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Ecologi Impact Funds: A new way to support climate action

We’ve just launched our much anticipated product, <a href="https://ecologi.com/solutions/impact-funds" target="_blank" rel="noopener">Ecologi Impact Funds</a>, a new way to maximise your business climate impact by funding multiple high-quality projects in one go whilst also spreading residual risk.
In this deep-dive, we’ll explore:
<ul>
<li style="font-weight: 400;" aria-level="1">What is an Impact Fund; </li>
<li style="font-weight: 400;" aria-level="1">Why they are best for our planet and how they fit into your net-zero journey;</li>
<li style="font-weight: 400;" aria-level="1">The difference between carbon compensation and contribution approaches;</li>
<li style="font-weight: 400;" aria-level="1">Why your business should start contributing to Impact Funds today.</li>
</ul>

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<h2>What is an Impact Fund?</h2>
Our new Ecologi Impact Funds maximise your business climate impact by funding multiple high-quality projects in one go while also spreading residual risk. 
 
The Ecologi Impact funds are carefully curated project cohorts centred around a particular theme or climate intervention. Each of our Impact Funds is carefully designed to drive progress against our tree key pillars of impact: 

<ol>
<li style="font-weight: 400;" aria-level="1">Climate: Reducing the concentration of greenhouse gases in the atmosphere</li>
<li style="font-weight: 400;" aria-level="1">Nature: Conserving and restoring nature and natural systems</li>
<li style="font-weight: 400;" aria-level="1">People: Transforming society and improving lives</li>
</ol>
When you contribute towards an Impact Fund, you’re not just funding a single project in a single location. You’ll be funding a cohort of multiple different projects which might be based all over the world – but all centred around driving transformative action for our climate, nature, and people.
The cohort of projects we support within each Ecologi Impact Fund is dynamic, meaning that some projects will receive support from the Fund over an extended period, and others will receive individual grants. All projects contribute to the Fund’s core aims, and all projects are carefully vetted and selected by our expert team.

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<h2>Why are Impact Funds best for our planet?</h2>
When we think about the existing models of financing climate and nature projects, the focus is usually on one of two things: either inputs (like paying to plant trees), or certification (like carbon credits). Both of these are critical vehicles for channelling funding to incredible projects, but they don’t tell the story.
Take tree-planting, for example. To establish and maintain an impactful forest restoration or agroforestry project takes so much more than just planting the trees. Any one of Ecologi’s partner reforestation projects is actually doing far more than simply planting trees – and all of this costs money, which has to fit into the project’s budget. For example, project designs and associated budgets might include all of this (and more):
<ul>
<li style="font-weight: 400;" aria-level="1">Securing land tenure;</li>
<li style="font-weight: 400;" aria-level="1">Communications and campaigns;</li>
<li style="font-weight: 400;" aria-level="1">Logistics, vehicles and transport; </li>
<li style="font-weight: 400;" aria-level="1">Seed collection or acquisition;</li>
<li style="font-weight: 400;" aria-level="1">Tree nurseries and infrastructure;</li>
<li style="font-weight: 400;" aria-level="1">Staff salaries and technical training;</li>
<li style="font-weight: 400;" aria-level="1">Community services and outreach;</li>
<li style="font-weight: 400;" aria-level="1">Energy provision;</li>
<li style="font-weight: 400;" aria-level="1">Tools and safety equipment;</li>
<li style="font-weight: 400;" aria-level="1">Leadership training and capacity building;</li>
<li style="font-weight: 400;" aria-level="1">Reinvestment into the local community;</li>
<li style="font-weight: 400;" aria-level="1">Fencing and other critical infrastructure;</li>
<li style="font-weight: 400;" aria-level="1">Water and irrigation;</li>
<li style="font-weight: 400;" aria-level="1">Project monitoring and evaluation;</li>
<li style="font-weight: 400;" aria-level="1">Outplanting of trees;</li>
</ul>
If, when we support these projects, we as funders are only thinking about this last bullet point – thinking about our role as simply “paying to plant trees” – then we are neglecting to recognise the incredible effort that goes into the truly holistic programme required to restore nature sustainably and at scale. At best, this is simple tunnel vision. But at worst, this means funders risk thinking that the only thing that’s important is how many trees were planted within the project boundary.
Our Impact Funds help to transform this mindset: decoupling funding from inputs and instead centering our thinking around strategic, thematic and carefully-curated project cohorts means that implementation partners receiving the funding are able to focus on producing restorative outcomes for ecosystems and communities. They also help our customers to understand that what we are doing in supporting restorative projects is not tit-for-tat – it’s us playing our part to restore our planet by supporting a blended range of projects which we acknowledge will have a holistic impact.
So through Ecologi’s first new Impact Funds, we’re not focusing on ‘paying to plant trees’. We’re focusing on restoring forests and landscapes.
<h3>Leading climate science is already taking this approach</h3>
Recent publications from the Science-based Targets initiative in <a href="https://sciencebasedtargets.org/resources/files/Above-and-Beyond-Report-on-BVCM.pdf" target="_blank" rel="noopener">their beyond value chain mitigation (‘BVCM’) report</a>, as well as <a href="https://www.smithschool.ox.ac.uk/sites/default/files/2024-02/Oxford-Principles-for-Net-Zero-Aligned-Carbon-Offsetting-revised-2024.pdf" target="_blank" rel="noopener">the newly-updated Oxford Principles</a> from the University of Oxford, have supported the innovative contributory approach which is exemplified in our Impact Funds. Many of our restoration partners, including <a href="https://www.internationaltreefoundation.org/news/beyond-offsets-an-alternative-approach" target="_blank" rel="noopener">International Tree Foundation</a>, <a href="https://www.eden-plus.org/stories/its-time-to-go-beyond-tree-planting" target="_blank" rel="noopener">Eden: People + Planet</a>, <a href="https://www.youtube.com/watch?v=RfBVBHNpR30" target="_blank" rel="noopener">Acción Andina</a> and <a href="https://www.weforest.org/what-we-do/our-restoration-principles/" target="_blank" rel="noopener">WeForest</a> have taken similar stances.
Global Forest Generation noted that:
<blockquote>In some cases reforestation may only form a small part of an ecosystem restoration project. Our activities and budgets have always reflected a holistic program with many components that we have identified as essential to effective, long-term ecosystem restoration.</blockquote>
With our new Impact Funds, Ecologi is proudly joining our friends and partners to raise our voices in a call for holistic restoration for people and our planet. <a href="https://ecologi.com/solutions/impact-funds" target="_blank" rel="noopener">Schedule a call</a> with our experts to see how your business can start contributing to the Impact Funds, or continue reading for more of a deep-dive.

