In the complex web of ecosystems around the world, biodiversity and climate change are deeply connected. As climate change accelerates, it threatens the variety of life on Earth, yet conserving biodiversity is a critical part of addressing the climate crisis. Solutions to both issues must go hand in hand. Nature-based carbon removal solutions (NbS)—like reforestation and wetland restoration—offer a dual benefit: capturing carbon while enhancing biodiversity. However, this co-benefit is often overlooked when planning for climate action, even though it plays a key role in maintaining long-term environmental stability and carbon storage.

For businesses looking to invest in carbon removal projects, focusing on biodiversity can add value by preserving ecosystems while contributing to global net-zero targets.

How does biodiversity support carbon removal?

Biodiversity refers to the variety of life forms on Earth, from plants and animals to the ecosystems that support them. Healthy ecosystems not only store carbon but also provide essential services like water purification, soil fertility, and protection against extreme climate events like floods and droughts.

Research shows that diverse ecosystems store more carbon than ones with fewer species, such as monoculture crops and plantations. Animals such as birds and pollinators help maintain these ecosystems by supporting plant reproduction and forest regeneration, both of which are key to carbon capture and climate resilience.

However, biodiversity is under threat. According to the World Wildlife Fund (WWF), populations of mammals, birds, fish, amphibians, and reptiles have decreased by an average of 73% since 1970. This loss is particularly significant in regions where deforestation and unsustainable agricultural practices are degrading ecosystems.

Carbon removal with biodiversity is big for business

The biodiversity crisis isn’t just an environmental issue—it has economic consequences. About 60% of global GDP depends on nature, whereas research on 30 countries shows that only about 0.3% of GDP is spent on protecting it. There's also a significant funding gap—estimated at $700 billion—to fully realise nature’s potential in mitigating climate change.

Investing in nature-based carbon removal solutions can help close this gap while yielding long-term financial returns. Studies suggest that the economic benefits of acting now to protect biodiversity will outweigh the costs of inaction.

The trade-off: Carbon removal and ecosystem protection

Scaling up carbon removal to the level required to meet net-zero goals by 2050 will require changes in land use—one of the main drivers of biodiversity loss. Engineered carbon removal methods could add pressure on biodiversity through resource extraction. However, many nature-based solutions, like agroforestry, biochar or enhanced rock weathering (ERW), can be integrated into agricultural systems, providing benefits for both biodiversity and food security.

What to look for in biodiversity-boosting carbon projects

When considering carbon removal investments, understanding how projects manage biodiversity can help ensure long-term success. Here are a few things to look for:

Building Resilience: Diverse ecosystems can recover more quickly from disturbances, ensuring carbon stocks remain stable over time.

Functional Biodiversity: Different species play specific roles in maintaining ecosystem health, such as pollination, seed dispersal, and nutrient cycling, maintaining the ability to sequester carbon.

Native Species: Projects that focus on planting native species tend to be more effective in the long run, as these species are better adapted to local conditions and help support local wildlife, enhancing overall biodiversity.

MRV (Measurement, Reporting, and Verification): A robust MRV framework ensures that biodiversity and carbon data are transparent and verifiable, helping investors make informed decisions based on accurate information.

Measuring and scoring carbon removal with biodiversity

Our partners at AlliedOffsets have developed a unique scoring method that quantifies the biodiversity co-benefits a carbon project produces. The score ranges from 0 to 5, with 0 indicating that co-benefits are unclear, and 5 representing a high likelihood of positive impact. This method takes three main components into account: project design, impact potential and additionality. Learn more about AlliedOffsets’ scoring approach in their Summer 2024 Biodiversity Report, available to download here.

Looking ahead: The future of biodiversity and nature-based carbon removal

As awareness of biodiversity loss grows, international policies are increasingly focused on its conservation. Frameworks like the Kunming-Montreal Global Biodiversity Framework, adopted in 2022, aim to halt biodiversity loss and protect ecosystems. This framework includes a target to conserve 30% of the world’s land and ocean areas by 2030.

At the same time, forums like this year’s COP16 emphasise the need for sustainable financing to support biodiversity-friendly projects. In this context, investing in nature offers not only a path to carbon neutrality but also a way to protect the ecosystems that sustain life on Earth.