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Are biodiversity credits just another business-as-usual finance scheme?
- There’s a new emerging innovative finance scheme to support biodiversity conservation: voluntary biodiversity credits. These are meant to be purely voluntary, “positive investment” in nature by the private sector and, in theory, should not be used to offset damage elsewhere.
- But several Indigenous and environmental groups and researchers worry that, like the voluntary carbon credit market, a voluntary biodiversity market could end up being used for offsets, allowing companies and governments to continue business as usual.
- Critics also say there is lack of a clear demand for such credits from the private sector, and a voluntary biodiversity credit market won’t be a sustainable solution at a global scale.
- Indigenous and local communities have the potential to financially benefit from these biodiversity credit projects, which are likely to target their lands. But experts point out the need to first fix several fundamental problems that have already emerged in the carbon credit market, from the lack of land rights among Indigenous communities to unscrupulous middlemen, unjust contracts and dilution of funds.
UN probes controversial forest carbon agreement in Malaysian Borneo
- The government of Sabah state in Malaysian Borneo will continue to move forward with an opaque nature conservation agreement despite concerns raised by the United Nations.
- In a letter, the U.N. calls in question the transparency of the agreement and the state’s approach to the human rights law principle of free, prior and informed consent.
- The agreement was signed by state officials and a representative of a Singaporean company in 2021. Shortly after news of the deal became public, some Indigenous groups in the state said they hadn’t been consulted or informed about the deal covering 2 million hectares (4.9 million acres) of the state’s forests.
- The U.N. letter was written by a group of “special procedures experts” with mandates established by the U.N. Human Rights Council, including the special rapporteurs on the rights of Indigenous peoples, on human rights and the environment, and on the right to development.
New report details rights abuses in Cambodia’s Southern Cardamom REDD+ project
- Human Rights Watch has detailed forced evictions, property destruction and violence against Indigenous communities living within a REDD+ carbon offset project area in southwest Cambodia.
- Trade of carbon credits from the Southern Cardamom REDD+ project were suspended last year amid similar allegations, and the project’s carbon certifier recently announced it’s expanding its ongoing investigation.
- Residents told Mongabay that Wildlife Alliance, the NGO that manages the project, has effectively outlawed their traditional methods of farming and livelihood, including restricting their access to sustainable forest products.
- Wildlife Alliance has denied the allegations, suggesting HRW has an agenda against carbon offsetting projects, but says it’s making improvements in response to the allegations.
Markets and forests: 7 takeaways from our series on the forest carbon trade
This is the wrap-up article for our five-part series on forest carbon credits and the voluntary market. Read Part One, Part Two, Part Three, Part Four and Part Five. Mongabay recently published a five-part series on the carbon trade and its use as a tool to address climate change. The exchange of carbon credits, typically […]
The future of forest carbon credits and voluntary markets
- Observers predicted that 2023 would be a “make-or-break” year for voluntary carbon markets and “an inflection point” for their role in addressing climate change and global deforestation.
- Amid criticisms around carbon accounting, carbon neutrality claims, and issues with forest communities, governance bodies say they’ve worked to increase consistency and “integrity” for the voluntary carbon market and specifically the forest conservation strategy known as REDD+.
- Concerns remain from a variety of observers, including those who say the focus of credit-buying companies should be on eliminating their carbon emissions from across their entire suite of operations.
- But proponents of markets say that while decarbonizing is absolutely necessary to minimize the rise in global temperatures, the carbon trade allows for the mitigation of pesky residual emissions that it’s either impossible or too expensive to get rid of at this point.
Leveraging the hypothetical: The uncertain world of carbon credit calculations
- Criticisms of the voluntary carbon trade and forest conservation strategies like REDD+ have centered largely on the carbon accounting methods used to calculate credits.
- Each credit traded on voluntary markets is supposed to represent the reduction, avoidance or removal of 1 metric ton of carbon dioxide from the atmosphere.
- But recent science has raised questions about how REDD+ and other types of project figure out the number of tons of emissions saved.
- The process relies on establishing a baseline rate of deforestation against which a project’s emissions-reducing or -removing success is measured. But critics say the process can be faulty and that the conflicts of interest of the parties involved in setting the baseline have not been addressed until recently.
‘Cowboys’ and intermediaries thrive in Wild West of the carbon market
- A host of different players have crowded into the voluntary carbon trade as its value has grown.
- Motivated by the potential for profit, a concern for climate change or some combination of the two, these companies and organizations link the credits generated by projects, such as those that fit in the forest conservation scheme known as REDD+, with buyers, often companies and individuals in the Global North looking to compensate for their climate impacts.
- Some groups say they help shoulder the burden of tasks like marketing so that the communities and project staff on the ground can focus on the “change-making work.”
- But others, sometimes called “carbon cowboys,” seem interested in the money to be made from trading carbon. Some have faced allegations that they don’t bring the necessary expertise to their work, or that they don’t adequately inform local communities about the intended projects and the potential pitfalls.
Do carbon credits really help communities that keep forests standing?
- Communities play a critical role in REDD+, a forest conservation strategy that aims to reduce emissions that can be sold as credits to raise money for forest protection.
- REDD+ projects often include components for the benefit of the communities, such as a focus on alternative livelihoods and provision of health care and education.
- But reports that REDD+ communities have faced abuses and rights violations have emerged recently in connection with high-profile REDD+ projects.
- Several Indigenous-led organizations have voiced their support for REDD+ because, they say, it provides an avenue to fund their climate-related conservation work, while other groups say it’s not the answer.
Forest carbon credits and the voluntary market: A solution or a distraction?
- Voluntary carbon markets and forest carbon credits have faced widespread criticism that reached a zenith in 2023.
- Media reports detailed concerns about their dubious climate benefits, respect for communities and land rights, and their use by Global North companies to avoid the difficult task of decarbonizing their operations.
- Supporters of forest conservation strategies like REDD+ say that they can and should play a role, as healthy forests can absorb a significant amount of atmospheric carbon. They also say REDD+ brings much-needed funding to protect and restore forests, not only for their carbon, but because of the biodiversity and communities they support.
- As 2023 draws to a close, and with it the U.N. climate conference in Dubai (COP28), proponents of the voluntary carbon trade are working to increase the “integrity” of markets in ways they hope make them a viable tool to deal with climate change.
Indigenous-led coalition calls for moratorium on terrestrial carbon trade
- The Pathways Alliance for Change and Transformation (PACT), a coalition of Indigenous, community and nonprofit organizations, published a paper in September 2023 calling for a moratorium on the forest carbon trade out of concern for the rights of Indigenous peoples and local communities.
- PACT says a pause in selling carbon credits is needed until protections for the land rights of these communities are laid out “explicitly, proactively, and comprehensively.”
- In December at the U.N. climate conference in Dubai, carbon markets experienced a setback after negotiators failed to agree on texts to articles in the 2015 Paris climate agreement meant to guide the carbon trade.
The year in rainforests: 2023
- The following is Mongabay’s annual recap of major tropical rainforest storylines.
- While the data is still preliminary, it appears that deforestation declined across the tropics as a whole in 2023 due to developments in the Amazon, which has more than half the world’s remaining primary tropical forests.
- Some of the other big storylines for the year: Lula prioritizes the Amazon; droughts in the Amazon and Indonsia; Indonesia holds the line on deforestation despite el Niño; regulation on imports of forest-risk commodities; an eventful year in the forest carbon market; rainforests and Indigenous peoples; and rampant illegality.
Little achieved for Indigenous groups at U.N. climate summit, delegates say
- At this year’s U.N. climate conference, COP28, Indigenous delegates numbered more than 300, but were left generally disappointed with the outcomes of the event.
- The final agreement had little inclusion of Indigenous rights and excluded an Indigenous representative from sitting on the board of the newly launched loss and damage fund.
- Indigenous groups say two big climate mitigation strategies, the clean energy transition and carbon markets, should include robust protection of Indigenous rights and consent.
- Despite setbacks, Indigenous leaders say they’re working on increasing their presence and influence at the next climate conferences, including upping their numbers to 3,000 delegates, creating a large international Indigenous Commission, and taking part in the summit’s decision-making.
New tool aims to make nature-based solutions projects in SE Asia a better sell
- A coalition of conservation NGOs has introduced a new tool aimed at helping local communities in Southeast Asia apply more effectively for funding for nature-based solutions projects.
- The group, which includes Conservation International and The Nature Conservancy, says the region has massive potential for projects to absorb carbon and protect wildlife, but that access to funding remains a huge gap.
