Making biodiversity a credit to your business – Part 1 of 2

08/10/2024 by Amelia Allerton in Biodiversity Credits / Conservation / Financing / Natural Capital

This blog was written by our Project officer, Amelia Allerton. Amelia is responsible for the collaborative development of the seagrass biodiversity project and acts as the project’s technical coordinator. She has a background in biodiversity research within Marine Protected Areas and has experience supporting community projects. In this 2-part blog series, we explore the importance of biodiversity, the emerging market of biodiversity credits and the opportunities they provide for both forward-thinking businesses and nature. We hope you enjoy Part 1 and Part 2 will be released in late October 2024.

_{Merops orientalis, Green Bee-eater in The Gambia (c) Dona Bertarelli Philanthropy}

With the IUCN estimating that $600-800billion of funding is needed to sustain biodiversity, biodiversity credits are a new and exciting innovation that could help nature conservation and restoration address this funding gap. However, for biodiversity crediting to be a success, private sector buy-in is essential.

The crisis

Across the globe, plant and animal species are disappearing at an ever-faster rate due to human activity. Habitat loss is the main cause, with humans actively destroying vital habitats through deforestation, urbanisation and intensive farming and fishing practices. Further stressors from hunting, over-fishing, man-made pollution, human-introduced invasive species and the climate crisis further threaten the resilience and recovery of many important species and ecosystems. To put this crisis into context, only 4% of all mammals on earth are wild mammals.

The consequences of losing biodiversity are far-reaching and severe. As much as our human-centric approach has led to us viewing ourselves as separate from nature, we rely on it with every breath, bite of food and resource we use. Air, water, soil, food, and materials are directly reliant on our planet’s natural processes remaining healthy and in-balance. Exploring some of the benefits of healthy and biodiverse ecosystems can really put into context how important it is that we address this crisis:

_{Mangroves at Sii Island (c) Obiene Samson}

Variety is the spice of life

Biodiverse environments support more complex ecosystems, which improves overall resilience. As the number of species and communities grow, there is a higher chance of any one of them having the traits that enable them to adapt to a changing environment. The same is true for resilience against other stressors such as disease and the introduction of pollution into ecosystems. Productive, healthy and biodiverse assemblages are best-placed to try to adapt to changing conditions.

The backbone of big business

Businesses are dependent on nature and the services it provides which are finite and unique. Nature currently contributes to more than half the world’s GDP and not protecting and restoring nature will damage future economic prosperity. After many years of businesses taking resources from the planet without giving back, there is growing consensus among consumers, organisations and regulatory frameworks that the private sector needs to play a part in ensuring we have a healthy, sustainable and biodiverse planet well into the future. For example, at COP15, the Kunming-Montreal Global Biodiversity Framework (GBF) was agreed which includes text on the private sector investing in biodiversity. As a result, protecting nature should be high on investors and regulators agendas.

Supporting health and wellbeing

Well-functioning and biodiverse environments support human health by providing nutrition, clean water and medicine. Without pollinators, we will struggle to grow some fruits and vegetables including apples, berries and kale. Biodiverse ecosystems have also played a crucial role in traditional medicines and drug development throughout the years. Ensuring nature is part of our everyday lives is also extremely beneficial for both our mental and physical health. It can help reduce stress, promote improved mood and can help people easily include more physical activity in their lives through activities such as walking and wildlife watching. Biodiversity also plays an important role in disease prevention. By forcing animals to live in closer and closer proximity by removing their habitats and reducing diversity, we have reduced nature’s resilience, increasing the opportunity for diseases to spread. Optimal rates for microbe spillover occur when 40% of the forest cover disappears. In contrast, greater biodiversity reduces disease transmission due to a ‘dilution effect’ making it harder for a single pathogen to spread or dominate.

Nature’s unique value

Biodiversity provides many clear benefits to humans and is essential to our survival, but even despite this, we should still be motivated to protect nature ‘just because’. This planet is absolutely wondrous and full of complicated relationships between plants, animals and ecosystems that all work in harmony to survive and thrive together. We share this planet with intricate creatures who feel pleasure, pain and a desire to survive. Some have strong family bonds or a clear sense of home and some undertake wonderous journeys across the planet that we still can’t fully understand or comprehend. We need to understand how magical biodiversity is and find ways to live peaceably with the natural world. Nature and biodiversity work in harmony to support living thriving ecosystems and we need to find ways to reintegrate ourselves into this glorious and enduring synergy.

