Natural Climate Solutions for the Voluntary Carbon Market: An Investor Guide for Companies and Financial Institutions

Published

27 June, 2024

Type

Publication

Register for the Webinar: Investing in Natural Climate Solutions: Opportunities, Best Practices, and Considerations

This webinar is for investors who want to learn more about Natural Climate Solutions, brought to you by the Natural Climate Solutions Alliance, Forest Investor Club, and ERM.

The voluntary carbon markets (VCM) stand at a crossroads. While new standards and methodologies are being taken up to address concerns over quality and integrity, the market has seen recent demand signals, such as the announcement of the Symbiosis Coalition’s pledge of a 20-million-tonne CO2e advance market purchase commitment. Natural climate solutions (NCS) are available to help meet this demand and can achieve a third of cost-effective global climate mitigation efforts. Although NCS are an emerging asset class and lack the track record of other investments, they are maturing, and the market continues to learn new best practices and considerations for ensuring the quality of NCS investments.

Building on the recently released Natural Climate Solutions for the Voluntary Carbon Market: An Investor Guide for Companies and Financial Institutions, this 1-hour webinar will explore opportunities and best practices for investing in Natural Climate Solutions projects for the voluntary carbon market.

The webinar will be held twice to accommodate different time zones:

  • Wed 20 Nov, 10:00 – 11:00 am CET / 4:00 – 5:00 am EST
  • Wed 20 Nov, 6:00 – 7:00 pm CET / 12:00 – 1:00 pm EST

Webinar Recordings

AM Session Recording

Speakers:

  • Sam Lampert, Investment Director, Mirova Investment Management
  • Stella Napanu, County Director, Northern Rangeland Trust
  • Natalia Dorfman, CEO and Co-Founder, Kita
  • Theresia Ott, Chief Advisor Nature Solutions, Rio Tinto

PM Session Recording

Speakers:

  • Eric Cooperström, Managing Director, Impact Investing and Natural Climate Solutions, Manulife
  • Richard Erskine, Head of Nature-Based Solutions, Equinor
  • Valerio Magliulo, Co-Founder and CEO, Abatable
  • John Mwakima, Community Leader, Kasigau Corridor REDD+ Project

Nature conservation and nature-based solutions are set to play a central role in the fight against climate change. However, a significant nature financing gap exists, particularly from private funding. Natural climate solutions (NCS), a subset of nature-based solutions, can help bridge this gap by providing investors with attractive returns and benefits while delivering positive climate, environmental, and social impacts.

Produced by the Natural Climate Solutions Alliance (NCSA), the Forest Investor Club (FIC), ERM and its Sustainability Institute, this guide provides insights to investors on how to identify and invest in high-integrity NCS projects – all for the ultimate purpose of increasing the flow of financial capital into these promising and high impact solutions.

The guide is intended both for financial institutions, such as impact investors or investment funds, and for companies, who are increasingly looking for ways to directly secure a supply of high-quality carbon credits. It highlights the questions that investors should ask, common challenges they may face, and examples of best practice across several stages of the NCS investment process including:

  • Building the business case for investment
  • Identifying investment types, structures, and associated stakeholders
  • Conducting effective due diligence
  • Determining a fair and equitable revenue sharing agreement
  • Integrating legal considerations
  • Implementing systems for measuring, reporting, and verifying data

Actions to conserve and restore nature are essential to mitigating the impacts of climate change, biodiversity loss, and social inequalities. NCS projects can have real and measurable impact on these challenges, but they must be deployed globally at scale if they are to realize their full potential. New investments in high-integrity NCS projects will be critical to accelerate this growth and fill the nature financing gap.

Skip to content