Carbon projects are gaining attention as a promising way to contribute to climate action. As we face the urgency to lower global temperatures, involving market mechanisms offers a complementary approach to political commitments by providing alternative financing for mitigation efforts. Nature Based Solutions (NBS) carbon projects are estimated to be able to reduce up to 10 gigaton of CO₂ emission by 2050.¹ However, initiating a carbon project is no simple task. Developers often face numerous challenges that can make the process feel overwhelming.

Understanding Carbon Project Development Challenges

1. High Technical Barriers

   The complexity of the carbon project registration process can be daunting. With a range of technical requirements to understand, it can be challenging for developers to master everything needed to get a project off the ground. Nevertheless, this technical expert is important to realize the true value of the land owned - identifying the opportunity cost of the land requires an understanding of the right methodologies and entire flow to get verified carbon credits.

2. High Capital Expenditure

   Starting a carbon project often demands significant upfront investment, not only for the long-term maintenance of the project but also to conduct the necessary analyses and collect primary data. According to our research, the cost of preparing a Project Design Document (PDD) could be more than $300,000 USD. This high cost, with combined with the nature of high risked project with a very niche market, makes getting a source of investment relatively difficult. Additionally, a carbon project lifetime can take between 20 to 50 years, which adds to the risk for investors and makes funding more challenging to secure.

3. Ensuring High Integrity

   Recent scrutiny around the effectiveness of carbon projects has led to an increased focus on project integrity. Stricter regulations and higher expectations today require developers to comply with the latest standards but also demonstrate full transparency to funders and local communities. Additionally, they must deliver on every promise made in the project design document, from environmental impacts to community benefits, to maintain credibility and trust.

Why Pre Feasibility Studies Are Critical for Success

Before entering the carbon market, projects must meet specific criteria to qualify for carbon credit generation. For Nature-Based Solutions (NBS) carbon projects, this typically involves submitting a comprehensive Project Design Document (PDD) to registry standards. The PDD process typically takes at least 1 to 3 years to complete, depending on the complexity of the project.² Along with the lengthy timeline, significant financial resources are needed for project development and data collection. This makes it crucial to assess a project's viability early on to avoid costly commitments. This is where pre-feasibility studies play a vital role.

By leveraging secondary data and available information, developers can quickly gauge a project’s potential without bearing the full cost of primary data collection. Pre-feasibility studies help project developers forecast the value of their land in terms of Verified Carbon Units (VCUs) and projected revenue, as well as address the potential risks that the project's proponent might need to consider in the later stages of the project development.

With advancements in technology, there is now an alternative to the conventional approach of conducting pre-feasibility studies. Instead of relying on the lengthy process of manual calculations and traditional methods, Fairatmos provides automated tools that deliver comprehensive insights into project areas more efficiently. These tools allow developers to assess land eligibility and estimate potential VCUs and revenue more efficiently. This also gives them a comprehensive understanding of their project's potential without the need for time-consuming, resource-intensive methods.

Transform Your Pre-Feasibility Study with AtmosCheck

AtmosCheck is designed to simplify and enhance the pre-feasibility study process. How do we do this?

1. We developed a robust algorithm that checks project eligibility by evaluating over 100 standard criteria available, including Verra, SRN, Plan Vivo, and Gold Standard. This ensures that your project is aligned with the best and most up-to-date methodology for its specific needs.
2. We speed up the land cover analysis process. Using our machine-learning-powered algorithm processes the latest satellite images with estimated of 90% accuracy, allowing you to evaluate the land cover changes in just three seconds instead of three months.
3. AtmosCheck offers an easy, streamlined process with comprehensive results. Our platform allows you to organize, analyze, and report on raw data, transforming it into detailed monitoring reports covering climate, biodiversity, and community insights. This provides you with a clear, actionable overview to move your carbon project forward confidently. Our AtmosCheck Basic Plan provides you with these result for free:
   1. The potential project area map based on the area given by the user
   2. Potential VCU production
   3. Potential additionality based on the current baseline condition
   4. Potential revenue projections based on current carbon credit market trends and pricing

While seemingly straightforward, this information forms the foundation of your project planning. These essential details provide a comprehensive overview, enabling you to grasp the fundamental aspects of your potential carbon project. By starting with this information, we equip you with the necessary insights to make well-informed decisions as your project evolves. Consider this the first step in building a solid foundation for your carbon project journey ahead! 

Contact us here and find out more about Atmoscheck

 

References;

1. https://iucn.org/news/nature-based-solutions/202111/keep-global-warming-below-15degc-a-significant-contribution-nature-based-solutions-necessary-and-possible-report-unep-and-iucn
2. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://www.fao.org/4/i1632e/i1632e03.pdf