📣 Companies buying carbon credits more likely to cut emissions, study finds

Hi there,

Yes, you did read that subject line correctly. A new study by Ecosystem Marketplace found that companies purchasing carbon credits are more likely to reduce their greenhouse gas emissions year-on-year than non-buyers. To put that in numbers, 59 percent of credit buyers reported annual cuts in emissions compared to only 33 percent of companies not participating in carbon markets. But that's not all. To learn more of the report's findings, please see our summary below.

Elsewhere in the voluntary carbon market, we have seen a rush of new insight. Sylvera published its second, annual State of Carbon Credits report, while a collaboration of stakeholders, including Conservation International and WWF, released a summary of the publicly announced commitments toward reaching the International Biodiversity Finance Goal of Target 19 of the Kunming-Montreal Global Biodiversity Framework (KMGBF). It's been a busy two weeks, so without further ado, let's get into the news.

Newsflash

• Reuters analyses the ways in which the voluntary carbon market is crucial to decarbonisation efforts in Southeast Asia.
• John Lotspeich from Trillion Trees writes for the World Economic Forum blog. He argues why planting trees remains crucial for climate, people and biodiversity.
• Bloomberg discusses a new report on nature tech. Published in the Journal of Nature Communications, there are new findings on the uses of  AI and soundscapes to monitor biodiversity.
• Carbon Herald reports that Xpansiv and the Johannesburg stock exchange have launched the VCM in South Africa.
• Bronson Griscom writes for TIME. He draws on the new Ecosystem Marketplace report to argue that ‘most companies buying carbon credits are not greenwashing.’
• The VCMI announces it will publish additional guidance for its Claims Code of Practice on the 28th of November.
• TCFD publishes its final report. While disclosures were up in 2023, companies were on average only fulfilling 5.3 out of the TCFD’s 11 recommended disclosures. 
• Gold Standard announces it is submitting programme-level information for assessment by the ICVCM to determine alignment with the Core Carbon Principles.
• Capital Monitor considers how confidence can be restored in the voluntary carbon market. For the author, transparency is the answer.
• Trove Research announces its acquisition by MSCI. MSCI signed the purchase agreement in New York as part of its mission to ‘drive integrity in climate investing.’
• Finally, Mongabay highlights Tanzanian efforts to protect its Eastern Arc forests and argues that the voluntary carbon market could help support these efforts.

Don't miss this report

Ecosystem Marketplace: All in on climate

What's new? This report from Ecosystem Marketplace considers the role of carbon credits in corporate climate strategies. As an update to 2016’s Taking Stock, this is an important release for the voluntary carbon market.

Data collection? Insights are drawn from the disclosures of over 7,400 companies throughout 2022, as well as from carbon market transaction data from Ecosystem Marketplace.

Key takeaway? Amid many standout findings, the overall message is that the companies purchasing carbon credits are more likely to reduce their greenhouse gas emissions year-on-year than non-buyers. However, the following points also deserve your attention:

• Overall spending: the median voluntary carbon credit buyer spent three times more on emissions reductions activities than the typical non-buyer.
• Supply chain: Voluntary carbon credit buyers are 1.3X more likely to engage with employees, suppliers and customers on emission reductions than non-credit purchasing companies.
• Risk management: To manage climate-related risks, 44 percent of voluntary carbon credit buyers said they had set an internal price on carbon. This is compared to just 12 percent of non-buyers.
• Ambitious targets: Analysis showed that voluntary carbon buyers were more likely to have targets to address climate change, and that their targets were more ambitious.

Honourable mentions: Other releases not to be missed are Sylvera's State of Carbon Credits 2023 report; recommendations from Climate Impact X to elevate price transparency and a new paper from The Taskforce on Nature Markets and Nature Finance on making nature markets work.

Project news

Blaston Farm featured in Farmers Weekly

Our flagship portfolio project, Blaston Farm, was featured in Farmers Weekly. The article reports how Blaston is replacing its Basic Payment Scheme with income from soil carbon. Blaston's owner, Hylton Murray-Philipson, is quoted in relation to regenerative agricultural practice: "It’s based on good farming practice, with minimal soil disturbance, maximum diversity and almost-permanent soil cover,” he said. Learn more about Blaston Farm and regenerative agriculture here.

Carbon Tanzania funds school and university fees

Carbon Tanzania, the developer of the Makame Savannah and Ntakata Mountains projects, shares that it allocated over US $400,000 of carbon revenue to improving access to education in 2022. This payment covered the school fees of 671 children, while a further 71 were funded to attend university. Read more about Carbon Tanzania's work in its latest Impact Report.

Respira's News

Cecil in Action: Why Rory Oxenham backs data-driven nature markets

We are pleased to share a new Tech in Action article, our series interviewing the business leaders shaping the future of climate and nature tech to ask. In this edition, we were fortunate to speak with Rory Oxenham, CCO and co-founder of Cecil. Cecil solves the data problem for organisations currently operating within nature markets using secure, scalable cloud-based infrastructure. With an abundance of data sources available, Cecil is organising, analysing and sharing these insights with natural asset investors.

Respira a founding member of Kita's Carbon Supplier Pool

Kita, the carbon insurance specialist, announced that their clients can now receive insurance policy claims reimbursed in replacement carbon credits. The option to receive claims in carbon will give carbon buyers and investors more flexibility in risk management options and greater confidence in meeting high-integrity climate targets.

As a founding member of the Carbon Supplier Pool, replacement credits will be sourced from Respira in the event of a claim. We welcome such professionalism in the voluntary carbon market, viewing these developments as clear, positive markers of growth for the industry. The launch was covered in QCI, The Insurer, Carbon Pulse and more.

Fashion brands should resist greenhushing," writes CEO Ana Haurie

With the world still producing 92 million tons of textile waste every year, our CEO, Ana Haurie, calls for fashion companies to resist greenhushing. Writing for Just Style, she discusses the recent withdrawal of several leading fashion companies from the voluntary carbon market. Yet, with the textile industry emitting 10 percent of global greenhouse gas emissions, she argues the industry must deploy every tool available to support rapid decarbonisation.

Dates for the diary

The European Climate Stocktake will be hosted by the European Commission in Brussels (and virtually) on the 27th October. This is a chance to assess global progress towards the goals of the Paris Agreement.

On the 30th of October, The International Carbon Markets Summit 2023 is coming to London. Organised by City & Financial Global, this is an opportunity to hear in-depth analysis of the latest market developments.

BusinessGreen is hosting its Net Zero Festival on the 31st October and the 1st of November. This event will be at the Business Design Centre in London.

Finally, on the 2nd of November our CEO Ana Haurie will be speaking at Sylvera's webinar on its new 2023 report. Starting at 2pm (GMT), Ana will discuss the state of carbon credits. Register here.

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Respira International is an impact-driven carbon finance business. Respira’s high-quality carbon credits allow corporations and financial institutions to mitigate their environmental impact. Respira channels private capital into climate solutions ensuring long-term relationships with trusted carbon project developers that enable its clients to use predominantly nature-based solutions to build sustainable, climate-positive businesses and portfolios. Respira’s team combines deep and varied experience working in global financial markets with a robust understanding of carbon project development in leading international conservation organisations. Respira operates with an innovative offtake and profit share model which reinvests back into local communities.