- The new NbS tool is designed to help project managers put together project documentation that includes data analysis that should make it easier for donors to immediately identify the benefits from the projects being proposed.
- The tool isn’t limited to helping package nature-based solutions projects; proponents say it can also be used to put together the paperwork needed for other community-led initiatives that require data documentation and analysis.
At COP28 & beyond, fair carbon markets must be part of the climate finance solution (commentary)
- As COP28 gets underway, carbon markets and credits are under fire due to claims about corporate greenwashing and convoluted carbon accounting metrics.
- At the same time, political will and climate finance remain in short supply, hindering progress toward reaching global climate goals.
- A new op-ed argues that fair carbon pricing and equitable, transparent carbon markets represent part but not all of the climate finance solution: governments, NGOs, local communities and the corporate sector must work together in good faith toward reaching emission reduction targets.
- This post is a commentary. The views expressed are those of the authors, not necessarily of Mongabay.
How Indigenous peoples and local communities can make the voluntary carbon market work for them (commentary)
- The voluntary carbon market has the potential to address $4.1 trillion in nature financing gap by 2050 and support Indigenous peoples and local communities — when done right, argue a cohort of Indigenous leaders in a new commentary.
- The voluntary carbon market can work for and support Indigenous peoples and local communities (IPs and LCs), and them for it, but these communities have not been adequately engaged or consulted to participate in this carbon market.
- The Indigenous leaders announce the new IPs and LCs Voluntary Carbon Market Engagement Forum that is taking shape and will try to address these IPs and LCs’ priorities. The Forum is now coordinating open calls for Governing Board members and Forum partners.
- This post is a commentary. The views expressed are those of the author, not necessarily Mongabay.
Can impermanent carbon credits really offset forever emissions?
- A team of researchers has put forth a method that they say makes it possible to compare credits for carbon from forests projects against more permanent storage solutions.
- The carbon emissions that these credits are meant to offset can last for hundreds, if not thousands, of years in the atmosphere. Forests, by comparison, are subject to fires, disease and deforestation, meaning that their climate benefits can be more temporary than longer-term solutions, such as direct air carbon capture.
- By “discounting” the credits from forest carbon projects based on conservative upfront estimates of how long a forest will safeguard or sequester carbon, the authors say that “like-for-like” comparisons would be possible.
- The team published their work Oct. 30 in the journal Nature Climate Change.
Control of Africa’s forests must not be sold to carbon offset companies (commentary)
- A forest carbon deal between Blue Carbon and the nation of Liberia would give the company exclusive rights to control 10% of the nation’s land mass for 30 years.
- Blue Carbon has also signed MOUs for similar deals with Tanzania and Zambia (and others) and combined with the Liberia deal, the land controlled by the company in these three African nations represents an area the size of the whole of the United Kingdom.
- “Carbon colonialism is a false solution to the climate crisis,” a new op-ed states. “The only real answer is to end our fossil fuel addiction by dramatically reducing our emissions, while financially supporting countries and local communities to protect their forests, rather than wrest control of them.”
- This post is a commentary. The views expressed are those of the author, not necessarily Mongabay.
Carbon counting without the guesswork: Q&A with FCL proponent Jerry Toth
- REDD+ projects aim to incentivize efforts that maintain standing forests, rather than cutting them down, by providing payments based on the carbon emissions kept out of the atmosphere.
- But REDD+, which is short for “reducing deforestation and forest degradation in developing countries,” has been widely criticized lately, in part because skeptics say that the accounting methods are open to manipulation by developers aiming to sell more credits — credits that many not represent a verifiable climate benefit.
- One alternative is the forest carbon ledger (FCL). FCL seeks to value the total amount of carbon in a forest and would provide payments based on how well that storage is maintained over time.
- Mongabay spoke with Jerry Toth, co-founder of a conservation group working to protect and restore the last remaining remnants of the Pacific Forest of Ecuador called the Third Millennium Alliance (TMA). Toth said FCL may provide a more robust alternative to REDD+ carbon accounting.
Forests hold massive carbon storage potential — if we cut emissions
- A new study finds forests could potentially store 226 billion metric tons of carbon if protected and restored, or about one-third of excess emissions since industrialization.
- Nearly two-thirds of this potential lies in conserving and letting existing forests mature.
- The authors say that restoring deforested areas through community-driven approaches such as agroforestry and payments for ecosystem services is essential.
- Planting trees can’t replace cutting fossil fuel emissions, as climate change threatens forests’ carbon uptake.
Can carbon markets solve Africa’s climate finance woes?
- The African Carbon Markets Initiative, a consortium of Global North donors, corporate representatives, conservation groups and energy lobbyists, is pushing to expand carbon markets on the continent.
- The effort has gained the vocal support of Kenyan President William Ruto, along with a number of other African heads of state, who see carbon markets as a way to generate badly needed climate finance.
- But African environmental groups have sharply criticized carbon markets, saying they represent a “false solution” to the climate crisis and will mostly enrich bankers and traders based outside the continent.
- The drive to scale up carbon markets in Africa and elsewhere is set to be a major agenda item at this month’s COP28 climate summit in Dubai.
Critical questions remain as carbon credit deal in Sabah presses forward
- Details around a secretive “nature conservation agreement” signed in 2021 between a Singaporean company and the government of Sabah, a Malaysian state on the island of Borneo, remain elusive.
- Several internationally known companies that work in climate mitigation have said they’re not affiliated with the agreement, despite implications by Jeffrey Kitingan, a deputy chief minister and the deal’s primary backer, that they are involved.
- Kitingan also revealed that Hoch Standard, the Singaporean company, is controlled by a single director through another company registered in the British Virgin Islands.
- Kitingan said the project is moving forward, leading to renewed calls from civil society, Indigenous and research organizations for the release of more details about the agreement.
For 1st time, Indonesia government recognizes ancestral forests in Aceh — but only some
- The Indonesian government has recognized 22,549 hectares (55,700 acres) of ancestral forests in Aceh, on the northern tip of Sumatra — the first time for the region.
- In total, Indigenous communities in Aceh seek recognition of 144,497 hectares (357,060 acres) of customary forests, and thus activists are calling for the government to recognize the rest of the forests.
- The communities welcome the recognition, saying it will give them legal protection to manage their forests in a sustainable manner.
New Paraguay law aims to improve carbon credit market
- A new law in Paraguay creates a more organized, transparent carbon credit system but might also complicate the way credits are bought and sold.
- The law creates a registry for carbon credit projects and ensures land isn’t being assigned more than once.
- The Gran Chaco, South America’s second-largest forest, has been of particular interest to the carbon credit market, as there are concerns about deforestation in the area.
As companies buy ‘plastic credits,’ are they reducing waste or greenwashing?
- Companies and other entities are buying “plastic credits” allowing them to offset every ton of plastic they make with an equivalent amount of plastic waste collected and taken out of the environment elsewhere — often in poor nations lacking waste management programs. Several organizations now offer credits and will certify plastic collection and reuse.
- No worldwide standards or regulations govern the use of these plastic credits or assure their reliability, nor what gets done with the collected waste. Verra, which runs the world’s largest carbon credit verification system, but has come under fire for that system’s poor verification record, recently launched its own plastic credits verification system.
- Skeptics warn the plastic credit systems being created by various organizations, rather than recycling significant plastic waste, merely amount to greenwashing and allow companies to continue to make and use polluting materials, while running PR campaigns to make themselves look environmentally responsible.
- The credit system at best only deals with waste already manufactured and thrown out; it doesn’t address the need to ban the most toxic plastics, reduce production of others, or replace disposable single-use plastic with eco-friendly or reusable materials. Verra is urging that plastic credits become part of the U.N. global plastics treaty currently under negotiation.
Indonesia opens carbon trading market to both skepticism and hope
- Environmentalists have criticized Indonesia’s carbon trading mechanism, which had its first day of trading Sept. 26.
- The government touts the mechanism as a way to curb emissions and attract climate funding, but critics call carbon trading a false solution to climate change and a greenwashing attempt.
- Environmentalists say carbon trading could discourage companies from outright reducing emissions, enabling a “business as usual” attitude in which people and companies could buy carbon credits to continue polluting instead of changing their behaviors.
- A recent analysis by The Guardian and researchers from Corporate Accountability found that most of the top 50 emission offset projects — those that have sold the most carbon credits in the global market — were likely junk or worthless.
How nonprofit journalism revealed many problems with the UN’s climate neutrality claims
- Despite claiming to be 95% “climate neutral,” the United Nations — a long-standing and vocal proponent of climate action — isn’t, a new report has found.
