NEW YORK — October 16, 2025 — A new collaboration between Carbon Direct and JPMorgan Chase is aiming to redefine how the voluntary carbon market values nature. The two organizations have released Optimizing for Biodiversity with Nature-Based Projects in the Voluntary Carbon Market: Principles for Pursuing Dual Outcomes, a data-driven guide to designing and evaluating projects that deliver measurable gains for both carbon and biodiversity.
A Shift Toward Dual Outcomes
Most voluntary carbon market (VCM) frameworks remain narrowly focused on carbon metrics. As buyer demand for “nature-positive” projects grows, developers and investors face mounting pressure to show credible biodiversity impact alongside emissions reductions. Carbon Direct and JPMorgan Chase describe their new framework as a blueprint for achieving both goals simultaneously, addressing the technical and governance gaps that have slowed progress.
“Investing in nature-based solutions demands both scientific rigor and local relevance,” said Dr. Sarah Federman, Vice President of Landscape Decarbonization at Carbon Direct. “Working with JPMorgan Chase allowed us to create a framework grounded in data that helps market actors design and select projects that credibly advance biodiversity and climate outcomes.”
A Science-Based Framework
Drawing on an analysis of 1,639 global VCM projects and leading registry standards, the report sets out six core principles to guide buyers and developers pursuing dual carbon-biodiversity outcomes. It translates emerging science into practical decision criteria — from project selection to measurement, monitoring, reporting, and verification (MMRV).
Among its findings: many existing projects under-report or inconsistently measure biodiversity benefits, making it difficult for investors to compare outcomes or aggregate progress. The report’s framework emphasizes integrating local ecological context, aligning biodiversity metrics with clearly defined objectives, and embedding adaptive management that allows projects to adjust strategies without diluting ambition.
Key Considerations for Nature-Conscious Buyers
The paper identifies several priorities for investors and corporate buyers:
- Center local context for global impact. Biodiversity benefits are inherently local and non-fungible; buyers should consider location-specific strategies and reporting methods.
- Ground reporting in clear objectives. Projects must specify which aspects of biodiversity they will measure — such as habitat conserved, restored, or enhanced — and use science-based MMRV systems.
- Adopt an adaptive-management mindset. Biodiversity restoration often requires flexibility; investors should allow projects to recalibrate management approaches within defined guardrails.
- Take the long view. Carbon and biodiversity outcomes operate on different timescales; credible reporting must reflect that divergence rather than forcing one-size-fits-all timelines.
Building Confidence in Nature Finance
“We were thrilled to work with Carbon Direct to establish a set of principles that help market participants pursue both outcomes,” said Gwen Yu, Head of Emerging Sustainability Issues at JPMorgan Chase. “Through this work, we hope to strengthen the voluntary carbon market and scale financing for both climate and nature.”
The methodology section of the white paper details how Carbon Direct and JPMorgan Chase applied a data- and science-driven evaluation to existing projects, testing them against criteria such as ecosystem connectivity, fragmentation, and the ecological appropriateness of species under management. The analysis was informed by conservation science, registry protocols, and alignment with evolving policy frameworks.
Toward Credible Dual-Benefit Markets
The release of the Optimizing for Biodiversity report comes at a pivotal moment for voluntary carbon markets, which are under scrutiny for transparency and impact. By providing a quantitative framework for dual outcomes, Carbon Direct and JPMorgan Chase aim to help investors identify projects that not only remove or avoid carbon but also strengthen ecosystems and deliver co-benefits for communities and biodiversity.
For policymakers and financial institutions, the message is practical and strategic: the next generation of carbon markets will need to be measurable, verifiable, and nature-aligned if they are to earn trust and mobilize capital at scale.
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