Carbon Direct and JPMorganChase have joined forces on a new industry resource that outlines principles for achieving both carbon dioxide removal (CDR) and biodiversity optimization in nature-based projects on the voluntary carbon market (VCM).
The joint report, called Optimizing for Biodiversity with Nature-Based Projects in the Voluntary Carbon Market: Principles for Pursuing Dual Outcomes, offers developers and buyers a data-based blueprint for identifying and designing nature-based projects that deliver both CDR and biodiversity benefits.
Dr. Sarah Federman, VP of Landscape Decarbonization at Carbon Direct:
“Investing in nature-based solutions demands both scientific rigor and local relevance. Working with JPMorganChase allowed us to deliver a framework that is grounded in data and designed to help market actors design and select projects that credibly advance biodiversity and climate outcomes.”
The outlined framework draws on science-backed best practices, combining data extracted from the analysis of 1,630 global VCM projects and leading registry protocols.
Highlighting the possible biodiversity shortcomings of current projects, the report looks into addressing these gaps while providing advice on aligning investments with organizational priorities, setting credible reporting commitments, and evaluating project claims with accuracy.
The report outlines four key considerations for nature-aware buyers.
The first one is that biodiversity benefits are often local and hard to compare across geographies, and buyers who value such results should consider reporting strategies that account for this nuance while keeping in mind that biodiversity benefits can’t be interchanged when selecting geographies and ecosystems for their investments.
Buyers should also look for clearly defined biodiversity benefits that contribute towards nature-positive objectives, supported with on-the-ground reporting to track outcomes like habitats conserved, created, restored, or enhanced.
Relevant: New Xilva MONITOR Tool Detects Early Risks In Nature-Based And Forest CDR Projects
The project’s measurement, monitoring, reporting, and verification (MMRV) should be grounded in scientific standards and designed to support the specific project objectives.
Investors need to be open to an adaptive management system that can realign priorities to achieve the best project outcomes, as long as the realignment follows guardrails, without pushing the end goal further.
Lastly, buyers need to be aware that successful CDR and biodiversity results might come with different timelines that do not always match those of VCM crediting periods. In this regard, credible MMRV systems should reflect outcome-appropriate project timelines.
Read more: New Analysis Highlights Equal Importance Of Nature-Based And Tech CDR For Climate Goals