Investment in nature and biodiversity is also an investment into ourselves, our economy, our wellbeing and our futures. Follow along for Part 2 to find out how business can help support and restore global biodiversity.

Meet a mangrove champion by Prof. Mark Huxham

22/08/2024 by Amber Baker in Conservation / Financing / Natural Capital

The content of this blog was written by Professor Mark Huxham and is presented by Amber Baker. Mark is the founder and chair of ACES and has spent nearly two decades working with local communities dependent on mangrove resources to understand their ecosystems better and to use this science to help restore their environments and bring community development benefits.

This blog was written as part of our ‘Conservation’ series which showcases people in conservation and explores upcoming projects and trends.

Meet a mangrove champion, a conversation between Mark and Ansumana

ACES is a proud partner in Nnaa Saama Mankolou, our new project working with the community of Sankandi in The Gambia to restore their mangrove sites and help support livelihoods and biodiversity in the area.

Mr Ansumana Darboe (pictured left, photo (c) Dona Bertarelli Philanthropy) is a founding member of the Sankandi Youth Development Association, our key in-country collaborator in this project.

He has an infectious passion for conservation and for mangroves and has been instrumental in making the project happen; he first contacted Mark seven years ago, seeking help from ACES, and we have worked together since then. Here, Mark and Ansumana talk about his background, his motivations and his hopes for the future.

Mark: tell me where you were born and a little about your early life

Ansumana: I was born in Sankandi [the village where Ansumana lives still]. My father was a farmer, as was my grandfather. He died in 1984 when I was a little boy. As a child I had to assist my mum in cultivating her rice fields and protecting them from wild animals, like monkeys and birds, until the time of harvest. I had to be at the fields by 7 am. Then when the time comes for lunch the adults sent me to go and collect lunch from home and then bring it back to the rice field for them, because the fields were far from my home.

Mark: and did you combine all this work with going to school?

Ansumana: yes I was enlisted in the school and started my primary education, but at the beginning it was tough because my mum wanted me to go to Arabic school instead of, you know, conventional school. So she did not always support my schooling. In the early years I had to go to school without lunch, and in fact, I did my primary school without a uniform.

Mark: so it sounds as if you were motivated even as a young boy to learn and to develop?

Ansumana: yes I had to struggle. I started as a local volunteer in a medical clinic whilst still at school. That led to opportunities for work and training as a medical assistant. Eventually, I was supported to train as a radiographer and so that was my profession until 2009.

Mark: so how did you become interested in conservation and in mangroves?

Ansumana: back in primary school, in 1994, I was invited to read a poem at the opening ceremony for a new national park [Kiang West National Park]. The poem was about conservation and the need to look after our forests; I learned it by heart and it still serves as a motivation for me.

Mark: how did you start Sankandi Youth Development Association?

Ansumana: in 2005 the president came through our village. I wanted to escort his car to where he was going, but the driver said ‘no no it is too far, we are going five kilometers’. But me and other youths insisted on going all the way on foot with him. When he arrived he was so impressed he gave us some money in thanks. We used that money to found the Youth Association.

© SYDA – Ansumana Darboe – SYDA Project Manager

Mark: and why did you start work on mangroves?

Ansumana: the local fishermen were finding that they could no longer find fish so we decided to look how best we could help them and restore the areas where they fish. So I did some research on mangroves and mangrove restoration in Africa.

Mark: and that is how you found out about ACES?

Ansumana: yes I came across an article that was written by you and then how you spearheaded the Mikoko Pamoja project and then I clicked on your email and thought yeah let me just talk to Mark and see whether we will be in a position for another mangrove project in the Gambia.

Mark: and now after some years we have managed to find funding for this work and are in a position to work together on this new project. What are your hopes for the future from this work together?

Ansumana: Well, my hopes for this project is for it to be modelled and replicated in all parts of the Gambia and let other communities benefit directly from the work they have been doing. And in fact, maybe it can be used by the government to help with their carbon policy.

Mark: and finally, do you have any advice for anybody who may be reading this, who perhaps is in a similar situation to you?

