Colorado State Land Board Launches First-Ever Biological Carbon Sequestration Leasing Policy to Boost Conservation Practices and Revenue

New framework opens voluntary carbon market opportunities on state trust lands, generating conservation benefits and sustainable revenue for public schools

ALAMOSA, CO – The Colorado State Land Board approved its first-ever Biological Carbon Sequestration Leasing Policy, establishing a clear and consistent framework for voluntary carbon capture projects on state trust lands. This landmark policy, adopted at the Board’s August 14 meeting, will create new opportunities for carbon credit generation while supporting Colorado’s climate and conservation goals — and boosting funding for the state’s K–12 public schools.

The policy is part of the Board’s new Biological Carbon Program, which enables agricultural and other lessees to partner with Board-approved Qualified Project Developers (QPDs) to design and implement projects that sequester carbon in soils and vegetation. Verified carbon credits from these projects would be issued through carbon registries and then sold on voluntary markets, creating a new, sustainable revenue stream for the trust.

"By creating a dedicated policy for biological carbon sequestration, we’re ensuring that Colorado’s trust lands are part of the solution to climate change while continuing to fund our public schools for generations to come,"

said Deborah Froeb, President of the Colorado State Board of Land Commissioners.

"This program is a win-win. It helps our lessees adopt innovative land stewardship practices and generates new, market-based revenue for education,"

said Dr. Nicole Rosmarino, Director of the State Land Board.

"Colorado is now positioned as a national leader in integrating biological carbon sequestration into public land management."

The Biological Carbon Sequestration Leasing Policy was developed in cooperation between the State Land Board’s Ecosystem Services Program and Field Operations District Offices, building on a program framework presented to the Board in April 2025. The policy provides staff with guidance on lease terms, environmental attribute transfers, and market engagement, ensuring projects are implemented effectively and with transparency.

Broader State Impact

The new policy also aligns with Colorado’s Greenhouse Gas Pollution Reduction Roadmap 2.0, the Colorado Carbon Management Roadmap, and the Strategic Plan for Climate-Smart Natural and Working Lands, supporting the state’s 2050 climate targets.

"This forward-looking policy is a prime example of how state agencies can work together to address climate change while benefiting local communities,"

said Dan Gibbs, Executive Director of the Colorado Department of Natural Resources.

‍"It will deliver measurable environmental gains while sustaining the trust’s crucial role in funding Colorado’s public schools."

Industry Perspective

Land & Carbon, Inc., a carbon project development company currently collaborating with the State Land Board on proposed projects in the San Luis Valley, welcomed the Board’s decision. Bob Lawrence, Chief Carbon and Land Officer for Land & Carbon, Inc., gave a presentation to the Board during the Workshop on August 12 which provided an overview of their application for a grassland carbon ecosystem services production lease that is scheduled for Board action in September 2025.

“The State Land Board’s Biological Carbon Program provides an opportunity for carbon project developers to implement innovative revegetation and land restoration projects capable of maximizing soil carbon sequestration while improving soil health and water retention, and increasing biodiversity. We are excited for the opportunity to contribute to a sustainable revenue source for public schools in Colorado”

‍‍said David Lawrence, Founder and CEO of Land & Carbon, Inc.