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Natural climate solutions: the business perspective
Contents
1 Preface | 3
2 Natural climate solutions: the opportunity for business | 4
Executive summary 5
3 The climate challenge, the role of the land sector and
negative emissions technologies | 7
Natural climate solutions can help bring the Paris Agreement into reach 8
The role of business in delivering and scaling natural climate solutions 10
Key drivers for scaling investment in natural climate solutions 12
Principles for investing in natural climate solutions 15
Unlocking impact at scale: how can your business play its part? 16
WBCSD would like to acknowledge and thank PwC for their support in producing this document.
This paper is the product of a collaboration between members of the World Business Council for
Sustainable Development (WBCSD) and Nature4Climate (N4C), a global civil society organization.
Natural climate solutions: the business perspective 2
1 Preface
The world is on track to surpass with clean power, maximizing Stopping deforestation, improving
a 1.5°C global temperature rise circular opportunities to reduce soil health, protecting natural
as soon as 2040. resource consumption and waste, carbon sinks, restoring damaged
de-carbonizing transport of habitats, and implementing
The UN Secretary General is goods and services, and investing climate-smart agriculture
holding a Climate Action Summit in nature to increase the carbon practices are solutions that
(CAS) during the UN General sequestration of forests, land can and must be scaled today.
Assembly to build focus and and oceans. However, despite their massive
highlight the need for more potential, most estimates
ambitious and urgent progress. While limiting global warming to suggest Natural Climate Solutions
We must set a bolder ambition to 1.5°C is possible, economies only attract 2 to 3 % of public
get on track towards achieving the and societies worldwide must climate finance globally. Natural
Paris Commitments, and business undergo rapid and far reaching Climate Solutions are not just
can once again demonstrate transformation at unprecedented for land sector companies.
leadership and action to address speed and scale. They can offset hard-to-abate
the climate emergency. and unavoidable emissions,
Natural climate solutions
supporting the transition to
Ahead of the UN Climate Action are an established means of
sustainable land use at the same
Summit in New York City, WBCSD reducing, capturing and storing
time as accelerating near-term
calls on companies to to set a carbon emissions. Using them
progress towards net-zero
climate target a climate target provides opportunities for both
emissions across all business
aligned with what science says climate change mitigation and
sectors. At the same time, they
is needed to limit global warming increased resilience.
create the opportunity to invest
to 1.5°C. According to the IPCC
Investing in nature offers a also in biodiversity, just livelihoods
special report Global Warming
significant opportunity to and rural transitions, and food
of 1.5 ºC, limiting global warming
sequester atmospheric carbon security.
to 1.5°C requires reaching net-
zero CO2 emissions by around at a global scale while delivering
Delivering these solutions at
2050. solutions for biodiversity and
scale will require unprecedented
ecosystems. GHG emissions
funding and coordination.
Reaching net-zero emissions agriculture, forestry, and other land
Close collaboration between
for a company means reducing uses (AFOLU) contribute a quarter
governments, businesses,
greenhouse gas (GHG) emissions of total global GHG emissions.
investors and civil society will be
where possible and balancing the Investments in nature could
needed.
impact of remaining emissions potentially deliver one third of the
with carbon removals. This will emissions reductions needed to The private sector can play
result in no net impact on climate. align with the Paris Agreement a critical role in accelerating
It will require unprecedented between now and 2030. and financing these solutions.
level of action in several areas, Together, we are stepping up to
including electrifying energy use the challenge.
Diane B. Holdorf María Mendiluce
Managing Director, Managing Director, Climate &
Food & Nature Energy, Cities & Mobility and
Circular Economy
Natural
Natural climate
climate solutions:
solutions: the
the business
business perspective
perspective 33
2 Natural climate solutions:
the opportunity for business
Natural
Natural climate
climate solutions:
solutions: the
the business
business perspective
perspective 44
Executive summary
Natural climate solutions As part of this, WBCSD will focus NCS can help.
