Grazing the bar: the critical role of grasslands in climate change mitigation
In this series of blogs, Kita offers an insight to the variety of carbon removal and emissions avoidance project types contributing credits to the VCM. We describe the carbon removal technique, relate the ways in which the methodology operates within the carbon market, outline the potential risks involved and highlight the ways in which insurance can reduce the risk profile and contribute to progress for the approach in question.
Our aim is to demystify these methodologies and clarify their position within the VCM. We hope that greater transparency and understanding of carbon removal technologies helps to increase confidence and drive investment towards these projects.
In this post we consider grasslands.
What do grasslands do?
Grasslands are an important ecosystem that covers over a quarter of the Earth’s land surface. They provide habitat for a variety of wildlife, support the livelihoods of millions of people, and play a crucial role in mitigating climate change, as they contain roughly 12% of the terrestrial carbon stocks.
While the two main types of grasslands are tropical and temperate, they can range from open, vast grassland expanses to woody savannas. Similar to forestry, these systems are integral to the carbon cycle: they contribute to climate change mitigation through the process of carbon sequestration. A key difference between the two is that while forests are known to store a significant amount of carbon above ground in their trunks and branches, grasslands store most of their carbon below ground in their dense network of roots and in other organic soil carbon (known as SOC or soil organic carbon). Although grasslands have a lower capacity to store carbon when compared to forests, they can sequester carbon more rapidly than forests as they have a higher rate of carbon uptake due to their fast growth and high turnover of vegetation. Grasslands can also store carbon in deep soils, which may remain sequestered for long periods.
How do grasslands projects relate to the carbon markets?
As noted above, grasslands store carbon. However, grasslands are at risk of degradation and conversion to other land uses, such as agriculture or urban development. Additionally, the changes in land use management such as grazing, species composition and availability of mineral nutrients can directly affect soil carbon stocks. When grasslands are destroyed, the carbon stored in the soil is released into the atmosphere, contributing to greenhouse gas emissions, therefore exacerbating climate change.
To encourage sustainable management of grasslands and prevent their conversion to other land uses, the VCM has created a mechanism for generating carbon credits through sustainable grassland management practices. This allows farmers and landowners to earn revenue from their efforts to protect and restore grasslands, while also helping to reduce greenhouse gas emissions.
Several carbon standards have methodologies for grasslands, including Verra under the Verified Carbon Standard i.e VCS (VM0026 and VM0032) and The Climate, Community and Biodiversity (CCB) Standards, Gold Standard, and the American Carbon Registry (ACR). These standards provide a framework for measuring and verifying the carbon benefits of grassland management and restoration activities.
What are the specific risks in regard to grasslands projects?
There are various risks that need to be considered when implementing projects to protect and restore grasslands. These risks include:
Leakage: This occurs when a project to protect or restore grasslands causes land users to shift their activities (ex. cattle herding) to nearby areas, resulting in increased greenhouse gas emissions or loss of grasslands in those nearby areas.
Permanence: There is a risk that the carbon sequestered in the grasslands may be released back into the atmosphere due to natural or human-induced factors such as wildfire or land-use changes.
Additionality: The project should demonstrate that the grassland management practices being implemented are not already mandated by law or standard industry practices.
Baseline uncertainty: The baseline for measuring emissions reductions or carbon sequestration in grasslands may be uncertain due to factors such as changes in weather patterns or natural disturbances.
Social and environmental safeguards: Projects must ensure that they do not negatively impact local communities, indigenous people or biodiversity.
These risks need to be carefully considered and addressed when implementing sustainable grassland management projects. By doing so, negative impacts can be minimised while the benefits of these projects can be maximised, enabling long-term success.
How can insurance help manage these risks?
Insurance can help manage risks associated with grasslands in multiple ways:
Unavoidable risks, like natural catastrophes, can have great impact on nature-based solutions like grasslands. Insurance can build resilience when unexpected occurrences strike.
Avoidable risks, like acts of fraud or negligence by project developers, or the insolvency of the project developer, can happen in carbon projects across multiple types. Insurance can protect buyers of carbon credits against these types of challenges impacting on their carbon purchases.
Carbon risks, like reassessments to baselines or changes/invalidation of carbon standards/methodologies are broader risks factors in the carbon markets that can impact grasslands projects. Insurance can perform a comprehensive assessment of the project, including risk management and compliance with standards, providing financial protection and coverage against these risks.
Conclusion
In conclusion, grasslands play a crucial role in carbon sequestration and have immense potential in climate change mitigation efforts. These ecosystems have been undervalued and often overlooked, but their significance cannot be underestimated.
With their extensive root systems and high productivity, grasslands can capture substantial amounts of carbon dioxide from the atmosphere and store it in the soil. Moreover, they are well-adapted to withstand droughts and can continue sequestering carbon even in adverse climatic conditions. This resilience makes them valuable assets in mitigating the effects of climate change. Implementing improved grassland management practices, choosing appropriate grass species that have high carbon sequestration potential, rehabilitating degraded grasslands through restoration efforts and implementing carbon farming techniques in grasslands, coupled with further research and innovation in the area can enhance carbon sequestration and unleash the true potential of grasslands.
As we face the challenges of a changing climate, recognising the importance of grasslands and implementing measures to preserve and restore them is essential. Conservation practices can enhance their carbon sequestration potential and protect these fragile ecosystems from further degradation. While there is still more work to be done, the future of climate change mitigation relies on harnessing the power of grasslands. By prioritising their protection and restoration, we can unlock their potential as natural carbon sinks and contribute to a more sustainable and resilient future for our planet.