System and Capacity EnablersLAND-BASED CARBON RIGHTS AND ENDURING LAND OBLIGATIONS
Lever last updated: 14 September 2026
Legal rules on who may run a land-based carbon project and how its duties survive ownership changes.
Cost
Very low to Medium
Standard agreements and recording rules within an existing registry can require less than EUR 1 million annually; dedicated public registration and enforcement can require EUR 1–10 million. A larger corporate, charitable or public portfolio that pays for carbon rights or covenant restrictions can reach EUR 10–100 million a year, including annualised upfront payments and administration. These are planning estimates. Count gross payments when the implementing actor makes them; a rules-only authority should not be assigned expenditure borne by separate parties.
Complexity
Low to High
Existing covenant law can support standard deeds and registration procedures. Creating new carbon rights or successor duties requires legislation; reconciling overlapping tenure, registry records, crediting rules and enforcement across several authorities adds substantial institutional work.
Timeline
Very short to Medium
An existing legal route can support the first enforceable agreement and changed land-management decision within a year. New legislation, registry procedures and resolution of the initial rights claims can take two to five years before projects obtain reliable authority to proceed. The duration of the carbon obligation is separate from this implementation timeline.
Integrity, Transparency & MRV
Innovation & Cost Reduction
Social & Environmental Safeguards
Energy, Transport & Storage Infrastructure
Inputs & Capacity
Demand Formation
Bankability and Cost of Capital
Policy Architecture & Coordination
Overview
Governments can establish who has the authority to undertake a land-based carbon project and how its land-management obligations survive changes of owner, tenant or project operator. The rules can recognise a separate carbon right where useful, or let parties use existing leases, contracts and conservation covenants. A covenant is a legally enforceable commitment concerning how land is managed; where legislation allows it to bind successors, a sale need not end the duty. Registration and clear consent requirements connect the project to the people entitled to make decisions about the land. For forestry, soil carbon and other land-based removals, this can make access, monitoring and continuing stewardship legally credible. The lever governs rights and duties attached to land, rather than ownership of an already issued carbon credit or rights to geological pore space.
Key Considerations
The law should distinguish the right to enter and manage land, the right to receive credits, the duties owed after a reversal, and the interests of owners, tenants and customary rights-holders. These may belong to different people. A carbon-right instrument must specify the activities, area, duration and claims it authorises; it should not silently transfer unrelated rights to water, biodiversity or traditional knowledge. The land register and carbon-project register should identify the same area and disclose restrictions without exposing confidential cultural information. Designers must determine which obligations bind a successor, what happens when a lease ends or a lender enforces security, and who can inspect the land or seek a remedy. Existing legal instruments should be used where they work. Creating a new property right is justified only where ordinary contracts and land obligations leave a material gap.
Opportunities
Clear rights can support longer contracts and make suitable land more usable for removal projects, while allowing an unsuitable or contested parcel to be excluded before expenditure escalates. A landholder and project developer can negotiate a defined arrangement instead of relying on an uncertain assertion that ownership of the surface includes every carbon-related entitlement. Tenants and communities with recognised or customary interests can make their own rights visible before a project is registered. Recording continuing obligations gives purchasers and lenders notice of restrictions and reduces the risk that a project sale leaves monitoring or stewardship without a responsible actor. Conservation bodies can hold and enforce agreements across changes in project ownership.
Risks
A new carbon right can entrench an unfair land claim if the underlying tenure has never been resolved. A signature obtained from a formal titleholder may leave tenants, Indigenous Peoples or customary users exposed to restrictions they did not authorise. Long agreements can limit future livelihoods after the original credit revenue has been spent, particularly where payment ends before stewardship duties do. An agreement may also fail on foreclosure, subdivision or lease expiry if its legal priority is unclear. Weakly funded covenant holders can disappear or decline to enforce duties. Legal continuity does not eliminate fire, drought or other reversal risks, and an enduring obligation should not be presented as proof that biological storage is physically permanent.
Monitoring and Evaluation
Land and carbon authorities should reconcile project boundaries, registered rights and responsible parties, and examine whether sales, lease changes or operator failures leave obligations unenforceable. Evaluation should record contested claims, consent defects, successor notifications, inspection access and remedies actually used. A covenant holder should report whether required management continues and whether sufficient resources remain for monitoring and enforcement. Repeated disputes about the same form of tenure or priority should trigger a change in documentation or law. Carbon-stock measurement remains necessary, but legal performance should be assessed separately from the tonnes a project reports.
