Netflix (NASDAQ: NFLX) has taken another step in its climate strategy by signing a long-term carbon credit deal with the American Forest Foundation (AFF). The agreement backs tree planting and forest restoration in the U.S. South. It also boosts Netflix’s efforts to reduce emissions throughout its operations.
The deal shows a shift in the voluntary carbon market(VCM). Companies now want high-quality, verifiable credits that offer social and environmental benefits.
Building Forests, Supporting Landowners
Through AFF’s Family Forests program, Netflix will help convert farmland into new forests. The partnership follows a milestone-based financing model. Netflix gives partial funding as acres are planted and trees grow. The rest is paid once the carbon credits are verified.
The project already covers about 2,500 acres with 1.4 million trees planted and has directed $2 million in payments to landowners. By 2032, AFF aims to expand the program to 75,000 acres, generating an estimated 4.8 million carbon credits. These credits represent millions of tonnes of carbon dioxide captured and stored in forests over decades.
This program helps rural economies by creating new income for family landowners. It also supports biodiversity, water quality, and soil restoration. In a carbon market under increasing scrutiny, such local, transparent projects align with the Core Carbon Principles set by the Integrity Council for Voluntary Carbon Markets.
More Than Tree Planting: The Power of ARR
ARR projects help restore degraded land and increase forest cover. They lock away carbon and support biodiversity.
These projects represent one of the fastest-growing forest carbon project types in the VCM, with 346 registered ARR projects having issued over 150 million tons of CO2 credits. By 2030, ARR issuances could reach 100 million tons annually. This makes them the second largest project subtype within the VCM.
Studies suggest reforesting suitable areas worldwide could remove up to 3–10 gigatons of CO₂ annually by 2050. In the U.S., ARR projects have captured tens of millions of tonnes of CO₂e. Companies like Microsoft, Apple, and Netflix are increasingly investing in forest-based credits, which boosts momentum.
ARR also provides co-benefits such as cleaner water, soil restoration, and community engagement. For Netflix, this deal is key to its net-zero and ESG strategy.
Net-Zero on Screen: Inside Netflix’s ESG Strategy
Netflix has sharpened its climate strategy, with updated emissions data from its 2024 ESG report providing a clearer picture of its environmental footprint. The company reported total greenhouse gas (GHG) emissions of 1,037,226 metric tons of CO₂e in 2024, measured under the market-based method. This figure includes:
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Scope 1: 50,488 tCO₂e (direct emissions from facilities, vehicles, and equipment).
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Scope 2: 0 tCO₂e (purchased electricity, reported as zero under market-based accounting due to renewable energy sourcing).
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Scope 3: 986,738 tCO₂e (upstream and downstream emissions, largely from cloud services, content production, and supply chains).
This marked a 23% increase from 2023, when emissions totaled 843,107 tCO₂e. Much of the rise was attributed to higher production activity and expanded content delivery across global markets.
Netflix shares a second set of emissions figures. These come from its Science-Based Targets initiative (SBTi). This framework has stricter rules for counting emissions. Under this method, Scope 1 and 2 totaled 75,000 tCO₂e in 2024, while Scope 3 reached 862,884 tCO₂e. These metrics form the baseline for Netflix’s near-term reduction goals.
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Netflix confirmed its Science-Based Target. It aims for a 46% cut in Scope 1 and 2 emissions by 2030, using 2019 as a baseline. Also, it plans a 27.5% reduction in Scope 3 emissions by 2030.
To get there, Netflix is pursuing a “reduce, retain, and remove” strategy. The focus includes:
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Reduce: Cutting energy use in production, optimizing streaming efficiency, and working with cloud providers to source renewables.
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Retain: Using renewable energy credits to ensure 100% renewable electricity, which it already reports under Scope 2.
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Remove: Investing in natural climate solutions and verified carbon removal projects to offset residual emissions.
Netflix has funded reforestation and forest management projects. These efforts align with its new deal with the American Forest Foundation. It is also piloting partnerships to support carbon removal technologies.
The streaming giant tracks emissions intensity, measured as tCO₂e per revenue unit. This helps ensure that climate progress matches business growth. The company notes that reducing Scope 3 remains its biggest challenge, as these emissions account for more than 95% of its total footprint.
