Ecologi Impact Funds are ‘seismic shift’ away from carbon offsetting
The UK’s leading climate action platform has established a new system based on a contributory approach.
This alternative to established offsetting schemes looks to encourage organisations and individuals to move away from compensating for their emissions without actually tackling carbon use. Instead, it is now possible to decarbonise while making direct contributions to what is described as ‘holistic’ global projects contributing to mitigation and resilience efforts.
According to Ecologi, the new model offers a future-proofed sustainability strategy for organisations, allowing them to finance multiple effective projects. These Impact Funds cover a board range of sustainability efforts, meaning it’s possible to create a suite of investments that fully align with values and ethics. This includes certified carbon credit projects and non-carbon restoration projects.
‘Compensatory offset claims don’t cut it anymore. Contributory funding moves away from a singular carbon offsetting approach to a future-proofed sustainability strategy,’ said Sam Jackson, Director of Climate Science and Impact at Ecolog. ‘Ecologi, just like the industry itself, has to continually evolve to stay at the forefront of climate impact innovation in order to connect funders with the world’s leading climate and nature restoration projects. The industry is changing and market standards, regulations and expectations are evolving – and with our Impact Funds we’ll provide a way for businesses who are already on their decarbonisation journey to have even more impact for our planet.’
Launched this month, there are currently two Ecologi Impact Funds:
UK Climate & Nature Fund
The latest State of Nature Report reveals that the UK is one of the most nature-depleted countries on Earth, having experienced dramatic biodiversity losses over the last 50 years, from an already-depleted historical baseline. The nation now has less than half of its biodiversity remaining, with 1 in 6 species at risk of extinction.
To address this, Ecologi is partnering with several local nature recovery projects, including with International Tree Foundation (ITF) and the Future Forest Company (FFC), to combat biodiversity loss through initiatives like reforestation and habitat restoration. The Fund will also support the scale-up of UK-based carbon dioxide removal projects through biochar production and enhanced rock weathering. The fund will produce benefits supporting 9 UN Sustainable Development Goals.
Forests & Landscapes Fund
Global Forest Watch estimates that 76.3 million hectares of primary forest have been lost worldwide since the start of the 21st century. Landscapes across the world are heavily degraded, and their restoration requires holistic action to address the drivers of degradation.
In collaboration with 11 global initiatives, including Acción Andina in Peru and Trees for the Future in Uganda, the Forests & Landscapes Fund supports several different types of interventions focused on holistic, community-driven, and ecologically appropriate projects to protect and restore these vital ecosystems and the livelihoods that depend on them. The Fund will produce benefits supporting 11 UN Sustainable Development Goals.
‘There will still be a role for compensatory approaches, such as using carbon dioxide removal for neutralising residual emissions, but we want to champion the contributory approach to prioritise channelling corporate funding to high quality, holistic action for the climate, for nature, and for people,’ Jackson continues. ‘This model has cascading benefits for our partners on the ground around the world – but it is also beneficial for businesses too, who have a new, resilient way of spreading their funding across different climate interventions and making every contribution go further. We want to encourage businesses to adopt this transformational mindset which will accelerate global climate action.’
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Image: Art Lasovsky