This article was amended Mar. 7 to define Bionua’s units as carbon credits with biodiversity co-benefits, rather than biodiversity credits, based on additional information provided by the company.
A Dublin-based coffee group has purchased a batch of carbon credits with biodiversity co-benefits at “over €200” per unit, to support nature enhancement and carbon capture efforts at Ireland’s Dunsany Nature Reserve.
Under the agreement, Coffeangel will invest 5% of its profits over the next five years in acquiring the credits issued by the Irish clean-tech company Bionua.
The initiative aims to remove and store a minimum of 80,000 kg of carbon from the atmosphere in its first year, while also protecting and enhancing habitats at the Dunsany Nature Reserve, the companies said in a statement.
Bionua – which refused to disclose its methodology – told Carbon Pulse that one unit represents one tonne of carbon removed from the atmosphere, and will be issued on the condition that biodiversity uplifts are observed on the ground.
The first transaction, announced on Tuesday, was completed at the end of December.
Coffeangel paid “over €200 per unit”, Bionua’s founder William Butterly told Carbon Pulse. “Payments will be made at the end of each year for the amount of carbon that has been removed and biodiversity gain that has happened on site,” he said.
“Coffeeangel signed a rolling revolving five-year agreement, but the deal is to run towards 20 years.”
Bionua harnesses technology, including satellite imaging and ground-based sensors, to measure biodiversity uplifts – both above and below ground – and carbon sequestration.
“We’re measuring two metrics for biodiversity – the electrons of the ground as they get healthier, and the insects and mammals’ movements on site.”
Credits will be independently peer-reviewed, and satellite data will be verified by a third party, German-based Control Union, Butterly said.
“Through our credits, we are giving companies the chance to make a real-world difference locally by supporting the rewilding of nature and, in so doing, combating biodiversity loss,” said Butterly.
“This is the first sale of credits of many that we envisage from our partnership with Dunsany Nature Reserve, which has the capacity to produce hundreds of credits per month for organisations, whether they are large corporates or small- and medium-sized enterprises.”
The reserve, located 35 km from Dublin, is part of the historic Dunsany Estate in Meath, and covers approximately 300 hectares dedicated to rewilding efforts.
“We are extremely proud and excited to be involved in this innovative initiative. While committing 5% of Coffeeangel’s profits is a significant investment for a small business like us, we believe this is the right thing to do,” Karl Purdy, CEO of Coffeeangel, told Carbon Pulse.
In May, Stockholm-based Swedbank bought 91 biodiversity credits generated through a domestic forestry project at an undisclosed price.
Orsa Besparingsskog, a Scandinavian-style forest cooperative in central Sweden, issued the credits, which represented conservation of high natural value areas, restoration of biodiversity, and improved forest management using continuous cover forest management methods.
While the biodiversity market is still developing, demand for credits could reach up to $180 billion annually by 2050 in a radical scenario, the World Economic Forum (WEF) estimated.
According to a report published last year by BloombergNEF, the eight most developed biodiversity crediting schemes globally covered over 800,000 has, with $8 million in funding allocated at the time.
By Sergio Colombo – sergio@carbon-pulse.com
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