Eyes in the Sky, Roots in the Soil: Innovations in Monitoring Nature-Based Carbon

For years, nature-based carbon projects have been proven as a powerful way to compensate for emissions and restore ecosystems. Forests, wetlands, and soils all have the remarkable ability to draw carbon out of the atmosphere and lock it away. But, how do we know the carbon is really being stored—and for how long?

Drones surveying wetlands from above. AI generated picture.

This question has become the crux of the credibility challenge facing voluntary carbon markets. In 2023, an investigation alleged that over 90% of certain rainforest carbon offsets were essentially ineffective. The news sent shockwaves through the sector, fueling scepticism and driving a decline in trading. The message was clear: Without trustworthy monitoring and verification, carbon units risked being dismissed as little more than accounting tricks.

Nowadays, a new wave of technology is changing the game. Satellites that can count trees from space, drones that map forests at centimetre resolution, sensors that measure soil carbon in real time, and blockchains that create tamper-proof credit records—these innovations are reshaping how we track nature-based carbon sequestration. Together with advances in artificial intelligence and even DNA analysis of soil, they are ushering in a new era of digital Measurement, Reporting, and Verification (dMRV), designed to replace trust-without-proof with trust backed by transparent, real-world data.

This blog explores the innovations powering that shift—and why they matter for anyone investing in or relying on carbon units.

Why Verification Matters: High-Integrity Units Need Robust MRV

A carbon unit represents something very simple: 1 tonne of carbon dioxide removed from, or prevented from entering, the atmosphere. But in practice, proving this promise is complex—and that complexity has become the market’s biggest vulnerability.

Illustration showing one tradable certificate used to offset one tonne of carbon emissions.

This understanding gap is why robust Monitoring, Reporting, and Verification (MRV) is non-negotiable. Without rigorous, transparent data, carbon units risk being seen as greenwashing—good for marketing, but meaningless for the planet. 

The upside is just as powerful: When a project can prove its impact with credible evidence, buyers are willing to pay more. High-quality MRV doesn’t just safeguard integrity; it creates value by turning environmental action into a credible, investable asset class.

Recent Innovations in Monitoring & Verification

If carbon units are only as good as the proof behind them, then the tools we use to measure, report, and verify carbon sequestration are the real linchpin. The good news? The toolbox has expanded dramatically in recent years, bringing precision, transparency, and scalability to projects in forests, farms, and wetlands. Here are the most exciting innovations shaping the next generation of MRV.

Satellites and Remote Sensing

Not long ago, satellite images could barely tell a forest from a field. Today’s orbiting eyes can identify individual trees and even estimate their carbon content using high-resolution optical data, hyperspectral imaging, and radar. When combined with LiDAR, satellites can map forest canopy structure in 3D, improving accuracy in estimating above-ground biomass. Platforms like Pachama already integrate satellite and LiDAR data with AI models to monitor forests in near real time, providing far more accurate and frequent verification than the five-year cycles that used to be standard.

Satellite view of a forested part of Earth. AI generated picture.

Drones and IoT Soil Sensors

While satellites give the big picture, drones bring the microscope. With cameras and mini-LiDAR, they generate orthomosaic maps at resolutions below 5cm, enabling auditors to count saplings and detect regrowth or loss. In agriculture and grassland projects, IoT sensors are now deployed directly into soils to measure carbon proxies, moisture, and biomass, sending continuous data via low-energy networks. Some pilots show that new soil spectroscopy probes can cut soil carbon measurement costs by up to 90% compared to traditional lab tests. Combined, drones and sensors provide on-the-ground evidence streams that back up remote monitoring.

Artificial Intelligence & Machine Learning

The flood of data from satellites and sensors would be overwhelming without AI. Machine learning models excel at recognising patterns in complex datasets, enabling precise estimates of carbon stored in forests and soils. One system trained on aerial imagery achieved 92% accuracy in classifying tree species and canopy features, significantly improving biomass modelling. AI also powers anomaly detection: By analysing vegetation indices from satellites, algorithms can flag potential deforestation or degradation within 72 hours for human verification. Some platforms go further, using AI to forecast future carbon sequestration potential of forests, helping investors evaluate long-term impact.

