Concept Note - C Financing Mechanisms
Concept Note - C Financing Mechanisms
land management
© FAO/Lucrezia Caon
© NECTC and LDD/Thailand
Webinar on
Introduction
In 2023, the FAO’s regional office for Asia and the Pacific (RAP) developed a knowledge hub to facilitate the exchange
of knowledge and experiences on sustainable soil and land management in the Asian region. Thus, (i) to enhance the
capacity of individuals and organizations in implementing sustainable soil and land management practices, (ii) to
facilitate the identification of knowledge and technology gaps that can boost research and development activities, (iii)
to encourage the adoption of proven methods while inspiring innovation in sustainable soil and land management,
and (iv) to support projects’ formulation and implementation activities. In this regard, the hub is an integral
component of the FAO's strategy to advance sustainable soil and land management in Asia.
The hub reports and describes countries’ original engagements to assess, monitor, preserve, restore or enhance soil
health over time as well as United Nations contributions to the topic in terms of equipment, online applications,
certification systems, training systems, awareness raising systems and others. Please note that the hub does not
report about projects and research studies. By aligning with the principles of collaboration and shared learning, the
hub has the potential to drive positive change in agricultural and environmental practices.
The information in the hub were collected using a participatory approach involving the public sector, non-profit sector,
academic and research institutions and intergovernmental organizations, and they are meant to support the work of
a large range of stakeholders including farmers, local communities, extension agents, policy makers, project
managers, researchers and academia, and even the private sector. Being an open-access, live tool, stakeholders have
the ongoing chance to submit contributions to FAORAP for review and potential incorporation into the hub.
The hub has information organized into five categories depending on their core scope:
SCOPE 1: Soil assessment, monitoring and mapping, including soil sampling, soil analysis, data analysis and
interpretation, and digital soil mapping;
SCOPE 2: Policy, including charters, guidelines and recommendations developed to support countries on policy
development. Instruments to support countries on achieving and reporting on international targets are also reported
under this scope;
SCOPE 3: Investment, intended as actions and tools that trigger investments at the national, regional and global levels;
SCOPE 4: Field activities, including capacity building activities for the transfer on knowledge, data, information and
technology to farmers and other land users; and
SCOPE 5: Communication, including awareness raising, technical and scientific cooperation, and networking activities.
The webinar on “Soil organic carbon assessment and management. Towards the creation of carbon financing
mechanisms” is organized under scopes 1, 3 and 5. This webinar is one among a series of online events orchestrated
to facilitate the use of the knowledge hub within the region.
Note: The online platform hosting the hub is currently under development. However, the specifics regarding the
subjects to be covered during the webinar are contained within this document.
Webinar’s objectives
1. To promote soil organic carbon assessment, sustainable management and monitoring in the region;
2. To define the potential for establishing or boosting carbon financial mechanisms in Asian countries; and
3. To promote the use of FAO tools on the topic in projects and national programs/initiatives.
How to participate?
To register for the upcoming webinar on “Soil organic carbon assessment and management. Towards the creation of
carbon financing mechanisms”, please follow the registration process outlined below:
2. Fill out the registration form with accurate and complete information. Make sure to provide your name,
email address, organization (if applicable), and any other required details.
3. Once your registration is confirmed, you will receive a confirmation email containing the webinar details,
including the Zoom link, date, time, and instructions on how to join the webinar.
Please ensure that the email address you provide during registration is correct and regularly checked to receive
important updates and notifications.
We look forward to your participation in the webinar and your contribution to the discussion on promoting soil health
and sustainable management practices.
