May 2021 - Which opportunities, potentials and innovation possibilities do Nature based solutions (NbS) offer in carbon markets? What are the obstacles and risks? These are the questions addressed in a new study conducted by TREES consulting in cooperation with Gold Standard on behalf of the Foundation “Future of the Carbon Market”. The study particularly focused on the question of what role carbon markets can play in scaling up the use of NbS to achieve the goals of the Paris Agreement.
NbS have been successfully implemented in carbon markets and environmental programs for decades mainly in the forestry and land use sector including coastal systems and wetlands, i.e. as measures that conserve, restore, or enhance forests, wetlands, grasslands and agricultural lands.
The use of NbS-activities for offsetting and carbon neutrality claims is still lacking clarity on how these potential market segments could be aligned with Paris Agreement and with the Long-term strategies. Furthermore, there is a need for clarification on how NbS-activities can be adjusted to conditional NDCs. This study could help to define the next steps in elaboration of the market application readiness. With this challenge in mind the Foundation, established with financial resources of the International Climate Initiative (ICI) of the German Environmental Ministry (BMU), will undertake expert exchanges as input to the follow-up study.
The study is available for download here.