White Papers Propel Carbon Market Evolution
Photo: Aung Chan Thar/TNC Photo Contest 2021
The Nature Conservancy (TNC) has ignited pivotal discussions in the realm of carbon markets through a series of expert white papers. These comprehensive reports confront critical challenges envisioning innovative solutions that have the potential to reshape the landscape of climate action.
Addressing the pressing need for policy clarity and effective implementation, TNC’s white papers tackle three core challenges: policy uncertainty, intricate due diligence, and the role of Indigenous Peoples and Local Communities (IPLCs) within carbon markets. Each report offers targeted strategies tailored for diverse market stakeholders, including governments, project developers, third-party standards, buyers, investors, local communities, and market initiatives.
“Carbon markets hold immense potential in steering financial resources towards sustainable development, but the terrain is becoming increasingly intricate. With these reports, we aim to provide a comprehensive overview of critical topics, encouraging stakeholders to collaboratively enhance the market’s efficacy,” emphasizes Kimberly Myers, a driving force behind TNC’s carbon markets initiatives.
Delving into the White Paper Insights
TNC’s primary report delves into the heart of carbon credit projects, shining a light on both opportunities and risks in project benefit-sharing. The report critically examines the challenges posed by “carbon cowboys” – entities that prioritize financial gains over the rights of IPLCs and local landowners. By dissecting existing carbon credit standards and their approach to safeguarding positive social outcomes, this report proposes a framework for benefit-sharing which promotes Indigenous Peoples and Local Communities’ leadership in projects. It specifically focuses on natural climate solutions (NCS) projects within Voluntary Carbon Markets (VCM).
In response to the growing market, TNC elucidates the importance of robust due diligence for carbon credit buyers. The report outlines the diverse due diligence processes adopted by companies, aiming to streamline these processes by identifying best practices. This effort not only ensures credit quality but also promotes that the positive climate impact they deliver is clearly visible.
Focusing on the international realm, TNC offers insights into Article 6 of the Paris Agreement, which paves the way for collaborative carbon trade. This report dissects the concept of “corresponding adjustments,” exploring how countries can assess trading risks and opportunities. It also delves into the intriguing intersection between the Voluntary Carbon Market and Article 6 trading.
To demystify the complex terrain of Article 6, TNC provides a straightforward guide. Exploring the implications of Article 6 for NDCs, nature, and the Voluntary Carbon Market (VCM), this report clarifies key decisions and developments stemming from COP27.
“With these reports, we aim to provide a comprehensive overview of critical topics, encouraging stakeholders to collaboratively enhance the market’s efficacy.”
Kimberly Myers, Carbon Markets Associate.