Should you have any questions or require further assistance, please do not hesitate to contact Ms Lucrezia Caon,
Land Management Officer, FAORAP at [email protected]
Programme
DAY 1
2:00 – 2:10 Welcome remarks
Ms Lucrezia Caon, Land Management Officer, FAORAP
2:10-2:15 Video Soil Organic Carbon – the treasure beneath our feet
https://www.youtube.com/watch?v=Ymy0IO7nizw
2:45 – 3:15 Carbon assessment and management tool by the Global Soil Partnership, FAO
- GSOC MRV protocol
- Recarbonizing global soils – a technical manual of recommended management
practices
- RECSOIL
Ms Natalia Eugenio Rodriguez, Land and Water officer, Global Soil Partnership, FAO
2:40 – 3:10 The Verified Carbon Standard (VCS) Program: methodology for soil organic carbon
quantification
Ms Carolina Cardoso Lisboa, Manager, Agriculture Innovations, Program Development and
Innovation Department, Verra
Scope: to quantify changes in GHG emissions. More specifically, EX-ACT aims at i) identifying the climate mitigation
outcomes of agricultural interventions (projects, policies and investments) at any stage of their implementation (ex
ante, during and ex post) and at any level (local, regional and national); ii) supporting countries (public and private
sectors) in accessing funds from international financial institutions; iii) strengthening the capacities of national and
international stakeholders in estimating, monitoring and evaluating progress on emissions reduction goals; and iv)
support policy makers in integrating climate change mitigation objectives into national strategies and international
commitments, such as Nationally Determined Contributions or National Adaptation Plans.
Users: Applying the tool does not require specific scientific knowledge; the analysis can be conducted by any user
interested in impacts on GHG emissions of land use related interventions in agriculture.
Brief description: EX-ACT is the only GHG accounting tool to cover the entire agricultural sector including Agriculture,
Forestry and Other Land Use (AFOLU,) inland and coastal wetlands, fisheries and aquaculture, agricultural inputs and
infrastructure. It is a free, open-source consisting of a set of linked Microsoft Excel sheets into which the user inserts
basic data on agricultural activities and practices.
EX-ACT provides its users a consistent way of estimating and tracking the outcomes of agricultural interventions on
GHG emissions, calculating the mitigation potential of any type of land use based intervention, either public or
private. It can be used to evaluate projects, policies as well as national level programmes. The results allow the
decision makers to ensure that all the interventions contribute to meeting climate change mitigation goals, such as
those expressed in the Nationally Determined Contributions, while continuing progress towards other
environmental and socioeconomic objectives, either at regional, national or international levels, for example climate
change adaptation goals expressed in National adaptation Plans or Sustainable Development Goals. Although the
EX-ACT appraisals were initially designed for ex ante analysis, the tool can be successfully applied during the project
implementation as well as ex post for comprehensive monitoring and evaluation, both at a project and at a country
levels.
The analysis is conducted by comparing two scenarios: a situation when an intervention, for example a project, is
implemented and a baseline situation that would prevail in the absence of the project (also referred to as “reference
scenario”). The comparison between the GHG emissions and carbon stock changes resulting from the implemented
project and those that would occur in the baseline (without the project) gives the final carbon-balance reported in
EX-ACT. The tool distinguishes two periods of time related to the project: the implementation phase (i.e. the active
phase of the project when activities are being implemented) and the capitalization phase (i.e. a period where
emissions and carbon stock changes continue to occur as a result of the implemented activities).
Simplified example of how the carbon balance is calculated in EX-ACT using an afforestation project. Source: FAO, 2022.
Limitations: EX-ACT v.9 requires MS Excel version 2011 or newer. The tool is currently available in English language
only.
Notes on its development: The current version of EX-ACT is primarily based on the Intergovernmental Panel on
Climate Change (IPCC) 2019 Refinement to the 2006 Guidelines for National Greenhouse Gas Inventories (IPCC,
2019) and IPCC 2013 Supplement to the 2006 IPCC Guidelines for National Greenhouse Gas Inventories: Wetlands
(IPCC, 2014), complemented by another scientific research. GHG fluxes from farm operations, inputs, transport and
irrigation systems implementation are based on Lal (2004). Emission Factors for electricity use are based on United
Nations Framework Convention on Climate Change (UNFCCC, 2021). Emission factors for the fishery sector are
derived from Parker and Tyedmers (2015), Winther et al. (2009) and Irribaren et al. (2010 and 2011). Soil carbon
stock in mangroves is complemented by the review from Atwood et al. (2017).
