Supporting the carbon market.
The Accounting for Nature® Framework can be a powerful tool in the carbon market by providing a standardised, and scientifically rigorous approach to quantify and demonstrate the co-benefits of carbon projects. The Framework helps ensure that environmental improvements linked to carbon projects are measurable and verifiable.
Accounting for Nature is developing rules for existing and future Environmental Account holders who wish to digitally link their Certified Environmental Account (Independent Audit) with a carbon project to demonstrate co-benefits. These rules will define how an Asset Account should be stratified when the Carbon Estimation Area (CEA) is located in the Asset Account boundary. To assist account holders in the meantime, interim rules are available. below.
Existing accounts created prior to the publication of these new rules can be grandfathered upon request, provided that future updates to these accounts comply with the new linking requirements. Accounts registered after the rules are implemented will need to meet all outlined criteria.
Accounting for Nature strongly encourages all prospective account developers intending to link accounts with carbon projects to contact us before choosing and implementing an Accredited Method. This ensures the account is properly designed and meets all the necessary standards from the start.
How does our Framework support the carbon market?
Enhanced credibility and verification
The Framework offers a robust, independent audit process that ensures the environmental benefits of carbon projects are accurately measured and reported. This can enhance the credibility of carbon credits generated, making them more attractive to buyers who value verified co-benefits.
Demonstrating Co-benefits
Carbon projects often deliver additional environmental benefits beyond carbon sequestration, such as improved biodiversity, water quality, and soil health. The Accounting for Nature® Framework provides a clear methodology for measuring these co-benefits, offering a comprehensive view of a project's positive impact on the ecosystem.
Attracting investors and buyers
With increasing demand for high-quality carbon credits, projects demonstrating verified co-benefits are more likely to attract premium prices. Investors and buyers are increasingly looking for carbon credits that not only offset emissions but also contribute to broader environmental and social goals. Using the Accounting for Nature® Framework helps meet these expectations.
Compliance and reporting
The Framework ensures that carbon projects comply with international standards and reporting requirements. This can be particularly important for projects seeking certification under various carbon standards (e.g., Verified Carbon Standard, Gold Standard), which often require detailed co-benefit documentation.
Market differentiation
Projects that utilise the Accounting for Nature® Framework can differentiate themselves in the carbon market by showcasing their comprehensive approach to environmental stewardship. This differentiation can help projects stand out in a crowded market, attracting more attention and investment.
Long-term sustainability
By incorporating a holistic view of environmental health, the Framework supports the long-term sustainability of carbon projects. Projects that contribute to ecosystem resilience and health are more likely to deliver lasting benefits, thus maintaining their value over time.
Stakeholder engagement
The Framework's transparent and rigorous approach can help engage and reassure stakeholders, including local communities, regulators, and conservation organisations. Demonstrating a commitment to thorough environmental accounting can build trust and support for carbon projects.
Interim rules for supporting the carbon market with Certified Environmental Accounts.
Certified Environmental Accounts under the Accounting for Nature® Framework have applied robust and scientifically rigorous methods to measure the condition of environmental assets. As the carbon market evolves, these accounts are increasingly recognised for their potential to support carbon projects, particularly in demonstrating environmental co-benefits, such as biodiversity enhancement, that can accompany carbon abatement activities.
Making claims
Only Independently Audited Certified Environmental Accounts may be used to support a public claim referencing ‘Accounting for Nature’ or the ‘Econd®’ when linked to a carbon project. All claims must strictly follow the Accounting for Nature® Claims Rules, ensuring they are accurate, specific, transparent, and not misleading.
This applies to any instance where Environmental Accounts or the Econd® are used to highlight the environmental co-benefits of a carbon project. Claims related to carbon units or projects can only be made if the Environmental Account was explicitly developed to verify these co-benefits.
Understanding the Econd® and its role
The Econd® is a single number, ranging from 0 to 100, that represents the condition of an environmental asset. A key advantage of Accounting for Nature® Certified Environmental Accounts is their ability to showcase improvements in the state of nature, as reflected by an increase in the Econd®. When an uplift in Econd® can be credibly linked to a carbon project's activities, it can significantly enhance the overall value of the project.
To fully assess the impact of a carbon project on nature, it’s important to track Econd® trends over time. Many Certified Environmental Accounts currently only have one measurement point, which means trend data may not be available.
However, it is important to note that a high Econd® score alone does not indicate an improvement in environmental condition unless supported by trend data, demonstrating real progress in asset health over time.
The importance of linking rules
Accounting for Nature is developing new rules to formally connect Environmental Accounts with carbon units. These carbon linking rules will ensure that Environmental Accounts are integrated with carbon unit standards, making it possible to verify and attribute improvements in environmental conditions to carbon projects in a credible way. This step is critical for protecting the integrity of the carbon market by preventing the misuse of environmental data and ensuring that carbon credits reflect scientifically validated outcomes.
These rules will play a key role in ensuring that any environmental uplift associated with carbon projects is measurable, transparent, and backed by credible data.
Compliance and future developments
As the carbon market continues to grow and evolve, standards and compliance requirements are changing too. To keep pace, Accounting for Nature is developing compliance frameworks for public claims made about Certified Environmental Accounts in relation to carbon projects. These frameworks will provide clear guidelines to ensure that all claims are credible, reliable, and meet industry expectations.
As we continue to advance these standards, it’s essential that all stakeholders in the carbon market remain informed and aligned with the latest Accounting for Nature® Standard and Claims Rules. Certified Environmental Accounts offer a unique opportunity to demonstrate the environmental integrity of carbon projects, and with the right compliance measures in place, they will become even more important in shaping the future of carbon trading.
Note: Accounting for Nature reserves the right to decertify accounts if false or misleading claims are made.
Contact us
If you're uncertain whether a claim can be made, please contact us—we’re here to help.