Investment attractiveness of afforestation in Canada inclusive of carbon sequestration benefits

Afforestation is one of several possible mechanisins available to sequester carbon and hell) reduce greenhouse gas concentrations. We have developed a spatial Monte Carlo-based sinuulation model, Canadian Forest Service-Afforestation Feasibility Model (CFS-AFM) to help assess the financial attractiveness of afforemation as a means of carbon slot-age in Canada. The model tracks five carbon pools and simulates costs and benefits of plantation investments. In this paper we sinulate three,forestation scenarios that could be used in Canada; plantations using hybrid poplar, hardwoods, of and soft woods with average growth rates of 14 and 6-7 m(3)/year, respectively The attractiveness of afforestation is driven by regional cost and plantation productivity variation and carbon price expectations. The results indicate that afforestation would be (at attractive investment in many areas of the country at carbon prices of $10 per metric ton of CO2 or higher. However, with a zero carbon price, very little afforestation would be financially viable. Thus, with low carbon price expectations, other co-benefits may be required to make afforestation more attractive to Canadian investors.