- Mongabay teamed up with reporters at The New Humanitarian in a yearlong investigation spanning multiple countries to investigate the U.N.’s claims.
- The investigation found that many projects that issue carbon credits to the U.N. were linked to environmental damage or displacement, and 2.7 million out of 6.6 million credits were linked to wind or hydropower — which experts say don’t represent true emissions reductions.
- Investigative reporter Jacob Goldberg from The New Humanitarian joins the podcast to explain how the team arrived at these surprising findings.
World owes it to Tanzania to keep Eastern Arc forests standing, study shows
- Tanzania’s Eastern Arc’s evergreen forests provide carbon sequestration that the world benefits, yet it’s local communities alone who shoulder the costs of keeping the forests standing.
- The authors of a new study recommend that international investments in conservation within the Eastern Arc worth $2 billion need to be made over the next 20 years.
- Without this, the authors say, the mountains’ forests and their extraordinary levels of biodiversity will be lost or degraded as local communities convert them to agricultural land or harvest timber from them.
Revealed: Why the UN is not climate neutral
- The UN has long championed the need for urgent climate solutions. It has claimed to be at least 95% “climate neutral” every year since 2018, largely through the use of carbon credits.
- The New Humanitarian teamed up with Mongabay to investigate the UN’s claims of climate neutrality. In an investigation that took a year and spanned multiple countries, reporters obtained details about carbon credits purchased by 33 UN entities, representing more than 75% of its reported offset portfolio since 2012.
- More than a dozen of the projects that issued the UN’s carbon credits were linked to reports of environmental damage, displacement, or health concerns. Others were deemed worthless by a number of leading climate experts.
‘The forest is so much more than money’: Q&A with Fijian carbon project ranger Jerry Lotawa
- Jerry Lotawa grew up in Drawa village in the forested highlands of Fiji’s largest island, and is now putting his ecological knowledge to use as lead ranger for the country’s first verified forest carbon project.
- The Indigenous-led project protects 4,120 hectares (10,181 acres) of rainforest that’s under threat from logging and clearing for agriculture, through a 30-year conservation lease that stretches across land belonging to eight mataqali (clans).
- The project has been selling carbon credits since 2018, with the proceeds distributed to the mataqali according to the amount of land they set aside for conservation, and each clan then choosing whether to share the money equally among its members or to hold it collectively for larger projects such as education and infrastructure.
- According to Lotawa, the project has helped locals to better understand the importance of their forest in maintaining their lives and livelihoods, and to pursue economic activities that don’t negatively impact the ecosystem.
Photos: Fiji’s first Indigenous-owned carbon credit project
- Fiji’s first verified forest carbon credit project is based in the Drawa rainforest on the country’s largest island, and has been earning income for its Indigenous landowners for five years now, in exchange for keeping their forests standing amid pressure from logging companies to fell its ancient trees.
- To make sure the project offers a compelling alternative to quick cash from logging permits, alternative livelihood opportunities are important ways to provide day-to-day income for individuals, alongside the cash from carbon credits that’s disbursed to mataqali (clans) on a quarterly basis and often used for collective projects.
- A number of local young men have been trained as rangers to monitor the protected areas, while other villagers, mostly women, are benefiting from their roles in a growing rainforest honey business — though scaling up the business to a more lucrative level remains a challenge.
Study: Tricky balancing act between EV scale-up and mining battery metals
- A recent study finds rapidly switching to electric vehicles could significantly cut emissions but also increase demand for critical battery metals like lithium and nickel.
- Mining metals like lithium has major environmental impacts including deforestation, high water use, and toxic waste.
- Electrifying heavy-duty vehicles requires substantially more critical metals than other EVs and could account for 62% of critical metal demand in coming decades despite making up just 4-11% of vehicles.
- The researchers recommend policies to support recycling, circular economies, alternative battery chemistries, and coordinated action to balance environmental and material needs.
Brazil cap-and-trade carbon framework in sight, but agriculture gets a pass
- Brazil’s Senate is expected to vote this month on a bill introducing a cap-and-trade carbon market aimed at regulating industry emissions.
- Thousands of companies across most sectors would have their carbon emissions capped at 25,000 metric tons per year; notably, however, this doesn’t include the agricultural sector, Brazil’s leading cause of deforestation and emissions.
- The bill also aims to combat unethical carbon credit practices by giving Indigenous and traditional communities the right to generate and sell credits on their territories.
- The bill is widely regarded as the best yet for a regulated carbon market; however, experts say it’s overly focused on carbon credit generation and fails to encourage the discontinuation of fossil fuel use, while also potentially putting “tremendous pressure” on Indigenous territories.
Cambodia approves, then suspends, marble mine in Keo Seima REDD+ project
- The Cambodian government has suspended a planned marble mine inside a wildlife sanctuary that it had approved just months earlier.
- It’s not clear why this commercial extractive concession inside a protected area was approved in the first place, or why it’s now been suspended (but not canceled).
- The mine would have threatened an important REDD+ project in Keo Seima Wildlife Sanctuary that benefits both local communities and the area’s biodiversity.
- The REDD+ project is also a bulwark against deforestation; satellite data show it suffers far less forest loss than other parts of the wider wildlife sanctuary and surrounding areas that overlap with concessions.
What would it cost to protect the Congo Rainforest?
- The Congo Basin holds the world’s second-largest rainforest — the majority of which is in the Democratic Republic of Congo (DRC) — playing a vital role in carbon storage and ecological services that millions of people and species rely upon.
- However, the DRC is a nation with the second-highest rate of tropical deforestation behind Brazil. Meanwhile, Gabon says it has acted to protect its forests but hasn’t reaped the promised rewards.
- International commitments to protect the Congo Rainforest are historically meager compared with what experts say is actually needed, and many of these commitments go unfulfilled.
- On this episode of Mongabay Explores the Congo Basin, we speak with experts about what’s needed to overcome hurdles to financing forest protection to benefit conservation, climate and communities: Paolo Cerutti, senior scientist and DRC unit head at the Center for International Forestry Research (CIFOR-ICRAF); Chadrack Kafuti at Ghent University; Wahida Patwa Patwa-Shah, senior regional technical specialist, UNDP Climate Hub; and Lee White, minister of water, forests, the sea and environment in Gabon.
REDD+ projects falling far short of claimed carbon cuts, study finds
- New research reveals that forest carbon credits are not offsetting the vast majority of emissions that providers claim.
- A team of scientists looked at 26 REDD+ deforestation-prevention project sites on three continents, leading to questions about how the developers calculate the impact of their projects.
- The researchers found that about 94% of the credits from these projects don’t represent real reductions in carbon emissions.
- Verra, the world’s largest carbon credit certifier, said the methods the team used to arrive at that conclusion were flawed, but also added it was in the process of overhauling its own REDD+ standards.
Macron touts forest conservation while promoting gas project on PNG visit
- During a recent visit to Papua New Guinea, French President Emmanuel Macron spent time with both fossil fuel executives and conservationists.
- Macron attended a presentation on the Managalas Conservation Area, which is supported by France as well as other European countries, and praised Indigenous peoples’ protection of the forest.
- During Macron’s visit, French firm TotalEnergies voted to undertake construction of a $10 billion liquefied natural gas project that will release an estimated 220 million metric tons of carbon dioxide.
Massive carbon offset deal with Dubai-based firm draws fire in Liberia
- According to a draft contract seen by Mongabay, Liberia may sign away the rights to nearly 10% of its total land mass to a United Arab Emirates-based firm for carbon offset development.
- The firm is owned by Ahmed Dalmook Al Maktoum, the youngest member of Dubai’s royal family and an investor in energy projects across Africa and the Middle East.
- Environmental groups in Liberia say the deal could violate multiple laws, including those meant to protect community land rights.
- The deal comes as the UAE prepares to host the COP28 climate conference, where rulemaking around carbon markets will be a hot agenda item.
In Sabah, natural capital agreement surfaces again, despite critics
- In October 2021, an agreement signed without public knowledge by members of the Sabah state government, a Singaporean firm and an Australian consultancy committed 2 million hectares (4.9 million acres) of land in the Bornean state to a 100-year carbon deal.
- Since Mongabay surfaced news of the agreement in November 2021, the project has stalled in the face of a wave of criticism about its origins and planned implementation.
- In recent weeks, the proponents of the deal, including Sabah’s Deputy Chief Minister Jeffrey Kitingan, have publicly resumed efforts to bring the agreement into force.
- Civil society groups opposed to the project say that concerns remain over Indigenous rights and lack of transparency or details about the planned project.
