What's more dangerous than climate change denial?

At Climate Week NYC, thousands of global leaders, scientists, activists, and business leaders gathered to discuss how we can collectively fight climate change. A record number of people gathered in the streets to protest fossil fuel use, and the week was filled with over 400 events, becoming what some have dubbed, “burning man for climate activists.”

The rise in popularity of Climate Week NYC, and of climate action in general, is a promising sign. Denial of climate change - which once plagued the movement and stalled meaningful action - is now virtually impossible in the face of relentless record-breaking heat waves, floods and droughts. However, as acclaimed climatologist Michael E. Mann recently pointed out, division is one of the other emerging D-words besides “denial” that are now delaying climate action.

Climate change is perhaps the greatest threat humanity has ever encountered, and requires a united front. Climate advocates can’t afford to be tearing one another down when we’re all ultimately fighting for the same cause. While methods can be continually improved, we must defy doomism and focus on the solutions at hand which are already working.

Rigorous research shows that REDD is currently the best solution to address the triple threat of the biodiversity, climate, and humanitarian crises. Recently, one analysis found that forest loss in 53 REDD project areas (representing the majority of REDD credits ever sold) was more than 10 times lower than the forest loss in their surrounding jurisdictions. New research by Ecoversa shows that avoided deforestation REDD projects could contribute to nearly half of all of Colombia’s forest conservation efforts.

Wildlife Works founder Mike Korchinsky reflects on the growing demand that those working alongside local communities and Global South countries are experiencing.

“The demand from Indigenous People and local communities (IPLCs) for their own high quality forest carbon projects is growing globally. Why? Because in country after country they have seen carbon projects finally working for them.

Because initiatives like the Peoples Forests Partnership have put them in a position to define their own rules of engagement. These successful projects have also attracted the attention of Global South governments, who one after another, are making VCM a significant part of their green development plans.”

When done with a rights-based approach, REDD projects reduce emissions from deforestation while protecting endangered species and investing in communities living on the frontlines of climate change. As with any endeavor, the voluntary carbon market is making continual efforts to improve. Below, find key updates in the VCM and a recap of Wildlife Works' activities at Climate Week NYC.

Wildlife Works at Climate Week NYC

Joseph Mwakima, Wildlife Works’ Community Relations Officer gave a personal testimony of the impact of the Kasigau Corridor project at Global Citizen’s Climate Sessions.

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Joseph also spoke at the Natural Climate Solutions Alliance’s panel, "Why Buy? The Business Case for nature-based credits" and alongside members of the Peoples Forests Partnership at the panel, "Carbon Finance for Indigenous Peoples and Local Communities."

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Jane Okoth, Wildlife Works’ Media and Communications Officer, took to the stage at the Global Citizen festival to talk about the positive impact of the Mai Ndombe REDD project in front of 60,000 people.

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Key Updates in the VCM

Quick Headlines:

• Indonesia, one of the largest forested countries in the world, launched its first carbon market exchange. READ MORE

• Some are raising flags about the ICVCM’s CCP label, warning that relying on binary measures of quality could trigger “a race to the bottom, stifling innovation.” Quality of carbon projects must be defined above and beyond the CCP label. READ MORE

• The Equitable Earth Coalition has been launched to develop a higher standard for the voluntary carbon market which centers Indigenous Peoples and Local Communities. At New York Climate Week, Global Citizen joined the coalition in an effort to mobilize $1 billion of corporate finance for community-centered forest conservation projects. LEARN MORE

Market Insights:

This month, two reports provided a positive message for the voluntary carbon market. Climate Impact Partners published their annual report on the climate action of the largest 500 companies in the world. Using company sustainability reports, they provide a snapshot of emission reductions, climate commitments, and how carbon markets are being used.  

They found that in the last year only 47% of the Fortune 500 companies reported that they had reduced their emissions. These companies have also averaged nearly $1billion more profit than the average of the whole Fortune 500. They do not offer an explanation as to why this might be the case. Those with a 2030 emission target reported greater emission reductions than the average.  43% of companies have employed a Chief Sustainability Officer (CSO) or equivalent.  

In a webinar, the researchers stated that they are expecting demand in the carbon market to increase in the medium and long term. They have noticed more companies looking to secure supply upstream, by developing carbon projects.  

Following conversations with their corporate clients, they see the scrutiny on carbon credits purchase as part of wider scrutiny on corporate sustainability action (for example ESG funds and diversity and inclusion metrics). On carbon neutral claims, many companies they are working with are still looking to offset 100% or more of remaining emissions. However, companies may move away from carbon neutral language, and Climate Impact Partner are reconsidering their Carbon Neutral label following recent regulations.  

The Science Based Targets initiative (SBTi) published the results of their Corporate Engagement Survey, which had responses from over 200 companies. Over 80% of those companies were headquartered in Europe or North America, though many have operations globally.  50% of respondents had greenhouse gas (GHG) targets validated by the SBTi. Key takeaways from the survey include:  

• 56% of companies with targets validated by the SBTi reported that they purchase carbon credits. They highlight the need to reach net-zero globally as a motivation for purchasing carbon credits, and that they want to be seen as climate leaders. 

• Companies reported an average annual spend on carbon credits of more than USD 5.4 million. Their decision on which credits to buy was influenced more by quality over price. Extra environmental and social co-benefits were the most frequently identified factor in selecting carbon credits. Sustainability business units were responsible for the budget for carbon credit purchase and retirement for more than 50% of respondents.  

• Nature-based carbon removal credits were reported as the most popular credit type, followed by project-based REDD . Average spend per tCO2e for REDD project credits was $12. 

• 78% of respondent companies purchasing credits reported that they internally assess credit quality.  

• 65% of respondent companies that purchase and retire carbon credits expect to increase the purchase of carbon credits in the next 5 years.   

Both SBTi and Climate Impact Partners reports provide a positive message - corporates are still seeing carbon credits as critical to their sustainability strategy despite misinformation about carbon projects spread in the media.

The SBTi is one of the most influential bodies influencing corporate climate action. Via the two surveys, corporates are sending a clear message that they want more guidance on the appropriate use of carbon credits from SBTi, which has previously avoided doing so. 

Wildlife Works is committed to developing the highest quality credits on the market, so that corporates can be confident they are making nature positive contributions and driving direct finance to forest communities.