Are the companies which buy carbon credits decarbonising faster?

Hi there,

Thank you for joining us for this, the most recent edition, of our bi-weekly newsletter. Today, we explore some of the latest VCM developments spanning Sylvera's new report (see more below) to?Verra's?updated draft REDD+ methodology. Julianne Baroody, Verra's Senior Director of Forest Carbon Innovation, calls the draft a "significant revision." Indeed, when complete, this draft will replace five of Verra's existing methodologies, including that for Avoiding Unplanned Deforestation (AUD).?Before it goes live, Aster Global with conduct a third party audit of this new methodology. It is expected to be published in Q3 of this year.

If you would like to learn more about the draft, we recommend watching a talk presented by Verra back in April which provides a comprehensive overview of the changes. For a consideration of the pros and cons of the draft, check out a four part blog series from Calyx Global which addresses baselines, additionality and monitoring.?

Finally, don't forget that we also circulate this newsletter via email. Please do not hesitate to subscribe if you would like to receive a copy straight to your inbox and share with your network if you think they would find it helpful.?

Newsflash

• First of all, it is great to see Carbon Pulse publishing a piece by?Isack Bryson, Project Manager at?Carbon Tanzania. He recommends that project developers engage with local people and shares four pieces of advice on making this happen.
• The Washington Post?focuses on Sulawesi, Indonesia, and the Indigenous Kajang people conserving forests.
• Carbon Pulse covers how CIX has partnered with an AI-powered decarbonisation platform.
• Reuters reports that NextGen (a collaboration between South Pole and Mitsubishi Corporation) will buy 200,000 tonnes of carbon removal credits to help drive down prices.
• Forbes?shares a piece by Dee Lawrence, co-founder and director of carbon projects at Cool Effect in which she acknowledges the VCM as one of the most effective ways to channel finance to climate mitigation.
• Politico writes on the Federal Trade Commission commitments to monitoring corporate sustainability claims. This is a useful read.
• Environmental Defense Fund shares a handbook on NCS crediting.
• IETA releases a white paper considering the key differences between market-based credits and results-based payments.
• Fast Company argues that debating the worthwhileness of beyond value chain mitigation is distracting us from the role the VCM has to play in reaching net zero.
• Reuters reports that EU has backed a ban on goods related to deforestation.
• The Nature Conservancy shares a new report on the importance of paying attention to local conditions when it comes to forest management.
• Bloomberg covers on the new report from the Energy Transitions Commission, highlighting the predicted $130 bln a year to finance an end to deforestation.
• And finally...Financial Times talks whale-based carbon credits.

Don't miss these reports...

Carbon credits: Permission to Pollute or Pivotal for Progress?

Sylvera analysed the Scope 1 and 2 emissions of 100 of the world’s most influential businesses to see if there is any truth to the all-too prevalent?claim that companies purchase carbon credits to avoid taking meaningful climate action.

The report found a?positive correlation between an investment in carbon credits and higher decarbonisation rates.

The average annual decarbonisation rate for companies that buy carbon credits was 2.8% greater (6.2%) than for those which did not purchase carbon credits (3.4%).

However, the report also acknowledges that you cannot judge environmental progress exclusively on decarbonisation. The highest emitting industries tend to score well because they have the most to cut. Carbon Pulse covers the report here.

Blockchain for Scaling Climate Action

The World Economic Forum has released a white paper on the potential of blockchain for scaling climate action.

Blockchain is increasingly used by world-leading institutions. One example is the Climate Action Data Trust, established by the World Bank, IETA and the Government of Singapore in 2022. The trust coordinates global carbon data for open-source sharing.

General trends show that net zero commitments were up 7% from the world’s largest companies in 2022 compared with the previous year.?

Blockchain can support these companies to meet their net zero goals however, implementation at scale requires exceptional levels of coordination. What's more, the paper warns that reputational challenges for companies should not be underestimated.

News from the field

Find out the latest news from our flagship portfolio projects

Dismas Partalala of UCRT writes for Mongabay

“The idea that ‘land is life’ has been at the core of what I do since I began my journey in grassroots conservation,” writes Dismas. As a member of Tanzania’s Maasai community, he explains how Indigenous communities need support because without land rights, they cannot continue their traditional ways of life or conserve nature.

Burapha Agro-Forestry in Germany

Burapha Agro-Forestry will present its plywood products at a furniture manufacturing fair - Interzum - in Cologne, between the 9th and the 12th of May. It is a chance to discuss the future of the industry and learn about the latest materials in supply. More?here.

Carbon Tanzania: "Carbon credits are not a licence to pollute"

On the 20th of April, Jo Anderson and Marc Baker participated in a webinar for Sustainable Travel International. They debunked the idea that carbon credits are a ‘licence to pollute’ and discussed how carbon credits can help companies to meet their net zero targets. Link to the recording here.

Dates for the diary

• The UN Forum on Forests will take place in?New York between the 8th and the 12th of May.
• The Food and Agriculture Investment Summit is set for the 17th and 18th May. CE-EM will be hosting this event in London and it's not too late to register.
• The agenda is out for one of the most important events in the voluntary carbon market calendar. Between the 23rd and the 25th May, Innovate4Climate will be held in Bilbao, Spain. Please reach out if you would like to connect with us there.

A final recommendation...The Climate Pledge has released a six-part mini documentary series called Future Forward. With each episode less than eight minutes long, this an excellent way to quickly inform yourself on some of the cutting-edge climate initiatives operating around the globe.

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Respira International is an impact-driven carbon finance business. Respira’s high-quality carbon credits allow corporations and financial institutions to mitigate their environmental impact. Respira channels private capital into climate solutions ensuring long-term relationships with trusted carbon project developers that enable its clients to use predominantly nature-based solutions to build sustainable, climate-positive businesses and portfolios. Respira’s team combines deep and varied experience working in global financial markets with a robust understanding of carbon project development in leading international conservation organisations. Respira operates with an innovative offtake and profit share model which reinvests back into local communities.?