Key Takeaways:
- Terraformation and Grosvenor’s UK property business have partnered to sell initial Verified Carbon Units (VCUs) from the Seed to Carbon Forest Accelerator.
- The partnership will deliver 15,000 tCO2e by 2030 by reforesting mangroves in Keta Lagoon, Ghana, with payments based on project milestones.
- The project, known as Regenerative Development of Anlo Wetlands (ReDAW), aims to restore 1,536 hectares of mangroves and provide significant community benefits.
- The initiative is expected to sequester over one million tCO2e by 2064 and support local employment and environmental resilience.
- Grosvenor Property UK is committed to reducing emissions and sourcing high-quality carbon credits to achieve net-zero goals by 2025.
Terraformation, the native forest restoration company founded by former Reddit CEO Yishan Wong, has partnered with Grosvenor’s UK property business to launch the initial sale of Verified Carbon Units (VCUs) from Terraformation’s Seed to Carbon Forest Accelerator. This collaboration involves reforesting mangroves in Keta Lagoon, Ghana, with an investment expected to deliver 15,000 tCO2e between now and 2030. The average price per tonne is just below $50 (USD), with payments structured around project milestones to facilitate the scaling of forest restoration efforts over the first two years. The project aims to sequester over one million tCO2e by 2064.
Regenerative Development of Anlo Wetlands (ReDAW)
The mangrove restoration project, known as Regenerative Development of Anlo Wetlands (ReDAW), is implemented by ReDAW Ltd and ReDAW Foundation. It will restore 1,536 hectares of mangroves on degraded wetlands, significantly benefiting local communities. These benefits include training 350 local people and creating full-time jobs, with over 50% of the positions held by women, to plant and care for the mangroves and broader ecosystem. The project also includes regenerative aquaculture, agriculture, and apiculture (beekeeping), enhancing food security, environmental resilience, and resource management for the chiefs, elders, and local communities.
Joella Korczak, Chief Programme Officer at ReDAW, emphasized the project’s impact: “The land in this area is prone to floods in the wet seasons and extended drought periods in the dry season. Restoring mangrove forests offers flood resilience through natural water management. The improved ecological function and enhanced fisheries resulting from more mangroves contribute to increased food production, ensuring better food security for the community. Restoring and preserving mangrove ecosystems will enhance community well-being while creating alternative livelihoods.”
Commitment to Nature-Based Solutions
The ReDAW project showcases Terraformation and Grosvenor’s dedication to nature-based solutions, addressing ambitious climate and biodiversity goals through strategic investments. These efforts aim to expand capacity and ensure high-quality standards in the voluntary carbon market. The project is listed on Verra, with potential expansion to restore an additional 8,445 hectares in the Keta Lagoon area.
Grosvenor Property UK is notable for being the first European real estate company with a validated long-term science-based target and a published offset strategy. The company has already achieved a 32% reduction in emissions across all scopes and is committed to sourcing high-quality carbon credits with strong co-benefits by 2025. This initiative supports their climate-positive approach on the pathway to net zero.
Seed to Carbon Forest Accelerator’s High-Quality Projects
The ReDAW project represents the first VCU sale from Terraformation’s Seed to Carbon Forest Accelerator. This biodiversity-focused, carbon-funded program supports global forestry teams in developing native reforestation projects. Participants receive early-stage investment, feasibility assessments, training in native seed collection and storage, and other capacity-building techniques. These projects aim to restore trust and transparency in the voluntary carbon market by creating high-integrity forestry projects that benefit local ecosystems and communities.
Yishan Wong, CEO of Terraformation, highlighted the significance of their approach: “On average, only 11 new reforestation or afforestation projects enter the market a year, and out of those, only a few are native-species restoration projects. Our Accelerator combines the speed and scale that Silicon Valley is known for with forestry expertise to unlock access to funding and provide training, tech, and seeds to start creating a forest before a single tree goes into the ground.
“Companies like Grosvenor, which are investing upfront to build new forests – not just buying credits from trees already sequestering carbon – signal their commitment to making an impact and a significant investment in their climate and nature targets. I hope to see many other companies follow suit.”
Community Benefits and Environmental Impact
The Accelerator has guided 14 native reforestation projects, with 12 more planned by the end of 2024, aiming to restore nearly 25,000 hectares of biodiverse forests. These projects offer economic benefits to local communities that steward the forests. Grosvenor’s commitment to beyond-value-chain mitigation projects emphasizing community benefits, biodiversity, and transparency sets a high standard for corporate climate investors.
Andy Haigh, Director of Climate Positive Solutions at Grosvenor, affirmed the company’s dedication: “Absolute emissions reductions remain our priority, but corporations cannot ignore the more difficult emissions to reduce. We are committed to long-term sourcing high-quality carbon offsets. We want to work with partners with integrity and deliver significant environmental and community co-benefits through the projects we support. We see value in helping to develop and scale projects because early-stage funding is desperately needed for the sector to grow, plus it allows us to be more selective in finding projects that meet our due diligence criteria. We have been impressed with Terraformation’s integrity in developing this project and look forward to working with them in its delivery.”
Investment in Mangroves for Ghana’s Coastal Communities
Mangroves play a critical role in Ghana’s coastal communities, providing opportunities for sustainable livelihoods that boost local economies. However, rapid coastal development, deforestation for agricultural purposes, and increased use of timber for fuel threaten these vital ecosystems, contributing to Ghana’s 30% forest loss in the past 20 years.
Lawrence Tetteh Oclo, District Manager of Keta Lagoon-Ramsar Site of the Wildlife Division of the Forestry Commission, emphasized the importance of reforestation initiatives: “Our focus on supporting increased investments in reforestation initiatives is to position Ghana as a hub for innovative green projects like ReDAW. These projects offer substantial economic benefits, driving sustainable development and job creation, and contribute to the fight against climate change. Replanting and restoring degraded mangrove forests help reverse the damage caused by deforestation and contribute to Ghana’s pledge to restore 2 million hectares of deforested and degraded land by 2030.”
Image provided by Terraformation
