Large-scale carbon offsetting through reforestation and conservation projects has welfare implications for the wildlife that inhabits or is displaced by these landscapes.
Carbon market wildlife welfare is an emerging area. Projects that protect existing forest are generally welfare-positive for resident wildlife. Reforestation on degraded land improves welfare over decades as habitat quality increases. Monoculture plantations — eucalyptus or pine for fast carbon sequestration — support much less wildlife and their wildlife value may be negative relative to diverse grassland or scrubland. Welfare-positive carbon offsetting considers the quality of habitat for resident wildlife, not just carbon tonnage.