Ansumana: my advice would be for them to reach out because there are experts who will help. You need to make sure that your project will really benefit local people and make sure that you are able to take ownership of your mangrove restoration project.

© Dona Bertarelli Philanthropy. Mark and Ansumana (pictured) discussed the partnership and project during the community meeting in January 2024 in Sankandi, The Gambia.

You can find out more about Ansumana, the Sankandi Youth Development Association, and the Nna Saama Mankolou project on the ACES website SYDA’s social media pages.

Ocean Bottle: Supporting blue carbon beyond offsetting

31/05/2023 by Robyn Shilland in 2023 Blue Carbon series / Financing / Natural Capital

This blog was written in collaboration with Ocean Bottle, who have supported ACES’ projects for several years as part of their commitment to improving the health of the ocean and our planet. This blog was written as part of our ‘financing blue carbon ethically, responsibly and effectively’ series and explores different approaches to compensating for corporate carbon footprints and supporting marine conservation.

Ocean Bottle have supported ACES’ mangrove and seagrass projects for several years as part of their commitment to making the ocean, and our world, a better place. Ocean Bottle’s approach to sustainability goes beyond carbon calculations and ‘net zero’; that equating carbon emissions to offset purchases is inadequate. In line with this ethos, they are moving beyond carbon offsetting to a holistic approach to carbon reductions and developing carbon sinks by protecting natural ecosystems such as mangrove forests and seagrass meadows. This blog, written in collaboration with Ocean Bottle, explains the reasoning behind their strategy for emissions reductions and compensating for their unavoidable emissions. Ocean Bottle’s reasons for moving away from offsets include ethical, political and technical challenges to offsetting as a concept and the current offsetting landscape; this reasoning is described well in this document. Here, we focus on the political ethics of carbon offsetting, which raises important questions regarding how the offsetting landscape can be improved in order to incentivise systemic change.

The perspectives presented here are Ocean Bottle’s; however, as ACES, we welcome debate around carbon offsetting and support Ocean Bottle in their emissions reduction strategy. We are pleased to be able to continue working with Ocean Bottle on the development of blue carbon conservation and restoration activities in a way that goes beyond carbon credits.

Emissions reduction strategy

Ocean Bottle’s Emissions Reductions strategy follows three pillars: first by implementing emission reductions through their supply chain, then avoiding emissions in their value chain, and when necessary, developing carbon sinks by protecting natural ecosystems outside of their value chain. This follows the Carbone 4 emissions reductions framework.

While this framework is broadly similar to the ideal scenario for offsetting – reducing your scope 1 & 2 emissions, then scope 3 emissions, followed by offsetting or insetting unavoidable emissions – the biggest differences lie in pillar C.

Firstly, under Carbone 4’s framework, unavoidable (or residual) emissions should be compensated for through the development of carbon sinks such as blue carbon ecosystems. This is similar to ‘removal credits’ – carbon credits that result from the removal of CO2 from the atmosphere – but does not allow an equivalent to ‘reduction credits’ – credits which result from the reduction of CO2 entering the atmosphere. (It is important to note here that removal credits are also sometimes valued and preferred over reduction credits – such as in the Oxford Offsetting Principles).

Secondly, Carbone 4’s framework does not specify that offsets should be used to compensate for unavoidable emissions; it allows for a broader approach to funding activities that enhance natural carbon sinks. This is where Ocean Bottle’s perspective has changed from buying carbon offsets to a more holistic approach to enhancing blue carbon sinks.

Choosing carbon sinks over offsets

If Ocean Bottle are committed to funding the development of carbon sinks like mangroves and seagrass, why are they moving away from offsetting?

Offsetting as a concept has been heavily scrutinised, and the debate around the politics and ethics of offsetting has divided opinion. Critics of offsetting question whether offsetting allows society to delay making systemic changes – i.e., actual carbon reductions – by simply paying for offsets to compensate for carbon emissions. Whilst the morally responsible approach should be to first reduce your direct and indirect emissions as far as possible – as outlined in Carbone 4’s framework – there is nothing to mandate companies to do so (or indeed, to reduce or offset their emissions at all). Likewise, there is no regulation of how companies present or communicate their carbon reductions – a company that offsets all of their emissions without making reductions can report the same emissions reduction targets as a company that has made genuine carbon reductions in their own activities and supply chains (and has therefore contributed to systemic change). Actors in the offsetting market, including ACES, can and do take voluntary steps to guard against this injustice; however, Ocean Bottle’s perspective is that they do not want to play a part in a system that permits less ethical companies to take advantage of unregulated emissions reductions and reporting.