Blockchain for Transparency

To address the risk of double-counting and fraud, MRV systems are turning to blockchain ledgers. Each unit can be tokenised and linked to immutable data records of satellite images, sensor readings, and verification reports. This makes every carbon unit auditable and tamper-proof, giving buyers the confidence that one retired unit can’t be resold. According to recent analysis, blockchain-based MRV platforms now provide a ‘transparent audit trail’ that minimises manipulation and enhances market trust.

DNA & Soil Science

Carbon sequestration isn’t only about trees. Soils and ecosystems below ground hold massive carbon stocks, but they’ve been notoriously hard to measure. Emerging methods like environmental DNA (eDNA) sequencing allow researchers to identify thousands of species from just a few soil samples. A 2024 Highlands rewilding project in Scotland used eDNA to detect over 1,520 species of fungi and soil fauna from 40 samples, creating a detailed biodiversity baseline linked to carbon outcomes. In parallel, portable in-field spectrometers are helping cut soil carbon measurement costs by almost 90%. Together, these innovations are filling one of the biggest MRV blind spots: proving that carbon is not just stored above ground in trees, but also stably locked into the soil.

Forestry worker inspecting soil conditions. AI generated picture.

Real-World Case Studies: MRV Tech in Action

The innovations reshaping monitoring and verification aren’t just theoretical—they’re already being tested and scaled in real projects worldwide. Here are a few standout examples showing how technology is directly addressing credibility gaps in carbon markets.

DGB Group – Proprietary, Full-Stack MRV and Data Expertise

DGB Group brings an impressive internal tech stack to nature‑based MRV, distinguishing itself through an integrated and in‑house strategy:

• End‑to‑End MRV Technology Development: With a full‑time software team, DGB creates bespoke tools for ecosystem restoration projects—making MRV systems both flexible and precise.
  
• Satellite, GIS & AI Integration: DGB actively monitors projects using real‑time satellite data, GIS mapping, AI, and machine learning. This ensures early detection of anomalies, precise land‑use tracking, and better project feasibility decisions.
  
• Cloud‑Based Systems & Stakeholder Management: Its cloud platform supports global scalability, secure collaboration, and efficient project data storage. A centralised stakeholder database helps manage smallholder farmers while streamlining validation and auditing processes.
  

This robust MRV architecture supports DGB’s growing portfolio—currently planting over 31 million trees across 250,000+ hectares, with over 38 million tonnes of expected CO₂ capture and 600+ jobs created.

Pachama – Satellites + AI for Forest Carbon

The San Francisco–based company Pachama has become a benchmark for tech-enabled MRV. By combining satellite imagery, LiDAR scans, and machine learning models, Pachama can now identify individual trees, estimate their carbon stocks, and track forest growth in near real time. Their platform has analysed hundreds of projects globally, flagging those that overstate their climate benefits and validating those with genuine carbon impact. This kind of continuous, independent monitoring is a major leap from the traditional five-year audit cycle, giving investors confidence that credits are backed by real data rather than outdated assumptions.

NCX – One-Year Forest Carbon Credits

Legacy forest projects often demanded 20–100 year commitments, discouraging small landowners. NCX (Natural Capital Exchange) changed that by applying high-resolution satellite data and AI to create one-year harvest deferral credits. Their Basemap tool uses imagery and algorithms to assess forest carbon at the individual tree level and to predict which trees a landowner might otherwise harvest. By paying landowners to delay cutting for a year, NCX generates verified credits tied to real avoided emissions. This innovation has opened the carbon market to thousands of smaller forest owners, effectively scaling participation without sacrificing integrity.

Agreena – Hybrid Soil Carbon Measurement

Soil carbon is one of the hardest forms of sequestration to measure, since carbon levels vary greatly across fields. Agreena, a Copenhagen-based platform, has pioneered a hybrid MRV model that combines satellite monitoring of farming practices with targeted soil sampling and machine learning models. This approach balances accuracy with affordability: Its methods deliver estimates sufficiently accurate for the market without requiring prohibitively expensive sampling on every hectare. This innovation is helping European farmers adopt regenerative practices and generate revenue from verifiable soil carbon units.

These examples illustrate a key trend: Technology is not just making MRV cheaper and faster—it’s enabling entirely new business models. From annual harvest deferrals to tokenised units, innovations are expanding participation while simultaneously raising the quality bar.

Beyond Carbon: The Extra Benefits of Nature-Based Solutions

While the headline story in carbon markets is the CO₂ captured or avoided, nature-based projects deliver much more than carbon impact alone. One of the powerful advantages of improved monitoring and verification is that it allows for measuring and showcasing these additional benefits, giving stakeholders a fuller picture of what their investments achieve.

Biodiversity Gains

Forests, wetlands, and grasslands are not just carbon sinks—they are living ecosystems. With tools like hyperspectral satellites and environmental DNA (eDNA) analysis, projects can now track changes in species richness and ecosystem health alongside carbon. DGB’s Bulindi Agroforestry and Chimpanzee Conservation Project in Uganda illustrates this in practice: By replanting indigenous trees to restore fragmented forests, it not only captures carbon but also rebuilds critical chimpanzee habitat, strengthening biodiversity alongside climate benefits.

Close-up of a chimpanzee in its natural habitat. Bulindi Agroforestry and Chimpanzee Conservation Project, DGB.

Community and Livelihood Benefits

High-integrity NBS projects also bring tangible social outcomes. Reforestation can create long-term jobs, agroforestry can increase farmers’ resilience, and sustainable land management can improve yields. Modern MRV—including IoT sensors on cookstoves or farm tools—provides real-time data on how projects improve everyday lives, from reduced fuel use to healthier soils. This is critical in showing that carbon finance doesn’t just offset emissions; it also strengthens local economies and wellbeing.

DGB team and local community distributing beehives. Kenya Beehive Project, DGB.

Water and Soil Resilience

Healthy ecosystems are natural infrastructure. Verified soil data shows how regenerative agriculture improves soil carbon and water retention, making farms more drought-resilient. Forest restoration, when monitored via satellite and ground sensors, demonstrates reductions in flooding and erosion risks. These outcomes may not be tradable as units yet, but MRV makes them visible—and that visibility builds trust and wider support.

In other words, when we measure better, we can tell the full story. Nature-based carbon solutions don’t just remove carbon; they restore ecosystems, support biodiversity, and improve human livelihoods. Strong MRV turns these co-benefits from vague promises into documented realities, ensuring that every unit represents more than a tonne of CO₂—it represents a healthier, more resilient planet.

The Road Ahead: Trust, Technology, and Transformation

The future of nature-based carbon units will be defined not just by how many trees we plant or hectares we restore, but by how well we prove the impact. In a market shaken by doubts, innovations in monitoring and verification are shifting the story from ‘trust us’ to ‘see for yourself’.

With satellites that can count trees from space, drones that map reforestation down to the sapling, sensors that track soil carbon in real time, and blockchains that make every unit traceable, we now have the tools to make carbon units transparent, accountable, and trustworthy. Add to that the ability to measure biodiversity, water security, and community benefits, and the value of nature-based solutions becomes undeniable.

[Visual 7, Satellite orbiting Earth, monitoring forests from space. AI generated picture.] 

This isn’t just about preventing greenwashing—it’s about unlocking confidence in real climate action. High-integrity MRV ensures that every unit purchased represents a genuine environmental gain, making nature-based projects a cornerstone of both corporate sustainability strategies and global climate goals.

The road ahead is clear: As monitoring technology scales and standards evolve, only the best-measured, best-verified units will thrive. That’s a good thing. It means funding flows to projects that restore ecosystems, support local communities, and genuinely help balance the planet’s carbon budget.