The voluntary carbon market (VCM) is gaining increasing attention as a crucial tool to address climate change and promote new pathways towards environmental sustainability for businesses.
However, reducing carbon emissions and achieving carbon neutrality should not be the sole objectives in the fight against environmental impact.
The role of VCM and co-benefits
Carbon offset projects allow organizations to mitigate their unavoidable carbon emissions by investing in initiatives that either reduce or absorb carbon from the atmosphere. But in addition to these benefits, such projects can lead to numerous co-benefits, which are key elements in the context of VCM.
Integrating co-benefits into carbon offset projects provides an opportunity to address environmental and social challenges in a broader way. These co-benefits can take many forms, such as biodiversity conservation, sustainable development of local communities, and climate resilience. These additional benefits are recognized as an important value-add in the assessment and selection process of carbon offsets.
Co-benefits: Ensuring market integrity
Co-benefits represent a fundamental means to ensure the integrity of the VCM. Incorporating meaningful and measurable co-benefits into carbon offset projects is crucial to ensure that initiatives align with global sustainability goals and provide real value beyond mere emissions neutrality.
This entails the development of new methodologies and the adaptation of existing ones to meet the growing demand for diverse co-benefits from buyers.
The presence of tangible co-benefits, such as biodiversity conservation, support for local communities, and their economic growth, helps ensure that offset projects can address environmental and social challenges in an integrated manner.
Furthermore, the inclusion of co-benefits contributes to market transparency and credibility, offering buyers confidence that projects are verified and have a significant impact on global sustainability.
The role of international standards
Project certification standards are essential to ensure market integrity and credibility of co-benefits. Organizations such as Verra or the Gold Standard play a key role in ensuring that offset projects meet rigorous criteria and are able to demonstrate the social and environmental benefits they generate.
- Verra’s CCB (Climate, Community & Biodiversity Standards) certification comprises a set of rigorous guidelines that assess the impact of such projects on climate, local communities, and biodiversity. Through CCB certification, projects demonstrate their commitment to addressing climate change by providing accurate and verified measurements of carbon emissions reductions. Additionally, the certification evaluates the positive effect of such projects on local communities, ensuring stakeholder involvement and promoting their socio-economic well-being.
- SD VISTA (Sustainable Development Verified Impact Standard) represents a recognition of verified impact for projects contributing to sustainable development. This certification is based on a rigorous set of criteria and indicators that assess the actual positive impact of projects on the United Nations’ 17 Sustainable Development Goals. Through thorough assessment and independent verification, Verra’s SD VISTA certification ensures that projects have indeed achieved their predetermined goals and generated measurable positive impacts.
The growing demand for offsets with certified co-benefits
Interest in Carbon Credits from projects with certified co-benefits is increasing as more buyers are mindful of the environmental and social impacts of their actions. This has generated a demand for stricter standards and effective procedures to demonstrate the adequacy of projects’ environmental and social claims and to ensure that co-benefits are properly assessed and verified.
Companies must consider the overall impacts of their offsetting efforts, going beyond the mere metric of reduced CO2 tons, and evaluate their ability to take concrete action beyond CO₂ reduction.
In conclusion, the co-benefits of carbon offsetting projects offer a unique opportunity to address environmental and social challenges in an integrated manner. In addition to carbon emissions reduction, these projects can generate additional positive impacts such as biodiversity conservation, sustainable development of communities, and their education and economic growth. It is crucial that standards and certifications ensure the integrity and effectiveness of co-benefits by actively involving stakeholders and promoting strong governance.
Supporting such projects, certified according to rigorous standards, is an important step towards transitioning to a low-carbon economy and creating new models of sustainable development.