“The reporting and carbon reduction strategy enforcements vary from country to country, but are, for the most part, only voluntary. This means that sub-par efforts and greenwashing by the world’s largest emitters will largely go unpunished.”

– Ocean Bottle

This raises an important question: what can be done to hold companies to account on their emissions reductions and offsetting (or other mitigation actions)? How can companies with genuine commitments to actually reducing their emissions, offsetting only their unavoidable emissions and if they do need to offset, researching their options and choosing high-quality credits with evidenced co-benefits – from companies that simply ‘pay to pollute’ by offsetting without reducing? There needs to be a clear, internationally-aligned reporting system under which consumers can scrutinise the steps that companies are taking to lower their carbon footprints, and thereby hold these companies to account. This would be a significant step towards facilitating systemic change – publicly rewarding companies like Ocean Bottle that go above and beyond to not only compensate for their emissions but have a positive impact through supporting projects that deliver biodiversity and community benefits.

Net zero: a global concept

By definition, a company cannot be carbon neutral… A better terminology which companies and individuals should follow, is to contribute to global neutrality with the purchase of offsets and other mechanisms.”
– Ocean Bottle

When the concept of ‘net zero’ was popularised in the conception of the Paris Agreement, it referred to global emissions – achieving an overall balance of sources and sinks of global greenhouse gases. It is only more recently that the term ‘net zero’ has been used by companies as a label of their emissions reductions or offsetting. Ocean Bottle, among others, believe that the concepts of net zero or carbon neutrality cannot be claimed by individual companies unless they are actively sinking carbon from the atmosphere – if they are still producing emissions then they are still a carbon ‘source’, regardless of offsets. Ocean Bottle suggest that rather than making ‘net zero’ or ‘carbon neutral’ claims, companies should use terminology such as “contributing to global neutrality with the purchase of offsets and other mechanisms”. They believe that not being able to trumpet about self-proclaimed neutrality will deter most companies from relying on offsets.

ACES perspective

Ocean Bottle’s approach to their emissions reductions is a gold-standard example of how companies can meaningfully engage with the climate crisis and their role in fighting it. They have critically questioned their own activities, including their emissions reduction activities so far, and shaped their way forwards based on extensive research and evidence-based perspectives.

Whilst their full reasoning for minimising their use of offsets is not always fully aligned with ACES’ views, we welcome debate regarding the ethics, politics, effectiveness and social justice of offsetting and our partnership with Ocean Bottle allows us to present this diversity of views on an open platform. Ultimately, we and Ocean Bottle share the same end goal: to contribute to a landscape in which climate action by companies is transparent, genuine, effective and socially and environmentally just.

Philanthropy and climate change: A conversation with Impatience Earth

05/05/2023 by Robyn Shilland in 2023 Blue Carbon series / Conservation / Financing / Natural Capital / Uncategorized

Impatience Earth is a pro-bono climate philanthropy consultancy that educates, challenges and inspires wealth holders to take bolder funding decisions to address the climate emergency.

We interviewed Yasmin Ahammad, the Co-Managing Director of Impatience Earth to gather her insights on climate philanthropy and understand what influences donors when they are considering which projects to fund.

Here’s what Yasmin had to say…

1. What motivates philanthropists and foundations to fund projects that tackle climate change?

The public’s awareness of the climate crisis has skyrocketed in recent years, thanks to the tireless efforts of climate activists and the growing coverage of alarming IPCC research findings. As heat waves scorch entire cities and floods devastate communities, the reality of climate change hits closer to home more than ever before. Urgency has become the driving force for philanthropic donors to invest in the fight against climate change, and their support is crucial to creating the change and momentum we need.

At Impatience Earth, donors typically approach us with a keen understanding that the climate crisis is the most pressing issue of our time. They recognize that the impact of climate change will undo many of the gains made in other areas such as health, education, conservation, social justice, and human rights. These individuals, foundations, and companies feel a collective responsibility to act while there is still time to avoid the worst climate scenarios. They may support climate change as a new strand of their grant-making or incorporate it as a lens through which they view their existing projects.

