The Right Choice of Nature-based Solution for Your Business

In the present world sustainability is no longer an option but a necessity. Businesses are looking for innovative ways to align their operations with green principles. The journey toward a greener, more sustainable business begins with choosing the right nature-based solution. NbS is a collection of nature-based approaches that both reduce and remove emissions, such as avoiding emissions through protected landscapes to limit deforestation or restoring ecosystems for carbon removal from the atmosphere. According to IUCN, Nature-based Solutions are actions to protect, sustainably manage and restore natural and modified ecosystems that address societal challenges effectively and adaptively, simultaneously benefiting people and nature.

Nature-based Solutions can provide up to 30% of the mitigation needed to limit global warming to 1.5oC above pre-industrial levels by 2030.

World Economic Forum

In its own definition of NbS, WWF recommends including the use of nature for both climate change mitigation and adaptation, setting ambitious, measurable, and time-bound numeric targets, to maximize benefits from biodiversity, and including all ecosystem types that can provide climate benefits such as wetlands, forests, mangroves, coral reefs, grasslands, working lands, and urban landscapes.

The Nature Conservancy (TNC) and Rainforest Alliance employ the term ‘Natural Climate Solutions’ (NCS), where the central aim is the reduction or prevention of emissions. The Rainforest Alliance’s definition takes it a step further by also encompassing resilience to extreme weather events, albeit within the context of forest biomes. The Oxford University Nature-based Solutions Initiative describes NbS as an umbrella concept for other established nature-based approaches such as ecosystem-based adaptation (EbA) and mitigation (EbM), eco-disaster risk reduction (eco-DRR), Green Infrastructure (GI), and natural climate solutions (NCS).

NbS carbon offset project types include Forest conservation REDD+, Afforestation/reforestation (A/R), Improved forest management (IFM), Blue carbon, Soil carbon and agriculture, Peatlands and Grasslands, etc.

When implemented properly, Nature-based Solutions (NbS) can enhance the resilience of ecosystems and the societies that depend on them. They can support adaptation to climate hazards such as sea level rise and more frequent and intense flooding, droughts, heatwaves, and wildfires — while delivering significant biodiversity benefits in a manner that safeguards and promotes the rights and interests of vulnerable and historically marginalized communities. In today’s business landscape, sustainability isn’t just a trendy word; it’s a guiding principle that’s shaping the future of successful enterprises. At the forefront of this transformative shift are nature-based solutions, offering a pathway for businesses to reduce their environmental impact while fostering growth and profitability. Across the globe, businesses are experiencing the benefits of embracing nature-based solutions. The private sector holds unique advantages as an investor in these solutions. Unlike philanthropic and government funding, private funds are often more substantial and less susceptible to political risks. Corporate commitments and initiatives play a pivotal role in bridging the gap between current government climate targets and the level of ambition required to achieve net-zero emissions by 2050 (World Economic Forum, 2018).

For instance, in Scandinavia, many businesses have embraced sustainable forestry practices, not only protecting vital ecosystems but also securing a sustainable supply chain. Similarly, in North America, companies are harnessing wetland restoration to not only mitigate flooding but also create biodiversity-rich landscapes.

Companies like Danone and General Mills exemplify this commitment by integrating Nature-Based Solutions (NBS) into their operations. Danone, a leader in food and beverage, is promoting regenerative agriculture that respects natural ecosystems and water cycles. Meanwhile, General Mills, a major player in the food industry, champions regenerative agriculture with an aim to impact a million acres of farmland positively by 2030. These companies demonstrate that NBS not only benefits the environment but also bolsters business resilience and societal well-being, setting a compelling example for a sustainable future.

High-value credits, generating high-quality outcomes, are credits generated by Afforestation, Reforestation, and REDD+ projects that meet high environmental integrity requirements (such as additionality, addressing permanence and leakage risks, transparency, conservativeness, and double counting avoidance), contribute to biodiversity/wildlife protection, support the achievement of co-benefits focused on the social and economic development of indigenous peoples and local communities, and have been third-party verified and accounted for through a robust system nested within national and/or jurisdictional accounting where appropriate.

High-quality credits generate significant non-carbon benefits, are validated using robust, science-based methodologies, and allow the offset purchaser to grow their impact beyond carbon outcomes. Investments in high-quality credits help maintain the integrity of carbon markets and channel investment to communities and places where it can have a significant impact.