Forest campaign group renews charge that carbon credit verification schemes are flawed
- A new assessment conducted by Rainforest Foundation UK raises fresh concerns about the validity of carbon offsetting schemes.
- The campaign group claims that all the leading carbon credit verification schemes have allowed millions of credits to enter the voluntary carbon market which do not accurately represent reductions in greenhouse gas emissions.
- RFUK is calling for a shift in emphasis to measures like global carbon levies and debt relief for poor countries, which it says would address root causes of emissions.
- Verra and several REDD+ project managers told Mongabay RFUK’s analysis is ideologically motivated, insisting that while verifying credits is not perfect, it is producing genuine, positive results.
As one Brazilian state takes up carbon trading, others may fall for the ‘illusion’
- A recent agreement will allow the Brazilian state of Tocantins to sell carbon credits to Swiss oil-trading company Mercuria.
- Proponents see the deal as an opportunity for Tocantins to obtain financial resources that will support the state’s environmental policies.
- However, carbon offsets are hotly debated and many experts say the carbon market does more harm than good for the environment and global greenhouse gas emissions.
- The deal is likely to have a ripple effect on surrounding Amazonian states, experts say, leading to future carbon offset deals and prolonging the global use of fossil fuels.
Head of Verra, top carbon credit certifier, to leave in June
- David Antonioli is the founding CEO of Verra, the world’s most prominent carbon credit standards organization.
- Antonioli will leave the post in June amid increasing scrutiny of carbon markets and credits, as well as the methodologies by which they are certified to ensure they provide climate benefits that do not come at the expense of communities.
- Indigenous groups and forest communities are often key participants in restoration and protection efforts to boost carbon sequestration.
- But they say that little of the financing for climate mitigation flows directly to them, and they also want a more prominent role in the discussions about climate change mitigation projects and the future of mechanisms like carbon credits and markets.
Indigenous groups voice support for REDD+, despite flaws
- A letter published May 9 and signed by a group of Indigenous-led organizations backs a mechanism for providing compensation in return for forest protection efforts known as REDD+, which is short for “reducing emissions from deforestation and forest degradation.”
- The aim of REDD+ is to provide results-based funding for economic development tied to those protection efforts, with financing coming from credits sold to companies and individuals to account for their carbon emissions.
- But critics question how carbon credits are calculated, and others have concerns about the lack of consent and participation by Indigenous and local communities most affected by REDD+ work.
- The letter argues that REDD+, in despite its shortcomings, is one of the few direct funding flows to communities for climate-related work, and they call for greater inclusion in the broader conversation about REDD+ and carbon credits and offsets.
Questions over accounting and inclusion mar Guyana’s unprecedented carbon scheme
- Guyana has put nearly all the forests in the country on the carbon market, allowing it to sign a carbon credit deal with petroleum company Hess Corporation worth $750 million, with 15% of funds going to Indigenous communities.
- However, some climate experts have questioned how ART, the independent carbon credit issuer, calculates the emissions reductions for forests that are already intact and under little threat of deforestation, saying they’re vastly overstated and bending the rules to create money.
- There are disputes between Indigenous groups about whether communities were properly and legally consulted before all their lands were put onto the carbon market.
- ART maintains that its methodology for calculating carbon reduction is conservative and important to protect intact forests, while the government insists that it properly consulted Indigenous leaders before it included their forests in the carbon scheme.
Peru national park sees deforestation spike despite carbon credit program: report
- A March report from the Associated Press revealed that the carbon credit program in Peru’s Cordillera Azul National Park has been financially profitable but ineffective as a means of conservation.
- Despite that more than 28 million credits have been sold since the program’s launch in 2008, average annual deforestation has risen significantly.
- One source of the problem is that officials inflated the benefits of the program and the threats facing the park.
Newly published carbon market standards aim to increase integrity, confidence
- The Integrity Council for the Voluntary Carbon Market (ICVCM), an independent governance body, released a set of core carbon principles (CCPs) intended to provide a “threshold standard” for quality in the global carbon market.
- To earn the CCP label, projects must address governance issues such as verification and transparency, ensure that the emissions reductions and removals of carbon actually happen at claimed levels above what would have been accomplished under the business-as-usual scenario, and adhere to strict guidelines intended to ensure that projects don’t harm communities or the environment, according to the ICVCM’s statement.
- The global voluntary carbon market sits at a pivotal crossroads, as several investigations have raised concerns about how much the projects supported by the purchase of carbon credits actually protect or restore forests as a climate change-mitigation strategy.
Carbon credits from award-winning Kenyan offset suspended by Verra
- The carbon offset certifier Verra told Mongabay it had initiated a “quality control review” of the Northern Kenya Grassland Carbon Project, which claims to store carbon by managing Indigenous livestock grazing routes.
- The project has been a darling of carbon market supporters, winning a series of awards at COP27 last year, where it was described as “exemplary” by Kenyan President William Ruto.
- A new report by the advocacy group Survival International said the offset was altering long-standing Indigenous herding practices and couldn’t accurately account for how much carbon it was removing from the atmosphere.
- Purchasers of carbon credits generated by the product include Netflix, Meta and NatWest.
Carbon market intermediaries act with little transparency, according to report
- A new report reveals that few of the brokers, resellers and cryptocurrency vendors that act as intermediaries in the voluntary carbon market reveal the commissions and markups on the credits they buy and sell.
- This lack of transparency makes it difficult, if not impossible, to accurately assess how much money from these purchases is finding its way to climate mitigation efforts.
- The report calls on intermediaries to disclose their fees and on supporting organizations to share more information about these transactions, with the goal of illuminating the true potential impact of the voluntary carbon market on climate change.
Updated guide gives practical advice for buyers of tropical forest carbon credits
- An updated guide written by eight conservation and Indigenous organizations offers a detailed path forward for companies that want to compensate for their carbon emissions in addition to decarbonizing their supply chains.
- Though the carbon market faces criticism over the true value it brings to climate change mitigation, proponents say it can complement earnest efforts to decarbonize supply chains if used properly.
- The updated Tropical Forest Credit Integrity guide calls for due diligence on the part of companies to ensure the credits they purchase will result in climate gains.
- The authors of the guide also stress the importance of including Indigenous peoples and local communities in decisions about offset efforts.
Forest carbon offsets are a tool, not a silver bullet (commentary)
- The Guardian recently published an article questioning the effectiveness of forest carbon offsets, immediately followed by another in Die Zeit about ‘phantom offsets.’
- These criticisms are not without precedent: carbon offsetting is often presented either as a panacea or as corporate greenwashing that distracts from the difficult task of reducing actual greenhouse gas emissions.
- But as two leaders from CIFOR-ICRAF argue in a new commentary, “It is neither one nor the other. It is a tool. No particular policy instrument stands out as a ‘silver bullet,’ but improving the coherence and complementarity of the policy mix across government levels can enhance the effectiveness of policies.”
- This post is a commentary. The views expressed are those of the authors, not necessarily of Mongabay.
Carbon markets entice, but confuse, corporations: Report
- A new report from the environmental nonprofit Conservation International and the We Mean Business Coalition, a partnership of climate NGOs, found that many corporations are interested in using carbon markets to address their emissions.
- The report, released Jan. 12, drew from the responses of 502 managers in charge of sustainability at companies in the U.S., U.K. and Europe.
- Carbon markets, which allow businesses and individuals to offset their emissions by supporting projects aimed at, say, reducing tropical deforestation, are seen by some as a necessary step to reducing carbon emissions globally.
- However, others see carbon markets and the credits they sell as a tool that allows companies to continue releasing carbon with little benefit to the overall climate.
Words that didn’t make the cut: What happened to Indigenous rights at COP27
- This year’s U.N. climate conference saw the highest participation of Indigenous peoples to date, with more than 300 delegates from around the world calling for agreements to explicitly include a human rights approach.
- Although Indigenous issues were ambitiously mainstreamed across agenda items at the start of the conference, countries began to compromise in the final days when there were a lot of topics still not concluded, say Indigenous negotiators.
- Agreements on the rules around carbon offset markets included limited language on recognizing the rights of Indigenous peoples and the need to consult communities on the use of land.
- Indigenous delegates warmly welcomed the creation of a loss and damage fund which they say will greatly help Indigenous communities already impacted by climate change.
COP27 long on pledges, short on funds for forests — Congo Basin at risk
- The world’s wealthiest nations have made grand statements and offered big monetary pledges to save the world’s tropical rainforests so they can continue sequestering huge amounts of carbon.
- But as COP27 draws to a close, policy experts and activists agree that funding so far is far too little, and too slow coming, with many pledges still unfulfilled. Without major investments that are dozens, or even hundreds, of times bigger, tropical forests will keep disappearing at an alarming rate.
