Current status and prospects for the development of incentives for nature-based solutions in Spain

In the face of the global climate and environmental crisis, Nature-Based Solutions (NBS) are one of the mitigation tools with the most opportunities for development.

Markets and investors value investment in NBS as key areas to achieve their voluntary mitigation commitments and contributions.

Spain has ample potential for the development of BNS, there is available land for its implementation, its direct benefits are aligned with the policies of ecological transition and demographic challenge, and there is ample demand from national and international organizations.

However, at present, the demand for certified climate benefits originating in Spain is not covered by the supply. The current system for national compensation does not have sufficient supply, both in quantitative and qualitative terms, and the market is being developed outside of regulation through bilateral agreements. Likewise, there are no initiatives registered under the international standards of the voluntary carbon market.

In this document, we propose a series of actions that, being executed in parallel, will allow the dynamization of the voluntary emissions compensation market as a catalyst for the positioning of Spain as a reference in the development of BtS at European level:

1) Promote investment from the private sector for the development of projects that can create the supply of carbon credits in the short term, orienting it towards both the national and international markets.

2) Take advantage of the negotiation of certification rules at the European level to develop a disruptive transformation of the system that allows the use of the national surplus of forest land absorption as a base element in the creation of supply.

3) Review existing regulations to ensure the environmental integrity of projects, expand the activities allowed, increasing transparency and traceability and taking into consideration the different climatic realities and impacts generated by the different projects.