“We have seen a particular interest in mangrove and other blue carbon projects like seagrass and saltmarshes, because it is easy to understand the numerous co-benefits of investing in such nature-based solutions.”

Why philanthropy and what inspires philanthropists right now?

Philanthropy is uniquely positioned to act because it can provide the seed capital for bold and innovative movements, ideas, and initiatives to experiment, scale, and thrive. Unlike government or corporate institutions, philanthropy can afford to take risks and fund projects flexibly and nimbly, filling critical gaps in support.

We have seen a particular interest in mangrove and other blue carbon projects like seagrass and saltmarshes, because it is easy to understand the numerous co-benefits of investing in such nature-based solutions. Donors focused on reducing carbon emissions are attracted by the carbon sequestration potential of mangroves and seagrasses, while those who are passionate about biodiversity are motivated to protect and restore coastal ecosystems for the benefit of marine species. Donors with a focus on building community resilience find mangroves appealing as a natural barrier to disastrous storm surges and coastal erosion, and as a source of livelihood opportunities through eco-tourism, healthy fisheries and potential access to carbon markets.

“We have seen a particular interest in mangrove and other blue carbon projects like seagrass and saltmarshes, because it is easy to understand the numerous co-benefits of investing in such nature-based solutions. Climate justice, land rights, youth, and women’s rights are popular cross cutting concerns, while policy, capacity building and conservation are key approaches.”

Aside from blue carbon approaches, we see a lot of appetite amongst our clients to learn about other carbon sinks such as peatlands and forests, followed by agriculture and food systems as a whole. Climate justice, land rights, youth, and women’s rights are popular cross cutting concerns, while policy, capacity building and conservation are key approaches.

2. What influences philanthropists’ / foundations’ decision making when assessing quality of projects in terms of how they gauge climate impact, but also co-benefits?

Each donor is different in how they assess which organisations or projects to fund, and how stringently they set the criteria. But generally speaking, they share a few common questions that help them assess the quality of a project:

How well does it align with our philanthropic mission and values?

If climate justice is a core value of the donor, for instance, they will assess the project based on whether it advances climate justice by putting more power and resources into the hands of those most affected by the climate crisis. Similarly, if they care deeply about biodiversity, they will want to make sure that the project is led by experts who can advise on planting the right trees in the right way to benefit the local ecosystem.

What is the impact of the intervention?

Donors will consider the project’s potential to create positive environmental and social outcomes, depending on their core concerns, whether that be reduction in carbon emissions, or the extent to which communities have ownership and gain benefit from the project. Some donors like hard metrics to demonstrate the impact of the project, such as total carbon sequestered over time, number of trees planted, number of jobs created, or the percentage change in community attitudes towards mangrove restoration. While these example metrics are useful, we try to educate donors that impact measures are best defined by the project leads and communities themselves, so that they are monitoring and reporting what is most useful and important to them.

What is the sustainability of the project?

Philanthropists will consider whether all the conditions are in place to ensure that the mangroves will be thriving and delivering their benefits long after they have stopped funding the project. This includes having the right tree species and planting methods, community buy-in through education and alternative livelihood opportunities, and a clear plan for ongoing funding, whether through donations or income.

What is the track record of the organisation?

Donors will look closely at the organisation or individuals leading the project to assess their expertise and capacity to successfully implement the project. They might do this by reviewing impact reports, holding short interviews with the project leads, or reaching out to other funders for references.

3. Following on from the above: what information can practitioners make available, and in what format, to better showcase their projects and help this decision-making?

In the process of making a decision, clear communication materials are essential. Donors usually start by checking out a website before they even consider asking for a proposal. That is why it’s a good idea to include compelling materials that showcase the impact of your work.

Telling captivating stories and providing clear impact metrics are crucial to demonstrating the project’s effectiveness and track record. It’s also important to include financial information, such as the organisation’s annual budget, so that donors can determine whether their usual grant size is too much for the organisation to handle or whether they are better set to make a small contribution to a larger pool of resources. It’s also important to highlight the individuals who are behind the project, their skills and backgrounds, and to make their contact information publicly available so that donors know who they can reach out to with any questions.

