Carbon2Nature has presented its emblematic project “La Vera Carbon2Nature” at an event organized in Jaraíz de la Vera (Cáceres). Developed in the Dehesa Boyal de Jaraíz de la Vera, it is the largest forestry project in Spain of public-private collaboration in a public land, being the first to be carried out in the long term (50 years).

The project will manage 1,499 hectares of Spanish dehesa and will involve the planting of more than 700,000 trees in 467 hectares affected by degradation processes that will capture 186,000 tCO₂. The objective is to regenerate and conserve a high-value dehesa ecosystem thanks to an innovative forest transformation plan. This includes the planting of holm and cork oaks, the introduction of a transitional species (Pinus pinaster) and accompanying species to enrich biodiversity (hawthorn, cornicabra, ash, chestnut and pyrenean…).

And all of this while creating job opportunities and preserving the traditional uses of extensive livestock farming and other uses of great value for the local population (hunting, recreational, cultural). This will be possible thanks to a phased planting design.

Carbon2Nature (C2N) joins the Forum Forests and Climate Change on the basis of its commitment to the conservation and recovery of Spanish forests as an essential way to contribute to the fight against climate change.

The Forum on Forests and Climate Change is a non-profit association that brings together organizations in the forest sector and other related entities. Since its creation in 2006, it has been working to highlight the role that forests, as well as their products and services, play in climate action and the ecological transition.

With the incorporation of Carbon2Nature into this space for debate and joint work, the company, a subsidiary of Iberdrola, advances in its mission to contribute to the recognition and encouragement of the forestry sector as a generator of long-term sustainable socio-economic development, promoting co-responsibility, sustainable management, and alliances with the rest of the agents.

Madrid, 28 November 2023. Mesta, a company created by Pascual Innoventures and 7r, and Carbon2Nature, a new firm launched by Iberdrola to reduce the global carbon footprint through nature-based solutions, join forces to promote decarbonisation in the primary sector. They will reduce methane emissions from the enteric fermentation process in livestock farming through a strategic alliance which, in turn, will provide strong social and economic support for the agri-food industry.

Thanks to this agreement, the two companies will co-develop an innovative pilot project focused on acting on methane emissions, a greenhouse gas with an impact 80 times greater than CO₂ over a period of 20 years and a permanence in the atmosphere of more than a decade. In particular, the project has a first phase of implementation where it is estimated that 600 tons of CO₂ equivalent (CO₂e) emitted by the cows of several farms supplying Pascual will be eliminated. The initiative is designed to evolve and expand to other livestock farms with the aim of exceeding 5,000 tonnes of CO₂ avoided by 2025.

The program is based on improving the cows’ feed, always maintaining their productivity and wellbeing. Dairy cows will receive precision feeding through a specific supplement that reduces between 10% and 20% their methane emissions from enteric fermentation.

These reductions will be certified through an accredited entity and will be registered as carbon credits that can be purchased by companies committed to accelerating the decarbonization of the primary sector. These credits will be traceable back to their origin thanks to Trinity AgTech’s blockchain technology and will receive certification from EQA.

In this respect Diego Paradinas, CEO of MESTA points out that “this alliance between two leading companies, which share the same business philosophy, allows us to move forward in the construction of a more prosperous and sustainable future. We have made a joint commitment, and this is none other than positioning ourselves as drivers of change.”

For his part, Miguel Ángel García Tamargo, director of Carbon2Nature, points out that, “this project is part of our innovation line to support emerging decarbonization solutions with great potential to scale thanks to carbon finance. Together with a reference in the dairy sector such as Pascual, this pilot allows us to address an important source of emissions, difficult to eliminate and which, to date, has received little research and funding. Its success will bring significant benefits to the agricultural sector, helping to decouple its climate impact from production.”

Currently, the project is implemented in six farms located in the provinces of León, Lugo, Palencia and Pontevedra which, in addition to contributing significantly to reducing the impact of the activity of the agri-food sector, also serve as social and economic support or for their local communities. In this way, the project is also positioned as a driving tool for the transformation and revitalization of the rural environment.

Prepared by the World Economic Forum, with the support of Bain & Company and a group of companies with broad representation in the industry, including Iberdrola, this report highlights the urgent need to unlock the full potential of the voluntary carbon market to speed up climate action and protect nature.

To scale it up, the report provides practical guidance for business to develop high-integrity engagement based on four lines of action:

A carbon credit is a transferable instrumentcertified by governments or private entities, that represents one tonne of carbon dioxide equivalent (tCO2e) that a project can either avoid or reduce compared to a baseline,or absorb from the CO₂ already present in the atmosphere. These projects can use natural solutions, such as deforestation prevention (reduction) or reforestation (removal), or technological solutions, such as renewables (reduction) or direct air capture of CO2₂ also known as DAC (removal).

Most credit purchases are driven by a voluntary motivation on the part of companies, governments, and individuals to contribute to their climate goals. This has given rise to what is known as the voluntary carbon credit market (VCM), even though there are some cases in which its purchase is required or promoted by a regulatory framework.

Voluntary markets work differently to regulated carbon markets, also known as ETS (Emissions Trading System), which exist in several regions of the world, including the European Union. These sell emission allowances under the “polluter pays” principle (the obligation to pay for emissions).

The Congress on Corporate Investment in Forests and Biodiversity held on 4 and 5 October in London has highlighted the urgency of addressing our unsustainable relationship with nature and channelling funding to conserve and restore it.

Under this premise, the panel organised by Carbon2Nature was developed, with the participation of its managing director, Miguel Angel García Tamargo, together with Alexis Leroy, CEO of ALLCOT, and Ousmane Fall Sarr, Coordinator of the West African Alliance on Carbon Markets.

Living up to its title “Cost-effectiveness of Nature-based Solutions Beyond Carbon Markets”, it highlighted the need to promote incentives and innovative investment models in natural capital with the aim of attracting private-sector funding and experience, and the fact that this could be reflected in the company’s value.

Miguel Angel García Tamargo also took part in the panel “Project Finance”. The managing director of Carbon2Nature explained both the opportunities and barriers that can arise when tackling a project, and also presented risk management solutions.

The quality principles that should govern this kind of action, which can only be successful in the long term with the backing of the local communities where the projects are carried out, were also addressed. Local people should share in the benefits, showing a high degree of interaction and support for the projects.

The importance of methodological and technological progress in terms of measuring and monitoring the effectiveness of projects was also highlighted. For this reason, several innovative initiatives and tools contributing to increasing investor confidence in the projects were presented at the congress.