(NCS) help nature do what on raising corporate, civil society
it’s been doing for millions and consumer awareness and NCS are an important
of years: sequester and accelerating voluntary action, complement to long-term
store carbon. while working in partnership corporate decarbonization
with other key organizations to strategies. This is especially true
promote and scale carbon pricing across land sector companies,
Research shows that these
policies that steer private capital where reductions in GHG
solutions could deliver up to one
to NCS. emissions from agriculture,
third of the emissions reductions
forestry and other land uses
between now and 2030 needed
Collectively, global targets are not (AFOLU) – which contribute
to limit global warming to 2°C.1 A
on track to meet the goals of the a quarter of total global
third of these have a price of USD
Paris Agreement. In fact, current anthropogenic GHG emissions
$10 per tCO2e – or less.2 NCS
targets point to 3 °C of warming – could make a significant
can also protect ecosystems,
by 2100. The impacts of such impact on achieving climate
contribute to climate resilience,
warming would cause significant goals. For companies working
restore land and transform
and material risk to business and in sectors like agriculture and
agricultural, wetland and forestry
society. forestry, investing in nature offers
practices.
a significant opportunity to
As such, the Intergovernmental sequester atmospheric carbon at
However, despite their massive
Panel on Climate Change (IPCC) a global scale – helping develop
potential, most estimates
is calling for urgent action. sustainable practices in addition
suggest NCS only attracts 2 to
The speed at which we can to existing efforts to avoid and
3 % of public climate finance
avoid further greenhouse gas reduce emissions.
globally.
emissions, transition to renewable
WBCSD has formed a partnership energy and push for energy However, NCS are not just
with a coalition of NGOs, efficiency will still not be enough for land sector companies.
Nature4Climate,3 to help unlock to meet our targets. NCS can offset hard-to-abate
private capital for investments in and unavoidable emissions,
NCS. supporting the transition to
sustainable land use at the same
time as accelerating near-term
progress towards net-zero
emissions across all business
sectors.
Natural climate solutions: the business perspective 5
There are two important drivers Regulatory compliance: Carbon
for investment in NCS, namely pricing instruments like carbon WBCSD and Nature4Climate
purchasing carbon credits for taxes and trading schemes members recommend that
voluntary action and regulatory provide incentives to reduce any NCS investment adheres
compliance: emissions. to the following four guiding
principles:
Voluntary action: Many Since 2012, the number of
companies are voluntarily implemented or scheduled 1. NCS investments can and
responding to the obvious carbon pricing policies has nearly should raise ambition
business case for addressing doubled and a growing minority with respect to climate
climate change. In 2016, already encourage NCS carbon action, enhancing rather
voluntary buyers paid USD credits. The combined value than diluting a company’s
$191.3 million to offset 63.4 of the world’s carbon pricing contribution to the Paris
million metric tons of CO2 initiatives, including both taxes goals. Carbon credits
(MtCO2e)4 - this is equivalent to and emissions trading schemes should therefore be used
a year’s worth of GHG emissions (ETS), totaled USD $82 billion in in conjunction with the
from 13.4 million cars,5 roughly 2018.8 While the voluntary use GHG emissions mitigation
the number of cars on the road of natural climate solutions is hierarchy.
in Belgium and the Netherlands growing and desirable, it is not
2. NCS credits can provide
combined.6 currently sufficient to deliver the
an interim solution for
Paris Agreement’s goals. Given
Forestry and land-use carbon hard-to-abate emissions,
the scale of the climate challenge,
credits made up 13.1 million but not a permanent one.
regulatory carbon pricing
metric tons (MtCO2e) at USD For unavoidable emissions,
instruments – which are typically
$67 million.7 Given the size of the carbon sinks - potentially
measured in billions of dollars
challenge to achieve the Paris including natural sinks
rather than millions – would likely
Agreement, voluntary action is - will always be needed
have a much greater impact than
critical for demonstrating and to achieve net zero.
voluntary action.
scaling NCS markets. NCS credits should be
Whether companies are driven considered an enabling
by regulation or taking voluntary solution that will support
action, they must make sure long-term sustainable land
that their approach to the use of use.
carbon credits and the credits
3. NCS investments should
themselves are robust and
deliver environmental
scientifically sound.
and social safeguards
and benefits in addition to
GHG emissions reductions.
4. Sound and verified
carbon measurement
and accounting
methodologies should
be applied to ensure high
environmental integrity
of NCS credits.