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On your business’s road to net-zero, you have two central objectives:
<ol>
<li style="font-weight: 400;" aria-level="1">First: measure your business’s emissions, set ambitious reduction targets, and reduce your emissions across all scopes as much as possible, as quickly as possible.</li>
<li style="font-weight: 400;" aria-level="1">Then: support the global transition to net-zero and the restoration of nature by contributing to climate and nature projects around the world. </li>
</ol>
Ecologi’s Impact Funds can help you with step (2), by enabling you to <a href="https://ecologi.com/business/ecologi-impact-funds" target="_blank" rel="noopener">support a diverse range of projects</a> which will help to safeguard and restore nature, and scale-up carbon removal technologies. This is an alternative to traditional carbon offsetting, which is where you’d buy carbon credits equal to the emissions you produce. 
Specifically, our Impact Funds can help you align your project funding strategy to Goal #2 of the Science-Based Targets initiative’s <a href="https://sciencebasedtargets.org/resources/files/Above-and-Beyond-Report-on-BVCM.pdf" target="_blank" rel="noopener">BVCM best practice</a>, as well as centering all four of the SBTi’s core principles for BVCM: scalability, financing need, co-benefits and climate justice.

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Since 2020, at Ecologi we have also been aligning our work with the Oxford Principles, which as well as providing guidance for blended carbon credit-based portfolios which increasingly lean towards carbon removal with permanent storage, also stress the vital importance of businesses contributing to nature restoration beyond simply the purchasing of carbon credits. The Revised Oxford Principles (2024), states:
<blockquote>It is necessary to protect and restore ecosystems to achieve net zero globally and to support adaptation to climate change impacts, irrespective of whether such projects generate credits that are retired as offsets.</blockquote>
Making a contribution to Ecologi’s Impact Funds won’t reduce your emissions for you, and it won’t allow you to make compensatory green claims such as carbon neutrality. But what it will do is enable your business to do its part to support the global transition to net-zero, holistically protect and restore ecosystems, and empower people and communities – whilst you’re working on reducing your emissions.
Doing so will help you meet the BVCM criteria set out by the SBTi and Oxford Net Zero today, and we believe these contributory approaches will form the backbone of project funding obligations under new and updated standards in the future too – such as the revised SBTi Corporate Standard and the ISO Net-Zero Standard (both expected to be published in Q4 of 2025).
We can also help you if you’re looking for <a href="https://ecologi.com/page/schedule-a-call" target="_blank" rel="noopener">high-quality carbon removal or avoidance credits</a> for your business. And if you’re a little earlier on in your net-zero journey and you need support measuring your business’s emissions, <a href="https://zero.ecologi.com/signup" target="_blank" rel="noopener">we can help with that too</a>!

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<h2>Why should my business contribute to Impact Funds?</h2>
Best for our planet. Our first company value is Planet First — and nowhere in our work is this more prominent than in our Impact Funds. We know that this strategic, holistic way of providing funding to the world’s flagship restoration projects is the right way to support projects that address climate change, restore nature and support livelihoods. This approach is innovative, transformational, and the world’s leading restoration experts support it.
Centralise your portfolio. Through our Impact Funds, you can fund a wide range of different climate and nature projects, all in one place. All of the hard work – from project selection to outcomes reporting – is done by us. You’ll have a centralised Ecologi profile where you can visualise your impact across the Funds you’ve contributed to, and deep dive on the projects supported within them.
High-integrity, high-quality projects. Our expert in-house team selects all projects and implementation partners with great care. We’ve designed state of the art methodologies that get right to the heart of a project’s potential effectiveness, and we work tirelessly with each of our implementation partners to uphold restoration best practices and exchange knowledge. That way, you know that if a project is featured in one of our Impact Funds, it’s been carefully vetted and selected as one of the leading restoration projects anywhere.
Spread funding risk. When you support projects individually, there’s always a risk that if the project you supported doesn’t achieve its goals, you’ll feel that your contribution was wasted. Through Impact Funds, the funding you contribute is spread across a range of different projects within the Fund, meaning that even in the unlikely event that an individual project doesn’t work out, your funding will still have contributed to many projects which met or even exceeded their restorative aims.
Boost your brand. Contributing to Ecologi’s Impact Funds is an excellent way to enhance your brand’s sustainability credentials. Businesses today are increasingly expected to take action on environmental challenges, and supporting impactful projects is a powerful demonstration of your commitment to the planet. In fact, improved brand reputation is the number one driver for businesses, with over <a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">34% of Ecologi respondents</a> seeing their brand elevated as a result of climate action. By aligning with large-scale, verified restoration efforts, you not only meet consumer expectations but also stand out in a competitive marketplace, leaving a lasting impression on customers.
Engage and motivate your team. Supporting Ecologi’s Impact Funds aligns with the values of today&#8217;s workforce of sustainability and social responsibility; increasing satisfaction and loyalty. According to our survey, <a href="https://ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener">28% of companies</a> saw improved employee retention through prioritising climate action. By contributing to impactful projects, your business will foster a purpose-driven workplace and strengthen a culture of shared environmental values.

<h2>How to support Impact Funds today</h2>
Schedule a call with our exports today, <a href="https://ecologi.com/page/schedule-a-call" target="_blank" rel="noopener">here</a>. In a 30 minute discovery call they can answer any questions you may have and help find a suitable solution to suit your goals and what matters most to your business. 
<h2>Our Impact Funds</h2>
We currently offer two Impact Funds, both funding a range of incredible projects with two distinct climate goals:
<ul>
<li style="font-weight: 400;" aria-level="1">UK Climate &amp; Nature Fund &#8211; Exclusively supports restoration and carbon removal efforts in the UK, such as reforestation, habitat restoration and biochar production. 
</li>
<li style="font-weight: 400;" aria-level="1">Forests &amp; Landscapes Fund &#8211; Focused on preserving and restoring natural landscapes globally, including forest restoration, agroforestry, and coastal wetland restoration.</li>
</ul>

Schedule a call

UK corporate sustainability standards explained

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In the guide we compare the strengths, weaknesses and approach to target setting, reporting and carbon offsets of the most commonly used sustainability frameworks.
In this guide we’ll cover;
<ul>
<li>What are Corporate Sustainability Standards</li>
<li>Which Corporate Sustainability Standards should UK businesses know</li>
<li>Requirements of PAS 2060</li>
<li>Requirements of ISO 14068-1:2023</li>
<li>Requirements of ISO 14064-1</li>
<li>Principles of BSI Flex 3030</li>
<li>What are EightVersa’s Natural Carbon Solutions</li>
<li>SBTi Corporate Net-Zero Standards</li>
<li>How Ecologi can support your business in navigating the complexities of Corporate Sustainability Standards</li>
</ul>

<h2>What are Corporate Sustainability Standards</h2>
Many organisations worldwide have pledged to meet net-zero Emissions, aiming to help keep global warming below 1.5°C as agreed at COP15. These pledges are important, but they need clear guidelines and frameworks to ensure that sustainability strategies lead to real and measurable progress.
<h3>Why are there Corporate Sustainability Standards?</h3>
A variety of frameworks have been developed to support organisations on their journey to reducing carbon emissions. They help align companies with global climate goals, offering guidance on topics such as resource management, goal setting and reporting. Following these guidelines ensures that organisations act responsibly, and take accountability for their impact contributing to global efforts to combat climate change.
To reach net zero, these sustainability standards must be widely adopted to minimise the risk of organisations participating in greenwashing and contribute to collective global action to minimise the impacts of global warming.
<h2>Which Corporate Sustainability Standards should my business know about</h2>

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<h2>What is PAS 2060?</h2>
PAS 2060 was first published in 2010, it aimed to provide the requirements for achieving carbon neutrality for products and organisations alike. After 15 years in operation, PAS 2060 will be retired at the end of 2025, and superseded by ISO 14068- 1:2023.
The standard provides organisations with a methodology for measuring and reducing greenhouse gas emissions and allows for the purchasing of carbon credits to offset any emissions that can’t be reduced.
<h2>What are the requirements of PAS 2060</h2>
<h3>Measure</h3>
PAS 2060 requires organisations to first measure their carbon footprint, accounting for all Scope 1 and 2 emissions, as well as any Scope 3 emissions that constitute more than 1% of the organisation&#8217;s overall emissions.
<h3>Reduce</h3>
Organisations must then create and implement a carbon reduction plan (CRP). This plan should clearly outline specific actions and targets for reducing emissions over time.
<h3>Offset</h3>
After reducing emissions, organisations can then offset remaining emissions using third-party verified carbon credits, these can be carbon avoidance or carbon removal credits.
<h3>Document</h3>
Organisations must document their carbon neutrality initiatives in a Qualifying Explanatory Statement (QES). This should be a public document that includes key information such as the carbon footprint calculation, reduction measures and offsetting activities.
<h3>Drawbacks</h3>
PAS 2060 does not require evidence of continual improvement to the organisation&#8217;s carbon footprint, which can lead to an over-reliance on carbon offsets, as opposed to meaningful reductions in carbon emissions. Additionally, a PAS 2060 application must be accompanied by at least one year’s worth of supporting data therefore, PAS 2060 should not be considered for new clients/projects after December 2024.

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<h2>What is ISO 14068-1:2023</h2>
ISO 14068-1:2023 is a new standard under development by the British Standards Institute (BSI). As mentioned above, ISO 14068-1 replaces PAS 2060.
The standard aims to provide the requirements and guidance for achieving and demonstrating carbon neutrality. Unlike PAS 2060, the standard applies to organisations only and does not apply to products.
ISO 14068-1:2023 is a full international standard that prioritises carbon reduction initiatives. This standard requires evidence that reduction initiatives have taken place before any carbon offsetting is allowed.
<h2>What are the requirements of ISO 14068-1:2023</h2>
<h3>Measure</h3>
Organisations will need to measure their Scope 1, 2 and 3 emissions under this standard.
<h3>Reduce</h3>
They will then need to set clear and ambitious targets to reduce their emissions. Whilst purchasing carbon credits to offset emissions is allowed under this standard, organisations must be able to justify why offsets were purchased instead of undertaking further emission reductions.
<h3>Offset</h3>
Carbon removal offsets are approved to offset any ‘hard to remove’ emissions, providing they are less than 5 years old. This standard does not allow for the purchasing of carbon avoidance credits.
<h3>Document</h3>
ISO 14068-1:2023 also requires a carbon reduction plan, which documents the resources necessary to successfully deliver the plan, and the individuals responsible. The continuous improvement of the subject’s carbon footprint is required to maintain a carbon-neutral status unlike PAS 2060.
<h3>Drawbacks</h3>
It could be argued that ISO 14068-1:2023 requires a deep understanding of carbon accounting, emission reduction strategies and value chain emissions. Many organisations don&#8217;t have this expertise in-house and would therefore have to appoint an external third party to support them through the process, this could result in high costs to implement this standard which new and/or small companies may not have.

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<h2>What is ISO 14064-1</h2>
ISO 14064 guides organisations in reporting their GHG emissions and removals. The primary objectives of the standard are to help organisations manage and report emissions, and set and achieve reduction targets. It is a part of the 3 part ISO 14064 standard and applies to any organisation of any size.
<h2>What are the requirements of ISO 14064-1</h2>
ISO 14064-1 is the first part of the 3-part standard, it aims to provide organisations with an approach to measure, report and verify their emissions and offsets.
<h3>Measure</h3>
Organisations must outline which emission sources and activities are included in their reporting however ISO 14064-1 does not require the reporting of Scope 3 emissions.
<h3>Reduce</h3>
ISO 14064-1 does not explicitly require organisations to reduce emissions before engaging in offsetting however it does emphasise the importance of regularly reporting GHG emissions including prioritising emission reductions.
<h3>Offset</h3>
ISO 14064-1 recognises the use of carbon offsets as a legitimate tool for managing GHG emissions however places a strong emphasis on transparency and accurate reporting. ISO 14064-1 allows for both avoidance and removal credits providing they are credible, verifiable and meet recognised standards for offset projects such as additionality and permanence.
<h3>Document</h3>
ISO 14064-1 requires an inventory management plan that outlines data collection and reporting, and regular review of the GHG inventory. Additionally, a comprehensive GHG report should be prepared to detail the organisation&#8217;s emissions and purchased offsets.
<h3>Drawbacks</h3>
ISO 14064-1 also requires a comprehensive understanding of GHG accounting. This standard is largely focused on reporting, as opposed to action. There is no mandated emission reduction meaning organisations can meet emission targets through purchasing offsets alone, limiting the overall impact on global climate change mitigation.

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<h2>What is BSI Flex 3030</h2>
BSI Flex 3030 is a set of principles that can support organisations in meeting the requirements of other initiatives such as the Science Based Targets Initiative (SBTi), the Task Force on Climate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). BSI Flex was developed with small businesses in mind and is primarily for use by SMEs with between 5-250 employees.
BSI Flex 3030 is also designed to work alongside formal management systems such as ISO 14001 (Environmental Management) or BS EN ISO 50001 (Energy Management). It provides high-level principles and a framework for an organisation to deliver a transition to net zero. It covers how organisations can measure their GHG baseline, set reduction targets and create a credible pathway to net zero, it does not, however, cover how to develop and maintain a formal carbon or net-zero management system which highlights its position as a high-level framework to support organisations at the start of the carbon management journey.

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<h2>Natural Carbon Solutions, Eight Versa</h2>
The purpose of Natural Carbon Solutions (NCS) is to provide businesses with a transparent way to measure, verify and evidence carbon reduction efforts. This standard covers organisations, products and events.
<h2>What are the requirements of Natural Carbon Solutions (NCS)</h2>
<h3>Measure</h3>
Under the NCS accreditation, organisations must complete a detailed assessment of all GHG emissions associated with the organisation/product/event being measured.
<h3>Reduce</h3>
NSC prioritises the reduction of emissions before any offsetting activities. The framework includes setting specific and measurable carbon reduction targets.
<h3>Offset</h3>
Offsetting emissions is considered a valid step in the journey to net-zero but only after all efforts to reduce emissions have been made. Currently, both avoidance and removal credits can be purchased to compensate for any unavoidable emissions; however looking to the future, it is likely only removal credits will be approved under this accreditation.
<h3>Document</h3>
Organisations must implement a carbon reduction plan outlining the strategies and actions required to reduce their carbon footprint. If the organisation is using carbon offsets detailed documentation must be provided evidencing the chosen project is of high quality and environmental integrity.
<h3>Drawbacks</h3>
Although this accreditation emphasises the importance of carbon reduction, there are no mandatory reduction targets in place, this could result in some organisations relying on offsets to reach net-zero.

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<h2>SBTi Corporate Net-Zero Standard</h2>
The purpose of the SBTi Corporate net-zero Standard is to guide companies in setting credible and measurable targets to achieve net-zero emissions. The Corporate net-zero Standard is suitable for any organisation but is particularly useful for those with large, complex operations and significant carbon emissions to ensure they commit to credible, science-based emission reduction targets.
<h2>What are the requirements of the SBTi CZS</h2>
<h3>Measure</h3>
Under the SBTi standard, companies are required to measure and record their Scope 1, 2 and 3 emissions.
<h3>Reduce</h3>
The standard requires organisations to reduce their greenhouse gas emissions by 90-95% by 2050 or earlier across Scopes 1, 2 and 3. 
Offset The STBi emphasises that companies must prioritise real emissions reductions and offsetting is only permitted for unavoidable emissions. The SBTi only allows for carbon removal offsets providing they do not form part of any near-term carbon reduction targets for organisations.
<h3>Document</h3>
Organisations are to document near-term (5-10 years) emission reduction targets including the percentage reduction and target years in addition to long term targets for reaching net-zero by 2050 with detailed plans for reducing emissions 90-95% across all scopes. This documentation will be formally submitted to the SBTi for validation will ensure they are aligned with the science based criteria for limiting global warming emissions.
Organisations must report annually on their emissions and progress towards meeting their targets, they are also required to publicly disclose their targets, progress and emission data.
<h3>Drawbacks</h3>
The SBTi corporate net-zero standard is a detailed initiative that requires a lot of time and resources. The standard also requires organisations to only purchase permanent carbon removal credits, which are typically more costly, and less widely available making this route less desirable and achievable for smaller businesses.

An overview of Corporate Sustainability Standards: 

<h2>Benefits to Corporate Sustainability Standards for your business</h2>
Navigating corporate sustainability standards can be a daunting process, with so many to choose from it’s difficult to know which is going to be right for your business. Understanding and adhering to these frameworks can be of great benefit to your organisation, driving greater transparency, economic benefits and the opportunity to contribute to global decarbonisation efforts.

<h2>Are you ready to take climate action?</h2>
Our team of experts can help your business tackle the hurdles of corporate sustainability standards in the UK. If this guide has inspired your business to start funding climate action, talk to our team today.

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What to expect at COP29

The annual Conference of the Parties (COP) under the United Nations Framework Convention on Climate Change (UNFCCC) continues to serve as a pivotal platform for global climate negotiations; This year is the 29th Conference of the Parties (COP29), hosted in Baku, Azerbaijan.
In this guide we’ll be covering:
<ul>
<li>What, where and when is COP29?</li>
<li>The key talking points in the run up to COP29.</li>
<li>Who is attending COP29.</li>
<li>What to expect during COP29.</li>
</ul>

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The two-week conference, scheduled for November 11th-22nd will bring together representatives from all countries that have agreed to be bound by the UNFCCC. The conference takes place annually to negotiate new measures, develop policy and review progress against the goal of limiting climate change. Below is an overview of the two-week agenda;

COP29 agenda

Azerbaijan, the host nation, has received its fair share of criticism for becoming this year’s COP president. Oil and Gas make up 92.5% of the country’s GDP per capita, and President Ilham Aliyev has stated his support for oil and gas producing nations to continue investing in the sector, clashing with last year’s COP28 outcome in which all nations called for accelerating the transition away from fossil fuels.

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<h2>The key talking points and priorities in the run up to COP29</h2>
This year, priorities are focused on climate finance, with COP29 being coined the Finance COP, this is reiterated by the programme of scheduling with Finance, Investment and Trade taking priority spot on the first day of discussions.
Energy and Science are also high on the agenda, while Nature and Biodiversity and Oceans and Coastal Zones take more of a back seat, only being scheduled for the final day before negotiations; naturally, this comes as a disappointment as this signals these areas of discussion are considered lower priority when compared with energy and finance.
It is likely momentum and attendance will decrease by the end of week two and could undermine the urgency needed to address the implications of climate change on nature globally and reduce their integration into wider climate strategies.
The following key priorities are expected to lead discussions at COP29;
<h3>New Collective Quantified Goal (NCQG)</h3>
Developing countries, particularly those most vulnerable to climate change, require substantial financial support to transition to green economies and adapt to climate impacts. COP29 aims to agree on a new commitment to provide annual climate finance to developing countries, replacing a goal of $100 billion per annum set in 2009 at COP15. The World Economic Forum states that ‘the NCQG must be ambitious yet realistic, balancing the financial capacities of developed countries with the urgent needs of developing nations’.
<h3>Growing the loss and damage fund</h3>
Established and operationalised at COP27 in Sharm El-Sheikh, the loss and damage fund acknowledges the disproportionate burden that climate change places on vulnerable nations. It is a financial mechanism that helps countries cope with the loss and damages they face due to climate change &#8211; this includes loss of life, damage to infrastructure and displacement.
At COP29, there is hope to see significant progress in the fund&#8217;s operationalisation and funding. Countries are expected to make substantial pledges to the fund to ensure it can meet the needs of developing countries. To date, major contributors include the UAE, Germany and the United States. Other big-emitting countries such as China and Saudi Arabia are yet to announce their intention to contribute to the fund.
<h3>Nationally Determined Contributions (NDCs)</h3>
At COP29, nations will be encouraged to commit to more ambitious and robust Nationally Determined Contributions; these are climate action commitments made by countries to reduce their greenhouse gas emissions and contribute to climate change mitigation, aligning with the goal of limiting global warming to 1.5 degrees Celsius.
NDCs are submitted every 5 years to the UNFCCC, and with the next global stocktake approaching NDCs are to be put forward by February 2025, demonstrating increased ambition and concrete action plans. At COP29, there is likely to be a push to provide financial and technical support to developing countries to enable them to outline and implement NDCs of their own.
<h3>Article 6 of the Paris Agreement</h3>
Article 6 of the Paris Agreement aims to promote the use of carbon markets to achieve their climate targets. At COP29 we can expect discussions with regards to how a robust and well-regulated international carbon market can be developed and maintained. A key goal of COP29 is to finalise the rulebook for Article 6, which will provide clear guidelines for its implementation, and address concerns with regards to the quality of carbon credits, double counting and sustainable development.

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<h2>Who is attending COP29</h2>
With just 2 months to go until COP29 kicks off, there has been minimal discussion with regards to which World Leaders we can expect at the event.
From the UK, Ed Miliband, the newly appointed Secretary of State for Energy and Net Zero, is confirmed to be leading UK negotiations for COP29. However, with the USA election taking place just 5 days before COP29 begins, it is unlikely that the President will be in attendance. As the event draws closer, we can expect more countries to confirm which delegates will attend.

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<h2>What to expect during COP29</h2>
An anticipated 40,000 participants are heading to COP29, almost half the number of attendees than at <a href="https://ecologi.com/articles/blog/whats-happening-at-cop28" target="_blank" rel="noopener">COP28</a> in Dubai last year; this poses the question of if bigger is necessarily better, fewer attendees reduce the environmental impact of the conferences, with the UN Climate Chief Simon Stiell <a href="https://www.climatechangenews.com/2024/04/24/peak-cop-un-looks-to-shrink-baku-and-belem-climate-summits/" target="_blank" rel="noopener">saying he hopes to see fewer people attending COPs </a>as size does not necessarily translate to the quality of outcomes. 
COP29 still presents a crucial opportunity to make significant strides in climate action, by focusing on climate finance and reaffirming climate goals, countries can collectively work together to provide the funding and tools necessary to shape the trajectory of global climate efforts.

<h2>Partner with us for COP29 and beyond</h2>
Over the next 12 months we want to support as many businesses as possible to tackle climate change.
If your business is interested in a partnership to help scale climate action or starting its climate journey during COP2 or beyond, get in touch.

Speak to our team. We're here to help you find your perfect climate solution.

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Carbon Compensation vs. Contribution - What’s the difference?

Climate change is a topic that many of us are discussing at work each day. You may have heard terms such as ‘carbon compensation’ or ‘contribution’ being used in conversations about how to take meaningful action against climate change, but what do they actually mean, and how do they differ from one another? 
We regularly speak to businesses who have similar questions and in this guide, we’ll break it all down. Here’s a quick run-through of what we will cover:
<ul>
<li style="font-weight: 400;" aria-level="1">What are the definitions of carbon compensation and contribution?</li>
<li style="font-weight: 400;" aria-level="1">What is the purpose of each approach?</li>
<li style="font-weight: 400;" aria-level="1">What mechanisms do both approaches utilise? </li>
<li style="font-weight: 400;" aria-level="1">What types of projects do they involve?</li>
<li style="font-weight: 400;" aria-level="1">What types of certification are associated with each approach?</li>
<li style="font-weight: 400;" aria-level="1">What kind of costs are associated with each approach?</li>
<li style="font-weight: 400;" aria-level="1">What role do they play in achieving net zero?</li>
<li style="font-weight: 400;" aria-level="1">What are examples of each?</li>
</ul>

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<h2>Definitions of carbon compensation and contribution</h2>
 
Carbon Compensation
Carbon compensation refers to the idea of balancing out a certain amount of carbon emissions by investing in projects that prevent or remove an equivalent amount of carbon dioxide elsewhere. This tonne-for-tonne ‘balancing’ or ‘offsetting’ is compensatory.
 
Contribution
This approach focuses on separating financial contributions from any compensatory claims. Instead, it involves directing funding to projects that will support global net-zero and nature restoration – but crucially without making compensatory claims. <a href="https://www.onepercentfortheplanet.org/join?utm_feeditemid=&amp;utm_device=c&amp;utm_term=one%20percent%20for%20the%20planet&amp;utm_source=google&amp;utm_medium=ppc&amp;utm_campaign=&amp;hsa_cam=20766754741&amp;hsa_grp=155667469859&amp;hsa_mt=b&amp;hsa_src=g&amp;hsa_ad=680329727495&amp;hsa_acc=%7B8900384824%7D&amp;hsa_net=adwords&amp;hsa_kw=one%20percent%20for%20the%20planet&amp;hsa_tgt=kwd-299092657918&amp;hsa_ver=3&amp;gad_source=1&amp;gclid=CjwKCAjwooq3BhB3EiwAYqYoEs0haU6oWnJZze5_b4QrYSQvdqPvXRSRdMCOrjloCv_URVN-RaIXIBoChu8QAvD_BwE" target="_blank" rel="noopener">1% Percent For the Planet </a>is an example of this kind of scheme.

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<h2>What is the purpose of carbon compensation and contribution</h2>
 
Carbon Compensation
Compensation is aimed at achieving a ‘carbon-neutral’ status by offsetting specific emissions through equivalent carbon reduction elsewhere.
 
Contribution
Contribution focuses on supporting and financing sustainability projects and initiatives to encourage environmental stewardship, without associating this with compensation for emissions.

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<h2>What mechanisms do carbon compensation and contribution utilise?</h2>
Carbon Compensation
Compensation is carbon-centric and relies on detailed measurement and verification processes to ensure that the projects avoid or remove the claimed amount of CO2. Whilst projects may have ‘co-benefits’, project quality and credit utility is predicated on whether the carbon dioxide benefit is being delivered.
 
Contribution
Contribution is not predicated on carbon dioxide. It involves making donations to strategic funds which are designed to produce a range of benefits for net-zero and nature restoration – but may not require rigorous CO2 measurement or verification, but other kinds of monitoring and reporting are essential to ensure benefits are being realised.

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<h2>What types of projects do carbon compensation and contribution involve?</h2>
 
Carbon Compensation
Compensation is limited to projects which generate carbon credits,  typically those that are issued to an ICROA-endorsed carbon standard like Verra, Gold Standard or Puro. It includes projects such as afforestation, blue carbon removal, landfill gas, cleaner water systems and enhanced rock weathering.
 
