Six ways to unleash the potential of natural climate solutions

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27 January, 2021


WBCSD insights



Justin Adams, World Economic Forum, Claire O'Neill, WBCSD

  • There is growing private sector interest in managing our twin environmental crises: the accelerating destruction of nature and climate change.
  • Natural climate solutions are fundamental to solving both challenges – but they are being held back in various ways.
  • A new report by the World Economic Forum and McKinsey proposes six actions to enable natural climate solutions to deliver on their potential.
  • Create a unified carbon unit that can capture the value of the underlying credit source, region and co-benefit.
  • Increase the abundance and quality of market data on NCS.
  • Build or leverage existing high volume trade infrastructure for NCS.
  • Improve liquidity and financing for NCS.
  • Support project and financial intermediaries that can aggregate NCS projects to enable scale.

5. Create regulatory clarity

While many of the barriers to scaling NCS are technical and can be addressed through monitoring frameworks, certification and financial architecture, others are political in nature and require stakeholder collaboration, international consensus-building and the formulation of coherent policy frameworks in line with international climate goals.

There are several strands to advancing regulatory clarity including:

  • Governments turning country commitments into actionable policy plans and binding regulation at a national level.
  • Connecting voluntary and compliance markets.
  • Resolving differences on Article 6 of the Paris Agreement to build international markets.