COP28 and the Voluntary Carbon Market

 

At COP28 in Dubai, the main entities and stakeholders of the voluntary Carbon Market (VCM) have joined forces to improve integrity, trust and scale, reflecting a very positive perspective regarding the future of this climate financing mechanism.

On the supply side, it has been announced that several stardards are going to work together in order to adhere their methodologies to the Core Carbon Principles (CCPs), a set of parameters defined by the Integrity Council for the Voluntary Carbon Market – ICVCM to qualify carbon credits as of high quality and integrity.

On the other hand, some of the most important entities alongside the demand for carbon credits like Science Based Targets Iniciative – SBTi, the Voluntary Carbon Markets Iniciative – VCMI, GHG Protocol and We Mean Business Coalition came together to develop an end-to-end, science based integration in the decarbonization guidance that will help companies to decarbonize their production processes and use carbon credits to offset their residual emissions.

The urgency of climate action is evident and VCM is one of the most cost-effective tools to accelerate global decarbonization. Below we present you a summary of the main announcements at this COP:

 

VCMI, SBTi, ICVCM, WMB and GHG Protocol come together to promote VCM as climate action tool

In a historic announcement and with the support of the COP28 board, the Science Based Targets Initiative – SBTi, the Voluntary Carbon Markets Initiative – VCMI, the Integrity Council for the Voluntary Market – ICVCM, GHG Protocol and the We Mean Business Coalition – WMB informed that they will join forces to establish an integrity guidance that provides scientifically based methodologies for the decarbonization of production processes and the use of voluntary carbon credits to offset residual carbon emissions.

 

 

World’s biggest stardards announce colaboration to increase the positive impact of Carbon Markets

Verra, American Carbon Registry – ACR, Architecture for REDD+ Transactions – ART, Climate Action Reserve, Global Carbon Council and Gold Standard announced that they will work together to create common principles related to the quantification, verification and permanence of reductions and removals of carbon emissions in their respective methodologies. The partnership aims to ensure that the methodologies of each of these certifiers adhere to the Core Carbon Principles – CCPs – a set of parameters developed by the Integrity Council for the Voluntary Carbon Market – ICVMC, to identify high-integrity voluntary carbon credits.

 

 

CFTC issues proposed guidance regarding the listing of Voluntary Carbon Credit Derivative Contracts 

The Commodity Futures Trading Commission – CFTC has approved a proposed guidance and request for public comment regarding the listing for trading of voluntary carbon credit derivative contracts. The proposal outlines certain factors a CFTC-regulated exchange, or designated contract market, should consider when addressing requirements of the Commodity Exchange Act (CEA) and CFTC regulations that are relevant to the contract design and listing process.

 

 

European Commission President speeches about VMC’s importance

The president of the European Commission, Ursula von der Leyen, spoke about the urgency of developing new carbon markets that adhere to the Paris Agreement, with the aim of combating climate change. In her speech, she highlighted the need for the world to advance in three objectives: helping more and more countries to create their own regulated carbon markets and that these markets really have the ambition to promote the reduction of emissions and. Furthermore, the importance of encouraging private capital to finance the voluntary carbon market, with a view to enabling the continuity of projects that protect biodiversity.

 

 

World Bank Carbon Credits to Boost International Carbon Markets

World Bank Engagement Road map for High-Integrity Carbon Markets seeks to expand transparent and inclusive carbon markets that will help developing countries in Africa, Latin America and Southeast Asia to protect their forests.

 

 

Iosco proposes suite of good practices for VCM

The International Organization of Securities Commissions – Iosco, requested public comment regarding a manual of good practices to promote the integrity of the VCM. The document seeks to provide legal support to jurisdictions that have established or may be seeking to establish national regulations for their respective voluntary carbon markets.

 

UN Climate Change Executive Secretary speech at voluntary carbon market roundtable

UNFCCC Executive Secretary Simon Stiell stated that there is an urgent need for countries to accelerate efforts to combat climate change and decarbonize their economies. In this sense, carbon markets are one of the viable tools that can be implemented now and at scale. To achieve this, it is necessary to strengthen the credibility, integrity and transparency of voluntary credits.

 

 

Climate Impact X launches new trusted carbon credits contracts

Climate Impact X, a global marketplace for trusted carbon credits announced that it is going to launch a suite of new trading venues in order to negociate carbon credits contracts adherent to the Core Carbon Principles (CCPs).

