Nature-based Carbon Credits and Debt-for-Nature Swaps as part of a Climate Agenda for the Global South

About one-third of all human greenhouse gas (GHG) emissions come from food and agriculture. Rising temperatures, combined with drought and floods, have exacerbated soil degradation and erosion, thereby threatening food security. This particularly affects vulnerable groups in the Global South. How can we improve revenue models of farmers so that they can make the transition to sustainable farming practices while making soil healthier and fighting climate change? Carbon sequestration in trees, planting, pasture and soils are a potential income source for farmers through the use of verifiable and creditable carbon markets. By making the voluntary carbon market accessible to farmers, new business models can be developed. Potentially this entails a large trade between the Global North and the Global South that improves the living conditions of vulnerable groups in the Global South. This way, nature-based carbon solutions also contribute to a more inclusive food system. Combining debt-for-nature swaps and nature-based carbon solutions allow even greater impact. The G20 can spearhead international collaboration necessary to scale both regenerative agriculture projects including a carbon credit mechanism as well as the use of debt-for-nature swaps. When it comes to boosting the supply of nature-based carbon solutions, the G20 could lead a coalition of national governments, non-governmental organizations (NGOs) and business that helps to establish developing standards and organize the shift from the existing individual or ‘bundled’ projects to more jurisdictional/regional or commodity-wide solutions. Also, the G20 should encourage private markets to undertake climate and nature actions and also fund projects in low-income countries. To encourage greater consideration and use of debt-for-nature swaps, the G20 could work with the IMF and World Bank to work on a standard framework based on best practices. By fostering equitable resource allocation, supporting vulnerable nations with technology and financial aid, and promoting sustainable practices, the G20 can lead efforts to mitigate environmental and income disparities.