A. Examples
B. Finance Community Needs Presentation, excerpts from Chandra Shekhar Sinha, Adviser, Climate Change Group, World Bank.csinha@worldbank.org
•Credibility of reductions/ removals
•Contribution to the level of ambition of the Paris Agreement goals
•Consistency with long-term climate strategy
•Clear economic impact at the local level and contribution to sustainable development
•Level of ambition in the mechanism or project
•Independent assessment
2. Fit-for-purpose methodology and MRV should could start with the purpose of encouraging investment, result based finance and evolve to “market grade” methodologies with increasing data, modeling and sophistication of MRV systems:
•Scalable and designed to catalyze and drive systemic change
•Landscape level design, validation and verification
•Stratification and innovative sampling will reduce cost and complexity
•Accurate for capturing the results impact
•Sampling and modeling utilized to identify impacts (sequestered carbon) at manageable costs and reasonable accuracy
•Methodology and MRV should evolve in accuracy
•With iteration, data and model accuracy should improve
•Sampling can become better designed at lower costs with more reliable results
3. Conclusions
•Growing interest in natural climate (nature based) solutions to meet the global goal a net zero planet by 2050
•Soil organic carbon removals can play a very important role in being part of the measures for sequestration/ removal of greenhouse gasses
•For this to happen, soil organic measures need to gain the visibility of the global community though credible accounting methodologies and MRV systems that is implementable in a cost-effective manner:
§Scalable and designed to catalyze and drive systemic change
§Accurate for capturing the results impact
§Methodology and MRV should evolve in accuracy
•Fit-for-purpose methodologies and MRV systems should could start with the purpose of encouraging investment, result based finance and evolve to “market grade” accounting methodologies and associated MRV systems.
•There is a need to consider a sequenced approach for result based payments to evolve into carbon market linked incentives
C. Day 1 breakout group finance community commentary
1. Measurement
2. Accounting design
D. Suggestions from participant Piet van Asten, Olam: sees convergence around
On the last point: besides direct carbon financing in VCS, is there no option for activity-based financing that we know will only provide directional (--/-/o/+/++) support (e.g. prevent carbon loss, maintain healthy soils) for now. So, not making carbon quantity claim, because still have too many uncertainties to deal with for the next 5-10 years in most tropical smallholder systems? The environmental and economic benefits (e.g. yield increase, less erosion, reduced NOx, plant/insect diversity, fertilizer response) of such directional support for soil carbon are likely many times higher than the VCS carbon value – you did mention these co-benefits. Would it not be a pity if we would miss out on the directional support (i.e. activity based) if we know it’s the good thing to do, but we just have too much uncertainty about the exact number and therefore can’t have this supported by the C-market place?