Carbon Credits in Action: Positioning Ahead of Demand
Netflix also relies on carbon credits as part of its “retain and remove” strategy to reach its net-zero target. In 2024, the company purchased and retired 1,036,176 metric tons of CO₂ equivalent in high-quality carbon credits.
These credits came from various nature projects like reforestation, better forest management, and mangrove restoration. They also include tech-based methods that capture and store carbon. Netflix uses these credits after cutting operational emissions. They focus on projects that offer clear carbon removal and help the community.
The VCM has grown into a multibillion-dollar sector. In 2024, its value was about $2.5 billion. By 2030, it could jump to $20–45 billion. This will depend on corporate demand and regulatory support.
Nature-based solutions, such as forestry, make up 40–60% of traded credits. Carbon prices usually fall between $15 and $25 per tonne of CO₂.
High-quality credits linked to recent vintages usually have strong verification. They often include co-benefits like biodiversity or community development, which can raise their prices. In contrast, older credits or less verifiable renewable energy offsets are valued much lower, sometimes under $10 per tonne.
Netflix’s decision to invest in AFF’s afforestation projects reflects this market reality. By securing 4.8 million future credits, the company positions itself ahead of growing demand and potential supply shortages. It also signals confidence in domestic forestry as a reliable and socially beneficial source of removals.
American Forest Foundation’s Nature-Based Solutions
The American Forest Foundation is dedicated to supporting family forest owners across the United States. Small private forests make up nearly 39% of U.S. forestland, yet many landowners face barriers to managing them for climate benefits.
AFF’s programs, including the Family Forest Carbon Program (FFCP) and the Fields & Forests initiative, help landowners adopt sustainable practices like reforestation, forest management, and climate-smart planting. These efforts improve carbon sequestration, wildlife habitat, and rural economies.
With this expanded support, AFF is positioned to accelerate enrollment and ensure forestry-based carbon credits deliver real, lasting climate impact. This raises important questions about how the partnership shapes both landowner participation and the integrity of carbon credits.
AFF provided insights in an exclusive interview with the CarbonCredits team.
Q: “How does the partnership with Netflix change the scale and speed at which AFF can expand its Family Forests program, and what impact do you expect this will have on U.S. landowners over the next decade?”
A: Netflix’s investment will catalyze and launch the first 6,000 acres of Fields & Forests, and their funding will support essential research & development, outreach, and practice improvements, helping us scale to 75,000 acres enrolled over the next decade.
Additionally, Netflix’s long-term investment helps Fields & Forests build trust with landowners, a critical component in meeting our long-term enrollment goals. Engaging and building relationships with small-acreage landowners takes time, and one question landowners often have is whether the program will be there for the long haul.
Landowners enrolled in Field & Forests are making a major decision that will impact them and their heirs for decades, and they want to know that we are dependable partners in the long-term. This deal provides landowners with that assurance.
Q. “Given growing scrutiny of forestry-based offsets, what measures is AFF taking with Netflix to ensure these carbon credits remain high-integrity, permanent, and resilient against risks like wildfires or pests?”
A: AFF has been working for years, alongside a number of partners, to improve the way that the impacts of forest carbon projects are measured, and to ensure that the atmosphere feels a difference from this work.
We helped develop the use of dynamic baselines in forest carbon accounting, leading to the creation of VM 0047, used in Fields & Forests and now the established gold standard for ARR projects. The dynamic baseline compares the carbon sequestered on land enrolled in a program to highly comparable unenrolled forests, isolating the program as the key intervention that can be credited with creating the carbon benefit.
A Blueprint for Corporate Action
Netflix’s partnership with AFF shows how corporations can combine climate commitments with community benefits. By investing in U.S. forests, the company addresses both carbon reduction and rural economic development. This dual focus could serve as a model for future offset deals, more so as stakeholders want more impact from corporate ESG strategies.
If AFF meets its targets, the program will capture millions of tonnes of CO₂ and set a standard for high-quality nature-based credits. For Netflix, the credits will support its net-zero goal while strengthening its ESG narrative for investors and subscribers. Its recent step in the evolving carbon market highlights the value of long-term partnerships. These collaborations can provide climate credibility and help withstand supply challenges and growing expectations.