The remainder of this paper dives
into several of the key elements
of the NCS landscape today,
as well as into each of the four
principles. This paper is designed
to provide reference and support
to companies interested in
integrating NCS into their GHG
emissions mitigation strategies.
Natural climate solutions: the business perspective 6
3 The climate challenge, the role
of the land sector and negative
emissions technologies
Natural
Natural climate
climate solutions:
solutions: the
the business
business perspective
perspective 77
3 The climate challenge and
the role of the land sector
and negative emissions
technologies
At COP 21 in Paris, nearly Carbon Capture and Storage of avoiding catastrophic climate
200 countries adopted the (BECCS). Although these change at a later stage.
landmark Paris Agreement solutions are important, they
to combat climate change. have not in general been proven Nature is a proven, scalable
The Agreement aims to keep commercially or widely deployed carbon removal technology
the global temperature rise at scale and therefore these that’s been refined endlessly
to well-below 2°C above pre- technologies need more time. over millennia. Businesses,
industrial levels, pursuing In contrast, NCS are available governments and other actors
efforts to limit warming to for deployment at scale today. can implement NCS across the
1.5°C. globe at massive scale to reduce
Use of NCS is not only about
atmospheric CO2 emissions.
negative emissions technologies,
While the Paris Agreement
however. Reductions in GHG
charted a new, more ambitious NCS store carbon and other
emissions from agriculture,
course in the global effort to stop greenhouse gases by enhancing,
forestry, and other land uses
climate change, three years on, restoring or protecting natural
(AFOLU) - which contribute
the world is not on track to meet sinks – like wetlands and
a quarter of total global GHG
the original goals, in particular peatlands - or by reducing
emissions10 - are also needed.
to limit warming to 1.5°C, which emissions from land-use
Using NCS to avoid emissions
the IPCC describes as the upper change. NCS are usually pursued
from the land sector in addition to
limit of a safe operating space for through three main activities:
creating carbon sinks can make
humanity.9 conservation, restoration and
a significant impact on achieving
climate goals. improved land management
An IPCC report published in across forests, grasslands,
October 2018, highlights that agricultural lands and wetlands
In this light, investing in nature
worldwide, on average, we’ve (see Figure 1 for examples).
as a proven solution offers a
already reached 1°C warming and
compelling option for society and
today’s rates of decarbonization
business. Recent research shows that NCS
are less than half of what’s
needed to limit warming to safer can provide up to one third (11.3
NATURAL CLIMATE billion tons CO2e at less than
levels. In fact, global warming SOLUTIONS CAN HELP
is expected to exceed 1.5°C as USD $100 per tCO2e) of the GHG
BRING THE PARIS emissions reductions needed by
early as 2040.
AGREEMENT INTO REACH 2030.12 The same study showed
Given this challenge, the IPCC that a high proportion of this is
Pursuing a pathway for rapid available at relatively low cost;
describes the use of “carbon
GHG emissions reductions is around 3 GtCO2e can be delivered
removal” technologies to capture
essential over the next decade,11 annually for less than USD $10 per
greenhouse gases from the
which is critical – and NCS can tCO2e (see Figure 2).
atmosphere and securely store
be a key part of this. If sufficient
them.
action is not pursued today using
The IPCC lays out potential all the available cost effective
options for carbon removal technologies we have at our
technology such as Direct Air disposal, then we will likely be left
Carbon Capture and storage turning to solutions that are more
(DACCS) or Bio Energy with expensive, and in some cases
unproven, to give us any chance
Natural climate solutions: the business perspective 8
Figure 1: Examples of NCS
CONSERVATION RESTORING COASTAL SMART AGRICULTURE AND
WETLANDS LAND MANAGEMENT
Rising demand for food and Coastal wetlands such as Tropical and temperate forests
natural resources is causing saltmarshes, seagrass meadows are highly effective carbon sinks.
large-scale land conversion and mangrove forests store and Improved agricultural practices
around the world for commercial sequester carbon. can deliver improved carbon
agriculture and urban storage in healthier soils.
development. These “blue carbon” ecosystems
can store up to four times Climate smart agricultural
This land conversion releases more carbon per hectare than practices and proper
carbon that had previously been terrestrial forests. management of working
stored. plantations and forests can aid
However, destruction of coastal carbon storage while improving
By protecting habitats from ecosystems is releasing massive yields and productivity of the
unnecessary or irresponsible amounts of carbon. land.
conversion, the loss of carbon
stored in plants and soils into the Restoring these environments Improving soil health and forest
atmosphere is avoided. can prevent carbon from management improves the
escaping while enhancing resilience of farming and forest
This maintains the land area as community resilience against communities to climate change
an active carbon sink. the localized impacts of climate risks of both drought and
change through storm and flooding, for example.
flooding protection, for example.
