An innovative approach to enhanced durability in nature-based carbon removal
Our latest offering addresses one of the biggest risks with nature-based carbon removal: reversal
Carbon Credits
Project Development
Science & Tech
Sep 26, 2024
Siya Kulkarni
The Problem
Nature-based carbon removal projects have long been held to question for their limited duration and the risk of reversal. Projects like afforestation and reforestation are typically expected to sequester carbon for a lifespan of 100 years or less. This is partly due to the natural limitations of the ecosystems involved, including the risk of tree loss from disease, fire, or human activity. When the trees die, or the land is repurposed, the captured carbon can be released back into the atmosphere, negating the original environmental benefit.
As a result, many buyers perceive nature-based carbon credits as "low-durability" solutions since they don’t provide the long-term permanence that other existing carbon removal options offer. This is also often reflected in the price - carbon removal at a higher risk of reversal is often valued far less than durable carbon removal due to this concern. For companies aiming to achieve net-zero emissions, the possibility of re-releasing carbon over time creates uncertainty - buyers want assurance that their investment in carbon removal is set to last, to make these purchases and their impact worthwhile in the long term.
The Solution: Stacking Sequoia Carbon Units for Extended Durability
Treeconomy’s innovative approach to solving this issue is the introduction of “stacked” carbon removal credits. This method involves combining two types of carbon removal solutions into a single purchase—a fixed-duration offset from a typical carbon removal project and a long-duration carbon removal solution to back the offset. Together, these count towards one tonne of enhanced-duration, nature-based carbon removal.
By doing so, we can provide greater assurance to buyers supporting nature restoration schemes that ensure carbon sequestration of more than 100 years, and potentially even 1,000 years, and beyond.
How are we achieving this?
Treeconomy has partnered with The Great Reserve, a groundbreaking project in Abergavenny, Wales, to develop this long-term solution that supports nature-based carbon removals by planting Giant Sequoias.
Giant Sequoias are the third longest-lived species in the world. To put this in context, the largest living tree in the world by volume, a Giant Sequoia named General Sherman, is about 2,100 years old - this makes it older than most modern countries today!
This long lifespan makes Giant Sequoia trees a fantastic source of carbon removal. Sequoias can grow up to 300 feet, with a grove capturing ten times more CO2 per acre than a UK woodland over a 100-year period (as much as 85 kg per year in the UK climate). It is these special characteristics that make the Abergavenny’s Sequoias especially valuable as a guarantee to enhance permanence and durability of a project.
More concerningly, however, Giant Sequoias are now on the IUCN Endangered Species Red List and have been declining at a rate of 10% per annum, with only 75,000 left in the United States. The Great Reserve aims to plant 100,000 Sequoias trees alongside native trees (to a 1:4 ratio) in specially selected groves.
A case in point for durable carbon removal using nature: British Airways - CUR8 Purchase
In our latest partnership with British Airways (BA) and CUR8, we are pioneering the stacking of Woodland Carbon Code (WCC) Pending Issuance Units with Sequoia Carbon Pending Units. Each tonne purchased by BA comprises of the following:
- Woodland Carbon Code (WCC) Pending Issuance Unit (PIU), derived from afforestation activities on the Montgreenan project site in Scotland. These would be the usual carbon credits used to help BA achieve its carbon offsetting goals.
- Sequoia Carbon Pending Unit, derived from sequoia planting in Abergavenny. These serve as an additional insurance - carbon sequestered from this will not count towards BA’s offsetting, but rather, serve as a layer of insurance to the Montgreenan project, to ensure that its investments have gone into long-term carbon removal.
The carbon removal credits purchased by British Airways reflect many layers of de-risking that Treeconomy has worked hard to achieve with its projects. Ongoing monitoring and reporting ensure transparency and accountability of the carbon sequestered, while innovative structuring by way of stacking ensures the mitigation of reversal risk. We’re proud to report that credits from this de-risked project have been sold at a premium to the market price for WCC units. The premium factors in the value of de-risking via a long-duration solution to back the WCC project, in addition to the value of Treeconomy’s dMRV which ensures that actual removals are taking place with real-time reporting.
We hope to set a precedent for nature-based carbon removal and encourage a shift from viewing nature as a “low-durability” solution to one that is prioritised, provides assurance, and is investable in the long term, with its ongoing and lasting impact on climate mitigation and adaptation.
Treeconomy’s stacked carbon removal credits are an extremely versatile and replicable solution for carbon buyers looking to address common limitations of nature-based carbon credits.
A stacked carbon removal tonne can mean not only carbon sequestered from the atmosphere for a 40-year period from growing trees but also enhanced co-benefits from nature restoration and conservation by supporting the longevity of these projects for many generations and incentivising a greater commitment to nature finance.
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If you are a corporate buyer seeking high-quality, durable, nature-based carbon removal solutions, fill out the form here or contact us at hello@treeconomy.co.
If you are a nature-based carbon removal project seeking support in monitoring, carbon credit sales, or project development, we are happy to help. Fill out the form here or reach out to us through hello@treeconomy.co.
