Sustainability LIVE: Net Zero Keynote on Carbon Solutions

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Jérôme Cochet, CEO of GoodCarbon, explains the critical role nature-based carbon solutions play in achieving net zero goals

At Sustainability LIVE: Net Zero Jérôme Cochet, CEO of GoodCarbon, took to the stage to dive into why investing in nature-based carbon solutions is a vital step for companies aiming to achieve their net zero targets.

Jérôme's talk centres on the relevance, timing and best practices for building a carbon credit portfolio derived from nature-based solutions, underscoring the growing importance of addressing the intertwined climate and nature crises.

The triple benefit of nature-based solutions

Jérôme begins by reminding the audience that tackling the climate crisis is impossible without addressing the nature crisis.

Nature-based solutions, he explains, are critical because they help restore ecosystems such as forests, soil and oceans.

These projects not only remove and prevent the release of carbon but also offer significant benefits for biodiversity and local communities.

“Nature-based solutions come with a triple benefit,” Jérôme notes, “decarbonising the atmosphere, restoring habitats, and supporting local livelihoods.”

With nature in crisis, deforestation alone would rank as the third largest global emitter after China and the US. Jérôme highlights that nature-based solutions provide a unique opportunity, as no other carbon removal methods can match the wide-ranging positive impacts on climate, biodiversity and society.

Businesses’ role in the solution 

Jérôme argues that businesses have an essential role to play in the nature-based carbon space.

With 50% of global GDP directly or indirectly dependent on a functioning natural environment, it is clear that protecting nature is also an economic imperative.

He points out that while some sectors, such as agriculture and construction, obviously depend on nature, others may be indirectly affected but still rely on ecosystems to function.

Furthermore, as more than 3,000 companies have committed to reaching net zero, Jérôme stresses that simply reducing emissions won’t be enough.

Companies will need to engage with carbon credits to offset any unavoidable emissions.

Nature-based solutions can serve as a key component of these efforts, offering a credible way to compensate for emissions while enhancing biodiversity and helping local communities.

The need for high-quality carbon credits

Despite the promise of nature-based solutions, Jérôme warns that there is a significant gap in the supply of high-quality carbon credits.

While companies will require approximately 1.5 billion tonnes of removal by 2050 to offset their carbon footprints, current projects only supply about 30 million tonnes annually.

To meet this demand, Jérôme says: “We need 50 times more supply to achieve net zero.”

In addition to this supply gap, rising carbon prices are another business concern.

By 2030, Jérôme predicts, the cost of carbon removal credits could rise to €80-100 (US$87-109) per tonne, compared to around €20 (US$22) today.

He cautions that failing to secure affordable, high-quality carbon credits could have a significant financial impact on companies, potentially reducing profitability by as much as 15%.

Jérôme also addresses the issue of greenwashing, where companies have been accused of investing in low-quality carbon projects that fail to deliver on their promises.

To avoid such pitfalls, he emphasised the importance of transparency and the need for reliable data when selecting carbon removal projects.

“The data layer is broken,” he says, citing poor data as the primary reason companies have fallen into the greenwashing trap.

Jérôme Cochet, CEO of GoodCarbon

A data-driven approach to carbon removal

Jérôme introduced the audience to GoodCarbon’s solution: a data-driven approach to selecting and managing nature-based carbon projects.

He explains that GoodCarbon evaluates projects based on 150 data points related to impact, risk and integrity.

This methodology provides companies with a clear, transparent assessment of the carbon removal projects they invest in, ensuring they meet high standards for climate impact, biodiversity and social benefits.

To illustrate the importance of a portfolio approach, Jérôme shared a case study from Militao, a family-owned German coffee and household appliance company.

The company’s supply chain is vulnerable to climate change, as coffee production regions are highly susceptible to warming temperatures.

GoodCarbon helped Militao build a custom carbon portfolio that aligns with its theory of change and strategy, ensuring that the projects selected deliver both environmental and social impact.

Looking ahead: Carbon credits and future risks  

Jérôme wraps up by outlining the steps companies need to take to secure their carbon credit portfolios for the future.

He stresses the importance of taking a proactive approach, moving away from simply buying credits yearly to building long-term portfolios that include a mix of owned projects, forward deals and spot purchases.

This approach not only mitigates the risks of rising prices and limited availability but also ensures a steady supply of high-quality carbon credits over time.

He concluded by emphasising the growing shift in the market towards this proactive mindset.

As companies transition to a long-term view of carbon management, they are better equipped to meet their net zero commitments while also reducing costs and avoiding reputational risk.

At Sustainability LIVE: Net Zero, Jérôme's insights into the complex and evolving landscape of nature-based carbon solutions offer a compelling roadmap for businesses looking to navigate their sustainability journeys.

As demand for high-quality carbon credits rises, companies will need to adopt a strategic, data-backed approach to ensure they can meet their net zero goals and contribute to a healthier planet.

Essential diary dates for 2024 and 2025…

Sustainability LIVE continues to expand its events with more to come in 2024 and 2025, discover our essential diary dates below.

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