Nature-Based Solutions Carbon Advisory | FG Capital Advisors

Notice. This page is informational and general in nature. Any mandate remains subject to KYC and AML checks, sanctions screening, legal review, methodology compliance, standard body requirements, and final third-party approvals.

Nature-Based Solutions Carbon Advisory

Nature-based solutions are among the most in-demand project types in the voluntary carbon market. Corporates and airlines buying credits increasingly favour NBS projects for their biodiversity co-benefits, community impact, and long-term sequestration permanence.

FG Capital Advisors provides end-to-end advisory for NBS carbon projects, from feasibility and methodology selection through PDD development, validation support, financing structuring, and OTC credit placement with institutional buyers and offtakers.

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NBS Project Types We Advise On

Each NBS category generates carbon credits through a distinct mechanism and is governed by specific methodologies under Verra VCS, Gold Standard, or other recognised standards. We advise across all major NBS project types.

REDD+
Avoided Deforestation

Projects that protect standing tropical or subtropical forests from conversion to agriculture, infrastructure, or other land uses. Credits are generated from avoided emissions relative to a deforestation baseline.

Blue Carbon
Coastal Ecosystems

Projects protecting or restoring mangroves, seagrass beds, and tidal marshes. Blue carbon ecosystems store carbon at significantly higher densities than terrestrial forests and attract strong buyer premiums.

Soil Carbon
Agricultural Land

Projects that improve agricultural or pastoral land management practices to increase carbon stocks in soil. Typically delivered through regenerative agriculture, cover cropping, or reduced tillage programmes.

Afforestation and Reforestation
New Forest Creation

Projects that establish new forests on previously deforested or degraded land, generating removal credits as trees grow and sequester carbon over the project lifetime.

Biochar
Engineered Removal

Projects that convert organic biomass into stable biochar through pyrolysis, locking carbon into a form that resists decomposition for centuries. Biochar also delivers soil health and agricultural co-benefits.

Improved Forest Management
Forest Conservation

Projects that change the harvesting or management practices of existing working forests to increase carbon stocks relative to a baseline of continued conventional forestry operations.

Full Scope Of Services

Feasibility and Scoping

We assess land area, ecosystem type, ownership structure, baseline deforestation or degradation pressure, and expected credit volumes to give a realistic go or no-go view before significant capital is committed.

Methodology Selection

We identify the most appropriate Verra VCS, Gold Standard, or other applicable methodology for the project type and advise on co-certification options such as CCB or Social Carbon that can increase credit value.

PDD Development

We support preparation of the Project Design Document, covering baseline scenario, project boundary, additionality demonstration, monitoring plan, safeguards, and expected credit issuance schedule.

MRV and Verification Support

We advise on monitoring, reporting, and verification system design and coordinate with accredited validation and verification bodies to prepare the project for successful registry registration.

Financing Structuring

We structure and place development capital, forward purchase agreements, and carbon streaming arrangements to fund the project through the development and verification period before first credit issuance.

OTC Credit Placement

We place issued credits with corporate buyers, airlines, and institutional offtakers through bilateral OTC transactions, advising on pricing, contract terms, and buyer qualification.

Standards, Co-Certifications, and Buyer Premiums

Standard or Label What It Covers Effect on Credit Value
Verra VCS (Verified Carbon Standard) The primary standard for voluntary carbon credit issuance. Required for most institutional buyer transactions. Baseline requirement. Unlocks the broadest buyer market.
Gold Standard Developed by WWF. Emphasises sustainable development co-benefits and community impact. Typically commands a pricing premium over VCS-only credits, particularly with ESG-focused buyers.
CCB (Climate, Community and Biodiversity) Co-certification applied alongside VCS. Verifies climate, community, and biodiversity benefits of the project. Strong price uplift, particularly for REDD+ and afforestation projects targeting corporate ESG buyers.
Social Carbon Standard Focuses on community livelihood and social impact co-benefits in project areas. Useful for buyers with explicit community impact mandates. Adds moderate price premium.
CORSIA Eligible Credits approved under the ICAO CORSIA scheme for aviation sector compliance offsetting. Required for airline buyers using credits for CORSIA compliance. Restricts eligible project types.
Article 6 Corresponding Adjustment Credits authorised by the host country government for use in internationally transferred mitigation outcomes under the Paris Agreement. Increasingly required by sovereign and high-integrity buyers. Adds significant complexity and host country negotiation.