 

 

United States and Partners Announce Energy Transition Accelerator Framework

The U.S. Department of State, the Bezos Earth Fund, and The Rockefeller Foundation presented the core framework of the Energy Transition Accelerator (ETA), an innovative carbon finance platform aimed at catalyzing private capital to support ambitious just energy transition strategies in developing and emerging economies.

 

 

UNDP launches plan to boost integrity in carbon markets and increase access to finance schemes

The United Nations Development Programme (UNDP) today launched a new initiative at COP28 to support developing countries’ access to carbon markets, mitigate social and environmental risks and promote accurate carbon accounting.

 

 

Brazilian Development Bank announces new program to restore the Amazon Forrest

The National Bank for Economic and Social Development (BNDES) announced the Arco da Restauração Program, which aims to invest more than US$ 200 million in the restoration and reforestation of 60 thousand square kilometers of the Amazon Forest by 2030.

 

 

Seven UE countries propose framework to prevent greenwashing and boost integrity in voluntary carbon markets

The Netherlands, Germany, France, Spain, Finland, Belgium and Austria proposed a framework aiming at preventing greenwashing complaints against companies. Among the proposals, is the recognition of the use of carbon credits for companies’ climate action.

 

 

Institute for Global Environmental Strategies works to advance engagement in international carbon markets

The Global Institute for Environmental Strategies (IGES), through the Partnership for the Implementation of Article 6 of the Paris Agreement, announced that it will partner with the International Emissions Trading Association (IETA), aiming to implement and enhance the market mechanisms stipulated in Article 6 of the Paris Agreement.

 

IETA organizes webinar exploring key developments and 2023 outlooks across Latin America and the Caribbean (LAC)’s expanding carbon market landscape.

The event will take place on March 16 and will be online. Companies, organizations, and government members from Latin American countries will participate.

 

 

The International Emissions Trading Association (IETA) is a non-profit business association created to establish trading and policy guidelines for the carbon markets and to be the central voice for market-based climate solutions.

In order to foster and stimulate exchange on the subject, the association is organizing the webinar IETA LIVE – Latin America Carbon Markets Roundup: Updates and Outlooks for 2023. During the webinar, IETA members, government representatives and carbon market experts from Latin America will share valuable information about the current state of the voluntary markets and their prospects for 2023.

Biofílica Ambipar, the 1st Brazilian developer of forest carbon projects to join IETA, will participate in the event represented by Annie Groth, Head of Advocacy & Policy, who will talk about the perspectives of the Brazilian market given the current political situation in comparison with other Latin American countries.

 

 

“We were flattered by the invitation and excited to share our vision and hear from others their impressions and expectations for this year. It will certainly be an enriching exchange.” – comments Annie.

 

 

THE EVENT WILL BE ONLINE AND REGISTRATION IS OPEN.

 

IETA reinforces that as the world moves towards a low-carbon future, the voluntary carbon market plays an increasingly vital role in driving sustainable development.

The event is an opportunity to stay ahead of the curve and gain a deeper understanding of the rapidly evolving, innovative market landscape in Latin America.

Biofílica is now Ambipar Environment

Dear all,

It is with great enthusiasm that I share that Biofílica is now Ambipar Environment, after being acquired by the Ambipar Group, which operates in several segments offering complete products and services focused on environmental management.

 

The deal concluded this week aims to accelerate our growth, enhancing our synergy with Ambipar and expanding the group’s portfolio of environmental services. The expansion plan for the coming months foresees massive investment in the development of Nature-Based Solutions (NBS) carbon projects and programs, and in the medium term, our mission is to become the world’s largest NBS company.

For Ambipar, the acquisition increases its portfolio as it begins to act with conservation projects in the Amazon, reforestation and restoration, sustainable agricultural management and legal reserve compensation, incorporates the know-how on greenhouse gas (GHG) management strategies much demanded by current customers, expands its national and international regulatory knowledge on climate change and carbon markets, and reinforces the environmental and social pillars of its ESG.

I will continue to lead the business, as well as our entire team, which will be expanded, and I will follow up on the projects and activities that are in progress and will continue to search for innovations and improvements to serve our customers and partners.