- The Democratic Republic of Congo (DRC) offers a case study of just how dire the situation is becoming. While some international forest preservation money is promised and available, it is insufficient to stop companies from leasing forestlands to cut timber and to convert to plantations and mines.
- Some experts say that what is urgently needed is the rapid upscaling of carbon markets that offer heftier carbon credits for keeping primary forests growing. Others point to wealthy nations, who while still cutting their own primary forests, encourage poorer tropical nations to conserve theirs without paying enough for protection.
Carbon offsets: A key tool for climate action, or a license to emit?
- The carbon offset market has existed for 25 years, and experts say there are still fundamental problems in its structure. Some question the underlying concepts, and refuse to consider it a tool for climate action.
- Part of the issue is that transparency is low. Buyers and sellers of carbon offsets often never meet and are separated by numerous intermediaries with their own profit incentives: registries, verifiers, and brokers. It’s not clear who buys offsets or which emissions are offset.
- Most experts say the offset market is not meant to contribute meaningful change to emissions, but rather to be an extra tool to channel funds toward sustainable development when companies are failing to transition from fossil fuels.
Successes and struggles: Brazil’s 20-year Amazon reforestation carbon sink project
- The Peugeot-ONF Forest Carbon Sink project, implemented more than 20 years ago in northwestern Mato Grosso state, within the “arc of deforestation” of the Brazilian Amazon, has achieved significant ecological restoration and carbon sequestration results.
- Reforesting 2,000 hectares of degraded cattle pasture on the São Nicolau Farm in Cotriguaçu municipality, the project has been Verra certified for reducing carbon emissions, with 394,400 metric tons of CO2 sequestered to date, equal to 85,000 cars taken off the road for a year. This CO2 reduction is being traded as carbon credits on Pachama, an online marketplace.
- Today, São Nicolau Farm is a living laboratory documenting the dynamics of forest restoration and carbon capture in the Amazon. The farm also offers ecotourism, training and educational opportunities.
- But Brazil’s volatile sociopolitical context is posing major risks to the project. Threats include a rising wave of forest crime, along with weakened environmental regulations, and controversial development proposals for the rainforest biome.
Australian oil and gas firm Invictus awarded carbon offset project in Zimbabwe
- The REDD+ project covers three national forest reserves near Hwange National Park and comes as Invictus has begun to drill for oil and gas in the north of the country
- Invictus says based on estimates still to be verified, the offset project could sequester 1 million metric tons of carbon per year, making its oil and gas drilling carbon neutral.
- Conservationists question the logic behind leveraging state forest reserves for REDD+ projects, saying they favor instead a “wildlife economy approach” to restoring landscapes.
New tech aims to track carbon in every tree, boost carbon market integrity
- Climate scientists and data engineers have developed a new digital platform billed as the first-ever global tool for accurately calculating the carbon stored in every tree on the planet.
- Founded on two decades of research and development, the new platform from nonprofit CTrees leverages artificial intelligence-enabled satellite datasets to give users a near-real-time picture of forest carbon storage and emissions around the world.
- With forest protection and restoration at the center of international climate mitigation efforts, CTrees is set to officially launch at COP27 in November, with the overall aim of bringing an unprecedented level of transparency and accountability to climate policy initiatives that rely on forests to offset carbon emissions.
- Forest experts broadly welcome the new platform, but also underscore the risk of assessing forest restoration and conservation projects solely by the amount of carbon sequestered, which can sometimes be a red herring in achieving truly sustainable and equitable forest management.
Even without human-driven deforestation, climate change threatens some forests
- In a study published in Science, researchers analyzed a set of climate and ecosystem models to predict the risks that climate change poses to forests.
- The models displayed consistent risks to forests in western North America, drier tropical forests like the southeastern Amazon, and northern boreal forests.
- Researchers say their findings speak to the need to be careful when evaluating the role trees can play as a climate solution.
Australian miner threatens lawsuit against PNG for scrapping carbon scheme
- Australian mining and energy firm Mayur Resources announced in July that it would scrap plans to build a planned coal-fired power plant in Papua New Guinea, instead focusing on carbon offset projects in the country.
- Soon after, PNG authorities issued a public notice saying Mayur’s carbon offset project was canceled because of breaches of the country’s forestry laws.
- Mayur is now threatening to sue the PNG government for canceling the carbon scheme.
BP exploited Mexican communities hoping to benefit from carbon credits: report
- A report published this month in Bloomberg Green said oil and gas company BP has been buying carbon credits from Mexican villages below market value, raising questions about the carbon credit market’s viability as a tool for transitioning companies to green practices.
- BP purchased carbon credits from residents across 59 villages for just $4 per ton of avoided emissions. The true market price is often more than double that.
- Groups involved in conservation efforts, such as the World Resources Institute and Pronatura, were also involved in the creation of the controversial carbon credit program.
‘That’s a scam’: Indian firm’s REDD+ carbon deal in the DRC raises concern
- Environmental and human rights advocacy organizations say an Indian company has misled communities in the Democratic Republic of Congo, convincing them to sign away the rights to sell carbon credits from the restoration, reforestation or avoided deforestation of locally managed forests.
- These forests, managed under a structure known by the French acronym CFCL, provide communities with control over how land is managed while giving them access to the resources the forests provide, proponents of the initiative say.
- But the contracts, the implications of which were not fairly or adequately explained to community members, may restrict their access to the forests for generations to come, the advocacy groups say.
- These organizations and the communities are now calling on the Congolese government to cancel the contracts.
“Indigenous people are fighting to protect a natural equilibrium”: Q&A with Patricia Gualinga
- Increase in legal and illegal mining in the Ecuadorian Amazon, along with the emergence of carbon credit system that bypass Indigenous people, are posing a challenge to Amazonian communities.
- Patricia Gualinga is a Kichwa leader in Ecuador and member of Amazonian Women (Mujeres Amazónicas), a coalition of women environmental and land defenders.
- In an interview with Mongabay, Patricia Gualinga talks about Indigenous resistance in the face of extractive threats and the popularity of carbon credits in the Amazon rainforest.
PNG suspends new carbon deals, scrambles to write rules for the schemes
- Papua New Guinea’s government is working to create new regulations governing voluntary carbon schemes, which are arrangements negotiated directly between developers and resource owners.
- While the new laws are developed, the country’s environment ministry has imposed a moratorium on new voluntary carbon deals in the country.
- The moratorium, and development of a stronger legal framework, comes after “significant red flags” were raised over a proposed carbon credit deal in the country’s Oro province.
NGOs alert U.N. to furtive 2-million-hectare carbon deal in Malaysian Borneo
- Civil society organizations have complained to the United Nations about an opaque “natural capital” agreement in the Malaysian state of Sabah on the island of Borneo.
- The agreement, signed behind closed doors in October 2021, involved representatives from the state government and Hoch Standard Pte. Ltd., a Singaporean firm. But it did not involve substantive input from the state’s numerous Indigenous communities, many of whom live in or near forests.
- The terms ostensibly give Hoch Standard the right to monetize carbon and other natural capital from Sabah’s forests for 100 years.
- Along with the recent letter to the U.N., the state’s attorney general has questioned whether the agreement is enforceable without changes to key provisions. An Indigenous leader is also suing the state over the agreement, and Hoch Standard may be investigated by the Singaporean government after rival political party leaders in Sabah reported the company to Singapore’s ambassador in Malaysia.
Climate-positive, high-tech metals are polluting Earth, but solutions await
- Green energy technology growth (especially wind, solar and hydropower, along with electric vehicles) is crucial if the world is to meet Paris climate agreement goals. But these green solutions rely on technology-critical elements (TCEs), whose production and disposal can be environmentally harmful.
- Mining and processing of TCEs requires huge amounts of energy. Mines use gigantic quantities of fresh water; can drive large-scale land-use change; and pollute air, soil and water — threatening biodiversity. TCEs may also become pollutants themselves when they are disposed of as waste.
- We know relatively little about what happens to TCEs after manufacture and disposal, but trace levels of many critical elements have been detected in urban air pollution, waterways and ice cores. Also of concern: Rare-earth elements have been detected in the urine of mine workers in China.
- Green mining technologies and new recycling methods may reduce the impacts of TCE production. Plant- and microbe-based remediation can extract TCEs from waste and contaminated soil. But experts say a circular economy and changes at the product design stage could be key solutions.
