In a letter to the Dutch Government dated November 5, 2024, RBI once again urged consideration of bridging the gap between National climate ambitions and actual achievements through the purchase of ITMOs from non-European countries. Particularly tropical forest nations like Suriname, which is already offering ITMOs for sale. While these purchases would not count as formal compensation within The Netherlands’ NDC, they could be politically leveraged to showcase the country’s commitment to maintaining global climate ambitions.

A key benefit of this approach is the positive signal it sends to the voluntary carbon market, supporting companies that voluntarily strive for greater sustainability. The strategy could achieve even greater impact if coupled with initiating a discussion at the EU level on using ITMOs to meet 2050 climate targets in a way that aligns with global climate justice principles.

According to new data from the University of Maryland, accessible through WRI’s Global Forest Watch, the loss of primary forests in 2023 amounted to 3.7 million hectares, an area comparable to that of The Netherlands. Although this marks a 9% decrease from 2022, the rate of loss in 2023 closely mirrored that of 2019 and 2021. The cumulative loss of these forests resulted in the emission of 2.4 gigatonnes (Gt) of carbon dioxide in 2023, equivalent to the total emissions of the EU in 2022.

The disparities among countries were notable. Brazil and Colombia saw significant reductions in primary forest loss between 2022 and 2023, with decreases of 36% and 49% respectively. However, these achievements were offset by steep increases in forest loss in Bolivia, Laos, and Nicaragua, along with more moderate rises in other nations.

Link to latest analysis deforestation trends

The REDD+ Business Initiative is proud to announce that Trees for All, a non-profit organization based in Utrecht, Netherlands, has joined our network. Stef Roëll, Managing Director of Trees for All says:  “We joined the REDD+ network because we believe that collaboration between project developers and companies helps to create high value reforestation and forest protection projects with long term benefits for biodiversity, climate and local communities. We are looking forward to share knowledge and insights and welcome new partnerships.”

Trees for All supports reforestation and afforestation projects both in the Netherlands and internationally. The organization serves as a vital bridge, connecting 15,000 individuals and over 2,000 businesses with landscape management and nature conservation organizations. Michel Schuurman, Chair of RBI, expressed his excitement about the partnership: “We are delighted to welcome Trees for All to the RBI network. As a key player in forest restoration, it brings a comprehensive perspective on climate change mitigation and biodiversity loss. Their expertise and commitment will undoubtedly enrich our collective efforts.”

In a lively debate on October 8th, 18 participants from the private sector and government discussed the impact of the current unrest in the Voluntary Carbon Market (VCM) following a 2023 Science article exposing flaws in project quality and inflated claims. Negative media coverage has made companies reluctant to purchase REDD+ credits, leading to a shift toward reactive approaches and a halt in proactive communication.

Despite these challenges, all participants reaffirmed the critical role of halting deforestation in mitigating climate change, conserving biodiversity, and protecting forest-dependent livelihoods. Companies emphasized the need for validation of their efforts from NGOs and for government support, suggesting that RBI could play a mobilizing role.

The Science Based Targets initiative’s (SBTi) decision on scope 3 offsets and the Corporate Sustainability Reporting Directive (CSRD) were identified as key to the market’s future. Governments were urged to restore market confidence, as private financing becomes increasingly essential amid ODA cuts. RBI announced it will further explore the future of REDD+ at a conference next year.

At COP29 in Baku, significant progress was achieved on Article 6 of the Paris Agreement, which aims to increase climate ambition through carbon credit trading between countries (Article 6.2) and between countries and companies (Article 6.4). A major outcome of the conference was the adoption of rules to operationalize bothmechanisms, establishing a UN-led global carbon trading framework. This framework is designed to channel resources to developing nations and standardize methods for implementing carbon reduction projects. The resolution marks a breakthrough afteryears of negotiations..

The newly adopted rules have the potential to significantly enhance the effectiveness of carbon markets under the UNFCCC. However, their success will depend heavily on “proper scrutiny of the standards and approaches used under Article 6.2 and further refinement of several standards under Article 6.4,” as stated the NGO Environmental Defense Fund (EDF). The EDF emphasized also that “critical fixes are needed for Article 6.4 standards to ensure nature-based solutions —and the communities protecting these resources— are not sidelined.”

For further details, see Environmental Defense Fund’s statement and Explainer: COP29 “breakthrough” on UN carbon market decision.

