The Rise of Nature-Based Solutions in Carbon Offsetting

As the pressure intensifies for businesses to cut emissions and meet sustainability targets, a growing number of companies are turning to a powerful, often underestimated ally: nature.

Young green deciduous seedlings growing in an urban park, with modern office buildings towering in the background. AI generated picture.

Nature-based solutions (NbS) are rapidly gaining traction in the carbon offsetting space, not only for their ability to sequester carbon but for the broader value they bring. From restoring degraded forests to revitalising wetlands and implementing regenerative farming, these projects offer a tangible path toward environmental restoration and social impact. Unlike technological fixes that may take years (or decades) to scale, NbS are ready today—cost-effective, community-friendly, and deeply rooted in ecosystems we depend on..

For business owners and sustainability leaders, the appeal is clear. Nature-based carbon projects align with ESG goals, support biodiversity, and create local jobs, all while compensating for unavoidable emissions. But like any solution, they’re not without complexity. This blog breaks down what NbS are, why they’re on the rise, how they compare to tech-based alternatives, and how credible, on-the-ground projects—including DGB Group’s work in Africa—are showing what’s truly possible when business meets nature.

What Are Nature-Based Solutions?

Nature-based solutions (NbS) refer to actions that leverage ecosystems to address environmental challenges while simultaneously delivering social and economic co-benefits. Defined by the International Union for Conservation of Nature (IUCN), NbS are ‘actions to protect, sustainably manage, and restore natural or modified ecosystems that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits.’

In the context of carbon offsetting, NbS typically focus on enhancing the natural ability of forests, soils, wetlands, and other ecosystems to sequester carbon dioxide (CO₂) from the atmosphere. They include a diverse range of interventions, such as:

• Reforestation and Afforestation – Restoring degraded forests or planting new ones on formerly non-forested land.

Aerial view of a tree nursery in Kenya, captured by drone. Hongera Reforestation Project, DGB. Source: https://www.green.earth/projects/hongera-reforestation-project-kenya 

• Wetland and Mangrove Restoration – Reviving these carbon-rich coastal ecosystems that also act as natural barriers against floods and storms.
• Peatland Conservation – Preventing the drainage or degradation of peatlands, which store more carbon per hectare than forests.
• Agroforestry and Regenerative Agriculture – Integrating trees into farming systems and using techniques that increase soil organic carbon.
• Energy-Efficient Cookstove Distribution and Manufacturing – Reducing deforestation and emissions by replacing traditional open-fire cooking with stoves that use less fuel and emit fewer pollutants.

Close-up of an energy-efficient cookstove with a meal cooking on top. Hongera Energy Efficient Cookstoves Project, DGB. Source: https://www.green.earth/projects/hongera-energy-efficient-cookstoves-project-kenya 

These approaches are increasingly seen as indispensable tools in the global effort to mitigate environmental emergencies. According to the World Economic Forum, nature-based solutions have the potential to deliver up to 30% of the carbon reductions required by 2030 to meet the 1.5°C target set in the Paris Agreement.

Moreover, the value of NbS extends far beyond carbon. Mangroves, for instance, provide more than $65 billion in annual flood protection and protect 15 million people from coastal hazards. Peatlands, which occupy just 3% of the Earth’s surface, store approximately 600 billion tonnes of carbon—more than all the world’s forests combined. Ecosystem services like these are vital to both nature’s stability and human resilience.

From a socio-economic perspective, NbS are also labour-intensive, creating meaningful employment in rural and underserved regions. Reports from UNEP, ILO, and IUCN suggest that over 60 million people already work in nature-based sectors globally, with the potential to generate an additional 32 million jobs by 2030 if investment scales appropriately.

NbS represent a rare convergence of environmental mitigation, biodiversity restoration, and sustainable development. Their versatility and readiness make them a cornerstone of responsible offsetting strategies for businesses and governments alike.

Why Are Nature-Based Solutions on the Rise?

The growing prominence of NbS in carbon offsetting is not coincidental. It is the result of a convergence of economic logic, environmental urgency, policy alignment, and shifting corporate values. For sustainability-focused businesses, NbS have emerged as one of the most viable and strategic tools to address residual emissions while delivering measurable co-benefits.

1. Cost-Effectiveness and Immediate Deployability

Nature-based projects are among the most cost-efficient carbon offsetting solutions available today. While engineered carbon removal technologies such as Direct Air Capture (DAC) currently cost upwards of $600–$1,000 per tonne of CO₂ removed, many NbS projects operate at a fraction of that—many are still below $50 per tonne. Such figures are subject to change with the rise of the market and, subsequently, demand. This affordability allows companies to scale their nature contributions rapidly and affordably.