The post Netflix (NFLX Stock) Partners with American Forest Foundation on Carbon Credits: A Step Toward Its Net-Zero Goal appeared first on Carbon Credits.
Insetting program design starts with your supplier map. The carbon claim comes much later.
Consider a coffee procurement team that funds a farm intervention before checking its sourcing data. The supplier aggregates coffee lots from several regions. The buyer lacks farm-level traceability. Another purchaser expects to report the same outcome. A more attractive project brochure solves none of these problems.
If the distinction between a value-chain intervention and a purchased credit is still open, read CCC’s Insetting vs Offsetting guide before you set the brief.
Insetting program design begins with the purchasing relationship and works outward. You need to decide 1) where an intervention belongs, 2) what business problem it addresses, 3) who pays for it, 4) how results will be measured, and 5) what the evidence will let you say about them. This five-step playbook turns that sequence into a procurement plan.
Step 1: Insetting program design starts with supplier mapping
Start with the commodities that matter most to your Scope 3 inventory and sourcing continuity. Ask finance for spend by supplier, sustainability for the emissions baseline, and category managers for origin and volume records. Then identify which suppliers can trace material to a jurisdiction, sourcing region, producer group, or individual land-management unit.
The level of traceability affects what you can account for. Under the GHG Protocol Land Sector and Removals Standard, the spatial boundary for purchased land-based products depends on the traceability associated with each volume. Farm-specific factors or removals require physical traceability through an acceptable chain-of-custody model. A contract with a tier-one trader, by itself, does not establish a link to the farms behind its deliveries.[1]
Build a first-pass table with five columns: commodity and annual volume; supplier and origin; current traceability level; land-use and production risks; and the business owner who can change the purchasing terms. Mark missing data plainly. A blank cell is cheaper to fix before a program starts than after a claim is drafted.
If your company sets an SBTi Forest, Land and Agriculture target (FLAG), keep its land-related target boundary separate from energy and industry emissions. The current FLAG guidance also requires relevant companies to assess primary deforestation-linked commodities in their value chains.[2]
Step 2: Choose a commodity and jurisdiction for a pilot
Select one supply corridor where the sourcing connection can be established and procurement has a reason to stay. A useful pilot has repeat purchases, suppliers willing to share records, an intervention matched to a diagnosed problem, and a defined plan to measure the result. Carbon potential alone is a poor selection rule if the supplier cannot deliver the crop your business needs.
Compare candidate regions on land-use risk, supplier concentration, local rights and tenure, the availability of baseline data, and exposure to drought, erosion, or forest conversion. Check the relevant legal requirements separately. A nature project does not satisfy a due-diligence obligation merely because it has a carbon method attached.
Consider a coffee buyer sourcing from two districts. In the first, producer-group records identify the farms, while recent dry seasons have increased rejected green coffee lots. In the second, deliveries pass through several intermediaries and farm origins are unknown. Pilot shade management in the first district, with local agronomic advice and quality checks built into the plan. The buyer can trace purchases there and test the intervention against a defined sourcing problem.
Use a short decision memo to record why the selected corridor beats the alternatives, what remains uncertain, and what would stop the pilot. That memo is the first control against a project drifting toward whatever happens to photograph well.
Step 3: Design the supplier engagement and commercial model
The intervention needs an owner on each side of the contract. Decide who supplies planting material or training, who maintains the practice, who bears the cost if a harvest disappoints, and how long the buyer expects to purchase from participating suppliers. Where smallholders participate, budget cash flow and technical support for practices that offer a later return.
Put these terms in a supplier agreement or pilot addendum. It should cover eligible farms and volumes, consent to data collection, access for monitoring, any land or carbon rights that matter, benefit sharing, and what happens if the purchasing relationship ends. Ask local counsel and producer representatives to review the arrangement. The Accountability Framework is a useful reference for supply-chain work involving forests, ecosystems, and human rights.[3]
Avoid assigning an automatic carbon benefit to the buyer. The contract should say which party has the right to report each outcome, how overlapping claims will be checked, and how any issued credits will be handled. A reduction reported in a buyer’s inventory cannot simply be sold for someone else’s offset claim without an accounting review. SBTi FLAG guidance excludes purchased credits used as offsets from near-term FLAG target achievement.[2]
Set commercial measures beside environmental ones: delivered volume, rejection rate, supplier retention, and procurement cost. They tell you whether the program works as a supply-chain investment, even if carbon accounting takes longer to resolve.