If and when invited for a proposal, then pay close attention to the guidelines, especially on the maximum pages they would like. I’ve learned that philanthropists and small foundations typically have very little time to make a number of complex decisions, so the easier you can make this process by being succinct and clear, the better.

4. Moving away from philanthropists and to Impatience Earth – who are you, and what services do you provide?

“We see ourselves as climate knowledge and relationship brokers – helping donors access the incredible array of climate expertise of practitioners, activists, and academics to help make sense of the climate emergency in a way that resonates with them.”

We are a small team of advisors with backgrounds in climate change, biodiversity, international development, social justice, philanthropy and entrepreneurship. We are incredibly passionate about what we do, and how we see our work contributing towards a much more equitable world for everybody. We set out in 2020 to increase the amount of philanthropic capital being directed to climate change, but we also want to see funding going to actors who have been traditionally overlooked and underfunded, and to help shift philanthropy towards a more trust-based approach and in support of climate justice.

We see ourselves as climate knowledge and relationship brokers – helping donors access the incredible array of climate expertise of practitioners, activists, and academics to help make sense of the climate emergency in a way that resonates with them, and then move forward on acting on climate with confidence by helping them develop strategies, and connecting them to co-funders and potential grantees.

The learning journey is a central component of our work, which is a bespoke series of intimate sessions with experts where they can dive deep into a subject area and ask lots of questions. We’ve found that learning is critical; clients who want to skip the learning and go straight to recommendations on who to fund don’t seem to end up committing to climate in the long-term.

5. What are the most common questions that you are asked? Have any common themes emerged that you think need to be better answered/communicated by practitioners?

The most common question we hear is “where can we best make an impact?”

In the climate emergency, there is no straightforward answer to this question, because it is a complex global systemic crisis. Unfortunately this is where a lot of potential donors to climate change get stuck, because it seems so overwhelming, when in fact there are so many ideas, initiatives and approaches in need of funding that will collectively deliver the change we need.

We help each client craft an answer to this question that makes most sense to them through learning and reflection. There are a number of factors that will influence the answer, such as what values are core to the foundation, where they are drawn to funding geographically, where they think change comes from (e.g. top-town, bottom-up, or both), and which sectors and approaches resonate most with what they have supported so far and want to focus on in future.

For practitioners seeking funding, it is important, unsurprisingly, to help funders clearly understand how their grants will make a difference. This stems from you understanding the broader change you are working towards in the climate context and beyond, whether it’s building long term community resilience, strengthening local biodiversity or building the movement for climate justice. While it’s important to outline the how (activities) and the why (the problem statement) to demonstrate your capabilities in planning a project, it is the outcomes that will inspire donors to invest in you and help them realise their own impact.

You can find out more about Impatience Earth and their work on their website.

Not all offsets are created equal

01/03/2023 by Robyn Shilland in Conservation / Financing / Natural Capital

Not all offsets are created equal: what are “high quality carbon offsets”?

Our clients sometimes ask us what the difference is between carbon credits that they can buy for $5 a tonne, and those that cost $10, $50 or even more per tonne. Why pay more for the same outcome – a tonne of carbon sequestered?

Like all other products and services, carbon credits can vary widely in their quality. But what does this mean, and how can you tell a “high quality” offset from the rest?

Whether you pay $5 or $25 for a carbon offset, the outcome (for you) is the same: you can claim that you have offset that amount of your carbon footprint. However, there is much more to the process than this “behind the scenes” – including who benefits from the project interventions, what safeguards are put in place to ensure that local people are not disadvantaged, and how longevity of the carbon storage is ensured.

Any certified project – and we encourage buyers to look for certification when offsetting – must meet the requirements of carbon standards that set out how projects should operate, including calculating the carbon captured, how the community should be engaged, and how socio-economic factors should be considered. This means, on paper at least, that high standards are maintained. The principles and values vary between standards; for example, the Plan Vivo Standard places particular emphasis on the socio-economic development of less-developed nations and allows for flexibility in project design that enhances accessibility for small projects.

Certification is not failsafe, however: certified projects have been criticised on the grounds of human rights breaches, failing to ensure long-term carbon storage, and providing no carbon benefit beyond what would have occurred anyway. These criticisms are more common in the compliance carbon market than the voluntary market that we are part of (see here for an explanation of the two and their differences), however as project developers and carbon buyers, we need to ensure that these failures are not perpetuated in the projects that we run and choose to support.