Natural climate solutions: the business perspective 9
THE ROLE OF BUSINESS All companies can make use of
IN DELIVERING AND insetting13 or offsetting using For this to work, investment
SCALING NATURAL NCS credits to compensate in NCS for offsetting
CLIMATE SOLUTIONS for emissions that cannot be must occur in tandem
avoided through their mitigation with strong emissions
Deploying NCS at scale will strategies, helping draw down or reductions efforts in the
require everyone to play their avoid carbon emissions in order companies’ own operations,
part. Governments can provide to achieve net-zero emissions in whether companies are
enabling conditions through the second half of the century. operating in the agrifood,
policy change while civil society chemicals, energy, materials,
can promote new ideas and hold NCS carbon credits should be transportation or any other
organizations accountable for used as a tool to help companies sectors.
their actions. Business will also be to demonstrate leadership, and
critical in unlocking the massive to make additional, near-term
In the second half of the century,
potential of NCS. contributions towards their
absolute emissions reductions
climate goals.
globally must be significant
enough to maintain steady
atmospheric CO2 levels and we
should not need to over-rely on
offsetting. In other words, for
most companies, investment
in NCS should only be used to
complement wider climate action
that delivers net zero global GHG
emissions.14
Figure 2: Chart showing the potential contribution of NCS to limit climate change up to 2030
and beyond
Reproduced from Griscom, B.W. et al., 2017, NCS
80
70
s
sion
le mis
60 usua
as-
Global carbon emissions (Pg CO2 yr-1)
ss-
ine
Bus
50
Fossil fuel mitigation
40
s
30 sion
emis
oric NC
Hist SA
NC vo
ide
20 SS dE
eq miCompanies operating in the term sustainable agricultural For example, farmers and food
land-use sector are a bit different and forestry practices that avoid producers increasingly invest
as they have a particularly deforestation while engaging in in improving soil health as part
important long-term role to restoration efforts. Companies of climate-smart agriculture
play: managing land sustainably in this sector, due to their initiatives, recognizing the
in order to provide necessary management and/or ownership significant climate and business
commodities to the global of land, also have the opportunity benefits of doing so. Improving
markets while also working either to sequester CO2 within soil health increases land
to enable and support local their own supply chains - in the productivity, while healthy soils
communities and indigenous form of insetting - or to produce are also more effective at storing
peoples. While companies carbon credits for use outside and sequestering carbon.
operating in this space are critical their supply chains.
for a healthy and thriving human Leading companies in the forest
society, they’re also responsible Nearly 450 consumer goods sector are also working with
for approximately 25 % of global companies have now set zero- customers and policy makers to
anthropogenic emissions.10 deforestation commitments develop business opportunities
for the products they source, for sustainably managed forests,
Because of this, land-sector responding to customer delivering positive ecological and
companies have two key roles. demand and because of long- social outcomes by maximizing
Firstly, they can implement long- term productivity benefits.15 carbon storage and providing
livelihoods for local people.
Figure 3: Different private sector actors can play different and complementary roles in supporting NCS
D USE SECTO HE R SECTOR
AN R OT S
L
NCS support via
carbon finance
as a near-term
NCS as a central part transitionary tool
of long-term absolute
decarbonization
strategy TARGET Supporting and accelerating
transition of land use sector
Net zero to meet own near-term
Transitioning emissions by climate goals
to a long-term
sustainable land
2050
Absolute emissions
use sector reductions must
continue in parallel
and dominate from
mid century
Natural climate solutions: the business perspective 11KEY DRIVERS FOR Targets exist for addressing Voluntary use of NCS
SCALING INVESTMENT climate change that increasingly demonstrates to policymakers
IN NCS cover full value chains, going that businesses are taking action
beyond a company’s own and are comfortable using NCS
There are two important drivers operations, and aim for “carbon carbon credits. In doing so,
behind business investment in neutrality.” voluntary uptake is likely to give
NCS – both are likely to increase governments the confidence
in the coming years. Many companies face they need to deploy enabling
challenges in meeting their policy frameworks and structures
VOLUNTARY ACTION climate action commitments, for scaling up NCS investment.
