Action needed to make carbon offsets from forest conservation work for climate change mitigation

Five lessons for avoiding failure when scaling in conservation

Many attempts to scale conservation actions have failed to deliver their intended benefits, caused unintended harm or later been abandoned, hampering efforts to bend the curve on biodiversity loss. Here we encourage those calling for scaling to pause and reflect on past scaling efforts, which offer valuable lessons: the total impact of an action depends on both its effectiveness and scalability; effectiveness can change depending on scale for multiple reasons; feedback processes can change socio-ecological conditions influencing future adoption; and the drive to scale can incentivize bad practices that undermine long-term outcomes. Cutting across these themes is the recognition that monitoring scaling can enhance evidence-informed adaptive management, reporting and research. We draw on evidence and concepts from disparate fields, explore new linkages between often isolated concepts and suggest strategies for practitioners, policymakers and researchers. Reflecting on these five lessons may help in the scaling of effective conservation actions in responsible ways to meet the triple goals of reversing biodiversity loss, combating climate change and supporting human wellbeing.

Demand for low-quality offsets by major companies undermines climate integrity of the voluntary carbon market

Most companies include carbon offsets in their net-zero strategy. However, many offset projects are poor quality and fail to reduce emissions as claimed. Here we focus on the twenty companies retiring the most offsets from the voluntary carbon market over 2020-2023. We examine if their offsets could be considered high quality and likely to benefit the climate. We curate an original company-level dataset to examine quality and climate benefits across four dimensions: (1) use of offsets from low/high-risk project types; (2) age of projects and credits; (3) price of credits; and (4) country of implementation. We find that companies have predominantly sourced low-quality, cheap offsets: 87% carry a high risk of not providing real and additional emissions reductions, with most offsets originating from forest conservation and renewable energy projects. Further, most offsets do not meet industry standards regarding age and country of implementation. These findings provide further evidence that the voluntary carbon market is not supporting effective climate mitigation. Particularly, we show that its persisting quality issues are exacerbated by the demand for low-quality offsets by individual companies.

A novel deforestation risk and baseline allocation model for the next generation of nested REDD+ projects

Nature-based solutions that use a counterfactual scenario depend heavily on the methodology used to determine the business as usual (BAU) case, i.e., the "baseline." Reducing emissions from deforestation and forest degradation (REDD+) projects traditionally set baselines using a "reference area" as a control for estimating BAU deforestation and emissions in the treatment (project) area. While the REDD+ market is shifting from project-based to nested approaches as countries increase their efforts to meet nationally determined contributions (NDCs) to the Paris agreement's global climate target, methodologies for allocating national baselines are not yet formalized and tested, despite an urgent need to scale the market. We present a novel method for mapping deforestation risk and allocating national forest reference emission levels (FREL) to projects: baseline allocation for assessed risk (BAAR). This approach provides a spatial predictor of future deforestation using a dynamic vector, and a method for allocating a FREL to differentiated risk areas at the project level. Here, we present BAAR using 34 REDD+ projects in the Democratic Republic of the Congo (DRC). We demonstrate the importance of risk-based FREL allocations to balance fitness for purpose and scientific rigor. We show how BAAR can be used by governments to focus voluntary carbon market finance in areas at highest risk of imminent deforestation, while maintaining alignment with nationally determined contribution (NDC) goals.

Carbon sequestration costs and spatial spillover effects in China's collective forests

BACKGROUND

Global climate change is one of the major challenges facing the world today, and forests play a crucial role as significant carbon sinks and providers of ecosystem services in mitigating climate change and protecting the environment. China, as one of the largest developing countries globally, owns 60% of its forest resources collectively. Evaluating the carbon sequestration cost of collective forests not only helps assess the contribution of China's forest resources to global climate change mitigation but also provides important evidence for formulating relevant policies and measures.

RESULTS

Over the past 30 years, the carbon sequestration cost of collective forests in China has shown an overall upward trend. Except for coastal provinces, southern collective forest areas, as well as some southwestern and northeastern regions, have the advantage of lower carbon sequestration costs. Furthermore, LSTM network predictions indicate that the carbon sequestration cost of collective forests in China will continue to rise. By 2030, the average carbon sequestration cost of collective forests is projected to reach 125 CNY per ton(= 16.06 Euros/t). Additionally, there is spatial correlation in the carbon sequestration cost of collective forests. Timber production, labor costs, and labor prices have negative spatial spillover effects on carbon sequestration costs, while land opportunity costs, forest accumulation, and rural resident consumption have positive spatial spillover effects.

CONCLUSION

The results of this study indicate regional disparities in the spatial distribution of carbon sequestration costs of collective forests, with an undeniable upward trend in future cost growth. It is essential to focus on areas with lower carbon sequestration costs and formulate targeted carbon sink economic policies and management measures to maximize the carbon sequestration potential of collective forests and promote the sustainable development of forestry.

