Scaling Nature Based Solutions for Climate Change - The role of carbon markets
Channel: Sankalp Forum
Date: 30/11/2021

We are reaching a tipping point for nature and climate with over half of the global GDP, ~$44 trillion, potentially threatened by nature loss[1]. The global food, land and ocean use system alone, including its full supply chains, represents around $10 trillion of GDP (12% of global GDP) and up to 40% of employment. However, the hidden costs of the food, ocean and land-use system estimated at $12 trillion, exceed its contribution to global GDP. 

According to some estimates[2], cost-effective nature-based solutions (e.g. enhancing land-based sinks ecosystem protection and restoration, improved agriculture practices, prudent use of degraded land etc.) could contribute ~20% of the mitigation needed between now and 2050 to keep global warming below 2°C. It is also worth noting that the demand for voluntary carbon credits has increased for all credit types, but especially for NBS. According to some estimates, NBS could supply the Global Voluntary Carbon Market entirely up to a four-fold growth from current levels of demand, if these projects are allowed to help host countries achieve their NDCs (400Mt/yr compared to 90Mt/yr in 2020)[3].

[1]http://www3.weforum.org/docs/WEF_The_Future_Of_Nature_And_Business_2020.pdf
[2]https://www.american.edu/sis/centers/carbon-removal/fact-sheet-nature-based-solutions-to-climate-change.cfm
[3]https://troveresearch.com/wpcontent/uploads/2021/06/Trove-Research-Carbon-Credit-Demand-Supply-and-Prices-1-June-2021.pdf

#SankalpGlobal2021 #SankalpForum #Intellecap