particularly in the near-term. It’s worth noting that some
Risks associated with climate This is because silver- sectors may never fall under
change are becoming clearer bullet solutions do not yet direct carbon price regulation
and more tangible – as are the exist, especially in hard-to- and therefore scaling voluntary
commercial opportunities for decarbonize industries such action for these sectors will
addressing them. as steel, aluminum, shipping remain critical.
and aviation. At the same
In addition, companies face time, implementation of new
pressure from customers, technologies often happens
investors and employees to over long time-horizons, as
act on climate change using is evident in the slower-than-
methods that are anchored in desired uptake of electric light
science and aligned to the Paris passenger vehicles.
Agreement.
Figure 4: The ambition loop
Both voluntary action and regulation will be necessary in driving corporate NCS investment to the scale required, with
each playing a distinct (but interacting) role
Technical innovation Demonstrate Engage non- Create working Quick to deploy
to enhance the businesses regulated sectors models for regulation
robustness of leadership
offsets
Voluntary action
Regulation
Deliver scale Match businesses Correct market Send expectation
incentives to failures signal to non-
government’s goals regulated sectors
Natural climate solutions: the business perspective 12Key benefits for companies using emissions reductions • Another issue is the
NCS voluntarily include: targets or disclose their uncertainty around how
performance on tackling carbon units will be
• Low-carbon product climate change offer embedded within the
offerings: Customers - limited or no recognition accounting and governance
including other businesses of NCS offsetting. This is structure of a country’s
- are looking to achieve because there’s still a lack Nationally Determined
carbon neutrality, and often of consensus on, or support Contribution (NDC) under
are concerned about their for, the role of offsetting as the Paris Agreement. At the
carbon footprint. NCS can a decarbonization tool by core of this is a lack of clarity
help companies meet this NGOs. At the same time, as to whether countries
demand. For example, an many consumers or investors will export carbon units to
airline may use NCS to help may not recognize the private investors without
customers offset their travel commercial and social value simultaneously making
emissions. derived from investing in corresponding adjustments
NCS, which can limit demand. to their own NDC goals –
• Ensuring stability of which could lead to “double
supply: NCS bring several • Concern about the counting” or overestimating
co-benefits in addition to robustness of NCS and the amount of carbon abated
offsetting carbon emissions. land sector carbon credits for every transaction.
These benefits could include emerged in the early 1990s
increased resilience of when the idea and economic The rules governing and
agriculture, company assets thinking around this work monitoring these interactions
and supply chains, securing was still nascent. Calculating must ensure that no two
supply of products in the face emissions reductions from entities claim the same
of growing climate-related the land sector was not well carbon unit. These rules are
risks through for example understood – as it was for still being negotiated. There
enhanced flood defenses or other offset project types is a need for these issues to
improved soil health. When such as those with renewable be resolved by the time NDCs
designed appropriately they energy. Concerns from a start to take effect in 2020.
can also improve biodiversity broad set of stakeholders
and ecosystems while revolved around whether a • For voluntary NCS to work
helping farmers and rural land sector offset project in business, there’s also a
communities accelerate would merely displace, rather need to build the capacity
improved practices and than reduce, emissions. to implement NCS solutions
strengthen resilience. However, there is now at scale.
substantial evidence that
There are, however, several addresses previous technical Addressing these challenges
challenges to accelerating the challenges using globally must be a priority, if we are
voluntary deployment of NCS agreed guidance17 in, for to unlock the full potential of
including: example, large-scale forestry voluntary corporate action.
projects. There’s also a series
of more robust tools and
• Many reporting frameworks
methodologies available for
and standards designed
ensuring the robustness
to help companies set
and integrity of NCS offset
projects.18
Natural climate solutions: the business perspective 13COMPLIANCE MARKETS Since 2012, the number of Zealand now all include NCS in
countries who have implemented regulatory frameworks and are
Given the size of the Paris or scheduled carbon pricing demonstrating that they work.