So, what should buyers look for in a project?

Projects should be able to demonstrate how they engage with, involve and benefit the local community, and be able to provide evidence of this. Community consultations are a start, but are local people given opportunities to work for and govern projects? Does the project deliver financial, infrastructure or other tangible benefits for local people? How does the project monitor and act on adverse impacts on the community such as reduced access to timber? What power does the community have in decision-making? Community involvement is vital to project sustainability – carbon projects are often sited in developing nations where natural resource reliance is high, and if the needs of the community are not met the project risks alienating, disadvantaging or even displacing people, or failing altogether.

Carbon offsets are generally expected to be “permanent” to at least 100 years – that is, carbon that is stored should be locked away for at least a century. Of course, we cannot guarantee this; no one can truly say what will happen in 100 years’ time. ‘Permanence’, as it is known, is assessed on a number of factors including how the project addresses drivers of degradation and potential “exit strategies” for if and when the project comes to an end. Buyers should look for meaningful action by project developers to ensure that the stored carbon won’t be at risk as soon as the project ends. Does the project enhance environmental education? Are local people empowered to manage their local resources? Does the project address the core reasons for the loss of carbon, such as poverty that drives people to cut timber for firewood? While we cannot guarantee the future, actions such as these improve the chance that damaging activities won’t just return to normal at the end of the project.

Carbon is of course the core feature of an offset, but it doesn’t have to be the only one. Projects can deliver community development benefits such as funding education or providing water, enhancing biodiversity, or helping local people to develop more diverse livelihoods to ease the pressure on natural resources and provide jobs to local people.

We encourage buyers to explore projects Project Design Documents (or PDDs) – these should be available through the standard to which a project is certified and contain detailed information on how a project is structured and operates. Ask to speak to those in charge of the projects (at ACES, we are always happy to have a conversation with buyers and prospective buyers, whether you’re looking to buy 1 tonne or 1,000 tonnes). Developers should be transparent about their projects, including on how money is spent – some projects are worth paying a higher price for, but you should be confident that if you choose this option, your money is being spent well.

Critics of offsetting point to examples of bad practice in carbon trading projects as reason to avoid offsetting altogether. The carbon trading world is not immune to misguided or even malevolent practices that have resulted in miscarriages of justice for people or for the climate, and project developers and carbon standards should and do learn from these to prevent them from pervading in the industry. Carbon buyers should be aware of the diverse perspectives on offsetting, but also should be able to make informed decisions at a project level when considering offsetting so that they can support valuable projects that deliver not only carbon reductions, but broader benefits for people, wildlife and the environment.

Ethical offsetting in the journey to a zero-carbon world

24/11/2021 by Robyn Shilland in Natural Capital / Uncategorized

The ethics of carbon offsetting have become among the most contentious of any climate action strategy. Critics argue that the option to offset perpetuates unsustainable lifestyles and -facilitates greenwashing, giving carbon buyers a get-out-of-jail-free card when it comes to tackling their emissions; proponents argue that it can be used responsibly alongside reductions to reach net-zero.

Net zero, carbon neutral and other climate commitments are increasingly being made by businesses and governments. Achieving climate neutrality through emissions reductions alone is the ideal, yet at the same time challenging, if not impossible, without greater headway made towards a low-carbon global economy. If net-zero targets are to be met, offsetting is, at least in the short term, essential.

Recent market data show that offsetting continues to grow. Voluntary offset sellers have reported sustained interest despite the Coronavirus pandemic, suggesting sustained commitments to sustainability strategies despite financial uncertainty. If the voluntary offset market is here to stay, then ethical standards must upheld not only within the projects themselves and the standard to which they are accredited, but in the way that carbon offsets are used by buyers.

The carbon market has been criticised on policy, scientific and moral grounds; the latter of which is often leveraged at buyers of carbon credits for using offsetting as an excuse to delay systematic change. Yet experiences of carbon credit providers – projects and resellers – in a ‘boutique’ segment of the voluntary carbon market is very different, instead finding that carbon buyers are overwhelmingly genuine in their commitments to sustainability, using offsets as only one part of their journey to net zero and engaging meaningfully with the moral dilemmas of choosing to buy offsets.