Evaluating the potential and eligibility of conservation agriculture practices for carbon credits

Carbon credits, a voluntary market mechanism to reduce greenhouse gas (GHG) emissions, can incentivize climate action. We evaluate the potential and eligibility of Conservation Agriculture (CA) practices for carbon credit generation in India under Verra's VM0042 methodology. Using farmer surveys and remote sensing data, we assess the eligibility based on the following conditions: Additionality Condition (GHG emission reductions to exceed legal requirements and the weighted mean adoption rate to be < 20% of area in the baseline), Yield Penalty Condition (no > 5% decrease in crop yields), and Quantitative Adjustment Condition (reduction in chemical fertilizer use by > 5%). Our analysis shows that CA has the potential to increase farmers' carbon credit earnings by USD 18/ha and USD 30/ha in Bihar and Punjab, respectively. Punjab's ban on crop residue burning and the fact that > 20% of the area unburned limits the full economic realization of CA through carbon markets, decreasing potential income to USD 16/ha. A 60% increase in carbon prices from the current norm (USD 25) is required to encourage wider adoption of CA. Zero tillage of wheat in both Punjab and Bihar and reduction of nitrogen fertilizer overuse in Punjab fulfil all the conditions and are eligible for carbon farming projects.

The status of forest carbon markets in Latin America

Tropical rainforests of Latin America (LATAM) are one of the world's largest carbon sinks, with substantial future carbon sequestration potential and contributing a major proportion of the global supply of forest carbon credits. LATAM is poised to contribute predominantly towards high-quality forest carbon offset projects designed to reduce emissions from deforestation and forest degradation, halt biodiversity loss, and provide equitable conservation benefits to people. Thus, carbon markets, including compliance carbon markets and voluntary carbon markets continue to expand in LATAM. However, the extent of the growth and status of forest carbon markets, pricing initiatives, stakeholders, amongst others, are yet to be explored and extensively reviewed for the entire LATAM region. Against this backdrop, we reviewed a total of 299 articles, including peer-reviewed and non-scientific gray literature sources, from January 2010 to March 2023. Herein, based on the extensive literature review, we present the results and provide perspectives classified into five categories: (i) the status and recent trends of forest carbon markets (ii) the interested parties and their role in the forest carbon markets, (iii) the measurement, reporting and verification (MRV) approaches and role of remote sensing, (iv) the challenges, and (v) the benefits, opportunities, future directions and recommendations to enhance forest carbon markets in LATAM. Despite the substantial challenges, better governance structures for forest carbon markets can increase the number, quality and integrity of projects and support the carbon sequestration capacity of the rainforests of LATAM. Due to the complex and extensive nature of forest carbon projects in LATAM, emerging technologies like remote sensing can enable scale and reduce technical barriers to MRV, if properly benchmarked. The future directions and recommendations provided are intended to improve upon the existing infrastructure and governance mechanisms, and encourage further participation from the public and private sectors in forest carbon markets in LATAM.

Implication of the new VCS jurisdictional and nested REDD methodology on baselines of existing avoided deforestation projects

A changing climate is poised to inflict massive-scale damage through extreme weather events. Preserving Earth's forests stands out as a critical resource in our battle to mitigate climate change. One pivotal approach for this endeavour is the Reduction of Emissions from Deforestation and Forest Degradation (REDD), a climate change mitigation solution currently being enacted through locally-based projects certified by the Verified Carbon Standard (VCS) Association. Nevertheless, these REDD projects have recently faced severe scrutiny for potentially overemphasizing their effectiveness. To address these concerns, the VCS has put forth a new jurisdictional and nested REDD methodology. This study, therefore, aims to assess the impact of the new REDD methodology on the baseline measurements of existing REDD projects within the VCS registry. For this assessment, we selected four REDD projects, each spanning across four continents and encompassing two major forest types. An in-depth analysis of these four projects reveals a noteworthy trend: under the new methodology, three of them are projected to experience a substantial reduction in the number of issued credits compared to the previous methodologies. Consequently, it appears that the new REDD methodology holds promise in generating higher-quality credits by reducing the potential for an inflated baseline.

The political economy of net-zero transitions: Policy drivers, barriers, and justice benefits to decarbonization in eight carbon-neutral countries

This study examines the political economy of decarbonization in eight countries over the period 2000 to 2021/2022 that have already achieved a national net-zero transition. These countries are Bhutan, Suriname, Panama, Guyana, Comoros, Gabon, Madagascar, and Niue. It utilizes an analytical method of a rich, interdisciplinary and systematized literature review integrated with thematic analysis. For each of these countries, the study examines the drivers and political motivation behind net-zero progress, including the timeline of events; the barriers and challenges that had to be overcome; and the benefits of decarbonization and its impacts on equity and justice. The main objectives of the study are to broaden the evidence base on low-carbon transitions beyond often and even overstudied countries that are Western, Educated, Industrialized, Rich, Democracies, or WEIRD countries, and to offer new empirical data on the strategy of energy policies in the real world, examining the first eight countries to achieve net-zero success in the modern era. It finds that all eight countries used a similar mix of nine policy interventions involving land use, renewable energy, and waste management. Common barriers included vulnerability to the effects of extreme climate events either in the form of natural disasters (i.e. landslides and floodings) or ecosystems degradation (i.e. ocean acidification, coastal erosion and forests loss). Despite these barriers, achieving net-zero emissions positively impacted marginalized communities by providing a more equitable distribution of climate benefits, mitigating adverse health effects and reducing social inequalities, particularly in low-income areas.

Confronting deep uncertainty in the forest carbon industry

Resilience-based and service-focused approaches could reduce contentions and injustices.

Forest carbon offsets are failing

Analysis reveals emission reductions from forest conservation have been overestimated.