While nature-based solutions (NbS) don’t replace the essential need for rapid decarbonization within value chains, they hold significant potential for reducing and eliminating emissions. The voluntary carbon market can be a powerful tool in channeling public sector funding toward NbS, especially in regions like the Global South, where it’s needed most urgently. When it comes to sustainability, there’s no one-size-fits-all approach. Each business has its unique sustainability goals, challenges, and opportunities. What works for a manufacturing company may not be suitable for a tech startup or a hospitality business. That’s why one of the key needs here is the ability to customize nature-based solutions to perfectly align with your business’s specific needs and industry nuances. Your sustainability objectives may revolve around reducing carbon emissions, conserving water resources, enhancing biodiversity, or all the above. On the flip side, you might face distinct challenges related to your industry, location, or supply chain. Partner with experts who can work closely with you to identify and prioritize these goals and challenges, ensuring that our solutions are precisely aligned with your vision for a sustainable future.

To create an effective sustainability strategy, begin with a deep understanding of your business, including its sustainability objectives and unique challenges. Take the time to listen and learn about your goals. Once you have a comprehensive understanding of your company’s Emissions Scope Assessment, you will gain insight into your company’s carbon emissions across all aspects of your operations. It’s a detailed examination that considers emissions from direct activities, indirect energy sources, and even those associated with your supply chain. By understanding the full scope of your emissions, you can identify areas where reductions are both environmentally impactful and cost-effective. Finally, we craft a solution that is tailored specifically for your company.

Let’s dive into a real-world example that demonstrates the tangible benefits of embracing nature-based solutions.

Conservation International Case Study

Carbon credits are at the heart of the financial viability of Nature-Based Solutions (NbS) projects. Each NbS model has the potential to generate varying amounts of carbon credits per hectare annually. According to a case study of Conservation International, the potential of Reducing Emissions from Deforestation and Forest Degradation (REDD+), is 23 carbon credits per hectare becoming available annually starting in year four of the project. Similarly, the Reduced Impact Logging with Carbon (RIL-C) model offers a promising outlook, producing 39 carbon credits per hectare per year, beginning in year three. However, the real standout in this case study is blue carbon. This NbS model boasts an impressive 433 carbon credits per hectare per year. Such a remarkable yield opens exciting possibilities for both environmental impact and financial sustainability.

The availability of these credits not only underscores the significance of carbon markets but also emphasizes the potential for NbS projects to be financially self-sustaining while making a substantial positive contribution to our planet’s carbon balance.

Three Rivers Grassland Restoration, China

The Three Rivers Grassland Restoration Project in China (10), located in Qinghai Province, restores 160,000 hectares of degraded grasslands, qualifying for Biodiversity Gold Level status under CCB standards. It involves seeding native grass species, benefiting endangered species like the steppe eagle, saker falcon, and alpine musk deer. Over half of the 12,000 local herders employed are women.

This VCS and CCB-certified project aims to restore the degraded grassland ecosystem, increase carbon sequestration, and promote local development through sustainable grazing and management. It covers six counties in Guoluo Tibetan Autonomous Prefecture within the Three River Source Region. The project addresses widespread grassland degradation due to climate change and overgrazing. Its implementation generates GHG emission removals, mitigates local climate impact, enhances local communities’ capabilities, and boosts biodiversity. Moreover, they earned carbon credits, opening a new revenue stream while offsetting their carbon emissions.

Key benefits include:

• Financial Benefits: The project generates financial benefits by selling carbon credits, earned through its carbon sequestration activities. These credits are sold to offset carbon emissions, providing revenue to support the project’s conservation efforts and economic development in the local community.
• No Poverty & GESI: Equal job opportunities for residents, with a focus on women and vulnerable individuals from poor households.
• Good Health and Well-being: Adheres to local labor laws, ensuring worker health and safety, including health insurance and evacuation plans.
• Gender Equality: Empowers women by involving them in sustainable grassland management, enhancing their well-being and local household welfare.
• Climate Action: Generates carbon removals and slows snow-capped mountain melting.
• Life on Land: Restores over 160,000 hectares of grasslands, achieving exceptional biodiversity benefits in a Key Biodiversity Area (KBA).

In closing, when it comes to selecting the right nature-based solution for your business, it’s not just about being environmentally responsible; it’s also about making smart financial choices. Unlocking the full potential of NbS requires a collaborative effort involving government agencies, environmental organizations, and the private sector. Moreover, engaging local communities and indigenous knowledge can enhance the success and resilience of NbS projects. Partner with the experts to move towards a greener, sustainable future. It’s a step customized to your business’s goals. Together, we can make your sustainability vision a reality.

Written by,
Ebadat Ur Rehman
CEO - Carbo-X