Biodiversity and Climate Protection: The importance of co-benefits in climate protection projects.

What are co-benefits?

Co-benefits are additional benefits that go beyond the main goal of a climate initiative. Companies are increasingly recognising their relevance, particularly when they communicate about their investments in climate projects. In 2020, the World Bank committed to directing 35% of its investments over the following five years into climate co-benefits. It presents these investments as climate co-benefits to show how climate action and sustainable development can be meaningfully linked.

Co-benefits can include a wide range of benefits for biodiversity, water supply, social justice, the economy, health or climate resilience. Reforestation projects, for example, have immediate positive effects on human health by improving air quality, while investments in sustainable farming practices increase farmers' resilience to the effects of the climate crisis.

Emphasising co-benefits in your sustainability communication can help you gain wider support for your measures and achieve a greater impact. It can also strengthen your competitive position, increase customer loyalty and create a positive impact on society. Although the transition to a net-zero economy is one of the biggest challenges facing our society, our experience shows that issues such as the extinction of animals and plants feel more tangible to most people than the climate crisis. Do you experience it the same way?

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The power of nature-based solutions

A stronger focus on co-benefits brings nature-based solutions to the foreground. More and more companies are choosing to invest in nature-based climate projects. Unlike purely technical climate solutions, these rely on protecting, restoring and sustainably managing ecosystems. Nature-based solutions make use of plants' natural ability to take carbon dioxide from the atmosphere through photosynthesis and store it as bound carbon.

Using nature to tackle climate change can offer numerous social, environmental and economic benefits. Regenerative agriculture is an example of a nature-based solution that not only helps bind CO₂ from the atmosphere in soils, but also provides a variety of additional benefits for sustainable development. Important co-benefits include promoting biodiversity, improving soil health, increasing the water storage capacity of soils and securing our livelihoods in the long term through the production of nutrient-rich food.

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Regenerative agriculture: a way to promote biodiversity

An important additional benefit of nature-based climate projects is the protection and promotion of biodiversity. The current overuse and destruction of habitats is pushing more species to the brink of extinction than ever before in human history. In Europe, around 40% of bee species are currently severely threatened. Researchers at the University of Hohenheim estimate that losing all pollinating insects would cost Germany an average of around 3.8 billion euros per year.

The biodiversity crisis is being aggravated by the effects of climate change. At the same time, intact ecosystems teeming with different species play an essential role in tackling climate change. Researchers stress that we must look at climate and biodiversity protection together. The two systems are interdependent and only work in harmony with each other.

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Regenerative agriculture counteracts the loss of biodiversity in many ways, both above and below ground. Nature does not leave soils uncovered, and neither does regenerative agriculture. Flower strips, catch crops and undersowing ensure permanent soil cover and a wide range of food sources and shelter for insects and other animals. In addition, reduced use of insecticides protects beneficial insects. In the soil, a greater diversity of plants promotes more diverse communities of microorganisms, while reduced tillage preserves soil structure and protects meso- and macrofauna. What other benefits can you spot in the illustration above?

Promoting biodiversity is by no means the only added benefit. Regenerative agriculture can increase soil water storage capacity and improve groundwater quality by reducing nitrate runoff. A recent study has also shown that regenerative practices increase the amount of organic matter in the soil, resulting in a higher nutrient content and tastier, healthier produce. By building soil health, regenerative practices are key to strengthening the resilience of farms facing the challenges of climate change. This helps secure their future profitability and our food supply.

Are you investing in climate projects? Don't forget to consider their positive effects on sustainable development. If you would like to learn more about regenerative agriculture projects in your region, feel free to ask our team for more information.