Stakeholder Engagement
Land registries and property-law authorities should determine what can be recorded, its legal priority and how purchasers discover it. Carbon regulators should specify the project authority and continuing duties needed for registration and crediting. Landowners, tenants, Indigenous representative bodies and customary users should identify overlapping rights and negotiate through representatives they recognise, with independent advice where needed. Lenders and insurers can test whether obligations survive foreclosure and project failure. Conservation charities and other qualified covenant holders should demonstrate the resources and independence needed to monitor and enforce commitments over their stated duration.
Governance Levels
National and regional legislatures can define land rights, registration and successor obligations according to their property-law powers. Local authorities can implement authorised land agreements and, where eligible, hold and enforce covenants. Corporate landholders and conservation organisations can establish agreements under that law. Charitable conservation bodies can take the continuing enforcement role, rather than merely fund another actor. England’s conservation-covenant arrangements expressly allow local authorities, qualifying charities and qualifying private organisations to become designated responsible bodies. None can extinguish another person’s rights through a private agreement to which that person is not bound.
Implementation Strategies
Authorities should first identify the gap in existing property, tenancy and conservation law. Where a lease or covenant already provides enforceable access and continuity, they can publish suitable terms and evidence requirements. A separate statutory carbon right should be created only when it solves a problem that those instruments cannot address.
Project registration should require a documented rights assessment covering owners, tenants, mortgages, easements and Indigenous or customary interests. Parties should obtain each necessary authorisation through a legitimate representative process and explain obligations in usable language. A disputed interest should be resolved or the affected land excluded, rather than concealed by the project boundary.
Legislation and agreements should specify the land and activities covered, the term, management and monitoring access, credit entitlements, permitted uses and responsibility for breaches. Duties on owners, operators and covenant holders should be distinguished, with no automatic assumption that receiving credits also makes a party responsible for every future loss.
The land and project registers should be linked through a consistent parcel reference and require notice of sale, subdivision, tenancy changes and replacement operators. Designers should resolve priority against existing interests and what survives enforcement by a mortgage lender. Purchasers need to discover the obligations before completing a transaction.
A continuing enforcement body should have inspection rights, funding and a succession arrangement if it closes or loses its qualification. Agreements can require reserved funds for monitoring and enforcement, while the law should provide proportionate remedies for breach and a transparent route for justified variation or discharge.
Authorities should align the duration of land duties with the crediting scheme’s actual permanence requirements and explain the consequences of early exit. Reversal compensation, replacement credits and physical restoration need distinct rules. A land obligation can protect remaining stocks and management access, but should never be used to claim that ecological storage has become risk-free.
Case Studies
Australia’s requirement to establish legal authority for a carbon project and carbon maintenance obligations after non-compliance
Australia’s Clean Energy Regulator administers a national scheme issuing Australian Carbon Credit Units for eligible activities. Its legal-right guidance requires the project proponent to hold the right to undertake the activities and the exclusive right to receive the resulting units. Agreements must address relevant owners, tenants and other rights-holders, and that authority must be maintained through the project. This also applies to native titles, meaning First Nations’ traditional rights and interests in land and waters, which can exist without a court determination. Registration alone does not itself establish or certify the underlying right. For land-based removals, the mechanism makes documented authority a condition of participation and identifies a responsible project actor. The regulator can further impose a carbon maintenance obligation on land from a sequestration project when credit-relinquishment requirements have not been, or are unlikely to be, met. This additional declaration protects a specified level of carbon and is notified to relevant parties and the land-registration official. Restrictions apply even to people who were not involved in the original project, and later owners or occupiers must maintain the benchmark and take reasonable steps toward recovery after a loss. This demonstrates how the law can preserve responsibilities after the original operator fails without pretending that the declaration restores already lost carbon.
England’s conservation covenants bind later landholders
England’s conservation-covenant regime allows a landholder and a designated responsible body to agree enforceable conservation duties. Registration gives future purchasers notice and makes the relevant commitments bind successors. The agreement can require active management, restrict damaging uses and provide for inspection, maintenance funding and dispute resolution. A qualifying charity or local authority can therefore retain an enforcement role after the original landholder sells. Courts may order compliance or award damages if terms are breached. For CDR, this offers an established legal route for enduring woodland or other land-management commitments where the conservation tests are met. The conservation-law analogue does not set a carbon-credit standard, and its term and obligations still need to match the project’s actual requirements.
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2–3©2026 Alexander Mäkelä and Carbon Gap.
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