TY - JOUR

T1 - Developing regional voluntary carbon markets for peatlands

T2 - innovation processes and influencing factors

AU - Chen, Cheng

AU - Loft, Lasse

AU - Sattler, Claudia

AU - Matzdorf, Bettina

N1 - Funding Information: The preparation phase generates ideas and develops a sufficiently accurate assessment of the emissions before and after rewetting. Four event types were identified in the preparation phase: idea conception, capacity building, obtaining seed funding, and core team building. Despite the concepts having been conceived much earlier, in MoorFutures, the newly established greenhouse gas emission site types (GEST) approach provided the capacity to estimate GHG emission reductions. A similar form of capacity building was observed in Valuta vor Veen where the ‘Green Deal National Carbon Market’ agreement enabled the creation of regional VCMs. The Frisian Nature and Environment Federation spearheaded Valuta vor Veen and developed its standard with funding from the Friesland government. For Hiilipörssi, the core team also built capacity and conducted numerous workshops to find resources. All cases received seed funding from government or foundation grants to nurture their ideas. While the idea of Hiilipörssi was conceived in 2008, it was not implemented with funding from the Kone Foundation until 2017. In core team building, innovators identified members with complementary resources to push the idea forward. In Valuta vor Veen, local stakeholders and implementers were recruited (Noardlike Fryske Wâlden, It Lege Midden, and LTO Noord) as practical partners from the very beginning. Hiilipörssi recruited designers of user interfaces and marketing managers for fundraising.

PY - 2023

Y1 - 2023

N2 - Integrating peatland restoration measures with climate policy is critical for meeting climate targets, but the current policies often fall short of utilizing the large potential that exists. Despite growing private sector interest, few regional voluntary carbon markets for peatlands have emerged worldwide. In this study, we explore three pioneering examples from Europe. From the perspective of social innovation, we aim to provide clarity on how these innovations emerged and developed, which actors drove the innovation process by assuming which roles, and which factors fostered or hindered the development. We do so by mapping the innovation process using Process Net-Map. The results show that all three cases have followed remarkably similar patterns in their innovation processes. Four phases, i.e. preparation, definition, refinement, and up-scaling were identified, as were actors’ roles as innovators, promoters, intermediaries, implementers, and knowledge providers. However, the case studies are very different with regard to which actor constellation drove the innovation process: MoorFutures is driven by public and scientific actors, Valuta vor Veen is promoted by civil society actors in consultation with practitioners, and Hiilipörssi shifted from civil society to private actors. The governance modes, that is, actor constellation and their goals, have led to differences in concept, robustness of methodology, mitigation measure, and possibly potential for up-scaling. Our study indicates that the timing of interventions when actors with certain roles stepped in can accelerate the innovation process. Important political, economic, technical, and social factors influencing the innovation process, especially knowledge and trust accumulated between some key actors, are outlined. Key policy insights Private funding for regional voluntary carbon markets (VCMs) can tap the climate mitigation potential from peatlands, which is not currently adequately addressed by governments. Actor constellation drove the innovation process, leading to different concepts, methodologies, and mitigation measures. The timing of interventions by actors, notably providing seed funding, network, expertise and visibility, was critical for success. Building trust for regional VCMs requires not only a robust methodology to calculate emission reductions but also partnership and endorsement. The future development of climate policy on peatlands could be a decisive factor in regional VCMs.

AB - Integrating peatland restoration measures with climate policy is critical for meeting climate targets, but the current policies often fall short of utilizing the large potential that exists. Despite growing private sector interest, few regional voluntary carbon markets for peatlands have emerged worldwide. In this study, we explore three pioneering examples from Europe. From the perspective of social innovation, we aim to provide clarity on how these innovations emerged and developed, which actors drove the innovation process by assuming which roles, and which factors fostered or hindered the development. We do so by mapping the innovation process using Process Net-Map. The results show that all three cases have followed remarkably similar patterns in their innovation processes. Four phases, i.e. preparation, definition, refinement, and up-scaling were identified, as were actors’ roles as innovators, promoters, intermediaries, implementers, and knowledge providers. However, the case studies are very different with regard to which actor constellation drove the innovation process: MoorFutures is driven by public and scientific actors, Valuta vor Veen is promoted by civil society actors in consultation with practitioners, and Hiilipörssi shifted from civil society to private actors. The governance modes, that is, actor constellation and their goals, have led to differences in concept, robustness of methodology, mitigation measure, and possibly potential for up-scaling. Our study indicates that the timing of interventions when actors with certain roles stepped in can accelerate the innovation process. Important political, economic, technical, and social factors influencing the innovation process, especially knowledge and trust accumulated between some key actors, are outlined. Key policy insights Private funding for regional voluntary carbon markets (VCMs) can tap the climate mitigation potential from peatlands, which is not currently adequately addressed by governments. Actor constellation drove the innovation process, leading to different concepts, methodologies, and mitigation measures. The timing of interventions by actors, notably providing seed funding, network, expertise and visibility, was critical for success. Building trust for regional VCMs requires not only a robust methodology to calculate emission reductions but also partnership and endorsement. The future development of climate policy on peatlands could be a decisive factor in regional VCMs.

KW - Carbon credits

KW - ecosystem markets

KW - governance

KW - organic soils

KW - payments for ecosystem services

KW - social innovation

UR - http://www.scopus.com/inward/record.url?scp=85144732416&partnerID=8YFLogxK

U2 - 10.1080/14693062.2022.2160300

DO - 10.1080/14693062.2022.2160300

M3 - Article

AN - SCOPUS:85144732416

VL - 23

SP - 238

EP - 253

JO - Climate Policy

JF - Climate Policy

SN - 1469-3062

IS - 2

ER -