Challenge 10.6

Why does this Challenge need to be solved?

With net-zero targets becoming an increasingly important goal, robust voluntary carbon market schemes such as the Woodland Carbon Code and Peatland Code have experienced a very positive growth trend. This positive trajectory has seen additional burdens placed on all involved due to a number of challenges such as administration, human resource and skills issues and the associated rising economic burden, complexity in ensuring a robust mechanism for auditable carbon credits etc.

With voluntary carbon market schemes such as these playing a vital role in driving finance into nature markets that not only help with carbon reduction, but also with improving habitat quality and abundance and the associated overall biodiversity in these ecosystems, it’s necessary to ensure that each scheme can keep pace with demand and continue to help drive these positive changes within the UK.

How will we know the Challenge has been solved?

The success of this Challenge can be measured by greater functionality and efficiency in the carbon market, in particular in the way we predict and monitor carbon sequestration and emissions reduction. There would be a reduced burden provided to each scheme, whether that’s achieved through an advance in a technical approach, or by providing a more streamlined and integrated process. The biggest indicators of success will be a reduction in economic burden for those wishing to uptake either scheme, with a much more cost effective financial commitment for the lifetime of a given project, and timely, cost-effective ‘decision-grade’ information on the likely and actual carbon sequestration or emissions reduction.

Who are the end users likely to be?

• UK Woodland Carbon Code Secretariat at Scottish Forestry

• UK Peatland Code Secretariat at IUCN Peatland Programme

• Land owners 

• Project developers

• Retail aggregators 

• Investors and carbon unit buyers

• ISO-accredited verifiers

• Wider industry stakeholders 

Has the Challenge Sponsor attempted to solve this problem before?

We are currently working with a number of different organisations that are providing services, help and support within differing areas of the codes. Examples being: creation of a new geospatial database to provide better access and provision of data held in spreadsheets, working on web based tools for onboarding of new projects, research into the use of remote sensing technologies to better perform monitoring and verification of projects. Working with validators and registries to incorporate any new technology into the project workflow. These are cutting edge challenges in the carbon market that require innovative solutions. 

Will a solution need to integrate with any existing systems / equipment?

Solutions that provide an API for third-party use will be necessary and any solutions will need to integrate with the UK Land Carbon Registry and internal systems in the Secretariat teams and verifiers. We are currently working with other third-parties that could result in their solutions requiring integrating. 

Is this part of an existing service?

The solution will improve the infrastructure/measurement technology used within the UK’s Woodland Carbon and Peatland Codes.

Any technologies or features the Challenge Sponsor wishes to explore or avoid?

CivTech is tech agnostic. As long as the proposed solution offers the opportunity to solve the Challenge in question, we will consider it.

That said, any proposed solution must be capable of integrating with existing systems as required by the specific Challenge and its Challenge Sponsor, and if appropriate be compatible with current and developing Scottish Government infrastructure.

Much is currently being made of the potential of advanced AI. In truth, just about all the products CivTech has developed over the past few years have AI as part of the tech stack but there is no obligation on your part to go down this route – either with componentry such as machine learning and pattern recognition, or indeed LLMs. 

We are looking for the best solution, whatever technology used. 

We require solutions that are practical to use and that provide sufficient rigor and effectiveness in measuring CO2 emissions reductions and removals through land-use activities.

What is the commercial opportunity beyond a CivTech contract?

Having a system(s) that can programmatically or automatically deal with administration/processes as well as measurement and transparent reporting within each of the codes at a reduced financial burden to landowners, project developers or retail aggregators. A successful outcome could release significant market potential across nature-based markets by removing a significant barrier to effective and affordable monitoring.

This Challenge is not unique to the UK so a successful solution would have commercial potential in international markets.

Who are the stakeholders?

In addition to the end users of the system mentioned above other stakeholders with an interest would include:

• Scottish Government

• Department for Environment, Food and Rural Affairs (DEFRA)

• Department for Business, Energy and Industrial Strategy (BEIS)

Who’s in the Challenge Sponsor team?

The WCC and PC secretariats at Scottish Forestry and IUCN Peatland Programme.

What is the policy background to the Challenge?

Both UK and Scottish Government policies point to the importance of creating woodland as well as restoring peatlands and to a dramatic increase in the flow of private finance into nature markets.

For example, the UK Government’s Environmental Improvement Plan set a target to grow private investment into nature in England to £500 million per year by 2027 and £1 Billion per year by 2030. Defra and British Standards Institute, through the Nature Investment Standards Programme, are creating the high-level framework in which nature markets will operate. 

Scottish Government are also committed to developing a values-led high integrity market for natural capital and have set out their Interim Principles for Responsible Investment in Natural Capital in 2022 and the 2023-24 Programme For Government committed to publish proposals for a market framework to strengthen these principles. Scottish Government’s Climate Change Plan highlights the importance of the Woodland Carbon and Peatland Codes, and the intention to reduce complexity and facilitate increased private sector investment in nature-based solutions. The plan set a target to increase the woodland carbon market by at least 50% by 2025.

This CivTech project will enable us to meet these aspirations of both the UK and Scottish Governments.