Revealed: Timber giant quietly converts Congo logging sites to carbon schemes
- An investigation by El País/Planeta Futuro has found evidence of irregularities in the allocation of “conservation concessions” and carbon-trading schemes in the Democratic Republic of Congo.
- The investigation uncovered allegations that concessions covering millions of hectares were illegally reassigned in 2020 and converted to carbon credit projects without public oversight. The Portuguese-owned titles overlap with a protected area and Indigenous lands.
- The boom in opaque “conservation” titles controlled by foreign investors raises concerns over the potential for future carbon offset abuses.
- Mongabay has partnered with El País/Planeta Futuro to publish this investigation in English. This story was produced with the support of the Rainforest Journalism Investigations Network (RIN) of the Pulitzer Center.
Malaysian officials dampen prospects for giant, secret carbon deal in Sabah
- The attorney general of the Malaysian state of Sabah has said that a contentious deal for the right to sell credits for carbon and other natural capital will not come into force unless certain provisions are met.
- Mongabay first reported that the 100-year agreement, which involves the protection of some 2 million hectares (4.9 million acres) from activities such as logging, was signed in October 2021 between the state and a Singapore-based firm called Hoch Standard.
- Several leaders in the state, including the attorney general, have called for more due diligence on the companies involved in the transaction.
- Civil society representatives say that a technical review of the agreement is necessary to vet claims about its financial value to the state and its feasibility.
Podcast: ‘Carbon cowboys’ and illegal logging
- Papua New Guinea has been the world’s largest tropical timber exporter since 2014. More than 70% of the timber produced in the country is considered illegal.
- Despite two government inquiries finding the majority of land leases on which logging occurs to be illegal, these land leases still remain in force today.
- While carbon trading has been touted as a solution, activists, journalists and even a provincial governor have expressed concerns over its economic benefits and the continued loss of customary land rights.
- For this episode of Mongabay Explores we interview Gary Juffa, governor of Oro province in Papua New Guinea, and investigative journalist, Rachel Donald.
At a plantation in Central Africa, Big Oil tries to go net-zero
- In March 2021, French oil giant TotalEnergies announced that it would be developing a 40,000-hectare (99.000-acre) forest in the Republic of Congo that will sequester 500,000 tons of carbon per year.
- The project is part of a renewed global push for governments and corporations to hit their emissions targets partially by the use of carbon credits, also known as offsets.
- But advocates say what TotalEnergies describes as a “forest” is a commercial acacia plantation that will produce timber for sale, with little detail on who stands to profit or lose access to land.
Indigenous leader sues over Borneo natural capital deal
- An Indigenous leader in Sabah is suing the Malaysian state on the island of Borneo over an agreement signing away the rights to monetize the natural capital coming from the state’s forests to a foreign company.
- Civil society and Indigenous organizations say local communities were not consulted or asked to provide input prior to the agreement’s signing on Oct. 28.
- Further questions have arisen about whether the company, Hoch Standard, that secured the rights under the agreement has the required experience or expertise necessary to implement the terms of the agreement.
Mongabay Explains: Do carbon offset markets really work?
- Companies with high carbon footprints around the world have made pledges to reduce carbon emissions, aiming to become carbon neutral and even carbon negative.
- The solution they are turning to is ‘carbon offset trading,’ which allows them to invest in environmental projects as a counterweight to their carbon-emitting industrial activities.
- But carbon offset markets’ increasing popularity has met with controversy about corporations absolving themselves without contributing to an overall reduction in emissions, and questions about how they can ensure the schemes’ success without physically visiting the projects.
- In this video, Mongabay explains if carbon offset markets really do work.
Is colonial history repeating itself with Sabah forest carbon deal? (commentary)
- To the surprise of Indigenous and local communities, a huge forest carbon conservation agreement was recently signed in the Malaysian state of Sabah on the island of Borneo.
- Granting rights to foreign entities on more than two million hectares of the state’s tropical forests for the next 100-200 years, civil society groups have called for more transparency.
- “Is history repeating itself? Are we not yet free or healed from our colonial and wartime histories?” wonders a Sabahan civil society leader who authored this opinion piece calling for more information, more time, and a say.
- This post is a commentary. The views expressed are those of the author, not necessarily of Mongabay.
Details emerge around closed-door carbon deal in Malaysian Borneo
- Leaders in Sabah have begun to reveal information about a nature conservation agreement signed in the Malaysian state of Sabah on the island of Borneo for the rights to carbon and other natural capital.
- The deal allegedly covers rights to more than 2 million hectares (4.9 million acres) of the state’s tropical forests for the next 100-200 years.
- Indigenous and civil society groups have called for more transparency.
- In response to the public reaction to news of the agreement, its primary proponent, Deputy Chief Minister Jeffrey Kitingan, held a public meeting but has declined to make the agreement public yet.
Bornean communities locked into 2-million-hectare carbon deal they don’t know about
- Leaders in Sabah, a Malaysian state on the island of Borneo, signed a nature conservation agreement on Oct. 28 with a group of foreign companies — apparently without the meaningful participation of Indigenous communities.
- The agreement, with the consultancy Tierra Australia and a private equity-backed funder from Singapore, calls for the marketing of carbon and other ecosystem services to companies looking, for example, to buy credits to offset their emissions.
- The deal involves more than 2 million hectares (4.9 million acres) of forest, which would be restored and protected from mining, logging and industrial agriculture for the next 100-200 years.
- But land rights experts have raised concerns about the lack of consultation with communities living in and around these forests in the negotiations to this point.
As fossil fuel use surges, will COP26 protect forests to slow climate change?
- Despite the world’s commitment in Paris in 2015 to hold back the tide of global warming, carbon emissions continue rising, while impacts are rapidly escalating as heat waves, drought and extreme storms stalk the world’s poorest and richest nations — bringing intensified human misery and massive economic impacts.
- Once viewed optimistically, nature-based climate solutions enshrined in Article 5 of the Paris Agreement (calling for protections of carbon-storing forests, peat bogs, wetlands, savannas and other ecosystems) is now threatened by politics as usual, and by the unabated expansion of agribusiness and extraction industries.
- As world leaders gather in Scotland for the COP26 climate summit, scientists and advocates are urging negotiators to at last finalize comprehensive effective rules for Article 5, which will help assure “action to conserve and enhance, as appropriate, sinks and reservoirs of greenhouse gases … including forests.”
- Over the first two weeks in November at COP26, the vision and rules set at Paris are to be settled on and fully implemented; John Kerry, co-architect of the Paris accord and President Joe Biden’s climate envoy, calls this vital COP the world’s “last best chance” to finally move beyond mostly empty political promises into climate action.
Forest finance expected to advance under new TREES standard and LEAF Coalition
- The latest edition of the TREES standard for forest carbon crediting attempts to bring together the best of what the private sector can do and the best of what governments can do to protect forests. It is explicit about how projects can be integrated into jurisdiction-level accounting.
- While effectively directing capital to forest communities on the ground, REDD+ projects have been dogged by methodological problems and what in some cases appear to be spurious claims of climate impact.
- The designers of TREES say that with its jurisdictional scale and transparent carbon accounting guidelines, it will better address the main credibility risks so far associated with REDD+ carbon credits.
- Almost 15 years after the original REDD framework, many regard TREES and the LEAF Coalition announced in April 2021 as the first real attempt at credible REDD+ implementation at scale.
Amazon, meet Amazon: Tech giant rolls out rainforest carbon offset project
- Tech giant Amazon has announced a nature-based carbon removal project in the Brazilian Amazon Rainforest in partnership with The Nature Conservancy (TNC).
- The project will help small farmers produce sustainable agricultural produce through reforestation and regenerative agroforestry programs, in exchange for carbon credits that will go to the internet company.
- Called the Agroforestry and Restoration Accelerator, the initiative is expected to support 3,000 small farmers in Pará state and restore an area the size of Seattle in the first three years, and in the process remove up to 10 million metric tons of carbon dioxide from the atmosphere through 2050.
- In addition to addressing climate and social issues, the partners say the project intends to address the shortcomings of the carbon credit market by creating new standards for the industry.
Even as the government bets big on carbon, REDD+ flounders in Madagascar
- The Malagasy government’s decision to ban the sale of carbon credits as it reworks its REDD+ strategy has left all existing REDD+ projects in a limbo.
- The island nation only has a handful of projects, all helmed by foreign NGOs, which take advantage of the U.N.’s reducing emissions from deforestation and forest degradation (REDD+) program to raise money by selling carbon credits.
- Madagascar’s environment minister singled out an initiative by U.K.-based nonprofit Blue Ventures, criticizing it for striking a deal promising too little: $27,000 per year for 10 villages. The NGO disputes this appraisal.