Agreement challenge, all instruments has nearly doubled.
investment in NCS is needed As of 2018, 25 emission trading
and voluntary action is critical CORSIA (the Carbon Offset
schemes and 26 carbon taxes and Reduction Scheme for
for demonstrating and scaling exist worldwide. The value of
NCS markets. However, while International Aviation), is
these carbon pricing initiatives, projected to require around
the voluntary use of natural including emissions trading
climate solutions is growing 2.5 billion tons of carbon credits
schemes, carbon taxes, permits from 2020-2035.19 Under the
and desirable, it is not currently and allowances reached USD $82
anywhere near enough to deliver plan, international aviation’s
billion in 2018.8 emissions above 2020 levels
the Paris Agreement goals.
must be offset with allowable
Carbon pricing policies that carbon credits. Specifically, airline
Government policies that raise create price disincentives for operators will have to purchase
the ambition of national climate carbon emissions rarely include offsets for a portion of their flight
goals (including NDCs), while complementary price incentives routes between countries that are
also integrating nature-based for sustainable land-use; this covered. From 2021-2026 only
carbon credits into compliance must be addressed to achieve countries that have volunteered
pathways could unlock a scale the full potential of NCS. are covered which includes nearly
of investment that exceeds all of the major aviation states.
what could be achieved through From 2027-2035 coverage
voluntary markets alone. In some cases, governments
leave NCS out of compliance expands to include every country
regimes because of outdated except LDCs and SIDS who can
Compare, for example, the likely concerns around whether a still volunteer to be included in the
size of voluntary markets for land sector offset project would plan. The types of offset credits
NCS carbon credits, typically merely displace, rather than that will be admissible have yet
measured in millions of dollars, reduce, emissions – as mentioned to be decided, so it is unclear
versus compliance markets, above. These perceptions are whether NCS will be allowed to
normally worth billions of dollars.8 changing: Australia, California, play a major role in helping the
China, Colombia and New aviation sector lower its climate
impact.
Natural climate solutions: the business perspective 14PRINCIPLES FOR NCS WBCSD and Nature4Climate including natural sinks - will
INVESTMENTS strongly recommend that any always be needed to achieve
NCS investment adhere net zero. NCS credits should
Whether it is voluntary action to the following four principles: be considered an enabling
by companies or regulatory solution that will support
compliance, there must be 1. NCS investments can and long-term sustainable land
assurance that the approach should raise ambition use.
taken to offsetting is credible and with respect to climate
rooted in science and that the action, enhancing rather 3. NCS investments must
NCS carbon credits are produced than diluting a nation’s or deliver environmental and
sustainably and deliver real a company’s contribution social safeguards and
carbon emissions reductions. to the Paris goals. Carbon benefits in addition to GHG
credits should therefore be emissions reductions. For
All actors – companies, used in conjunction with the example, the preservation of
governments and civil society - GHG emissions mitigation a given forest could enhance
will therefore need to adopt a set hierarchy (See Figure 5). a wide variety of ecosystem
of principles that can deliver this services to the benefit of local
environmental and social integrity. Avoiding, minimizing, and and indigenous communities’
reducing emissions should livelihoods.
be prioritized. These efforts
should continue in parallel 4. Sound and verified
with and in addition to the use carbon measurement and
of NCS credits. accounting methodologies
should be applied to ensure
2. NCS investments must high environmental integrity
deliver an interim solution of NCS credits. Emissions
for hard to abate emissions, reductions and removals
but not a permanent one. must be real, quantifiable and
For unavoidable emissions, verifiable, and tracked to avoid
carbon sinks - potentially double counting.
