Supporting a Climate of Change
About this service
For a full overview of all the terms used in this page, click here .
FSG shares global concerns over climate change and related natural disasters. We therefore support the
, for reduction of greenhouse gas (GHG) emissions worldwide.
Because of this protocol, special instruments were developed:
1. The Clean Development Mechanism (CDM)
This instrument allows governments and companies in Annex I countries to invest in projects that reduce emissions in developing countries. After official approval (registration) and implementation of a carbon project, carbon credits (CERs or ERUs) are issued that are tradable on markets.
2. Voluntary Carbon Standard (VCS)
The standard for the voluntary carbon market. It works in a little bit less official (and easier) way as CDM; after implementation of a carbon project Verified Emission Reductions (VERs) are issued that are tradable on markets.
3. Climate, Community and Biodiversity Standard (CCBS)
This standard is mostly used in combination with CDM or VCS. Its main target is to increase and protect biodiversity. Emission reductions have to be verified by CDM or VCS.
4. Gold Standard
The Gold Standard likes to improve sustainable development besides the usual gaining of CO2 credits. Therefore this standard is focusing more on social and economical issues.
Forest destruction and degradation account for a significant part of global GHG emissions. The UN-REDD Programme was established to secure international funds for reducing and avoiding emissions through forest destruction and deforestation.
Together with our strategic partners
, we help you develop and implement projects under the CDM, VCS, CCBS, Gold Standard and/or UN-REDD frameworks. These may include projects aimed at reforestation, forest protection, agro-forestry and biomass production and processing. We also advise on compliance with related environmental and trading policies and regulations (see below).
We offer this service to governments, companies, knowledge institutes and other organizations interested in developing projects under the 5 mentioned frameworks.
FSG's local-meets-global approach
It is FSG's mission to seek solutions that meet both local and global interests. Our local-meets-global approach is especially important for projects that combine local resource management and global climate.
What makes FSG your ideal partner in developing such projects? The fact that we offer the whole range of expertise necessary to make your climate projects a success; from field and forest to business and market. For coverage of some very specialized aspects in CDM/VCS projects, we have teamed up with strategic partners. And we make sure that each project is jointly implemented by the right stakeholders united in a consortium.
We also refer to our Certification service
. Certification is often demanded by aid donors for projects related to natural resource management.
We have a number of services on offer explained hereafter. When combined, they form the full trajectory toward implementation of climate projects.
Quick-scan CDM/VCS/CCBC/Gold Standard/REDD
We establish for your organization the business potential for a climate project. The compliance cost as well as future revenues are assessed, up to issuance of tradable certificates (CERs/ERUs/VERs). Also calculations are performed (GHG reduction analysis) for establishment of the project additionality.
Project baseline study, validation and registration
We help you with all steps required prior to registering your project under one of the mentioned standards. This includes Carbon stock calculations and estimated future levels, general project baseline studies, development of PIN, PDD, CFD, LoI, LoA and LoE documents and coordinating validation and registration by a third party or one of our partners, See also our project development chapter for more information.
Building consortia and GCCA's
We make sure that each Climate project is implemented by the right stakeholders, united in a project consortium. The kind of stakeholders depends on the project orientation (e.g. scientific and/or business). So as to improve leverage of Climate projects, we help you build Global Climate Change Alliances (GCCA), making use of our vast international network of governments, companies and other organizations.
Climate Project Management
FSG offers to manage and/or lead climate projects on behalf of our clients. For example, we often act as lead applicant and project coordinators on behalf of consortium partners. We refer to our Project Development & Support service for more detailed information.
Climate Project Certification
We also refer to our Certification service. International aid donors increasingly demand that forest and biomass supply chains are certified. FSG offers its experience with certification processes, such as those mentioned earlier but also for example FSC, and NTA-8080 (Dutch).
Climate Disaster Risk Reduction system (DRR)
With help from governments FSG helps assess the potential of specific projects that address climate change-induced disasters such as flooding. Projects may cover activities such as reforestation of river banks or forest cover protection. FSG is able to develop Disaster Risk Reduction plans into this direction.
Policy and Regulatory Support
Worldwide, more and more policy and regulatory instruments are being applied, for improved governance of natural resources. No matter whether you are a government organization or a company, understanding and complying with these instruments can take a lot of your time and resources. They may include e.g. legal source declarations or REACH. See our list of policies and regulations that we have experience with. FSG advises organizations on such policies and regulations. FSG advises governments in developing countries on how to comply with Forest Law Enforcement and Trade (FLEGT) issues.
Check our trackrecord to read more.
Credits can be traded at two stock exchange markets:
Adopted at the Third Conference of the Parties to the United Nations Convention on Climate Change held in Kyoto, Japan, in December 1997, the Kyoto Protocol commits industrialized country signatories to reduce their greenhouse gas (or "carbon") emissions by an average of 5.2% compared with 1990 emissions, in the period 2008-2012.
The Kyoto Protocol only allows for reforestation of land cleared before 1989. This must be done by: tree-planting or assisted natural regeneration.
These actions meet Clean Development Mechanism criteria and are 'Kyoto compliant'. All other actions are non-Kyoto compliant, and sometimes these will fall under REDD mechanisms (avoided future emissions by better forest security against illegal activities or further deforestation.) These types of Carbon credits are good voluntary offsets (for the Voluntary markets).
Annex 1 Countries
Annex I is an Annex in the UNFCCC listing those countries that are signatories to the Kyoto protocol Convention and committed to emission reductions. The non-Annex I countries are developing countries, and they have no emission reduction targets.
Colombia, CDM project with biomass and Bamboo
CDM projects have to be financially "additional", which means that the projects that Annex I countries support within the framework of the CDM should not be financed by official development aid, but that additional funding is to be made available for such projects. Furthermore, to avoid giving credits to projects that would have happened anyway ("freeriders"), rules have been specified to ensure additionality of the project, that is, to ensure the project reduces emissions more than would have occurred in the absence of the project. There are currently two rival interpretations of the additionality criterion:
Documents under the climate standards.
- 1. What is often labelled ‘environmental additionality’ has that a project is additional if the emissions from the project are lower than the baseline. It generally looks at what would have happened without the project.
- 2. In the other interpretation, sometimes termed ‘project additionality’, the project must not have happened without the CDM.
The mentioned documents are standard documents and formats under the 5 instruments. See the Climate glossary
to read more.
Policies and regulations and FSG experience