 

 

NEW SOLUTIONS

 

 

We have recently incorporated into our portfolio two more solutions that meet the demand for emission offset through carbon credits: Agricultural Land Management (ALM) — an approach in which farmers adopt innovative technologies and improved management practices that improve the quality and storage of carbon in the soil, thus, intensifying agricultural production while generating carbon credits; and Afforestation/Reforestation (AR) — an approach based on carbon storage in biomass by planting new trees in areas where there was no forest (afforestation) and in areas where there was deforestation (reforestation), recovering the natural ecosystem.

Pioneers in the national market of environmental services, our intention is to always follow the evolution of this market, adding new approaches. Among them, Blue Carbon — an approach that generates carbon credits through the conservation and restoration of coastal and marine ecosystems.

 

 

GROWTH PLAN

The resources of this transaction will be invested in the development of the Biofílica Platform, which will use state-of-the-art technology to originate credits in agriculture and the commercialization of environmental services, and also in the development of large REDD+ and Forest Restoration projects, with the aim of making us the largest company focused on Nature Based Solutions in the world.

Our focus, dedication, intelligence and loyalty to our customers and partners does not change. We will be even better prepared to offer solutions to companies, governments and individuals who want to neutralize carbon emissions from their activities that could not be avoided, in addition to promoting the generation of positive impacts on climate, society and biodiversity.

 

Warm wishes,

Plínio Ribeiro
Co-founder & CEO
Biofílica Ambipar Environment

 

 

Nature-based solutions: these initiatives are effective solutions to fight the climate change – Part 1

The natural forms of counteracting climate changes are the most efficient ones. For such a reason, investing in nature-based solutions is a key mechanism to meet targets of reduction of emissions of the Paris Agreement.

Nature-based solutions (NBS) is a concept defined by the International Union for Conservation of Nature (IUCN) such as actions to protect, manage, and restore natural ecosystems in a sustainable and effective way, taking into account the complexities and well-being of human and biological diversity. Within the concept, practices of intelligent management of lands to reduce or remove the emissions of greenhouse gas (GHG) are also conducted.

2020 has been marked as a game-changer for the construction of a more sustainable future with the Paris Agreement entering into force. We see the consciousness and mobilization for the need for even greater changes – a fact that is reaffirmed with the increase in the search of the governors and leaders of great corporations for supporting and enabling the NBS.

In fact, the effectiveness of natural solutions for fighting against climate change is huge. A study conducted by Proceedings of the National Academy of Sciences of the United States of America (PNAS) has shown that such solutions may be responsible for fulfilling more than one-third of the climate change mitigations necessary to achieve the goal of stabilizing global warming in up to 2°C until 2030.

 

 

 

Conserving forests is paramount for a sustainable future

Building a healthy future means provisioning the needs of the current generation without compromising the resources of future generations. For this to be possible, we must act today to reverse the climate change effects – which are mostly caused due to the excess greenhouse gas (GHG) emissions in the atmosphere.

 

The standing forests, in addition to conserving the biodiversity, have an incomparable capacity of absorption and storage of carbon, and, opposite to what is usually thought, keeping them does not adversely influence the capacity of agriculture and cattle raising production, mainly in Brazil, where there are many already open areas that could be used for the smart and low-carbon cultivation.

However, this is a job that goes beyond environmental backgrounds. Therefore social and environmental matters are also considered when classifying a mechanism such as NBS. For deforestation to be avoided, investments that remunerate ecosystem goods and values are necessary, so that keeping the forest is more advantageous than deforesting it.

 

REDD+: one of the most complete nature-based solutions

REDD+ is an innovative and collaborative mechanism developed to actively contribute to the fight against climate change and in favor of the decrease of global warming through the conservation of native forests.

 

As of internationally known methodologies and by means of social, economic, and environmental activities, it is possible to remunerate those who maintain the forests standing. Therefore, it is possible to generate carbon credits, considering that once they are traded, they generate financial resources for the conservation economy.

Due to all its complexity and the set of actions that are part of REDD+, the mechanism fits in as a nature-based solution that is accessible and effective to address corporate emissions neutralization demands.

Understand better what it is and its positive impact in our article: After all, what is REDD+

 

 

 

 

 

Your company may contribute to preserving biodiversity, fighting against climate change, and supporting the Amazon Rainforest’s socio-economic development while it neutralizes emissions through the carbon credits.

