Eddie Listorti Shares Why Nature-based and New Carbon Removal Technologies Need to Work in Tandem

In our zealous quest for solutions to address the global climate crisis, it is easy to get excited about the new technologies developed to that end. There is, however, a dangerous trend emerging that we should consider carefully. In this article, Eddie Listorti, Viridios Capital CEO, examines the growing inclination to embrace climate change technologies at the expense of nature-based solutions.

In a practical sense, it is pointless to examine the various options available - or potentially available - for addressing the greenhouse effect on our planet without including carbon credits and the carbon markets in that discussion. In a pragmatic world, these two topics are inextricably linked. An in-depth examination of the carbon markets is for another article. Still, it is essential for this discussion to accept that neither technology nor nature-based solutions for reducing CO2 from the atmosphere will become a viable reality without the financing made available through carbon credits sales.

Co-benefits of nature-based solutions

When considering the relative benefits of nature-based solutions, it is crucial to acknowledge the many co-benefits, including biodiversity and financial support for local communities in developing countries.

Biodiversity is essential for a healthy planet. Nature-based solutions for capturing carbon emissions depend on healthy biological ecosystems. It's not just about having more trees. To survive, trees need to be part of a biologically diverse and balanced ecosystem.

Finances generated through the carbon markets for technology-based solutions will provide little if any benefit for emerging countries. Conversely, investment in nature-based solutions is often focused on rural communities and developing countries.

Permanence

Global warming requires a self-perpetuating solution. Over time the earth's ability to naturally capture and store carbon dioxide has been degraded, and our ability to produce C02 has outstripped the planet's self-healing abilities. If rejuvenated, carbon storage from natural sources can expand to maintain acceptable levels of C02 indefinitely.

Nature-based carbon storage is reliable and needs to be protected from deforestation and degradation. Verified Carbon Standards (VCS), developed by program administrators, such as Verra, continue to develop methodologies to ensure qualifying projects meet stringent permanence requirements.

Expediency

From a return-on-investment perspective, technology-based solutions win the day, currently. Technology solutions require an initial R&D investment but hold out the promise of a relatively quick recovery of that investment as the technology matures. On the other hand, if one is willing to disregard the co-benefits, lower risk, and permanence of nature-based solutions, they are less commercially attractive. However, with new valuation models, including Viridios AI, that place fair value on those factors, nature-based solutions are starting to look like a compelling investment proposition while protecting our planet's health.

Conclusion

There is no doubt that new technologies designed to capture and store carbon dioxide hold great promise. Likewise, there is no reasonable suggestion for curtailing research in these emerging options to remove the atmosphere's carbon dioxide. Rational minds, however, caution that to overlook the co-benefits, biodiversity, and global social gains of nature-based solutions is short-sighted. Without an equal footing in the carbon markets, the nature-based solutions to our climate crisis will be left behind, and for that, there may be a dear price to pay.

The task before us is at once challenging and possible. It will take an integrated approach employing the best of human-engineered technologies and the sustainable management of forests and their ecosystems to get the job done.

About Eddie Listorti

Eddie Listorti is the Founding Partner and CEO of Viridios Capital. He has a proven track record with 25 years in business and banking. His experience includes managing teams of over 2,000 people and annual revenues exceeding AUD 2 billion. Mr. Listorti has held board positions in industry bodies and joint venture partnerships.