![aDryada CEO champions local leadership for biodiversity boost in economy](http://ghheadlines.com/images/default.png)
Local communities in Ghana and similar economies must be empowered to take the lead in harnessing the continent’s rich biodiversity if their economies are to realise appreciable returns, says Chief Executive Officer of aDryada, Fabio Ferrari.
With the global carbon credit market’s traded value reaching US$978.56 billion in 2022, and is expected to soar to US$2.68 trillion by 2028 at an estimated annual rate of 18.23 percent between 2023 and 2028, Mr. Ferrari envisions substantial net gains in biodiversity and socioeconomic benefits if local communities spearhead initiatives.
He stated, “In practice, it means we always make local communities the main actors,” during an interview with the B&FT.
This comes as aDryada, in September 2023, partnered with private investment manager Ardiana to finance large-scale nature-based projects offering carbon credits to the tune of €1.5 billion.
The collaborative strategy, Averrhoa Nature-Based Solutions, aims to finance projects restoring forests, wetlands, and mangroves to create natural carbon sinks capable of sequestering up to 150 million tons of carbon, generating third-party-verified carbon credits.
Mr. Ferrari highlighted the increasing global demand for voluntary carbon credits and emphasised that “high-biodiversity content is to become a prerequisite for nature-based projects to attract investors.”
The Averrhoa Nature-Based Solutions Fund, launched by Ardianand aDryada, aims to deploy the funds for projects prioritizing biodiversity, climate, and local populations, especially in emerging countries.
Numerous initiatives have been recently launched in the world to create biodiversity certificates, with his outfit in October 2022, co-founding an international association – Organization for Biodiversity Certificates – which aims to increase private financing in favour of biodiversity thanks to the creation of biodiversity certificates and the associated market.
“We indeed consider that carbon credits are a financing tool which, by nature, will always have difficulty giving the place it deserves to biodiversity ‘value’. Moreover, we are convinced biodiversity credits are much more relevant than carbon ones to finance the protection of African forests,” he explained.
“I am convinced African governments should take up this subject and collaborate on initiatives like ours to leverage their natural assets. They should participate in the definition of a financial instrument and its market from which their country and their companies could be the first beneficiaries. But also to have a level of knowledge on the subject which allows them to weigh in international discussions on the subject,” he further remarked.
Framework
To consolidate gains, countries such as Ghana must establish a clear and bankable carbon credit framework, he added. This framework should address issues such as credit ownership, taxation levels, and the potential for public-private partnerships on concessions lasting at least 40 years. The aim is to incentivize international private investors to finance projects, with biodiversity projects being remunerated through high-quality carbon credits.
However, the voluntary carbon market in Africa faces challenges, with some countries, working on regulatory frameworks while others propose conditions that could hinder project attractiveness. Mr. Ferrari pointed out the need for a balance between community inclusion, raising living standards, and ensuring profitability.
Additionally, Mr. Ferrari suggests greater involvement of African countries in defining biodiversity credits, highlighting the continent’s rich biodiversity treasury.
The post aDryada CEO champions local leadership for biodiversity boost in economy appeared first on The Business & Financial Times.
Read Full Story
Facebook
Twitter
Pinterest
Instagram
Google+
YouTube
LinkedIn
RSS