Corporate Financing of Nature Based Solutions: What Next?

This briefing by the World Resources Institute outlines a framework for corporate financing of Nature-Based Solutions (NBS) to ensure they support rather than hinder global climate goals. The authors argue that carbon credits should only be used to "counterbalance" residual emissions after a company has demonstrated aggressive internal decarbonization aligned with 1.5°C science-based targets. The document emphasizes the need for high-integrity supply-side standards, advocating for a "jurisdictional approach" over project-scale credits to better manage risks like leakage and permanence.

• The Taskforce on Scaling the Voluntary Carbon Market's January 2021 report estimated a potential market of 1-5 Gigatons of CO2e by 2030, with approximately two-thirds potentially directed toward Nature Based Solutions (NBS).
• To prevent carbon credits from becoming an excuse to delay internal emission reductions, the authors propose that companies should only use NBS credits to "counterbalance" residual emissions if they are compliant with the Science Based Targets Initiative (SBTi) and aligned with a 1.5°C trajectory.
• The Science Based Targets Initiative (SBTi) has seen significant adoption, with over 1,200 companies making commitments; nearly half of these are committed to a 1.5°C goal. In 2020, the goal of having at least 20% of major companies in key high-emitting sectors committed was reached in six new sectors, including cement.
• Certain NBS strategies provide higher climate and social impact than others: avoiding the conversion of high-carbon ecosystems like forests, wetlands, and peatlands has a greater near-term impact than restoration or afforestation, and the conservation of tropical forests provides additional cooling via evapotranspiration.
• The document advocates for a "jurisdictional approach" to NBS credits—government-led efforts across legally defined territories—over project-scale credits. This approach is seen as more effective because governments have the authority to enforce laws, secure land rights, and reform subsidies, and it reduces risks of leakage and reversals.
• The Architecture for REDD+ Transactions’ The REDD+ Environmental Excellence Standard (ART/TREES) is identified as one of the most advanced standards for certifying high-value, jurisdictional-scale NBS credits and is used as a reference by the Green Gigaton Challenge.

APA

Steer, A., & Hanson, C. (2021). Corporate Financing of Nature Based Solutions: What Next? World Resources Institute. https://www.wri.org/insights/corporate-financing-nature-based-solutions-what-next

Chicago

Steer, Andrew, and Craig Hanson. Corporate Financing of Nature Based Solutions: What Next? World Resources Institute, 2021. https://www.wri.org/insights/corporate-financing-nature-based-solutions-what-next.

Wikipedia

{{cite report |last1=Steer |first1=Andrew |last2=Hanson |first2=Craig |title=Corporate Financing of Nature Based Solutions: What Next? |publisher=World Resources Institute |date=5 April 2021 |url=https://www.wri.org/insights/corporate-financing-nature-based-solutions-what-next |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{steer2021corporate, author = {Steer, Andrew and Hanson, Craig}, title = {{Corporate Financing of Nature Based Solutions: What Next?}}, institution = {World Resources Institute}, year = {2021}, month = apr, url = {https://www.wri.org/insights/corporate-financing-nature-based-solutions-what-next}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }