The carbon market is a market in which carbon emission allowances are traded. The market aims to encourage companies to limit their emissions of CO2 and contribute to financing climate action to compensate for their non-avoidable emissions. It also encourages countries to reduce their emissions. By using the carbon markets, entities can offset a part of their emissions by retiring carbon credits generated by projects that are reducing GHG emissions elsewhere.

​​A carbon credit is a generic term for any tradable certificate or permit representing the avoidance or removal of one ton of carbon dioxide or the equivalent amount of a different greenhouse gas (tCO2e). On the voluntary carbon market, where NatureRe operates, certifications are needed to emit carbon credits. NatureRe’s carbon credits will be certified by Verra (VCS), a globally recognised company that offers structured and robust methodologies for certifications. These standards are regulated by the International Carbon Reduction & Offset Alliance.

​​Industrialisation and lifestyle choices in recent decades has caused the globe to warm beyond what is sustainable for the long term. On a global level Carbon Neutrality means a balance between global emissions and absorptions. The EU committed to be climate neutral by 2050. For the net-zero carbon footprint, carbon removal approaches like nature-based solutions or technological alternatives are necessary.
Whereas Carbon Neutrality refers to the equality of carbon emissions, Climate Neutrality is the process of removing all different greenhouse gases from the environment. Its primary feature is considered the stage at which these gases are no longer adversely contributing to global warming.
Net Negative Emissions is a state in which there are more emissions of greenhouse gases absorbed than are emitted. It is this state that experts consider to be necessary to avoid the global temperature rise of 1.5°C and avoid irreparable damage. The term carbon negative is synonymous to climate positive.
The exercise of moving from Climate Neutrality to Net Zero and ultimately Net Negative Emissions is dependent on the implementation of Carbon Avoidance Projects, which must occur within scientifically specified timescales to avoid irreparable damage.

​​Carbon offsetting is a way to compensate for one’s emissions by funding an equivalent carbon dioxide saving elsewhere.​​ Carbon neutrality is achieved by calculating a carbon footprint and reducing it (to zero) through a combination of efficiency measures in-house and supporting external emission reduction projects through carbon offsetting projects to offset residual emissions.
​​Carbon offsetting is considered greenwashing when companies do not prioritize in-house emissions reductions, double-count carbon credits, or invest in non-verified credits. While saying this, we do believe that carbon credits are absolutely key to achieve the transition. There is no other financial mechanism, which creates a direct incentive to protect entire ecosystems, reduce methane emissions, protect peatlands, etc., and which is proven, available and scalable now. Companies should never buy carbon credits instead of reducing emissions, but always on top of. Moreover, our operational partner South Pole does not deliver carbon neutral certification to companies that have not set concrete emission reduction targets within their operations.
​​Tropical forests are the most commonly occurring type of forest, taking up 45% of the climate domain, followed by boreal, temperate and subtropical forest areas. They all play a crucial role in decarbonising our economy by converting carbon dioxide into oxygen, acting as a global carbon sink. Frequent rain, abundant sunlight and warm temperatures combine to create a humid climate in which tropical trees rapidly grow and remove a vast amount of carbon. Studies show that a tropical tree absorbs twice the amount of carbon dioxide as a tree found in a temperate climate zone. Within the tropical forest family, there are many different types. Most exist in a climate that is humid all year round but tropical moist deciduous forests grow in a lower temperate environment which contributes to the yearly shedding of leaves. Dry and semi-dry tropical forests grow in a warmer ecosystem which is characterized by long periods of drought. Tropical highland forests are found on mountains and high hills and are considered evergreen because of the high humidity and cloud coverage. With over 10% of the tree species in the world, Colombia is second only to Brazil in terms of the 60,000 species of trees that exist worldwide. The especially biodiverse country provides tropical forests with habitats for plants, animals and microorganisms.

​​Nature-Based Solutions are “locally appropriate, adaptive actions to protect, sustainably manage or restore natural or modified ecosystems to address targeted societal challenges – such as climate change mitigation -, while simultaneously enhancing human well-being and providing biodiversity benefits” (United Nations). They are innovative and effective ways of leveraging the power of nature and emulating natural processes within an ecosystem.

​​Assisted Natural Regeneration (ANR) is a highly qualitative methodology positively impacting biodiversity and accelerating tree growth. ANR refers to any set of interventions that aim to enhance and accelerate the natural regeneration of native forests. ANR takes advantage of natural regrowth processes which ensure that the established plant community is well adapted to the site conditions and has high durability.
This results in a more diverse, multilayered vegetative cover than from typical reforestation involving the planting of a limited number of species. This diversity enhances habitat quality for local wildlife and environmental stability.
Assisted Natural Regeneration can move from Passive Regeneration, where almost no human intervention is made, to Assisted Natural Regeneration, where different, light and cost efficient measures are taken, to Active Natural Regeneration, where a certain number of measures are put in place to ensure the natural process of regeneration. These three sets of actions are decided depending on the quality of the soil, the proximity of remnant forests and the water availability.
By restoring the current ecosystem, ANR has high biodiversity co-benefits and an important permanence. Compared to reforestation, ANR also has an important cost advantage as it requires almost no planting activities. In terms of CO2 absorption, ANR projects and native species reforestation projects are comparable.

Colombia is one of the most stable countries in Latin America from a political and economic point of view. Colombia officially became the 37th member of the OECD on 28 April 2020. Colombia is now the third Member country from the Latin America and Caribbean region to join following Chile and Mexico. In 2018, Colombia ratified the Paris Agreement and has since then introduced several environmental taxes. They currently provide tax benefits to encourage the development of technologies and behaviours that can positively impact the environment. Section 255 of the Colombian Tax Code sets forth a tax credit equivalent to 25% of the corporate income tax, for legal entities that performed investment in the control, conservation and improvement of the environment.
Colombia is listed as one of the world’s “megadiverse” countries, hosting close to 10% of the planet’s biodiversity. Worldwide, it ranks first in bird and orchid species diversity and second in plants, butterflies, freshwater fishes and amphibians. With 314 types of ecosystems, Colombia possesses a rich complexity of ecological, climatic, biological and ecosystem components.
However, a considerable part of these natural ecosystems has been transformed for agriculture, primarily in the Andean and Caribbean regions. It has been estimated that almost 95% of the country’s dry forests have been reduced from their original cover, including close to 70% of typically Andean forests. Therefore, we need to act quickly.
Additionally, more than half of Colombian territory ( > 50 Mio hectares) is covered by forest making it an important player to reach international climate targets.
At the same time, deforestation in Colombia increased by 8% in 2020 mainly due to cattle ranching, expansion of agricultural areas, and the construction of unauthorized roads. The country lost 171,685 hectares (424,000 acres) of forest last year, an area twice the size of New York City.
On top of this, both our operational partner South Pole and the founder of NatureRe Daniel Pfeifer have solid track records in Colombia: they have successfully implemented nature restoration projects in the last years. South Pole is well established in Colombia with a team of over 150 experts on site.

​​NatureRe is an impact driven company. Our aim is to restore nature at scale, so that we can positively and efficiently impact the climate, biodiversity, and local communities.

Carbon impact (SDG 13): By selecting degraded lands with a strong potential for restoration, we ensure a high CO2 absorption rate, above average, around 10-14 tCO2 eq/ha. With an SPV (10M€) as an example, we aim to absorb more than 1 million tons of CO2 in 15 years and restore more than 5’000 hectares of degraded lands.

Biodiversity impact (SDG 15): By applying Assisted Natural Regeneration to the degraded lands, we ensure that the full ecosystem is restored. We plan as well to protect endangered species by re-introducing them in the restored lands. Species like threatened Magnolia could adapt easily in some ecosystems. As Colombia benefits from hundreds of different ecosystems, we will use existing information – data on flora and fauna in a specific area to measure the restoration of the ecosystem over time. With the first SPV, we estimate that more than 10 million trees will regrow in 15 years.

Water impact (SDG 6): We protect the areas associated with micro-watersheds supplying aqueducts and contribute to the maintenance of the hydrological quality of watersheds. As deforestation pollutes water sources, contributing to loss of soil carbon, infiltration and water retention, it is essential to protect access to clean water.

Social impact (SDG 8): Local communities are involved in the project from the beginning and are be part of the “solution”. Our operation partner South Pole Colombia has a social team, with expert anthropologists who interact and discuss with local communities to find the best solutions, actions, and activities to develop around the project. We create jobs by hiring rangers, forest engineers and land managers. We plan with a 10M€ SPV to create at least 50 new jobs, around protection of the land and monitoring activities.