintenance and, depending on the specific plot, economic use – for example through sustainably produced timber products and complementary agricultural components (such as cocoa). In this way, Tropical Mix links reforestation to a clearly defined, verifiable climate impact and shows how long-term CO₂ sequestration can be implemented in practice and transparently documented.
Technical project data – GS2940
Key facts about the afforestation and reforestation project in Panama at a glance.
| Parameter | Description | Source |
|---|---|---|
| Project location | Panama; project areas in Darién, Panamá, Veraguas, Chiriquí, Bocas del Toro | Performance Certification Report (CCIPL2483), “Project Areas” |
| Project type | Afforestation/Reforestation (A/R): reforestation of degraded land (primarily former/extensive pasture), establishment of mixed stands | Performance Certification Report (CCIPL2483), “GHG removal measures” |
| Project standard | Gold Standard | Performance Certification Report (CCIPL2483), “Registration No./Date” |
| Methodology | GS4GG Methodology for Afforestation/Reforestation (A/R) GHG emission reduction & sequestration, Version 2.1 | Performance Certification Report (CCIPL2483), “Methodology” |
| Sector / scope | Land Use & Forests (A/R), Sectoral Scope/Technical Area 14/14.1 | Performance Certification Report (CCIPL2483), “Sectoral Scope/Technical Area” |
| Approach / technology | Reforestation with mixed species, mainly native tree species, complemented in part by teak as a non-native component | Performance Certification Report (CCIPL2483), “GHG removal measures … plantations … native … teak” |
| Project participants (plots/units) | Multiple project sites/operators (incl. ForestFinance, EcoCebaco, Pan Boca del Monte, Sustainable Timbers, Quetzal Blue), each with its own management plan | Monitoring Report (V6.6), section “Description of implemented project” |
| Baseline / starting conditions | Before project start: grassland and pioneer shrubs; remaining forest areas managed as conservation areas | PDD V6.3, section A.1.2 “baseline … grassland and pioneer shrubs … conservation areas” |
| Planting / implementation period | Planting over several years (starting 1995, further planting up to 2017; majority between 2005–2010) | Monitoring Report (V6.6), “Planting … between 1995 and 2017 … majority between 2005 and 2010” |
| Crediting period | 01/09/1995 – 31/12/2024 | Monitoring Report (V6.6), “Crediting period of project … 01/09/1995-31/12/2024” |
| Monitoring & verification | Regular monitoring (e.g., biomass/area inventories, data management) and independent performance certification incl. field assessment; verification by a VVB | Performance Certification Report (CCIPL2483), “performance certification activities … assessment of monitoring practices on the field …” |
| Main impact mechanism | CO₂ removals/sequestration through forest establishment (biomass) and contributions from soil components (SOC depending on monitoring/model) | Performance Certification Report (CCIPL2483), “GHG removals … (Biomass + SOC)” |
| Additionality | Additionality argued via financial/economic rationale: carbon revenues improve IRR/opportunity cost and stabilise project finance | PDD V6.3, section B.5 “carbon market … monetary supplement … IRR … opportunity cost … additionality” |
| Permanence & risk management | A 20% risk buffer is applied to verified volumes (net VERs after buffer) | Performance Certification Report (CCIPL2483), “Buffer 20% … Risk buffer … Net CO2-certificates” |
| Double counting approach | Framed via GS requirements (Annex A Double Counting Requirements); according to the PDD the project is not registered under other standards, no overlap with other carbon projects, no national cap | PDD V6.3, double counting section / points iv–vi |
| Article 6 authorisation (Paris Agreement) | Not stated in the available project documentation | PDD V6.3 (regulatory/double counting context; no Art. 6 statement) |
| CCP status (ICVCM) | Not stated in the available project documentation | PDD V6.3 (no ICVCM/CCP statement) |
| External carbon credit rating (e.g., BeZero/Sylvera) | Not stated in the available project documentation | PDD V6.3 / monitoring & verification documents (no rating stated) |
| Contribution to national climate strategy (context) | The PDD references Panama’s National Strategy for Climate Change 2050 (Decree No. 34/2019) as a general policy context for voluntary carbon initiatives | PDD V6.3, “National Strategy for Climate Change 2050 … provides the context … voluntary carbon initiatives” |
What the project can contribute
Here we summarise what Tropical Mix practically achieves in Panama – and why it matters for the climate.
- 1
Establish new forests on degraded land
Tropical Mix gradually turns former pasture and degraded areas back into forest. This rebuilds stable tree structures where only limited biomass would otherwise develop.
- 2
Store CO₂ for the long term – in wood, roots and soil
As the trees grow, carbon is stored in biomass. Soil conditions can also improve, helping soil carbon become more stable over time. The climate impact is additional sequestration compared to the baseline.
- 3
Mixed stands instead of uniform plantations
The project uses mixed plantings (mainly native species, partly complemented by teak). This broadens the reforestation approach beyond single-species stands and can support greater resilience over time.
- 4
Stabilise land and restore ecological functions
As forest returns, land conditions change: erosion tends to decrease, water retention improves, and habitats re-emerge. These co-benefits can strengthen landscape stability beyond individual plots.