 

 

 

 

Launch: Programa Floresta+ and Voluntary Carbon Markets

Brazilian REDD+ Alliance: Voluntary transactions can help nations overachieve their Paris Agreement targets


Report includes case study of the Brazilian Floresta+ programme

Voluntary transactions have the potential to help nations not only achieve but surpass their Paris agreement targets, according to new analysis compiled by international non-profit BVRio and the Brazilian REDD+ Alliance. The analysis also focuses on the positive potential the new Brazilian Programme Floresta+ has.

 

 

The new analysis comes as new data shows a renewed interest in the voluntary carbon offset market, with commitment by big corporates breathing new life to the market beset by criticism and doubt over many years.

“it is encouraging that voluntary commitments to climate mitigation are growing at such a fast pace. Our analysis shows that they can have a tangible, critical impact on reducing carbon emissions. It is important, however, that these transactions are conducted outside of the official UNFCCC accounts, so that their climate impact are truly additive to existing efforts under the Paris Agreements.”, said Pedro Moura Costa, Managing Director, BVRio.

 

Main points of the report include:

  • The Paris Agreement requires that the acquisition of emission reduction credits must be cancelled by a corresponding adjustment in the seller’s nation account.
  • This means that, depending on the specifications of the transactions, international emissions trading could result in neutral and even negative global climate impacts (see Table).
  • Voluntary transactions do not require corresponding adjustments on any official national account; they occur outside official transactions, and consequently are additional.
  • Such transactions can assist countries to meet their NDC targets and could result in emission reductions that are additional to the targets of the Paris Agreement.
  • If buyers request corresponding adjustments from voluntary projects, however, the global climate impact of these projects will be cancelled by the adjustments and will be net neutral.
  • Such adjustments could hinder the ability of host countries to meet their climate targets or these will only accept unambitious targets.
  • The Brazilian Forest+ Programme fits well into this voluntary market architecture, and hopes to harness voluntary projects to contribute to the country’s climate targets under the Paris Agreement.

 

  NDC coverage of project sector Corresponding Adjustments Other impacts Climate Impact

Compliance trading

 

 Covered by NDC Requested by UNFCCC Negative impact on Host Country’s ability
to meet its NDC		 Neutral
Outside NCD Requested by UNFCCC Positive – Does not impact Host Country’s ability to meet its NDC. Paves the way for expansion of NDC scope Additional

Voluntary transactions

 

 Outside NDC Not needed Positive – Does not impact Host
Country’s ability to meet its NDC		 Additional
Covered by NDC Not needed Positive – Contributes to the Host
Country’s NDC effort		 Neutral
Covered by NDC Demanded by buyer Negative impact on Host Country’s
ability to meet its NDC		 Neutral

 

Pedro Soares, Manager, Climate Change and Environmental Services, IDESAM, said: “The voluntary carbon markets can play a major role to foster a ‘net-zero’ CO2 economy in the next years. Companies and investors have already demonstrated their interest in engaging with positive initiatives that seek to reduce and remove GHG emissions, through REDD+ projects and programmes.”

 

The Brazilian Programme Floresta+

The recently announced Brazilian Programme Floresta+ supports the voluntary development of REDD+ projects and does not authorise international credit transfers. According to the analysis, this creates the basis for projects that create positive global climate impacts, contributing to the country’s climate targets. It is important, however, that these projects complement, as oppose to replace, official policies and initiatives for GHG emission reductions in Brazil land use sector.

 

“For developers of forest carbon projects, the Floresta+ programme is a historical breakthrough and sends a strong signal that it is within Brazil’s interest to increase private investment in forest conservation and restoration.”, stated Plínio Ribeiro, Co-Founder and CEO, Biofílica.

 

“The voluntary carbon market has proved its effectiveness in forest conservation; its expected growth can attract more resources to avoid deforestation and forest degradation at large scale.”

 

Plínio Ribeiro
Co-Founder and CEO
Biofílica Environmental Investments

 

 

 

 

Be a leader with a vision of the future.
Neutralize your company’s emissions using carbon credits generated by our REDD+ Projects.

 

 

After all, what is REDD+?

A guide for you to understand what REDD+ is and how this investment aggregates value to your business as you contribute towards the conservation of forests.