The tool keeps on being updated by the developers with its version 9.4 available online.
FAO, 2022. Ex-Ante Carbon-balance Tool | EX-ACT – Guidelines. Second edition – Tool version 9. Rome.
https://doi.org/10.4060/cc0142en
Additional tools on Nationally Determined Contributions and climate change measuring, reporting and verification
are available on the FAO’s Climate Change Knowledge Hub at https://www.fao.org/climate-change-knowledge-
hub/learning-corner/transparency/tools-resource
Contacts: please contact the EX-Ante Carbon-balance Tool Agrifood Economics Division (ESA) of FAO at EX-
[email protected]
RECSOIL
Country of origin: United Nations
Year of development: 2019
Copyright: Global Soil Partnership, FAO
Scope: to support and improve the national and regional greenhouse gases (GHG) mitigation and carbon
sequestration initiatives.
Users: anyone interested in boosting soil organic carbon and its sequestration
Beneficiaries: direct beneficiaries are farmers although the initiative will benefit the entire planet.
Brief description: RECSOIL is a mechanism for scaling up sustainable soil management (SSM) with a focus on soil
organic carbon (SOC). The priorities are to: a) prevent future SOC losses and increase SOC stocks; b) improve farmers'
incomes; and c) contribute to food security. RECSOIL focuses on agricultural and degraded soils. The mechanism
supports the provision of incentives for farmers who agree to implement good practices. One of RECSOIL's financing
mechanisms is voluntary carbon credits, supported by other components.
Scope: to provide a framework and standard methodologies for the measuring, monitoring, reporting and verifying
changes in SOC stocks and GHG emission removals from agricultural projects that adopt Sustainable Soil
Management (SSM) practices at the farm level.
Users: the protocol was developed for projects carried out at farm level. However, potential users include investors,
research institutions, government agencies, consultants, agricultural companies, non-governmental organizations,
individual farmers or farmer associations, supply chain and other users who are interested in measuring and
estimating SOC stocks and changes and GHG emissions in response to management practices.
Brief description: measuring, monitoring, reporting and verifying (MRV) the addition and permanence of soil organic
carbon (SOC) constitutes a crucial step for any project dealing with carbon farming, climate finance and to support
indicator SDG 15.3.1 using a thorough analysis applicable at field level.
The protocol consists of a series of step-by-step stages and sub-protocols in order to assess SOC changes and GHG
emission/removals by the adoption of SSM practices:
The implementation of the GSOC MRV Protocol places farmers at the center as key actors for soil carbon
sequestration and GHG mitigation.The GSOC MRV Protocol is designed for projects carried out at the farm level;
however, other potential users, such as research institutions, investors, government agencies, agricultural
companies, NGOs, individual farmers or farmer associations, supply chain, and others interested in measuring and
estimating SOC stocks, SOC changes, and GHG emissions in response to management practices can adapt the
document.
The protocol is anticipated to be applied in different agricultural lands across the world as well as in any project
related to SOC sequestration, including the Recarbonization of Global Soils Programme (RECSOIL) by the Global Soil
Partnership, FAO (see Sheet S3.2).
Figure 10. Stages and processes of the MRV protocol
Notes on its development: The GSOC MRV Protocol was developed through an extensive research and
consultation process, involving scientists, policy makers, FAO Members, and international and intergovernmental
panels from all regions of the world.
Scope: to gather, in a standardized format, the existing data on the impacts of the main soil management practices
on SOC content in a wide array of environments, including the advantages, drawbacks, and constraints.
Beneficiaries: farmers
Brief description: This technical manual is the first attempt to gather, in a standardized format, the existing data on
the impacts of the main soil management practices on SOC content in a wide array of environments, including the
advantages, drawbacks and constraints. This exhaustive review will also be useful to identify research gaps in SOC
research.