Step 4: Build monitoring, reporting, and verification before rollout
Agree on the baseline and data flow before paying for a full rollout. Identify the land units or sourcing regions in scope, the practices that change, the records suppliers already keep, and the additional measurements the program requires. Decide which data can come from field visits, transaction records, or remote sensing, and who checks each source.
For carbon, separate three questions. Did the practice happen? Did emissions or removals change under an applicable method? Can the buyer attribute a defensible share to its purchased goods without double counting? The GHG Protocol’s 2026 guidance includes dedicated chapters on spatial boundaries, data and methods, evaluating actions, credited outcomes, and assurance.[1] These are distinct jobs. A photograph of a planted tree answers only part of the first.
CCC’s MRV and Additionality article explains the separate evidence questions a project reviewer will ask.
Create an evidence file for every reporting period: dated supplier and farm records, purchase volumes, methods and emission factors, uncertainty, quality checks, and changes from the baseline. Specify who can challenge the data and how corrections are recorded. If a project also seeks credit certification, keep project accounting and corporate inventory accounting separate. The GHG Protocol says its land standard focuses on entity-level inventories and does not set the rules for credit certification.[4]
Start with the minimum viable measurement design that can survive review. Add complexity when the pilot tells you which data actually changes a decision.
Step 5: Decide what can be reported and claimed
Insetting program design needs reporting rules before the marketing copy. Procurement, sustainability, finance, and legal should agree on four distinct outputs: operational performance; observed land or nature outcomes; inventory effects, if the accounting criteria are met; and any separately issued credits. One dashboard can display them, but they should not share a single unqualified headline.
SBTi FLAG guidance allows certain land-based removals within a company’s operations or supply chain to contribute to FLAG pathways, subject to criteria including permanence, traceability, data quality, and allocation. It does not allow purchased offsets to meet near-term FLAG targets.[2] Eligibility therefore depends on evidence and the applicable target rules, not on calling an activity “insetting.”
Draft a claims register. For each proposed sentence, record the period, boundary, data owner, calculation method, reviewer, and whether the result is measured, estimated, or still a goal. If the evidence supports only “we funded a pilot with 200 farms,” say that. Do not turn a funding fact into a verified emissions reduction.
What good looks like by year three
Treat year three as a review point, not a promised payback date. A mature pilot should have mapped participating supply volumes, a stable supplier agreement, a repeatable data collection process, and a comparison of commercial and environmental results against the baseline. It should also have a documented answer for outcomes that cannot be included in the buyer’s inventory.
Scale only where the pilot improves a sourcing decision and the evidence can follow the product. If neither condition holds, redesign the intervention or change the corridor. A disciplined program can conclude that a site is unsuitable. That is useful procurement intelligence.
Discuss your insetting program with CCC
Carbon Credit Capital designs nature-based supply chain investments around sourcing needs and measurable sustainability outcomes. Schedule a consultation with our carbon and sustainability experts to map your tier-one supplier network, FLAG exposure, and first pilot decision.
Sources
[1] GHG Protocol, Land Sector and Removals Standard, version 1.1, and companion Guidance, June 2026: https://ghgprotocol.org/land-sector-and-removals-standard ; https://ghgprotocol.org/land-sector-and-removals-guidance
[2] Science Based Targets initiative, Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, especially pp. 16–17, 37, and 41: https://sciencebasedtargets.org/resources/files/SBTiFLAGGuidance.pdf
[3] Accountability Framework initiative, Accountability Framework and guidance for companies: https://accountability-framework.org/
[4] GHG Protocol, Frequently Asked Questions: Land Sector and Removals Standard, questions 10 and 18: https://ghgprotocol.org/blog/frequently-asked-questions-land-sector-and-removals-lsr-standard
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.