- 5
Make climate impact measurable – and conservatively safeguard it
Carbon removals are documented through monitoring and independent audits. A risk buffer is applied to account conservatively for typical A/R risks such as disturbances or underperformance.
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Global climate relevance
Removing CO₂ from the atmosphere – not only avoiding emissions
Afforestation works differently from forest protection: climate impact is created through additional removals and storage in growing forest systems.
Impact over decades, not just short-term
Forests build carbon stocks over long time horizons. This long-term accumulation is a key reason why afforestation is not “done quickly” but delivers lasting impact.
Rebuilding degraded landscapes
When degraded areas are reforested, the landscape regains structure. Soils, water regulation and biodiversity can recover, strengthening natural climate buffers and reducing vulnerability to extreme weather.
Climate finance enables long-term reforestation
The project is designed for long-term management; carbon revenues are part of the financial basis for maintaining establishment, upkeep and monitoring over many years.
Sustainable Development Goals (SDGs) – The relevant and the complementary contributions
Beyond CO₂ removals in new mixed forests, Tropical Mix delivers clear co-benefits: restoration of degraded land, biodiversity protection through defined conservation areas, and employment and investment in rural regions. The primary contributions are SDG 13 (Climate Action) and SDG 15 (Life on Land). Complementary contributions include SDG 8 (Decent Work & Economic Growth), SDG 12 (Responsible Consumption & Production) and SDG 1 (No Poverty / local benefits).
Tropical Mix removes CO₂ by restoring previously degraded land (including former extensive pasture) and gradually developing it into stable mixed forests. The climate impact is delivered as emission removals (CO₂ taken out of the atmosphere) and is transparently documented through monitoring data and Gold Standard performance certification.
Contribution:
Measurable CO₂ removals through afforestation/reforestation of degraded land – backed by monitoring and independent verification as the basis for carbon credits.By restoring degraded soils and landscapes and by managing designated protection / conservation areas, the project supports the stabilisation of ecosystem functions and the conservation of habitats. The SDG contribution is reflected, among other things, through indicators such as “restored degraded land” and “share of conservation areas”.
Contribution:
Restoration of degraded land and protection of biodiversity areas within the project boundaries – strengthening terrestrial ecosystems over the long term.The project creates employment in planting, maintenance, management and monitoring, and also includes training and capacity-building for staff. These jobs are a relevant co-benefit in the project regions.
Contribution:
Local employment and skills development along forestry and agroforestry activities (including training/workshops) – as an economic co-benefit of project implementation.Tropical Mix links reforestation with sustainable management (including long-term timber production and cocoa cultivation) and supports its evidence base through certification and verification approaches (e.g., FSC/UTZ shares used as indicators in the SDG set).
Contribution:
Transparent, certification- and standard-based management logic (e.g., via reported FSC/UTZ indicators) – supporting more responsible production structures.As an SDG indicator, the project references, among other things, the number of local communities benefiting from project investments. In the project context, benefits are described primarily through economic impulses, employment and project-related activities in the relevant provinces.
Contribution:
Support for rural regions through project investments and economic stimuli (especially via employment and local value creation across multiple provinces).
How CO₂ savings are generated
Forests and soils store carbon. When they are protected, reforested or managed more sustainably, this carbon remains stored and does not enter the atmosphere as CO₂. These avoided emissions can be measured and form the basis for CO₂ certificates.
Land use and forestry projects change how an area develops over time. Without the project, forests would degrade or be cleared, or soils would store less carbon. With the project, more carbon remains stored — or additional carbon is captured, for example through newly planted trees.
Depending on the region, vegetation and soil type, there are established factors that indicate how much carbon a forest or soil can store on average.
For each project, the expected development of the area without the intervention (baseline) is compared with the carbon that is retained or additionally stored through the project activities. The difference represents the avoided or newly captured emissions. These values are verified, regularly updated — and form the basis for issuing CO₂ certificates.
Context and transparency
The Tropical Mix afforestation project (GS2940) is registered under the Gold Standard and is subject to regular monitoring as well as independent audits as part of the Performance Certification process. The reported CO₂ credits are based on documented monitoring data (including area and stand data on biomass development) and are calculated using the recognised Gold Standard methodology for afforestation/reforestation. Only once the monitoring and verification reports have been reviewed and confirmed are the CO₂ removals issued as certificates and recorded in the registry.
Legally robust carbon compensation and credible carbon offsetting
Carbon offsetting is under far closer scrutiny than it used to be—driven by tighter regulation, more critical audiences, and stricter requirements for environmental claims. Anyone communicating climate-neutral, carbon-neutral, or offset needs solid foundations: a robust Corporate Carbon Footprint (CCF), and—where relevant—a Product Carbon Footprint (PCF), plus clear documentation of what has been offset and how.
For legally robust compensation, three elements are decisive:
- Transparent methodology (accounting approach and project logic are traceable)
- Independent assurance (e.g., monitoring and verification under recognized standards)
- Clear, defensible communication (no overclaims; precise wording; verifiable statements)
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