This manual presents different sustainable soil management (SSM) practices at different scales and in different
contexts, supported by case studies that have been shown with quantitative data to have a positive effect on SOC
stocks and successful experiences of SOC sequestration in practical field applications.
• Volume 1 is an introduction to the full collection and presents the detailed methodology and structure of
the following volumes.
• Volume 2 includes a description of major areas for consideration for the maintenance or improvement of
SOC stocks. This manual defines hot spots of SOC as areas that represent a proportionally little of the global
land surface but on which SOC storage is highly effective; bright spots as large land areas with low SOC
stocks per km that represent a potential for further carbon sequestration.
2
• Volume 3 includes a total of 49 practices available in cropland, grassland, integrated systems and farming
approaches.
• Volume 4 includes 51 case studies dealing with cropland, grassland, integrated systems and farming
approaches.
• Volume 5 includes 24 practices available in forestry, wetlands and urban soils.
• Volume 6 includes 30 case studies dealing with forestry, wetlands and urban soils management.
Figure 41. Preview of the six volumes in the manual.
Limitations: due to the existing limited results in some of the practices, it will have to be updated in the future
with results of ongoing research.
Notes on its development: This manual is one of the results of the document “Unlocking the potential of soil organic
carbon” (FAO, 2017b), which gathers the conclusions of the Global Symposium on Soil Carbon (GSOC17) held at the
FAO headquarters in Rome in 2017. This manual has been developed through the participatory work of more than
400 soil management experts from around the world. The document has been peer-reviewed by an Editorial Board
composed of members from FAO, ITPS, UNCCD-SPI, the Scientific and Technical Committee of the 4p1000 Initiative
and the CIRCASA project.
Verra is a nonprofit corporation founded in 2007 by environmental and business leaders who saw the need for
greater quality assurance in voluntary carbon markets. They currently manage the world’s leading voluntary carbon
markets program, the Verified Carbon Standard (VCS) Program, as well as a suite of other programs, incubate new
ideas to generate meaningful environmental and social value at scale, and advance the use of these programs
worldwide.
Scope: it is a greenhouse gas (GHG) crediting programs that sets the standards for climate action and sustainable
development.
Users: Stakeholders working in several sectoral scopes, including activities related to the Agriculture, Forestry, and
Other Land Use (AFOLU) sector.
Beneficiaries: general public, including farmers, consumers, governmental and non-governmental organizations
Brief description: The Verified Carbon Standard (VCS) Program is the world’s most widely used greenhouse gas
(GHG) crediting program. It drives finance toward activities that reduce and remove emissions, improve livelihoods,
and protect nature. VCS projects have reduced or removed more than one billion tons of carbon and other GHG
emissions from the atmosphere. The VCS Program is a critical and evolving component in the ongoing effort to
protect our shared environment. By marrying scientific rigor and transparency with innovative thinking, the VCS
Program has continually brought new projects, organizations, and people into the voluntary carbon market, as well
as a growing number of compliance markets, and given them the necessary confidence to participate.
© Verra ALL RIGHTS RESERVED
Limitations: Some VCS methodologies are regional-specific, but most of them are applicable worldwide.
Notes on its development: The VCS program was developed with the aim of driving finance to activities that promote
climate action. The VCS Program has continually brought new projects, organizations, and people into the voluntary
carbon market, as well as a growing number of compliance markets, and given them the necessary confidence to
participate.
Country of origin: NA
Year of development: 2023
Copyright: Verra
Scope: Support the Agriculture, Forestry, and Other Land Use (AFOLU) sector in accessing greenhouse gas (GHG)
crediting programs.
Country of origin: NA
Year of development: 2023
Copyright: Verra
Scope: Support the Agriculture, Forestry, and Other Land Use (AFOLU) sector in accessing greenhouse gas (GHG)
crediting programs.
Beneficiaries: NA