We work on a revenue-sharing basis with the local communities and by planting fruit and nut trees alongside native species, we create an additional source of revenue for them through these yields. Our nature-based projects also create jobs for the locals and provide training by fostering a strong relationship with them and the local partners. Our projects also provide other social and economic benefits, like borehole and infrastructure development, time saved for families in gathering firewood, and educational funds for school children.

We establish a robust framework in line with internal certification standards with the technical team from the start of a project when we decide on the work undertaken. This planning document provides all the potential threats and risks that we may encounter throughout the project. And action scenarios based on these, are determined with all our stakeholders and included in the framework. This ensures all the potential risks are identified and managed accordingly. Risk Management and monitoring are a critical part of the process we follow to ensure the ongoing success of the projects.

We provide flexibility on how we structure the investment and have identified 3 main structures as per investors' interests:

1. Offtake Agreement on the carbon credits
2. Investment in a SPV at project-level
3. Investment on Group-level - Green bonds.

Individuals and companies worldwide are recognising the importance of reducing their carbon emissions. As a result, many are reducing their carbon footprint through energy efficiency and other measures. However, it is impossible to achieve net zero by only reducing your carbon footprint. There is a need for a flexible and scalable mechanism to achieve these ambitious goals. This is where carbon dioxide (CO₂) offsetting or compensation comes in.

It is a way to give back to nature. Carbon credits (or carbon units) allow entities to neutralise their emissions through nature-based solutions. It can be focused around reforestation, afforestation, ecosystem restoration, and other projects that directly affect nature, communities, and wildlife.

Companies and individuals are keen to contribute to the environment. Carbon and biodiversity credits help individuals and companies turn their values into a tangible action plan and give back to nature at scale. While there is interest from a Corporate Social Responsibility (CSR) point of view in contributing to nature conservation, this interest has increased over the past years due to the need to reduce and offset carbon emissions. CO2 compensation is done either on a mandatory or voluntary basis for CSR and public relations.

DGB verifies its carbon dioxide (CO₂) credits according to Gold Standard and the Verified Carbon Standard (VCS) methods.

The VCS programme is the world's most widely used voluntary carbon-offset programme. Nearly 1,700 certified VCS projects have collectively reduced or removed more than 630 million tonnes of CO₂ and other greenhouse gas emissions from the atmosphere.

Projects developed under the VCS programme must pass a rigorous review process to be certified. VCS projects cover many sectors, including renewable energy, such as wind and hydropower projects, forestry, deforestation prevention, and others. 

We check all our projects for additionality, sustainability, and non-leakage. Additionality: Additionality requires the forest project to sequester more carbon dioxide (CO₂) than in a 'business as usual' scenario. The project must demonstrate that the carbon sequestration would not have happened without the development of the specific offsetting project. Sustainability: Sustainability requires that CO₂ removal improvements be maintained for up to 100 years. To demonstrate sustainability, each project must undergo external verification of inventory reports and a site visit every six years during the project life (±25 years). Non-leakage: Leakage from carbon offset projects occurs when the reduction of CO₂ in one area results in an unintended increase in CO₂ emissions in another location. Project managers must demonstrate that their project does not cause excessive leakage, essentially wiping out the increase in CO₂ removal from their project.

The voluntary markets are the general name for all voluntary verified carbon emission reduction offsets. The main objective for acquiring Verified Emission Reduction (VER) credits is to neutralise your carbon footprint, mainly motivated by Corporate Social Responsibility (CSR) and public relations. The voluntary carbon market (VCM) allows private investors, governments, non-governmental organisations, and businesses to purchase carbon credits to compensate for their emissions voluntarily and invest in nature. Companies can purchase carbon units from verified suppliers or directly from project developers to neutralise their environmental impact.

As efforts increase to make the global economy carbon neutral, the demand for voluntary carbon offsets could continue to rise. Based on the stated demand for carbon credits and demand forecasts from experts researched by the Taskforce on Scaling Voluntary Carbon Markets (TSVCM), McKinsey & Company estimates that the annual global demand for carbon credits could reach as much as 1.5 to 2.0 gigatonnes of carbon dioxide (GtCO2) in 2030 and 7 to 13 GtCO2 in 2050.

Depending on different price scenarios and their underlying drivers, the market size in 2030 could be between $5 billion and $30 billion on the low side and over $50 billion on the high side. while the primary market of the voluntary carbon offsetting market is expected to be worth up to €100 billion by 2030.

The TSVCM, sponsored by the Institute of International Finance (IIF), estimates that the demand for carbon credits could increase by a factor of 15 or more by 2030 and by a factor of 100 by 2050.

The price of a carbon credit differs per type of CO₂ offset and changes depending on the underlying projects. The most important factors in determining the price of a carbon credit are:

• Type of project (afforestation/reforestation, avoided conversion, or improved forest management).
• Project vintage (the year of compensation).
• Additionality (Additionality requires the forest project to sequester more CO₂ than in a 'business as usual' scenario. The project must demonstrate that the CO₂ sequestration would not have happened without the development of the specific offsetting project.)
• Project location.
• Community aspects.
• Biodiversity aspects. 
• Demand and supply.
• Various other factors can also affect the price.

We invite companies and organisations worldwide to take joint action in protecting and restoring nature, biodiversity, and ecosystems. We are confident that the highest impact is created only when we work together for a safe and healthy planet for generations to come. Below we've outlined some of the great case studies about companies that invested in nature and offset their carbon emissions through the voluntary carbon market: 

• Amazon: https://www.green.earth/net-zero/case-studies/amazon-how-nature-based-solutions-drive-net-zero-carbon-goals 
• Microsoft: https://www.green.earth/net-zero/case-studies/greening-the-blueprint-microsofts-2030-carbon-negativity-roadmap 
  

• Starbucks: https://www.green.earth/net-zero/case-studies/starbucks

• Unilever: https://www.green.earth/net-zero/case-studies/unilever

• Marley Spoon: https://www.green.earth/net-zero/case-studies/marley-spoon

• ING Group: https://www.green.earth/net-zero/case-studies/ing-group

• Aegon: https://www.green.earth/net-zero/case-studies/aegon

• Adyen: https://www.green.earth/net-zero/case-studies/adyen

• Lidl: https://www.green.earth/net-zero/case-studies/lidl