Meaningful Incentive System or Unacceptable Double Counting?
On May 14, 2024, in collaboration with the Innosuisse Flagship DeCIRRA, a groundbreaking dialogue platform was held with over 40 participants, focusing intensively on CO2 storage in timber construction and its accounting on the voluntary carbon market. The event aimed to build an understanding within the industry of the basics, system boundaries, and definitions related to the voluntary carbon market, and to provide information on the distinction from the regulated market.
Dr. Sebastian Rüter, from the Thünen Institute, explained the climate relevance of timber use and placed it within a climate policy context. He clarified that wood products, in the context of LULUCF (Land Use, Land-Use Change, and Forestry), are considered an extension of forest performance. He also emphasized that the forest plays a crucial role as a carbon sink and that inventories are essential to determine the net effect. Carbon Certification as a Climate Policy Instrument: He emphasized that carbon certification in the voluntary market can help promote carbon reduction activities and combat greenwashing. It was made clear that the presence of carbon sinks is not automatically climate-relevant and that the price of CO2 can play an important role in avoiding emissions, which, according to Rüter, should fundamentally be the priority.
It was highlighted that carbon certification should be viewed as an incentive instrument for the private sector and not equated with accounting as evidence for national greenhouse gas management.
The keynote was rounded off with inputs from:
Dr. Gianfranco Guidati, ETHZ, who explained the relevance of CO2 storage in timber construction using a model that compares various negative emission technologies and their relevance for achieving net-zero targets;
Frank Vasek, Timber Finance Initiative (TFI), who informed participants about the standard for carbon storage in buildings for the voluntary market, which TFI is developing, and highlighted, among other things, its requirements for baseline calculation and proof of additionality; and
Brigitt Hausammann and Mathias Bürgi, Post CDR AG, who demonstrated, using the practical example of Swiss Post, the targets companies need to achieve and the path chosen by Swiss Post.
The dialogue platform helped define further steps for the DeCIRRA Flagship, shed light on the carbon market jungle with important definitions, and provided impulses for the future of CO2 storage in timber construction.
For more information about the Innosuisse Flagship DeCIRRA: https://decirra.ch/
Many thanks to all participants for their inputs and active participation!
Feedback, input, and questions about the future and work topics are very welcome.
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