A research team from Edinburgh Napier University and ACES, the project coordinators for two Kenyan blue carbon projects, interviewed a range of stakeholders in the voluntary carbon market including carbon buyers, project developers, carbon standards and resellers of carbon credits, to explore how buyers use offsets alongside broader, long-term carbon reduction strategies. It was recognised that the views captured in the research are not necessarily representative of practices in the wider carbon market and the findings were not intended as such; rather, they were presented as an example of good practice in offsetting with lessons to be learned by project developers, carbon sellers and carbon standards.

Sincerity of buyers

The ‘permit to pollute’ criticism that offsetting simply perpetuates unsustainable lifestyles is often framed in the context of superfluous flights taken by people unwilling to change their lifestyle, or businesses that see offsets as a cheap way out of making changes to reduce their emissions. There was no evidence of this hazard among stakeholders interviewed; some even expressed guilt for activities such as driving to choir and said that being able to offset these emissions assuaged at least some of this guilt, particularly when the project that they chose to offset with delivered ‘charitable’ co-benefits such as community development or biodiversity enhancement.

Businesses need guidance

Our research found that carbon buyers took step to carry out their own due diligence on projects beyond accepting their certification at face-value. This included having conversations with offset sellers and even visiting projects personally. They did not, in general, appear to be looking for a certificate of offsetting as a CSR ‘badge’ or to tick a box – they were motivated to find high-quality offsets from projects that aligned with their interests and values. However, this due diligence took time, resources and a capability that cannot be expected of all buyers, particularly as the voluntary carbon market is fragmented between standards and projects with independently run, and variable, websites and communications. There is therefore a role for both sellers and third-party organisations to give buyers the clear and transparent information and guidance that they need to make informed decisions. An early example of this is the Oxford Principles for Net Zero Aligned Carbon Offsetting, which gives guidance on offsetting principles, and an upcoming platform by WWF to assess and evaluate carbon standards.

Onus on sellers

Finally, our research concluded that there is an onus on sellers of carbon offsets to ensure ethical practices are adhered to. Sellers can work with buyers to educate them on best practice in carbon reductions and net-zero strategies and to ensure that the offsets sold are being applied in an ethical manner and communicated accurately to reflect their role in the organisation’s net zero strategy.

Our research suggests that contrary to narratives presented by critics of offsetting, ‘ethical offsetting’ is practiced in at least parts of the voluntary carbon market and the principles from these examples can be applied throughout the market to ensure best practice. Our full research paper can be read here (written in 2021; unpublished).

Keep it in the ground – mangrove carbon, that is

20/04/2020 by Robyn Shilland in Conservation / Natural Capital

“Keep it in the ground” has been the motto of climate change campaigners for years. Until now this was in reference to crude oil – but thanks to research recently published in Nature, this could equally mean soil carbon. The research, led by Conservation International scientists, has identified carbon-rich landscapes, including mangrove forests, that contain so much carbon that their conservation is pivotal to avoiding a climate catastrophe – they are calling this ‘irrecoverable carbon’.

Carbon stored by ecosystems is lost to the atmosphere when those ecosystems are destroyed. When the ground is disturbed, as happens when forests are cut down, the soil becomes exposed to the air and the organic carbon is degraded into carbon dioxide. In mangrove forests, deforestation is happening at an alarming rate globally. Mangroves are cut down to make way for shrimp farming, marinas, coastal development and as a source of timber for building and firewood. They are also threatened by pollution, sedimentation and climate change.

Climate scientists have warned that we must reach net-zero emissions by 2050 if we are to limit warming to 1.5 degrees Celsius. Keeping natural carbon sinks – as carbon-rich habitats are known – intact is a vital part to achieving this goal. We must take action to reverse the decline of these habitats to keep that carbon in the ground.

It’s hard to imagine just how much carbon is stored in these habitats. The numbers become unimaginably huge – what does 260 billion tonnes, the amount of this ‘irrecoverable carbon’ – look like? In 2019, global fossil fuel emissions reached nearly 37 billion tonnes CO2, or 10 billion tonnes of carbon. That means that 26 years worth of global emissions, at 2019 emission levels, are locked away in our ecosystems. Losing them would catapult us 26 years closer to climate catastrophe – and it is clear that we don’t have that kind of time on our hands to lose.

Category: Natural Capital