- The government’s move to nationalize carbon ownership comes against the backdrop of familiar concerns about REDD+, in particular: how much do communities benefit from keeping forests standing?
Hartree Partners to channel $2 billion toward new carbon credits
- Global energy and commodities trading house Hartree Partners has pledged to channel more than $2 billion of private sector investments toward creating new carbon credits.
- Companies can purchase carbon credits from sources that are protecting or restoring natural carbon sinks to offset their carbon emissions. However, as more companies move toward voluntary carbon markets, the demand for carbon credits is expected to outpace the supply.
- Hartree Partners will be working with Wildlife Works, an established conservation organization, to create 20 million voluntary carbon credits a year, beginning in 2023 — representing a 40% increase in the availability of verified, avoided-deforestation projects.
- The voluntary carbon market has been the subject of much criticism and debate, with advocates arguing that it is a means to reduce emissions through safeguarding nature. Critics say the market is hard to regulate and may allow companies to avoid the equally crucial work of reducing emissions.
‘We guard the forest’: Carbon markets without community recognition not viable
- Researchers looked at 31 countries in Africa, Asia and Latin America that hold almost 70% of the world’s tropical forests and 62% of the total feasible natural climate solution potential, and found that most of the tropical forested countries looking to benefit from carbon markets still need to define community carbon rights.
- There is significant public and private interest to use carbon markets to fight climate change and work toward the goals of the Paris Agreement, with the global LEAF coalition pushing to mobilize at least $1 billion to tackle deforestation and forest degradation.
- While carbon markets appear to be a win-win for protecting the forests and promoting developing economies, if implemented without meaningfully including communities, they could worsen risks faces by these communities including increasing land grabs and efforts to capture associated rents, and increasing threats of human rights violations, criminalization and conflicts.
- Studies increasingly show that Indigenous peoples and local communities are the best stewards of tropical forests, and that granting them land rights is a highly cost-effective way to reduce carbon emissions.
Behind the buzz of ESG investing, a focus on tech giants and no regulation
- Despite its exponential growth in the last few years, environment, social and governance (ESG) investment is still very unclear and controversial, which makes it hard to define what it means.
- According to a study by financial markets data provider Refinitiv, the largest and best-known ESG funds invest most of their clients’ money in big tech companies like Google, Microsoft, Amazon, Apple and Facebook — companies with a small carbon footprint and high returns for shareholders.
- Some experts say this focus on carbon means the financial market often ignores other ESG issues like data security and labor rights, where big-tech companies have tended to fall short.
- There are some initiatives, mainly in Europe, to create rules and standards for ESG financial products, but for now, almost any company can be bundled into an ESG index and sold as sustainable.
Economists put a price tag on living whales in Brazil: $82 billion
- Last year, a team of four economists published a report suggesting that living whales have a high market value for the services they provide in terms of ecotourism, carbon sequestration, and fishery enhancement. Each whale is worth about $2 million USD, they estimated.
- The economists, in collaboration with two conservation organizations, Instituto Baleia Jubarte and the Great Whale Conservancy, estimated that Brazil’s whale population is worth $82 billion.
- The team says it hopes the notion of valuing whales in Brazil, as well as in other coastal nations, can help protect whales from common fatalities like ship strikes, fishing gear entanglement, and deliberate hunting.
Success of Microsoft’s ‘moonshot’ climate pledge hinges on forest conservation
- One mechanism by which the 2015 Paris Climate Agreement incentivizes greenhouse gas reductions is via carbon offsets, payments that compensate nations, states and private landowners who agree to keep forests intact in order to preserve carbon storage capacity and biodiversity.
- But problems exist with forest carbon offset initiatives: corrupt landowners, lack of carbon accounting transparency, and low carbon pricing have caused wariness among investors, and failed to spur forest preservation.
- Now, in a landmark move, Microsoft has pledged to go “carbon negative” by 2030, and erase all the company’s greenhouse gas emissions back to its founding in 1975 by 2050. A big part of achieving that goal will come via the carbon storage provided by verified global forest conservation and reforestation projects around the globe.
- To achieve its goal, Microsoft has teamed with Pachama, a Silicon Valley startup, that seeks to accurately track forest carbon stocks in projects in the Brazilian and Peruvian Amazon, the U.S. and elsewhere using groundbreaking advanced remote-sensing technology including LiDAR, artificial intelligence and satellite imaging.
Rainforests in 2020: 10 things to watch
- This is Mongabay founder Rhett Butler’s annual look ahead at the year in rainforests.
- After a decade of increased deforestation, broken commitments, and hundreds of murders of rainforest defenders, the 2020s open as a dark moment for the world’s rainforests.
- Here are some key things to watch for the coming year: Brazil, destabilization of tropical forests, U.S. elections, the global economy, Jokowi’s new administration in Indonesia, market-based conservation initiatives, zero deforestation commitments, ambition on addressing the biodiversity crisis, Congo Basin, and assessment of 2019’s damage.
- Share your thoughts via the comment function at the bottom of the post.
Hopes dim as COP25 delegates dicker over Article 6 and world burns: critics
- Even as half a million protesters demonstrate outside, UN climate summit negotiators inside Madrid’s COP25 seem blind to the urgency of the climate crisis. In fact, instead of making effective progress, the rules they’re shaping to carry out the Paris Agreement’s Article 6 could worsen carbon emissions, not staunch them.
- For example, Article 6 doesn’t include rules to protect native forests. Instead it could promote turning forests into monoculture tree plantations — providing minimal carbon sequestration and no ecosystem services, while devastating biodiversity. Some critics think the policy may have been shaped by logging interests.
- The so-called biomass carbon accounting loophole is also not up for discussion. Its continuance will allow the burning of biomass wood pellets at power plants, energy production classified by the UN as carbon neutral. However, establised science has found that industrial biomass burning will add significantly to carbon emissions.
- According to activists at COP25, delegates are working to hide emissions and allow UN carbon accounting loopholes. One key aspect of Article 6 found in the original Paris Agreement which guaranteed “the protection of human rights” was deleted from a revised draft Saturday night, as was verbiage assuring civil society and indigenous consultations.
COP25 may put climate at greater risk by failing to address forests
- COP25, originally slated for Brazil, then Chile, but starting today in Madrid comes as global temperatures, sea level rise, wildfires, coral bleaching, extreme drought and storms break new planetary records.
- But delegates have set a relatively low bar for the summit, with COP25’s primary goal to determine rules under Article 6 of the 2015 Paris Climate Agreement for creating carbon markets among nations, cities and corporations as a means of incentivizing emission-reduction strategies.
- Policy experts warn that global forest conservation is not yet being actively incentivized as part of carbon market discussions, a possible lapse apparently backed by Brazil and the government of Jair Bolsonaro which has declared its plan to develop the Amazon basin — the world’s largest remaining rainforest and vital to sequestering carbon to curb climate change.
- COP25 also seems unlikely to address the UN biomass carbon accounting loophole, which allows nations to convert obsolete coal plants to burn wood pellets to produce energy, with the carbon emitted counted as “zero emissions” equivalent to solar and wind. Scientists warn that biomass burning, far from being carbon neutral, is actually worse than burning coal.
World’s first indigenous carbon offset project suspended due to illegal mining
- In 2009, the Paiter-Suruí of Brazil became the first indigenous group in the world to design and implement a major forest conservation and carbon storage and offset project, a set of initiatives financed by selling carbon-offset credits..
- On Monday, the Paiter-Suruí announced the project is being suspended indefinitely due to an onslaught of diamond and gold miners and loggers which has caused a dramatic surge in deforestation within their 248,147 hectare (958 square mile) territory.
- In its early years, the project – designed to prevent at least five million tons of carbon emissions in 30 years – was incredibly successful. Illegal logging in the indigenous territory dropped to almost zero from 2009 to 2012, a period during which surrounding regions saw deforestation rates more than double.
- Analysts cite multiple reasons for the project suspension: the intrusion of external, powerful, self-interested actors; the lack of law enforcement in the indigenous territory; and the lack of state investment in indigenous education, health, and livelihood programs that could have alleviated individual economic and social pressures to secure short-term financial gain.
Facing resource crisis, Indonesia charts a ‘green development’ course
- Faced with housing, water and food shortages and massive natural destruction, Indonesia is developing a five-year development plan that will become the country’s first low-carbon development initiative.
- Under the new plan, the government hopes to keep future development projects within the limits of the country’s ecological “carrying capacity” of fast-depleting natural resources.
