The Future of Nature-Based Carbon Removal: A Tale of Two Models

In the rapidly evolving landscape of carbon removal solutions, nature-based approaches have emerged as a critical tool in our fight against climate change. Two distinct models have taken shape: community-based projects that work with individual farmers and local communities, and professionally managed large-scale operations that implement carbon removal activities under centralized management. At Verdanta, we recognise the merits of both approaches while advocating for the large-scale managed model's superior potential to deliver reliable, scalable carbon removal.

Understanding the Smallholder Model

The smallholder approach to carbon removal typically involves partnering with numerous small-scale farmers and landowners to implement carbon-sequestering practices across their existing agricultural operations. These projects often integrate carbon removal activities with food production and local livelihoods, creating a complex web of social and environmental benefits.

Smallholder projects can excel in promoting biodiversity by maintaining diverse agricultural landscapes and can strengthen local communities by providing additional income streams to farmers. These projects often build upon traditional farming practices and local knowledge, potentially leading to higher initial community buy-in and participation.

However, this model faces fundamental challenges that threaten its effectiveness as a carbon removal solution. The most significant concern relates to permanence – the long-term stability of carbon storage. Economic pressures frequently lead smallholders to harvest trees prematurely when the immediate value of timber or charcoal exceeds the carbon payments they receive. This dynamic creates a substantial risk of reversal, where stored carbon is released back into the atmosphere, undermining the project's climate benefits.

The permanence challenge is exacerbated by the difficulty of enforcement across numerous small plots. When a farmer faces urgent financial needs or market pressures, the temptation to harvest trees can override long-term carbon storage commitments. Experience has shown that even well-designed contracts and community agreements struggle to prevent such reversals when economic incentives shift.

Additionally, the issue of additionality – proving that carbon removal would not have occurred without the project – becomes complex when working with numerous small landholders who may already practice some form of sustainable agriculture and manage their own woodlots. Monitoring and verification across hundreds or thousands of small plots presents logistical challenges and increases transaction costs.

The Professional Management Model: A More Robust Approach

Large-scale professionally managed carbon removal projects operate on consolidated land parcels under centralised management. While this approach may appear less focused on community engagement than working with small farmers, it offers several compelling advantages for delivering reliable carbon removal at scale, while also delivering substantial community benefits.

Professionally managed projects excel in addressing the critical principle of permanence. With single-entity ownership and professional management, these projects can implement robust long-term conservation agreements and maintain consistent practices across the entire project area. The consolidated management structure means that decisions about land use are driven by long-term carbon storage commitments rather than short-term economic pressures faced by individual farmers.

This model also provides clearer additionality. When developing new, dedicated carbon removal projects on previously underutilized land, it's easier to demonstrate that the carbon sequestration activities would not have occurred in the business-as-usual scenario. This clarity is valuable for carbon credit buyers seeking high-confidence offsets.

Monitoring, reporting, and verification (MRV) processes become more streamlined and cost-effective under professional management. Standardized practices across larger land areas enable more efficient data collection and validation, reducing the per-ton cost of carbon removal while increasing the reliability of impact measurements.

Scale and Efficiency: The Verdanta Perspective

At Verdanta, our support for the professionally managed model stems from our commitment to delivering scalable, reliable carbon removal solutions that deliver tangible and significant biodiversity and community benefits. While we acknowledge the social benefits of smallholder projects, we believe the climate crisis demands approaches that can be rapidly scaled while maintaining high environmental integrity.

Large-scale managed projects can more easily access capital markets and achieve economies of scale, reducing the cost per ton of carbon removed. This efficiency is crucial for making carbon removal economically viable and attracting the investment needed to scale these solutions globally.

The controlled environment of professionally managed projects also enables optimization of carbon sequestration rates through consistent application of best practices and technological innovations. This optimization is more challenging to achieve across dispersed smallholder plots with varying capabilities and resources.

Finding Balance in the Carbon Market

While Verdanta advocates for the professional management model, we recognize that both approaches have a role to play in the broader carbon removal landscape. Smallholder projects can serve important social development goals and may be appropriate in certain geographical and cultural contexts where large-scale land consolidation is not feasible.

However, as the demand for high-quality carbon removal credits grows, the advantages of professional management become increasingly apparent. The ability to deliver consistent, verifiable results at scale, while maintaining strong permanence and additionality, positions large-scale managed projects as a crucial tool for meeting global climate goals.

The future of nature-based carbon removal will likely include a mix of project types, but for organisations seeking to make substantial, reliable contributions to carbon removal, professionally managed projects offer a more robust and scalable solution. This is why Verdanta continues to focus on developing and implementing large-scale, professionally managed carbon removal projects that can deliver the scale and reliability that the climate crisis demands.