Moreover, NbS can be deployed immediately and at scale. Reforestation, soil carbon enhancement, or mangrove restoration does not require years of R&D or complex infrastructure. These interventions use well-established ecological processes and community-based implementation models that can be activated now—an essential advantage given the narrow window for meaningful action.

2. Tangible Co-Benefits Beyond Carbon

One of the most compelling advantages of NbS is their ability to address multiple global challenges simultaneously. Unlike technological solutions, which focus solely on carbon removal, NbS deliver an array of ecosystem and community benefits:

• Enhanced biodiversity through habitat restoration
  
  
• Protection of water resources and soil fertility
  
  
• Economic uplift through green job creation
  
  
• Improved food security and health resilience

These co-benefits are not incidental. They are increasingly essential for companies aiming to meet Environmental, Social, and Governance (ESG) benchmarks and communicate a holistic impact to stakeholders. Credits from projects with verifiable social and environmental co-benefits often command higher prices—a signal of growing market recognition of their full value.

Close-up of a local community member planting a tree, with a biodiverse African landscape in the background.  AI generated picture.

3. Supportive Policy and Financial Commitments

Policy momentum is also favouring NbS. Over 130 countries have included nature-based solutions in their environmental pledges (Nationally Determined Contributions), and global frameworks such as the Glasgow Leaders’ Declaration on Forests and the Kunming-Montreal Biodiversity Framework have committed to protecting and restoring natural ecosystems at scale.

Financial flows are following suit. Investment in NbS reached approximately $200 billion in 2023, though the UN estimates this must triple to $600 billion annually by 2030 to meet environmental and biodiversity targets. Multilateral efforts like the LEAF Coalition and sovereign carbon credit frameworks are further unlocking private-sector capital for large-scale NbS deployment.

4. Corporate Net-Zero Strategies and Market Trends

With thousands of companies committing to net-zero emissions, many are turning to nature-based solutions to offset the ‘hard-to-abate’ portion of their footprint. In the first quarter of 2024 alone, big corporates signed 10 new long-term offtake agreements for nature-based carbon units—double the number from all of 2023.

These agreements reflect a strategic shift: corporates are securing future credit supplies amid growing competition, especially for projects with verified removals and strong co-benefits. NbS are increasingly viewed not just as offsets, but as long-term investments in natural resilience, stakeholder goodwill, and natural capital.

Comparing Nature-Based and Tech-Based Offsets

As the carbon market matures, a fundamental distinction has emerged between NbS and technological carbon removal methods such as Direct Air Capture (DAC) and Bioenergy with Carbon Capture and Storage (BECCS). Both approaches aim to reduce atmospheric CO₂ levels, but they differ significantly in mechanism, maturity, cost, scalability, and co-benefits. 

1. Readiness and Scalability

NbS are available now and can be scaled using existing knowledge, workforce, and land management techniques. Projects like reforestation, agroforestry, and peatland protection are already operational in dozens of countries, delivering measurable impacts.

In contrast, most tech-based methods are still in the early deployment or pilot stage. DAC, for example, operates at a small scale and is limited by high energy requirements and infrastructure constraints. These technologies are expected to play a larger role post-2030, but they are not yet deployable at the scale or speed needed to meet immediate mitigation targets.

2. Cost Comparison

The economic case for NbS is compelling. On average:

• NbS projects can still cost below $50 per tonne of CO₂ removed, depending on project type and region.
• Tech-based solutions currently cost between $600 and $1,000 per tonne for DAC and $100–$200 per tonne for BECCS, excluding indirect costs such as land use and energy.

This cost differential is especially relevant for companies managing large emissions portfolios or limited offsetting budgets. In the short term, NbS offer the most affordable pathway to significant impact.

3. Permanence and Risk

One of the perceived strengths of engineered carbon removals is permanence. Storing CO₂ in geological formations—as DAC and BECCS typically do—can ensure isolation for centuries or even millennia, assuming appropriate monitoring.

By comparison, nature-based sequestration involves biological carbon pools—trees, soils, wetlands—which are inherently vulnerable to reversal through fire, disease, or land-use change. While buffer pools and insurance mechanisms exist (eg.credit reserves to cover unintentional reversals), the risk of loss remains higher.

Still, for offsets with co-benefits and shorter time horizons, this trade-off is often considered acceptable—particularly when NbS projects include long-term conservation agreements, buffer pools, and robust monitoring.