- The green development plan also aims to attract green investment, which is crucial if the country wants to meet its stated target of reducing greenhouse gas emissions by 29 percent by 2030 from the business-as-usual scenario.
Private sector leaders seek to ramp up investment in sustainable landscapes with help of public partners
- At the Global Landscapes Forum’s third investment case symposium, held at the World Bank Group’s International Finance Corporation in Washington, D.C. on Wednesday, top investors, business leaders, and policymakers gathered to present their efforts and advice on how to build a critical mass of work that will lead to a stronger investment case for sustainable landscapes and restoration.
- Over 200 people attended the symposium to discuss ways to speed up the pace of financial investments aimed at creating more resilient, fair, profitable, and climate-friendly landscapes. Conversations, disagreements, and challenges arose over how to combine efforts that will lead to lasting change.
- Accounting for natural capital, putting a price on carbon, and processes to secure land tenure rights emerged as key issues.
Report finds projects in DRC ‘REDD+ laboratory’ fall short of development, conservation goals
- The Rights and Resources Initiative (RRI) released a new report that found that 20 REDD+ projects in a province in DRC aren’t set to address forest conservation and economic development — the primary goals of the strategy.
- The Paris Agreement explicitly mentions the role of REDD+ projects, which channel funds from wealthy countries to heavily forested ones, in keeping the global temperature rise below 2 degrees Celsius this century.
- RRI is asking REDD+ donors to pause funding of projects in DRC until coordinators develop a more participatory approach that includes communities and indigenous groups.
Carbon pricing could save millions of hectares of tropical forest: new study
- Recently published research in the journal Environmental Research Letters found that setting a price of $20 per metric ton (about $18/short ton) of carbon dioxide could diminish deforestation by nearly 16 percent and the amount of carbon released into the atmosphere by nearly 25 percent.
- The pair of economists calculated that, as things currently stand, the world stands to lose an India-size chunk of tropical forest by 2050.
- In addition to carbon pricing, stricter policies to halt deforestation, such as those that helped Brazil cut its deforestation rate by 80 percent in the early 2000s, could save nearly 1 million square kilometers (386,000 square miles).
Counterintuitive: Global hydropower boom will add to climate change
- For many years new hydropower dams were assumed to be zero greenhouse gas emitters. Now with 847 large (more than 100 MW) and 2,853 smaller (more than 1 MW) hydropower projects currently planned or under construction around the world, a new global study has shown that dam reservoirs are major greenhouse gas emitters.
- The study looked at the carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O) emitted from 267 reservoirs across six continents. Globally, the researchers estimate that reservoirs contribute 1.3 percent of human-made greenhouse gas emissions, comparable to those from rice paddy cultivation or biomass burning.
- Reservoir emissions are not currently counted within the UN Intergovernmental Panel on Climate Change (UN IPCC) emissions assessments, but they should be, argue the researchers. In fact, countries are currently eligible under the UN’s Clean Development Mechanism (CDM) to receive carbon credits for newly built dams.
- The study raises the question as to whether hydropower should continue to be counted as green power or be eligible for UN CDM carbon credits.
Sudden sale may doom carbon-rich rainforest in Borneo
- Forest Management Unit 5 encompasses more than 101,000 hectares in central Sabah, a Malaysian state on the island of Borneo.
- The area’s steep slopes and rich forests provide habitat for the Bornean orangutan and other endangered species and protect watersheds critical to downstream communities.
- Conservation groups had been working with the government and the concession holder to set up a concept conservation economy on FMU5, but in October, the rights were acquired by Priceworth, a wood product manufacturing company.
Climate negotiators focus on carbon credits, underplay human rights
- The climate talks in Bonn Germany this month are looking at reinvigorating the UN’s Clean Development Mechanism (CDM) that provides carbon credits to industrialized nations that invest in clean energy or efficient energy projects in developing countries.
- Over 7,000 CDM-financed projects in more than 100 nations were done since 2006. Critics say some large-scale industrial CDM projects, including dams and more efficient coal burning power plants, have violated the human rights of local and indigenous people.
- Those critics have recommended that the revitalized CDM include protections for local populations, but most UN negotiators in Bonn have showed little interest in including such safeguards, asserting that the great majority of CDM projects don’t violate human rights.
- CDM detractors also question the wisdom of a UN mechanism that allows construction of new coal-fired power plants, which will add to fossil fuel emissions for decades to come. No final decisions will be made in Bonn; that must wait until the COP22 meeting in November.
Carbon storage for sale: USDA grants promote markets for ‘ecosystem services’
- In September, the USDA’s Natural Resources Conservation Service announced its 2015 round of Conservation Innovation Grants. The agency awarded 45 grants totaling about $20 million for projects to improve soil health and to develop environmental markets.
- The environmental markets projects are part of a relatively new approach to conservation known as “payment for ecosystem services.” The idea is to be able to quantify certain seemingly intangible environmental functions, like carbon sequestration, and make it easier and more attractive for investors to buy and sell them in a bid to put more money into conserving natural resources.
- The payment for ecosystem services approach has gained many proponents since it was popularized in 2005, but also detractors.
EU proposes 40% emissions reduction target for 2030
The European Commission has proposed setting a binding greenhouse gas emissions reduction target of 40 percent below 1990 levels for 2030, reports Thomson Reuters Point Carbon. The target, which aims to boost sagging carbon offset prices while maintain Europe’s leadership on climate policy, is at the higher end of expectations, according to the analysis group. […]
Reforestation can’t offset massive fossil fuels emissions
With the Australian, Japanese, and Canadian governments making an about-face on carbon-emissions reduction targets during the Warsaw climate summit, some experts are warning that the global need for solutions offsetting CO2 emissions is passing a “red line.” Land-based mitigation practices comprise one of the solutions on the table as a result of both the United […]
UN talks tough to global coal industry
Yesterday, at the International Coal and Climate Summit—just a couple miles from the ongoing UN Climate Summit—Christiana Figueres delivered a speech unlike anything ever heard at a coal industry meeting before. Figueres, the Executive Director of the UN Framework Convention on Climate Change (UNFCCC), took time off from wrangling world leaders and officials toward a […]
Clock is ticking on fossil fuels: for first time IPCC scientists outline global carbon budget
The world’s leading climate scientists have set out in detail for the first time how much more carbon dioxide humans can pour into the atmosphere without triggering dangerous levels of climate change—and concluded that more than half of that global allowance has been used up. If people continue to emit greenhouse gases at current rates, […]
Carbon Coalitions: Business, Climate Politics, and the Rise of Emissions Trading: Book Review
Jonas Meckling, PhD., writes the first critical analysis demonstrating how various types of not-for-profit, governmental and for-profit coalitions over the past couple of decades have led to the development of the global carbon market, valued in 2010 at US$ 142 billion. Through clear examples explaining the impact of early chlorofluorocarbons (CFCs) and leaded gasoline USA […]
Carbon credit market for HFC-23 racked by fraud
An effort to decrease emissions of the super greenhouse gas HFC-23 has led to a largely-false carbon market that should be eliminated, says the Environmental Investigation Agency (EIA). HFC-23 is a byproduct of the refrigerant HCFC-22, which is currently being phased out under the Montreal Protocol for its ozone-depleting and greenhouse gas properties. However, the […]
Regulators Learning From Voluntary Carbon Markets
The global carbon markets began quietly in the late 1980s as part of a voluntary effort to save rainforests, but these small, voluntary efforts were quickly eclipsed – and often dismissed – when the Kyoto Protocol ushered in compliance markets a decade later. Now, however, it’s the compliance markets that are turning to the voluntary […]
Voluntary carbon markets plunge in 2009
Battered by a faltering world economy and lack of progress on U.S. climate legislation, voluntary carbon markets declined by nearly every measure in 2009, according to the fourth annual State of the Voluntary Carbon Market Report issued today by Ecosystem Marketplace and Bloomberg New Energy Finance. The report recorded a 26 percent drop in transactions […]
Can markets protect nature?
An interview with Michael Jenkins, President and CEO of Forest Trends Over the past 30 years billions of dollars has been committed to global conservation efforts, yet forests continue to fall, largely a consequence of economic drivers, including surging global demand for food and fuel. With consumption expected to far outstrip population growth due to […]
Carbon market surges 84% in 2008
Is Amazon conservation worth more than clearing for cattle or soy?
After a steep drop in deforestation rates since 2004, widespread fires in the Brazilian Amazon (September and October 2007) suggest that forest clearing may increase this year. All told, since 2000 Brazil has lost more than 60,000 square miles (150,000 square kilometers) of rainforest — an area larger than the state of Georgia or the country of Bangladesh. Most […]
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