In an article in NRC on June 3rd, Michel Schuurman and Erik van Zadelhoff (chairman and secretary of the REDD+ Business Initiative, respectively) argue that while the trade in carbon certificates is rightly criticized, it is too important to abolish. They assert that the voluntary trade in carbon certificates is too important to be left to the market alone.

Read here the Dutch article online (only for subscribers of the NRC)

Read here the article in pdf

According to new data from the University of Maryland, accessible through WRI’s Global Forest Watch, the loss of primary forests in 2023 amounted to 3.7 million hectares, an area comparable to that of The Netherlands. Although this marks a 9% decrease from 2022, the rate of loss in 2023 closely mirrored that of 2019 and 2021. The cumulative loss of these forests resulted in the emission of 2.4 gigatonnes (Gt) of carbon dioxide in 2023, equivalent to the total emissions of the EU in 2022.

The disparities among countries were notable. Brazil and Colombia saw significant reductions in primary forest loss between 2022 and 2023, with decreases of 36% and 49% respectively. However, these achievements were offset by steep increases in forest loss in Bolivia, Laos, and Nicaragua, along with more moderate rises in other nations.

Latest analysis deforestation trends

Achieving climate neutrality in Europe by 2050 necessitates significant greenhouse gas reductions and carbon removal to offset unavoidable emissions. Brussels has initiated the Carbon Removal Certification Framework (CRCF) to amplify carbon removal efforts and combat greenwashing, enabling businesses to demonstrate action with certified units. Temporary carbon storage from farming, forest restoration, or soil emission reductions is distinguished from ‘permanent’ removals under the EU scheme, requiring CO2 sequestration to last at least five years for certification.

The scheme faces criticism on several fronts. Firstly, the EU’s exclusion of international carbon credits to meet its climate targets may disadvantage developing countries. The breakdown of talks at COP28 in Dubai regarding voluntary action under the Paris Agreement (Art.6) partly stems from conflict with CRCF. Secondly, concerns arise over the applicability of the EU’s high standards for developing countries, potentially excluding them from much-needed external funding. Thirdly, RBI is particularly alarmed by the scheme’s disregard for certifying avoidance action, further marginalizing forest and peatland conservation efforts by the EU.

C:/Users/Eigenaar/Downloads/FEATURE_%20Europe%20accused%20of%20hijacking%20int%E2%80%99l%20carbon%20markets%20with%20removal%20certification%20%C2%AB%20Carbon%20Pulse%20(2).pdf

In January 2024, the SBTi prioritized revising its Corporate Net-Zero Standard, aiming to provide additional guidance on addressing scope 3 emissions. On April 9th, SBTi’s Board of Trustees stated that, with proper oversight, offsetting with environmental attribute certificates (carbon credits) could serve as an additional tool for mitigating climate change. The Board emphasized the need for SBTi to define guardrails and rules for the valid use of these certificates, aligning with mitigation hierarchy principles.

Despite internal concerns, the Board reiterated on April 19th that this proposal is part of the revision process of the Net-Zero Standard. Following stakeholder consultations, SBTi plans to issue a first draft of rules by July 2024.

RBI welcomes the Board’s proposal, as it’s crucial for companies to achieve their net-zero targets. It will bolster the VCM, subsequently aiding forest conservation efforts.

Statement from the SBTI Board of Trustees

 

RBI’s public event on March 27th delivered invaluable insights to its 25 participants and garnered high praise. Thomas Leneveu (Tarkett) and Jop Weterings (McKinsey) exemplified how REDD+ can be integrated in corporate strategies, spotlighting the dynamic evolution of the voluntary carbon market (VCM). They underscored that critique should not impede market progress but rather catalyze regulation for transparency and growth of the market.

Jennica Gordon (WBCSD) elaborated on the NCS Alliance’s global endeavors to fortify the VCM in collaboration with RBI. Vera Olgers (Ministry EZK) elucidated the “Joint Statement on the VCM”, a significant governmental initiative of The Netherlands aimed at enhancing market structure and advancing climate goals. The statement, endorsed by seven EU countries including Germany and France, was unveiled during COP 28 in Dubai.

RBI has warmly embraced the Statement and joined the Good Climate Practice initiative, urging Minister Jetten to collaborate with companies already dedicated to the same objective. The initiative’s call and commitment declaration will be presented to Minister Jetten on May 16th.