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Natural Climate Solutions
Scaling private sector investment
through carbon finance
Session agenda
09.00-09.05: Introduction
09.05-09.30: Overview of the NCS Narrative
09.30-10.15: Discussion – credible offsetting
10.15-10.25: WBCSD and NCS in 2019
10.25-10.30: Wrap-up
09.00-09.05: Introduction
09.05-09.30: Overview of the NCS Narrative
09.30-10.15: Discussion – credible offsetting
10.15-10.25: WBCSD and NCS in 2019
10.25-10.30: Wrap-up
Enable investment and maximize value from
investing in NCS
Scale NCS by helping unlock ($b) private capital through carbon investments.
Accelerate voluntary action Unlock compliance demand (policy)
Vision & Scope
Approach & Objectives
Strategy and Vision for 2019
Build a shared vision & common narrative for
NCS carbon finance
Mobilize, convene and partner with key
stakeholders
1. Facing the
Climate Challenge
• Paris target of 2°C
• Current rate of decarbonisation
insufficient
• Growing need for carbon removal
technologies
2. Achieving Paris goals:
Natural Climate Solutions
• Conservation, restoration and land
management
• Forests, grasslands, wetlands and
agricultural land
2. Achieving Paris goals:
Natural Climate Solutions
• Conservation, restoration and land
management
• Forests, grasslands, wetlands and
agricultural land
• Carbon finance and Natural Climate
Solutions are a key part of a transition to
sustainable land use
2. Achieving Paris goals:
Natural Climate Solutions
2. Achieving Paris goals:
Natural Climate Solutions
• Potential to provide up to one third of
the cost-effective emissions reductions
needed by 2030
• Failing to take action during this decade
will result in the need for unproven,
more expensive solutions
3. Unlocking NCS at scale:
The role of business
• Land-use transformation driven by the
land sector
• All companies can support the transition
through investment in NCS offsets and
insets
• Carbon finance must not substitute for
emissions reductions
Benefits include:
• Clear demonstration of corporate leadership
with respect to climate action targets and
carbon neutrality
• Low-carbon product offerings, increased
supply-chain resilience
4. Drivers for Investment:
Voluntary action
4. Drivers for Investment:
Government action
• Compliance action offers scale
• Regulatory carbon pricing instruments
becoming more prevalent worldwide
• NCS rarely included in these policies, but this
is changing
• Examples: Australia, California, Colombia and
potentially CORSIA
5. Unlocking NCS at scale:
Roles in the process
• Governments providing enabling policy, civil
society promoting new ideas and holding
organizations to account
• Key role for private sector: financial and
human capital needed to achieve the one third
of emissions reductions before 2030
• Opportunities and risks for business are
becoming increasingly evident
Achieve scaleManage markets
Enforce compliance
Regulation
Start swiftlyProvide examples
Send demand signals
Voluntary action
6. Potential Barriers to Action
• Reporting standards do not recognise NCS
offsets
• Customers and investors do not demand
NCS investment
• Concern that land sector offsets “not robust”
• Credibility damaged if companies make no
efforts to avoid emissions
• Uncertainty around credits post-Paris
Agreement
7. Taking action:
NCS investment principles
Principle 1: Raising ambition
Principle 2: Following the mitigation hierarchy
Principle 3: Offsetting as an enabling solution
Principle 4: Ensuring high quality of offsets
Principle 5: Using sound carbon accounting
Principle 1: Raising ambition
Principle 2: Following the mitigation hierarchy
Principle 3: Offsetting as an enabling solution
Principle 4: Ensuring high quality of offsets
Principle 5: Using sound carbon accounting
Discussion session:“Credible” offsetting
Discussion session:“Credible” offsetting
• Today’s conversation: not about offsets,
but about credible offsetting
• Mitigation hierarchy – sequential vs
parallel approach
• Building a credibility-giving structure
like this one
• Which criticisms must it address?
Discussion session:“Credible” offsetting
• Using the criticisms to inform an
alternative structure for credibility
• What needs to be in place before,
during, and/or after the offset?
• Rules, criteria, guidelines, disclosure,
other structures
Discussion session:“Credible” offsetting (part II)
What form does the solution take? (Examples in brackets)
‒ Rules (You can only offset if you have set targets in line with limiting
global warming to below 2°C
‒ Criteria (You may offset only those emissions that cannot be
meaningfully reduced within five years.)
‒ Guidelines (If you are offsetting, you should also be reducing your
emissions.)
‒ Disclosure (You must publish full details of all emissions and offsets.)
‒ Others?
a
Natural Climate Solutions
Christopher Conifer (Manager)
Peter Beare (Associate)