Figure 5: The mitigation hierarchy
Companies should use NCS offsets in conjunction with the mitigation hierarchy as one component of a decarbonization
strategy
2019-2030 2030-2050 2050-2100
Measures
AVOID
taken
to avoid
generating
GHG emissions
Measures
MINIMIZE
taken
to minimise
GHG emissions
GHG
MITIGATION
HIERARCHY Compensation
OFFSET
for GHG
Companies emissions
in one place
should prioritize by making
avoiding and equivalent
reductions
minimizing their elsewhere
emissions
Natural climate solutions: the business perspective 15UNLOCKING IMPACT AT Accelerate private sector Advocate for policy:
SCALE: HOW CAN YOUR investment:
BUSINESS PLAY ITS • Governments and regulators
PART? • We’ll continue to generate should ensure that policy
awareness of NCS as a supports the use of
NCS needs to become a major climate solution in order sustainable NCS. In particular,
pillar of the global climate change to encourage demand the incorporation of NCS
mitigation strategy as soon as and promote investment carbon credits in compliance
possible. Businesses can help in NCS supply. The launch markets will help drive
unlock the potential of NCS by and sharing of this narrative these solutions to the scale
investing in high quality programs during key events such as needed. To achieve a policy
today. the UN Secretary-General’s environment that releases
Climate Summit, UNFCCC the potential of NCS, the
By sending a strong demand COP25 and beyond will unified voice of business
signal, your company and sector take a central role in our should be articulated and
can help show governments communications strategy. heard at the highest levels.
that the private sector is ready WBCSD, in collaboration with
and willing to contribute, giving • By recognizing the role that key partners, aims to provide
governments the confidence to NCS can play in driving down a platform for this discussion
enact clear policy incentives to emissions, globally accepted at key UN events and through
which the market can respond. frameworks for GHG continued engagement with
accounting and target-setting governments in partnership
WBCSD and Nature4Climate3 frameworks such as the GHG with organizations such as
have formed a partnership Protocol and Science Based N4C and the World Economic
to help unlock private capital Targets can act as strong Forum (WEF). Central to
for investments in NCS. As enablers that encourage these efforts will be the
part of this, through its NCS business to integrate NCS NCS Alliance which will be
project, WBCSD will focus on into their climate strategies. launched at the 2019 New
raising corporate, civil society To achieve this, we will York Climate Week.
and consumer awareness, engage with and on behalf of
accelerating voluntary action, our members to ensure their • WBCSD and partner
as well as working in partnership voice is heard in the debate organizations will continue
with other key organizations to and to find solutions that can to advocate for the
promote and scale carbon pricing work within and/or alongside development of credible
policies that steer private capital such frameworks. accounting and governance
into NCS. structures that allow the
• The credibility concerns international transfer of
Our goal is to encourage around the quality and mitigation outcomes
responsible investment in nature robustness of NCS carbon between countries. This is
by helping companies overcome credits still need to be best achieved through Article
challenges to unlocking large addressed to achieve 6 of the Paris Agreement.
scale investment in NCS. greater acceptance by
business and society. The WBCSD and N4C aim to stimulate
science behind carbon private sector ambition and
sequestration by nature is investment in NCS to protect
well established. Equally, nature and improve food security
standards agencies can and while sequestering carbon from
do provide independent the atmosphere on a scale
verification of NCS projects. sufficient to combat climate
Collating and communicating change. The NCS team at
the latest information on NCS WBCSD welcomes participation
offsetting can help to alleviate and partnerships – so please
credibility concerns. reach out to WBCSD and help us
shape these exciting - but as yet
underdeveloped - natural climate
solutions.
Natural climate solutions: the business perspective 16Endnotes
1
Griscom et al., Natural 8
State and Trends of 17
Donofrio, B., Rothrock,
climate solutions, PNAS Carbon Pricing 2018, P. & Leonard, J. Supply-
2017 114 (44) 11645- https://openknowledge. change: Tracking Corporate
11650, https://www.pnas.org/ worldbank.org/bitstream/ Commitments to Deforestation-
content/114/44/11645 free Supply Chains (Forest
9
https://www.ipcc.ch/sr15/
Trends, 2017).
2
For reference, at the beginning
of 2019, carbon traded on the
10
Agriculture, Forestry and Other 18
Examples include: https://verra.
European Union Emissions Land Use (AFOLU). In: Climate
Change 2014: Mitigation of org/, https://www.goldstandard.
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The IPCC highlights that the
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3
Including UNDP, CBD,
The Nature Conservancy, 12
The Natural Climate Solutions
Conservation International, (NCS) referred to in this paper
World Resources Institute, are land- and coastal-based and
Wildlife Conservation Society, do not include the potential role
Woods Hole Research Centre of oceans.
and WWF.
13
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pdf companies that offset
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5
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read/25259/
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