? Happy New Year

Hi there,

Happy new year and welcome back to our newsletter. We hope you have all had a restful break and are feeling recharged, ready for the year ahead.

Here at Respira, we are looking forward to 2024. Indeed, the ICVCM's Core Carbon Principles, the VCMI's Claims Code of Practice and the overall positive momentum surrounding the VCM at COP28 have made us optimistic for the future.?These developments – along with numerous reports, white papers and guidance – represent a new era. A VCM 2.0, if you will.

As the market enters this new phase of maturity, we will continue to share updates in our newsletter, both via email and on LinkedIn. Please circulate it with your networks if you haven't already, it will help others to join our community and participate in these conversations.

Newsflash

• First up, we have some Respira-centric news. Carbon Herald shares that Spinnaker Capital, the emerging markets investment management firm, has invested in Respira. You can read more in the?press release on our website.
• Reuters covers the 2024 Global Risk Report from the World Economic Forum. Extreme weather is yet again considered a top global risk.
• On the subject of risk, TNFD shares ten case studies which highlight the costs of nature-related risk. This accompanies a new report which you can see here.
• Mongabay releases the first article in its five-part series on forest carbon credits. This piece questions whether the VCM is a solution or a distraction to climate action. Carbon Tanzania features in the second instalment (linked here) and you can find a link to the third article in the Respira News section of this newsletter.?
• Authors from organisations including CTrees, Climate Focus, Calyx Global and write how REDD can be high quality in?Ecosystem Marketplace.
• Environmental Defence Fund considers how the CFTC guidance will shift the VCM towards a place of higher integrity.?
• Press Trust of India reports that the VCMI is partnering with the Carbon Markets Association of India to guide the registration of carbon projects.
• Eco-Business questions whether 2024 will be a year of redemption for the VCM. Read on discover the verdict.
• In contrast to the optimism of many other stakeholders,?S&P Global reports reasonably pessimistically on the future of the VCM, highlighting the challenges of integrity criticisms and the 2023 pricing slump.
• Thomson Reuters argues that building trust in the carbon credit marketplace is crucial if it is to attract more participants.
• And finally we have a piece in PolitiCo on the biggest sustainability trends to watch out for in 2024. You guessed it, the VCM is on the list.

Don't miss this report

HIGH FOREST, LOW DEFORESTATION AREAS: POTENTIAL INCENTIVE STRUCTURES AND BUSINESS MODELS

What's new? The Nature Conservancy has published a new report, proposing and exploring financial incentives for HFLD jurisdictions. It highlights HFLD examples from Guyana, Gabon and the Republic of Congo before offering some possible ways forward.

For anyone seeking more information about HFLD, this report also includes a very useful introduction to the topic.

So what??This report makes innovative suggestions for structures and business for incentivising the conservation of HFLD. It divides these options into three categories: Paris Agreement; VCM?and?Other.

What are the Paris Agreement options??The report suggests that under the UNFCCC, REDD+ should first focus on stabilising forest cover, and then on reversing loss. This would create more HFLD countries in the lead up to 2050. This section also discusses Article 6 and interim approaches for pre-2021 UNFCCC REDD+ results.

What are the VCM and standards options? Here, the report proposes the use of HFLD credits to compensate for leakage, which would in turn strengthen the protection of these areas. It also suggests changes to the ART-Trees approach, the expansion of existing protected areas and much, much more.

And what about the other options? The Nature Conservancy highlights the conservation credit - an idea proposed by the FCPF. These credits would be common accounting units to enable the monitoring and comparison of stable forests to ensure they do not decline. Another option suggested here is High Integrity Forest Removal Units (HIFOR). These tradable assets would enable the management of HFLD areas and appropriately value the ecosystem services they provide. Other options proposed here include debt-for-nature swaps, philanthropy and overseas development assistance.

Any takeaway facts? While not a recommendation per say, this fact stood out. At present, the world's forests absorb 1.5 times the volume of CO2 that is emitted by the United States every year. That really puts the scale of our forest carbon sinks into perspective.

News from the field

Soil Carbon Advocate: Blaston featured in Farmers Guardian magazine

Our UK-based flagship portfolio project, Blaston Farm, featured in the December issue of Farmers Guardian. The article interviews Blaston's owner, Hylton Murray-Philipson, who explains how he has, for a long time, been committed to climate action. Indeed, he founded his previous venture, Canopy Capital in an attempt to "make forests worth more alive than dead". In the article, he advocates for soil carbon, sharing details of how it is measured at Blaston farm and how profitable it has been.

Cookstoves in Action: C-Quest Capital visits families in The Gambia

Mame codou Ndiaye, West Africa Deputy Director at C-Quest Capital, made a trip to The Gambia. Writing on LinkedIn, she shared how she spoke to many families who are using C-Quest’s cookstoves and how moved she was by the positive feedback received. People told her how their children had more time for homework now that they had a more efficient way to cook meals.

Respira's News

Greenwashing: Why transparency is needed for climate action in retail

Our CEO, Ana Haurie, was interviewed in Retail Sector. In this Q&A, Ana explains why the retail sector should avoid greenwashing at all costs. She discusses the need for transparent climate action and the ways in which the voluntary carbon market can help retail companies achieve ambition sustainability goals. Read it here.?

Mongabay: Addressing deforestation is critical and urgent, says Ana Haurie

To start 2024, Mongabay is publishing a five-part series on voluntary carbon credits. Ana Haurie is quoted in the third?instalment, which focuses on the different players in the market. Speaking of the role of markets for climate action, Ana says that raising demand for emission reductions is essential for addressing global deforestation.? She?said: “These reductions are taking place right now…and without demand for those reductions, then what’s the incentive? There isn’t one.”

Dates for the diary

• World Economic Forum will have its annual meeting in Davos between the 15th and the 18th of January. Focused on rebuilding trust, this is one to watch.

• Register here for an upcoming webinar from Trove and MSCI on the?23rd of January at 2pm GMT. Titled, 'Carbon Markets at an Inflection Point, this webinar is a chance to look back at the VCM in 2023.

• The European Commission's EU Sustainable Investment Summit 2024 will be held in Brussel on the 24th of January.

• Finally, mark your diaries on the?29th of January if you would like to attend a webinar from BusinessGreen: Prizes and Pitfalls - Navigating the Voluntary Carbon Market in 2024.

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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.