The increase of deforestation and of forest degradation in the recent decades is a cause of concern, given that it has been responsible, to a large extent, for the greenhouse gases (GHG) emissions in Brazil and in the world. In face of the need of reducing these emissions and mitigating the effects of climate change, the REDD+ mechanism was created, in an international effort of researchers and with the support of the United Nations.

 

 

The importance of forests

Deforestation, forest degradation and land use change, which include activities such as agricultural and livestock farming, contribute with the total of 23% of all accumulated anthropogenic emissions of Greenhouse Gases (GHG) in the world, registered since 19611. In Brazil, these activities resulted in 69% of all national emissions in 20182.

In this context, the conservation of forests, in addition to contributing to the reduction of greenhouse gases emissions, generates other benefits, such as the protection of hydrographic basins, the stabilization of rainfall systems and positive impacts on biodiversity and local communities that depend on their resources. Additionally, the biodiversity maintained by the forests is a source of incalculable resources, which if well managed, can ensure jobs and income for millions of people in the future.

Sources:
• Climate Change and Land (IPCC, 2019)
• Sistema de Estimativas de Emissões de Gases de Efeito Estufa [Greenhouse Gas Emission Estimation System] (SEEG Brasil, 2018)

 

And what is REDD+?

REDD+ is a mechanism that aims to avoid greenhouse gas emissions associated to forest deforestation, allowing the remuneration of those who maintain the standing forests. When preventing threated forest areas from being deforested, it is possible to generate carbon credits, which once marketed, can turn the forests economically more attractive than other forms of use of the land. This mechanism closes its cycle at the moment when revenues proceeding from carbon are invested in the maintenance of the forest and in the sustainable management of its resources.

 

 

In practice, how does it work?

Initially, studies are conducted to assess the potentiality of implementation of a REDD+ project in the area. For this, the conserved forest area in the property and the existence of risk of deforestation of the area based on the regional context where it is inserted are analyzed, subsequently the potential deforestation vectors in the region are identified, and from this analysis strategies are plotted based on:

• Financial incentives to reduce deforestation, mainly in the places where the forests are converted to agriculture, for example.

• Reduction of degradation in forests that lost part of their ecological value.

• Promotion of sustainable development generating environmental, social and economic benefits.

After monitoring and assessing the effectiveness of the applied strategies, the calculation of CO2 emissions that were avoided is carried out. Then, the carbon credits are generated.

 

 

Are REDD+ projects reliable?

Independent certification bodies make available methodologies and guidelines for implementation, monitoring, reporting and verification of REDD+ projects, ensuring high levels of assurance and stringent technical requirement, in addition to transparency and necessary involvement of communities and other possibly impacted stakeholders.

The most recognized organization of the voluntary carbon market is Verra, which makes available Certification standards VCS and CCB. Verra is internationally recognized for its expertise and technical excellence in certifying greenhouse gas (GHG) emission reduction projects and the social, environmental and economic benefits associated to these projects.
Before investing in a project, it is essential to find out whether it has certification.

REDD+ Rio Preto-Jacundá Project gains room at Verra’s site

 

 

Is REDD+ producing result?

Yes! The deforestation rate in the areas where Biofílica’s REDD+ projects operate was reduced by 75% between 2015 and 2018, going against the deforestation rate in the Brazilian Amazon, which grew by 7% in the same period.

All in all, there are 1.2 million conserved hectares, that protect at least 340 species of flora, 1,200 species of animals and where about 1,500 people live who were impacted by our projects until the end of 2019.

The importance of forest management and conservation reflected in our growth

 

Who can invest in REDD+ projects?

Currently, institutions and companies that want to compensate their greenhouse gas (GHG) emissions and contribute to financing the conservation of forests through the purchase of REDD+ carbon credits. The projects are also funded by countries, through environmental preservation programs.

 

Why are leaders with vision investing in REDD+ projects

In the extremely competitive scenario we have today, leaders from all sectors face daily the challenge of standing out in the market. At the same time, the concern in assuming the responsibility of environmental impact generated by their activities is growing.

Compensating emissions by investing in REDD+ projects is an innovative way of solving these two issues, encompassing benefits such as:

• Recognition and solution of environmental impacts in the operations
• Engagement of employees and customers
• Improvement in Environment, Social and Governance (ESG) indicators
• Differentiation in the market
• Increase of the brand’s reputation and image
• Attraction of investors

 

Start making a difference now for the planet and for your company.