Climate change has now become a top business priority, but other sustainability-related issues can also be at the forefront of an organization’s goals. This is where co-benefits in carbon projects can be of great value and assist in aligning multiple objectives with the appropriate investment. So how do co-benefits work?
What are the co-benefits?
Co-benefits are additional benefits that go beyond greenhouse gaz emissions (GHGs) elimination and reduction that positively affect communities and biodiversity. It’s important to recognize that not all types of carbon projects offer the same kinds or levels of co-benefits. For instance the REDD+ project that aims to save a forest from deforestation may, as result, result in jobs being created in the area and also protect local biodiversity, whereas an air capture direct (DAC) project might bring in a few new jobs, but would not have wider ecological benefits.
Quality and impact measurement
There are other aspects to consider when making investments in carbon credits with co-benefits, mostly around quality and impact on communities and biodiversity. Some projects are not well developed; and, just like how an offset of poor quality can have a negative consequences for the environment, a poorly designed project that includes co-benefits may adversely affect local communities and biodiversity.
Future frameworks could influence the way co-benefits are analyzed. Presently it is it is the Task Force on Climate-related Financial Disclosures’ (TCFD) recommendations are being adopted by numerous financial regulators, including ones located in both the US and UK. If the Task Force for Nature-Related Financial Disclosures (TNFD) were to recommend a similar model which would require businesses to make public disclosures of their effects on nature and biodiversity. As a result, corporations that invested in carbon offsets without a good co-benefits would be subject to public scrutiny , and placing their climate claims as well as their brands at risk. Click here to trade carbon credits.
Biodiversity and biodiversity are both benefits.
Monitoring biodiversity and its assessment is more challenging than carbon since it requires frequent, thorough data from the ground. This can be expensive and lengthy. However, because of our partnership with the Integrated Biodiversity Assessment Tool (IBAT), the world’s most authoritative source of biodiversity information We have access important biodiversity data that we incorporate to the carbon project analyses we conduct and analyses, such as:
species and habitat diversity
Monitoring tools are in place for the area
details on income diversification or improved agriculture to lessen the impact on biodiversity
National and regional threats to biodiversity
Affiliating more than one of your company’s objectives
The chance to invest in solving multiple sustainability issues through one carbon project can be a huge benefit for any organization, but this is only the case if the credit is high quality and meets the promises made in the proposal. Otherwise, there is a chance that it could negatively affect the biodiversity of people, animals and the environment.
There are numerous factors that influence co-benefits and the quality of a carbon credit program. When you do the proper due diligence, there’s potential to invest in top-quality natural-based carbon credits that meet the goals of your organization’s net zero and has the potential to solve other global problems.
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