4. Verification and Measurement

Engineered solutions benefit from direct and controlled measurement of captured CO₂, which allows for a high degree of precision in carbon accounting and lends scientific clarity within carbon registries.

NbS, by contrast, rely on advanced ecological modelling, satellite imaging, and on-the-ground data to estimate carbon sequestration. While the biological complexity involved makes measurement inherently more nuanced, verification standards have evolved considerably. Leading registries such as Verra and Gold Standard have developed robust methodologies to ensure transparency and scientific rigour. Moreover, ongoing advancements in monitoring technologies, including AI-powered remote sensing and high-resolution satellite tracking, are further strengthening the reliability of NbS carbon data.

5. Co-Benefits and Broader Impact

NbS deliver what tech-based methods cannot: multifaceted co-benefits. These include:

• Ecosystem restoration and biodiversity conservation
  
  
• Flood and erosion control
  
  
• Job creation and community empowerment
  
  
• Improved air, soil, and water quality

Technological solutions, by contrast, only remove carbon. They do not improve habitats, regenerate land, or support local economies. For organisations looking to address sustainability holistically, NbS provide a more comprehensive value proposition.

A local man working on an avocado plantation. AI generated picture.

6. Market Availability

As of 2024, the market supply of carbon removal credits is dominated by nature-based projects. Over 98% of removal credits on the voluntary carbon market originate from nature-based activities, with tech-based credits representing just a small fraction. This reflects both the infancy of the technology sector and the rapid expansion of NbS globally.

In summary, NbS and tech-based solutions are not competitors but complements. While NbS offer immediate, cost-effective, and holistic offsetting opportunities, technological methods will be crucial in the long-term transition to deep decarbonisation. A balanced portfolio—with nature now and engineered removals as they scale—is emerging as the optimal pathway for environmentally responsible businesses.

Real-World Examples of Nature-Based Projects

Nature-based solutions are being implemented at scale across the globe, delivering tangible CO₂ mitigation and far-reaching socio-environmental co-benefits. At the forefront of this movement is DGB Group, a developer of large-scale ecosystem restoration projects and high-integrity carbon units.

DGB Group is actively restoring ecosystems through a portfolio of ARR (Afforestation, Reforestation, and Revegetation) and clean cookstove distribution projects, designed to sequester carbon, preserve biodiversity, and uplift local communities.

• In Kenya, DGB’s Hongera Reforestation Project aims to restore over 10,000 hectares of degraded land around Mt. Kenya and the Aberdare Range. The project involves planting more than 6 million trees and is projected to sequester approximately 5.1 million tonnes of CO₂ over its lifespan. It is complemented by a clean cookstove initiative that reduces household reliance on firewood, thereby alleviating pressure on forests and improving indoor air quality.
  
  
• In Uganda, the Bulindi Agroforestry and Chimpanzee Conservation Project targets fragmented forests critical to endangered chimpanzee populations. The project is planting over 31 million trees and restoring 22,700 hectares, generating over 10 million tonnes of CO₂ removals. Local farmers are supported with sustainable agroforestry, education, and clean water infrastructure.

A Bulindi chimpanzee sitting in a tree in its natural habitat in Uganda. Bulindi Agroforestry and Chimpanzee Conservation Project, DGB. Source: https://www.green.earth/projects/bulindi-chimpanzee-habitat-restoration-project-uganda 

• In Cameroon, DGB’s Greenzone Reforestation Project, the largest registered carbon project in the country, is restoring 20,500 hectares through the planting of over 9 million trees. It also includes a growing clean cookstove programme to reduce emissions from traditional wood use. The project is expected to capture approximately 7.8 million tonnes of CO₂.

These projects are built around robust community engagement, transparent monitoring, and long-term ecological impact, reflecting DGB’s commitment to high-integrity, scalable NbS across Africa.

Other Global Examples of Nature-Based Solutions

Mangrove Restoration in Bangladesh and Senegal
In Bangladesh, over 9,600 hectares of mangroves have been planted, protecting coastal communities from cyclones and sequestering significant carbon. In Senegal, local communities have restored more than 4,700 hectares, enhancing fisheries and resilience.

Grassland Regeneration in China
In China’s Three Rivers Headwater region, 160,000 hectares of degraded grassland have been restored, improving carbon storage, water regulation, and alpine biodiversity.

The Great Green Wall in the Sahel
This pan-African initiative has already restored 18 million hectares of degraded land, with 2030 targets including 100 million hectares restored, 250 million tonnes of carbon sequestered, and 10 million green jobs created.

