Healthy forests are fertile ground for carbon markets

Benefits for people and the planet

The ERPA program in Mozambique is more than just a payment from the FCPF. It promotes conservation and climate-smart agriculture in forest communities, helps farmers harness sustainable supply chains for cash crop production, restores degraded lands, stimulates charcoal production and consumption. more efficient timber and improves the management of protected areas. The promise of future payments fosters buy-in and is reinforced by the benefit-sharing plan – designed through extensive stakeholder engagement – which specifies how funds will be shared with those involved in field activities, in particular forest-dependent communities.

“Before, I had a small farm, but we didn’t always produce enough food to sell and support my family,” says Vitória Duarte, president of the Association of Producers of Nathelaca, which works on the ERPA program. in Zambezia. “Now I work for the government program, I planted eucalyptus trees, I take care of the plantation and I am guaranteed to be paid by the government for the use of my land and for my work. Thanks to the project, my community will be able to have a better future for their families and for our environment. ”

Innovate in climate finance to accelerate action

Mozambique is the first FCPF country to be paid for results but it will not be the last. This same level of rigor and credibility is embedded in every FCPF ERPA, bringing the total combined value of the 15 FCPF agreements to over $ 720 million. Funding will be disbursed in the form of performance-based payments for nearly 145 million tonnes of verified emissions reductions achieved through 2025 in Chile, Costa Rica, Côte d’Ivoire, Democratic Republic of the Congo, Dominican Republic, Fiji, Ghana, Guatemala, Indonesia, Laos. RDP, Madagascar, Mozambique, Nepal, Republic of Congo and Vietnam.

ERPAs demonstrate the viability of an emerging market for jurisdictional REDD + carbon credits. This market is part of an evolving climate finance landscape, which includes the acceptance of Verified Carbon Standard’s Jurisdictional and Nested REDD + (JNR) and Architecture for REDD + Transactions (ART) in CORSIA, the new offset program and United Nations carbon reduction for international aviation, as well as conditional acceptance of the FCPF. This eligibility is a key indicator that jurisdictional REDD + credits have the integrity to be part of voluntary and compliant carbon markets in the future.

The World Bank also introduced the Climate Emissions Reduction Facility (CERF), its new “one-stop-shop” for results-based climate finance (RBCF). CERF will support the reduction of carbon emissions through three pillars:

  • Natural climate solutions: agriculture, land use, forestry, oceans and other sectors that support natural capital and vital ecosystem services
  • Sustainable infrastructure solutions: energy, water, transport, urban and other sectors providing public goods to support inclusive and sustainable economic activity
  • Tax and financial solutions: Regulatory frameworks and measures that provide or mobilize resources for climate action (such as carbon taxes, removal of fossil fuel subsidies, greening of public financial institutions, or lending linked to sustainability).

By providing large-scale climate finance, CERF aims to achieve greater emission reductions in support of countries’ NDCs implementation and increased climate ambition.

A green, resilient and inclusive future is possible. As Mozambique and other ERPA countries show, adopting smart, sustainable and innovative approaches to tackling climate change now will pay off in the future.

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About Matthew Berkey

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