Carbon Direct and JPMorganChase Publish Principles for Biodiversity in Nature-Based Voluntary Carbon Projects
Carbon Direct, a global leader in science-driven carbon management, in collaboration with JPMorganChase, today released a comprehensive report titled Optimizing for Biodiversity with Nature-Based Projects in the Voluntary Carbon Market: Principles for Pursuing Dual Outcomes. The report serves as a data-driven guide for organizations seeking to design and select voluntary carbon market (VCM) projects that deliver both carbon removal and biodiversity benefits, offering a structured approach to integrating dual outcomes in nature-based solutions.
The voluntary carbon market has grown rapidly in recent years, primarily driven by the need to offset carbon emissions. However, current market structures tend to focus almost exclusively on carbon reduction, leaving biodiversity considerations underdeveloped despite increasing demand from corporate buyers and other stakeholders. Nature-based projects, which often center on land management, restoration, and conservation, present a unique opportunity to embed biodiversity-positive design. Yet, realizing these dual benefits is complex, requiring careful attention to potential tradeoffs, rigorous reporting, and project-specific scientific assessment. The report aims to address these challenges by providing a practical blueprint for market actors to align project design with both carbon and biodiversity objectives.
At the core of the report is a six-principle framework designed to guide the selection and development of nature-based carbon projects with dual outcomes. These principles are informed by scientific best practices, an analysis of 1,639 global voluntary carbon market projects, and leading registry protocols. The framework emphasizes how organizations can set credible goals, ensure rigorous monitoring, and transparently report on both carbon and biodiversity results. By applying these principles, project developers, investors, and corporate buyers can more effectively assess project claims, identify potential gaps, and implement strategies that maximize positive environmental impact.
The findings of the report reveal that while many existing VCM projects deliver significant carbon benefits, biodiversity outcomes are frequently inconsistent or underreported. The report identifies common tradeoffs, such as balancing carbon storage with habitat restoration or managing invasive species while enhancing ecosystem resilience. It also provides recommendations for addressing these gaps, including integrating local ecological knowledge, prioritizing multi-species habitat creation, and ensuring long-term monitoring. These approaches are intended to help scale nature-based finance while maintaining scientific integrity and transparency.
Dr. Sarah Federman, Vice President of Landscape Decarbonization at Carbon Direct, highlighted the importance of combining rigor with local context: “Investing in nature-based solutions demands both scientific rigor and local relevance. Working with JPMorganChase allowed us to deliver a framework grounded in data, designed to help market actors select and design projects that credibly advance both biodiversity and climate outcomes. Our hope is that these principles establish a new benchmark for transparency and measurable impact in the voluntary carbon market.”
The report underscores that pursuing dual outcomes is not only feasible but essential for aligning climate finance with broader environmental and societal goals. By systematically incorporating biodiversity considerations into project planning, organizations can enhance ecosystem services, contribute to global conservation priorities, and strengthen the credibility of their voluntary carbon commitments. Moreover, dual-outcome strategies can enhance stakeholder trust, facilitate compliance with emerging regulatory standards, and drive the development of innovative approaches in nature-based finance.
As nature-based solutions become increasingly central to global climate strategies, the report provides actionable guidance for market actors to navigate the complexities of integrating carbon and biodiversity goals. By applying the six principles, organizations can evaluate projects more effectively, make informed investment decisions, and scale interventions that deliver meaningful outcomes for both climate and ecosystems.
Carbon Direct and JPMorganChase’s collaboration marks a significant step toward advancing transparency, accountability, and impact in the voluntary carbon market. The report offers a timely and practical resource for project developers, investors, and corporate buyers seeking to maximize environmental outcomes while supporting the continued growth and integrity of the voluntary carbon market.