Peatland Conservation in Southeast Asia and the Congo Basin
With over 600 billion tonnes of carbon stored in global peatlands, projects in Indonesia and Central Africa are protecting these carbon-dense ecosystems from drainage and fire, preventing large-scale CO₂ emissions and preserving biodiversity.

Regenerative Agriculture in North America and Australia
Farmers adopting practices like no-till, cover cropping, and rotational grazing have achieved up to 37% GHG reductions per unit yield, while building long-term soil health and productivity.

Clean Cookstove Distribution Across Sub-Saharan Africa
Clean cookstove programmes in countries like Kenya, Cameroon, and Nigeria significantly reduce emissions by decreasing woodfuel demand. These projects improve health outcomes, reduce deforestation, and generate carbon credits under internationally recognised standards.

These examples demonstrate that NbS are not only effective in removing or avoiding carbon but also in restoring ecosystems, securing livelihoods, and advancing the Sustainable Development Goals. They are a living, growing testament to what’s possible when environmental strategy intersects with ecological stewardship.

Market Trends and the Future of Nature-Based Solutions

The nature-based carbon market is maturing rapidly, supported by growing corporate demand, evolving standards, and increasing public and private investment.

Surging Demand and Corporate Commitment

As of 2023, nature-based projects represented approximately 46% of all voluntary carbon market transactions. Even amid broader market fluctuations, this segment has remained resilient, largely due to its broad co-benefits and alignment with ESG goals. Corporate appetite is accelerating, especially for removal-based credits, predominantly from afforestation and reforestation projects—indicating a clear demand for high-integrity, nature-based removals.

Pricing and ‘Flight to Quality’

Buyers are no longer looking for any credit; they are prioritising removal-based, verifiable, and socially beneficial projects. As a result:

• Nature-based credits with co-benefits command price premiums, often 75% higher than average market rates.
• Low-quality or poorly verified credits have seen declining interest and price erosion.
• Projects certified under Verra, Gold Standard, or integrated into initiatives like the LEAF Coalition are attracting long-term financing and reputationally conscious buyers.

Investment Scaling Up

While public and private finance into NbS reached $200 billion in 2023, UN estimates show we need to triple that to $600 billion annually by 2030 to meet environmental and biodiversity goals. New capital is arriving through:

• Sovereign carbon frameworks (eg Gabon, Pakistan)
• Green bonds and blended finance vehicles
• Carbon project financing through carbon unit purchases
• Institutional partnerships and carbon credit investment funds targeting nature-positive outcomes

VanderStyn illustration.

This reflects a wider shift: NbS are no longer seen merely as carbon tools, but as investable natural capital assets delivering environmental, ecological, and financial returns.

Emerging Regulation and Compliance Integration

Nature-based credits are beginning to enter compliance markets:

• Under the Paris Agreement’s Article 6, several countries are preparing to authorise high-quality nature-based credits for international carbon trading.
• Domestic mechanisms, such as Colombia’s carbon tax or South Africa’s offset programme, already accept nature-based units for compliance.

As standards and frameworks align, NbS are poised to bridge the voluntary and compliance spheres.

Outlook: Scaling With Integrity

Forecasts from BloombergNEF and the Taskforce on Scaling Voluntary Carbon Markets suggest the VCM could grow 15-fold by 2030. Crucially, 75% or more of this future credit volume is expected to come from nature-based activities, particularly re/afforestation, soil carbon, and wetland restoration.

At the same time, expectations are rising. Buyers, regulators, and civil society are demanding stronger guardrails on additionality, permanence, and community impact. Efforts like the Core Carbon Principles and advances in digital MRV are helping to filter out low-quality carbon units and reinforce trust.

How to Take Action With Nature-Based Solutions

To address unavoidable emissions while supporting biodiversity and local communities, businesses can turn to high-integrity NbS. The first step is to measure your carbon footprint accurately, then determine where internal reductions end and where offsetting begins.

When offsetting (or compensating), prioritise projects verified under trusted standards like Verra or Gold Standard, and look for those delivering measurable co-benefits. DGB Group’s reforestation and clean cookstove projects offer scalable, community-driven impact backed by rigorous methodologies and transparent reporting. Plus, as a project developer, you can buy carbon units directly from them—no middleman—ensuring your purchase has the most impact.

Close-up of young saplings growing in a newly planted forest. AI generated picture.

NbS work best when integrated into a broader sustainability strategy. Rather than a one-off transaction, they represent a long-term investment in environmental resilience, natural capital, and brand reputation. Businesses that engage early and transparently stand to lead in the growing low-carbon economy.