Carbon Removal Standard - Interview

'Unbound Showcase' is a globe-spanning series of interviews with pioneers of carbon dioxide removal (CDR). We're questioning innovators, business leaders, policymakers, academics, buyers, and investors taking on the challenge of our lifetime—gigaton-scale carbon removal from the earth's atmosphere.

Today's interview is with Mike Davies , CEO of Social Carbon , the disruptive, high-integrity nature-based solutions carbon and nature asset standard.

What is SOCIALCARBON?

Mike Davies - Most people are aware of traditional carbon removal methods and projects responsible for the approximately two gigatons of carbon removed annually [source: State of CDR], but only some understand the market infrastructure in which they exist. SOCIALCARBON has been created as a standard for the highest quality nature-based solution projects, supporting investors, buyers and project developers who place quality, nature and local communities first. SOCIALCARBON focuses solely on nature-based solutions, with a mission to increase the flow of capital into high-quality projects and the capacity to deliver them, enabling the commitments made to climate and nature.

SOCIALCARBON started life as a co-benefits standard in the early voluntary carbon market 20 years ago. The market now accepts the relationship between co-benefits and quality. SOCIALCARBON has long advocated for this and is now the first accredited standard to integrate certified carbon, nature and local community benefits for buyers in a single standard. 

SOCIALCARBON is currently scaling up and building out a global organisation that can realise the potential of nature asset finance to address climate change and biodiversity loss through the restoration of ecosystems globally. SOCIALCARBON is hiring the next generation of nature-based solutions leaders.

How does the SOCIALCARBON standard differ from other standards and deliver its social component?

Mike Davies - SOCIALCARBON’s theoretical framework is based on the Sustainable Livelihood Approach (SLA), a proven methodology used to assess the contribution of initiatives towards sustaining livelihoods. Projects utilising SOCIALCARBON go beyond carbon, delivering social and biodiversity impacts; projects are assessed holistically against six sustainable livelihood resources: Biodiversity, Natural, Human, Social and Carbon. Local communities are engaged in the process and must receive a minimum of 10% of gross project income.

SOCIALCARBON adopts a modular approach whereby project developers can combine best-in-class methodologies to meet the needs of natural ecosystems and their communities. We have seen the damage done in the pursuit of carbon at all costs, and the SOCIALCARBON philosophy allows the layering of benefits and income with and without carbon.

[hook for SOCIAL CARBON CEO participation in Unbound Europe]

Which scientifically proven nature-based carbon removal methods does SOCIALCARBON support?

Mike Davies - SOCIALCARBON has ten methodologies in the field, supporting the central nature-based methods with some jurisdiction-specific methodologies and some new-to-market methodologies, which are not supported by other standards. SOCIALCARBON is an agile, next-generation standard that can move faster than traditional standards. SOCIALCARBON recently launched a new methodology for Peatland Restoration and will be launching requirements for Insetting and Biodiversity (nature stewardship) over the coming months.

How does SOCIALCARBON see the market for nature-based carbon removal developing?

Mike Davies - The voluntary carbon market needs to adapt to today's needs. The work of ICVCM and VCMI, which SOCIALCARBON supports, is addressing this, but we now need to deliver faster. SOCIALCARBON has been designed to be a frontrunner, able to go faster than incumbents and support the needs of both demand and supply.

A lot of investment capacity is waiting to be invested in suitable projects. Our goal is to be a catalyst and orchestrator across the ecosystem of actors, a broader independent role than standards have traditionally played.

SOCIALCARBON’s view is that the market will pay a fair price for quality where it is delivered. Where this is the case, capacity on the supply and demand sign will align. We need to get beyond the current market noise, building on a foundation of trust. We are now working with leading investors and buyers to build this, redesign and digitise the project lifecycle to support this.

The market must scale if it is the sole mechanism for delivering climate goals. We expect to see some evolution through Article 6 and country markets, but we believe that the markets should serve their purpose. Therefore, solid universal asset definitions and rules are essential. The rest can and will flex, as do other markets. What is clear is the need for carbon removal and nature/biodiversity protection and restoration. Market demand will follow, and we will need to support the market until this happens.

How do you see traditional and novel carbon removal co-existing in the market?

Mike Davies - Simply put, we need both nature-based and engineered carbon removal, and they will perform different roles at different stages in the journey to a stable climate. With a better understanding, buyers and investors will consciously use them to meet more specifically defined objectives. The important message is that we can do so much better with nature, creating a higher quality carbon and biodiversity proposition and doing this more responsibly to support local communities' social and economic development. Projects must deliver sustainable livelihoods for any impact on the ground to be lasting. 

What are SOCIALCARBON’s priorities for the next 12 months?

Mike Davies - We want to be embedded in the best nature-based projects in the market and work within the ecosystem to develop a pipeline that builds capacity geographically. We are also excited about market developments in methodologies and certification and will be at the forefront of this. We want to work with nature innovators and entrepreneurs to bring robust nature-based solutions to the market and help them scale.

A pipeline of projects is forecasted to remove over 1.5 million tCO2e and impact over 100,000 people annually.

SOCIALCARBON is a non-profit entity in the process of registering as a charity in the United Kingdom and in the final stages of ICVCM accreditation, serving buyers and communities globally. Everything we have achieved to date has been achieved without resources. We are currently engaging with strategic partners to resource a five-year impact plan.

Organisations or individuals who want to support our mission should message me or speak to me at future Carbon Unbound summits.

Unbound Summits’ mission focuses on unrivalled connections, unmatched insights and unbound CDR opportunities. You can learn more about SOCIALCARBON's unique approach to promoting the social benefits of carbon projects here.