Carbon Markets Explained: Co-benefits of carbon projects
How are ecological projects going beyond carbon?
Ecological projects are increasingly expanding beyond carbon credits to tackle a wider variety of environmental and social concerns. Although carbon credits continue to be a vital instrument for combating climate change, it’s critical to acknowledge the significance of addressing other environmental and social obstacles in the pursuit of whole ecosystem regenerative development.
Some examples of ecological projects that go beyond carbon credits include:
- Biodiversity conservation: Many ecological projects focus on the conservation of biodiversity and the protection of ecosystems, such as forests, wetlands, and coral reefs. These projects may involve the restoration of degraded ecosystems, the protection of threatened species, or the promotion of sustainable land use practices.
- Sustainable agriculture: Ecological projects may also focus on promoting sustainable agriculture practices like regenerative agriculture or agroforestry, which can improve soil health, increase biodiversity, and promote food security.
- Water conservation and management: Ecosystem projects may also focus on water conservation and management, such as promoting the use of water-efficient technologies or restoring degraded watersheds.
- Social equity and justice: Ecosystem projects may also focus on promoting social equity and justice by supporting the rights of indigenous communities, promoting gender equality, etc.
In 2014, ICROA published a study of 59 ecological projects and their additional sustainability benefits. They estimated that per ton of carbon reduction, an additional $664 of economic, social, and environmental benefits was generated. By taking a holistic approach to regenerative development, ecosystem projects can help create a more regenerative and equitable future for all.
What are the co-benefits of carbon credit projects?
Carbon credit projects can have a range of co-benefits in addition to reducing greenhouse gas emissions. Some of these co-benefits include:
- Improved air and water quality: Many carbon credit projects, such as reforestation projects, can also help improve air and water quality and displace fossil fuels, which can reduce air pollution and its associated health impacts.
- Economic development: Carbon credit projects can provide economic opportunities for local communities, such as creating jobs in sustainable agriculture.
- Improved health outcomes: By reducing air pollution and other environmental hazards, carbon credit projects can also lead to improved health outcomes for communities.
- Social co-benefits: Some carbon credit projects can also have direct social co-benefits, such as reducing the time and effort required to collect water or firewood, which results in improved health and well-being.
While carbon credit projects maintain a primary goal of reducing greenhouse gas emissions, these projects can have a range of co-benefits, making them an attractive tool for addressing multiple environmental and social challenges.
Carbon removal credits with co-benefits created through Regen Registry
Created via Regen Registry, the Ruuts Monte Dinero project produces carbon removal credits in Argentina, representing soil carbon sequestered through holistic sheep grazing. Situated in a bunchgrass prairie, it was the first farm in South America to apply holistic planned grazing, a livestock management practice that helps ensure land regeneration, which is monitored via the Grasslands Regeneration & Sustainability Standard.
The ecological co-benefits of this project encompass biodiversity, soil health, animal welfare, and grasslands health. In more detail, these benefits manifest as increased biodiversity and plant species richness, enhanced water infiltration rates to optimize soil water retention, reduced runoff and evaporation losses, and improved soil biota diversity.
Learn more about the Ruuts Monte Dinero project →
Why are co-benefits valuable to carbon credit buyers?
Carbon credit buyers are often interested in co-benefits that provide additional value beyond the carbon credits themselves. Co-benefits can offer enhanced value to corporate social responsibility in the form of:
- Reputation and brand value: Sustainable companies may be interested in supporting projects that align with their company’s values and sustainability goals, and can help improve their reputation and brand value.
- Risk mitigation: Corporate sustainability may be interested in projects that can help mitigate risks associated with climate change, such as increasing resilience to extreme weather events or reducing exposure to regulatory or reputational risks.
- Improved stakeholder relations: Carbon credit buyers may be interested in supporting projects that benefit local communities, which can help improve stakeholder relations, build social capital, and address sustainable development goals.
- Innovation and learning: Sustainable companies may be interested in supporting projects that involve new technologies or innovative approaches to reducing emissions, which can provide opportunities for learning and knowledge transfer.
- Operational efficiencies: Corporate social responsibility departments may be interested in projects that can help improve operational efficiencies, such as reducing energy or water use, which can result in cost savings and other benefits.
Careful strategy when selecting carbon credits can help carbon buyers maximize sustainability investments through these co-benefits, unlocking additional value beyond the carbon credits themselves. Climate action requires investment in climate and nature-based solutions.
Schedule a Concierge Sales Call
Receive dedicated support from our team, who will help you understand the market, explore ecological impact projects, and confidently invest in high-integrity credits. Schedule call →
Check out our Lookbook
Explore our pipeline of Regen Registry credits spanning carbon removal, emissions reductions, and biodiversity. Check out our 2023 credits look book →