Contribution
Contribution can include carbon credit-issuing projects but is not limited to them. Other projects that can be financed include funding for environmental research, habitat restoration, conservation programs, reforestation projects, educational initiatives, and donations to NGOs working on climate action.

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<h2>What type of certification is associated with carbon compensation and contribution?</h2>
 
Carbon Compensation: 
Carbon compensation requires third-party verification and certification by bodies such as the Gold Standard, Verified Carbon Standard (VCS) and Puro to ensure the credibility of carbon credits. 
 
Contribution:
Contribution typically does not require certification as it is focused on voluntary financial support for environmental causes. However, reputable organisations receiving contributions may provide transparency reports or impact statements.

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<h2>What kind of costs are associated with carbon compensation and contribution?</h2>
 
Carbon Compensation: 
Costs for carbon compensation vary depending on the project type and verification costs. The price per tonne of CO2 offset can differ significantly with some being much more expensive than others.
 
Contribution: 
Contribution is usually more flexible when it comes to costs. This is because the focus is on voluntary contributions towards environmental outcomes,  rather than compensating for a specific amount of emissions.

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<h2>What role do carbon compensation and contribution play in achieving net zero?</h2>
 
Carbon Compensation:
The <a href="https://sciencebasedtargets.org/net-zero" target="_blank" rel="noopener">SBTi’s Net-Zero Standard</a> specifies that businesses must achieve a minimum 90% reduction in emissions on their path to net-zero &#8211; at which point a compensatory approach can be applied for the remaining &lt;10% of emissions which cannot be reduced directly. In this case, compensation is limited to carbon removals only, not carbon avoidance credits. To understand the difference between carbon avoidance and removal credits, <a href="https://ecologi.com/articles/blog/carbon-removals-vs-carbon-avoidance" target="_blank" rel="noopener">read our blog post here.</a>
 
Contribution:
The SBTi also promotes ‘beyond value chain mitigation’ known as BVCM. This involves a company funding climate action to support global net-zero efforts. BVCM does not count towards the organisation’s own corporate net-zero goals, however, the SBTi considers it “urgent and essential” that businesses contribute to global climate action outside of their value chain.

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<h2>Examples of carbon compensation and contribution</h2>
 
Carbon Compensation:
A company offsets its annual carbon emissions by investing in carbon credits from a landfill methane capture project that prevents an equivalent volume of emissions.
Contribution: 
A company contributes to an environmental project that works on biodiversity conservation, without claiming an offset of its own emissions. Instead, the company reports on how much it contributed, and the outcomes intended, and monitors the project’s progress over time.

<h2>Conclusion</h2>
In summary, Carbon Compensation focuses on the idea of ‘balancing’ or ‘offsetting’ emissions through purchasing carbon credits. The credits purchased are often used to offset emissions generated by businesses.  Contribution focuses on funding projects that support global net-zero goals without compensatory claims. Through supporting a contribution model, you can support a wide range of projects all offering crucial co-benefits, and in some cases, credit-issuing projects too. 
Both approaches play a critical role in supporting climate action. The Oxford Principles for Aligned Net Zero recommend a combination of carbon compensation (durable removals only)  and contribution to help maximise impact. At Ecologi, we believe that while both have their merits, prioritising high-quality, holistic climate action through a contribution-based approach is the best way to support global net-zero efforts and future-proof your sustainability strategy. This is why we created <a href="https://ecologi.com/business/ecologi-impact-funds" target="_blank" rel="noopener">Impact Funds</a> &#8211; to allow our customers to support a wide range of projects that contribute to a particular climate goal.

<h2>Why did you create Impact Funds?</h2>
Our industry is moving and evolving all the time in an effort to reach global Net Zero goals and at Ecologi we witnessed the challenges firsthand through our Impact Partners, below is a quote from our Impact Partnerships Manager, Katie; 
<blockquote>At Ecologi, our partners were extracting tree-planting costs from a wider landscape restoration project because that’s what the market wanted. We need to change this &#8211; and educate the market on the solutions our planet needs.</blockquote>
Contribution models are increasingly focused on outcomes rather than inputs and go beyond metrics such as carbon credits purchased, or the number of trees planted. These projects produce a host of diverse impacts that aren’t being captured by single metrics. Supporting projects such as landscape restoration focused on the wider strategy &#8211; in addition to tree planting, landscape restoration captures co-benefits such as increased biodiversity, improved soil health, and reduced pollution.
Interested to learn more? <a href="https://info.ecologi.com/ecologi-impact-funds/get-started" target="_blank" rel="noopener">Get in touch to find out more about our Impact Funds</a>.

Ecologi Impact Funds: A new way for businesses to support climate action in the UK and around the world

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Carbon Compensation vs. Contribution: what’s the difference?

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