In Washington, D.C., on the 31st of January, Founder and CEO of Terra Global Capital, Leslie Durschinger, participated in a Panel Discussion Event hosted by Forest Carbon Partnership Fund, which was conducted alongside the at the Carbon Fund Twenty-seventh Meeting (CF27). The panel, which was also recorded, discussed “Advancing the Future of REDD+” from vision to action. Durschinger represented the Private Sector amongst a panel of experts from Governments, Indigenous Peoples, and GHG standards, sharing Terra Global’s expertise in developing and investing in REDD+ programs.
Durschinger discusses that while “the pendulum has swung” in reference to the evolution of REDD+ and Nature-based Solutions (NbS), there is still the risk of inaction.
The NbS is estimated to need between USD $600 and $840 million per year in private Sector funding to adequately reduce deforestation to meet global climate goals. Thus far, private sector funding has only achieved 17% of this goal. Durschinger elaborates that the increase in demand supports attracting private sector climate finance, which provides both upfront funding and long-term forward purchases critical to NbS programs.
While the simple answer to attracting more investments into REDD+ and other NbS programs seems to be the buzzword of ‘integrity,’ Durschinger discusses that defining a basis for what integrity looks like in program development, implementation, and investments is crucial. With the increasing evolution of REDD+ and the market for NbS comes an improvement in shared vocabulary. Durschinger discusses how the knowledge of NbS is expanding, allowing for the ability to discuss ways to improve the VCM and elaborate on integrity. As a downside, this also ‘opens the door’ to areas that threaten inaction in the market, which Durschinger goes on to list as:
The Path to Issuance:
Implementing programs at a national and subnational level under market standards, with multiple ‘pools’ of demand, through upfront risk capital and blended finance.
Carbon-related laws passed by Host Countries:
Increased engagement by host countries has been overwhelmingly positive and allows for an enormous improvement in the market. There is a risk, however, with more carbon-related laws being passed by host countries and their governments that more harm than good will come. This includes an increased risk and uncertainty for previously feasible projects to become bankable.
Market Critics:
Over-use of the buzzword ‘integrity’ (or lack thereof) by market critics without research to back up their claims can lead to negative public perception of the carbon market, threatening the ability to achieve climate goals.
Durschinger describes integrity as “bringing the value to the place in which that value has been created,” elaborating that it is critical that:
Credits are not double counted and are created under a high-quality market standard.
The value from carbon assets goes to those who actually generated it.
Spatially explicit accounting occurs to ensure there is no transfer of wealth between groups that do not have a risk of deforestation and others that do.
While there are areas of uncertainty with any emerging market, the conversation of those who attended the CF27 panel shows there is a continuous growth in demand, quality, education, and action in the voluntary carbon market.
“We must keep our heads looking forward, and let the haters be damned.” – Leslie Durschinger
To watch the full panel, click here.
#PassionAndPersistence