How NBS Projects Are Financed

Structure How It Works Best Suited For
Forward Purchase Agreement A buyer commits to purchase a defined volume of credits at an agreed price from future vintages. Upfront payment provides development capital. Projects with strong feasibility and a credible credit volume forecast seeking non-dilutive development funding.
Carbon Stream Financing A financier provides upfront capital in exchange for the right to purchase a percentage of all future credit issuances at a fixed or discounted price. Larger projects with long operational lifetimes and predictable annual credit volumes.
Development Capital Facility A loan or equity injection to fund project development costs through to first verification and credit issuance, repaid from credit sale proceeds. Projects with a clear path to verification where the developer has some equity to contribute.
Offtake-Backed Facility A financing facility secured against a committed offtake agreement with a creditworthy buyer, using the offtake contract as underlying collateral. Projects that have secured a corporate offtake commitment but need bridging capital to reach first issuance.

Process From Feasibility To Credit Sale

  1. Project Screening Review land area, ecosystem type, country, ownership structure, and deforestation or degradation baseline to assess feasibility and indicative credit volume.
  2. Methodology and Standard Selection Identify the most appropriate VCS or Gold Standard methodology and advise on co-certification options to maximise credit quality and buyer appeal.
  3. PDD Preparation Develop the Project Design Document to the standard required for validation, including baseline, additionality, monitoring plan, safeguards, and credit projections.
  4. Financing Structuring Structure the development capital, forward purchase, or streaming arrangement and place it with matched investors or corporate buyers.
  5. Validation and Registration Coordinate with an accredited validation and verification body and support the registry registration process through to approved project status.
  6. MRV Implementation Support setup of the monitoring, reporting, and verification system to track carbon sequestration or avoided emissions through the project lifetime.
  7. Credit Issuance and Placement Manage first verification and credit issuance, then place credits with institutional buyers or corporate offtakers through OTC bilateral transactions.

What To Submit For A Review

  • Project location, land area, and ecosystem type, including any existing land use or tenure documentation.
  • Overview of current deforestation, degradation, or land use change pressure in the project area.
  • Ownership or control documentation for the land or resource being protected or managed.
  • Any existing feasibility studies, forest inventories, or scientific surveys of the project area.
  • Details of any community or government stakeholders involved in or affected by the project.
  • Financing requirements and preferred structure, including development stage and capital needed.
  • Full KYC and AML package for the project developer and all beneficial owners.

Frequently Asked Questions

  • Nature-based solutions (NBS) are carbon projects that reduce emissions or remove carbon dioxide by protecting, restoring, or managing natural ecosystems. Common NBS project types include REDD+ (reducing deforestation), blue carbon (mangroves, seagrass, and coastal wetlands), soil carbon sequestration, afforestation and reforestation, and biochar. These projects generate carbon credits that can be sold on the voluntary carbon market to corporate buyers seeking to offset emissions or meet ESG commitments.
  • REDD+ focuses specifically on preventing the loss of standing forests and generating credits from avoided deforestation. Other NBS types generate credits through active sequestration rather than avoidance, including afforestation (planting new forests), blue carbon (protecting or restoring coastal ecosystems), soil carbon (improving land management to increase soil carbon stocks), and biochar (converting organic material into stable carbon). Each project type has distinct methodologies, monitoring requirements, and buyer demand profiles.
  • The most widely used standards for NBS projects are Verra's Verified Carbon Standard (VCS) and the Gold Standard. Many NBS projects also pursue co-certifications such as the Climate, Community and Biodiversity (CCB) Standard or the Social Carbon Standard to demonstrate biodiversity and community co-benefits, which can increase the credit price and buyer appeal. The right standard depends on the project type, location, and target buyer market.
  • Development timelines vary by project type and complexity. A straightforward afforestation or soil carbon project may take 18 to 30 months from feasibility to first credit issuance. REDD+ and blue carbon projects typically take 24 to 48 months due to the complexity of baseline setting, community consultation, and validation requirements. FG Capital Advisors advises on realistic timeline planning and can structure upfront financing arrangements to bridge the development period.
  • NBS projects are typically financed through a combination of development capital, forward purchase agreements, carbon streaming arrangements, and offtake contracts. A forward purchase agreement allows a buyer to pay upfront for credits that will be delivered in future vintages, providing the developer with capital during the development and verification period. Carbon streaming involves a financier providing upfront capital in exchange for a share of future credit revenues. FG Capital Advisors structures and places these arrangements with institutional buyers, impact funds, and specialist carbon investors.
  • A Project Design Document (PDD) is the core technical document required for carbon project registration under standards such as Verra VCS or Gold Standard. It describes the project boundary, baseline scenario, monitoring methodology, additionality argument, safeguards approach, and expected credit volumes. A well-constructed PDD is essential for successful validation, registration, and buyer confidence. Weak or incomplete PDDs are the most common cause of project delays and rejection at the validation stage.
  • Yes. FG Capital Advisors provides end-to-end advisory across the full NBS project lifecycle, from initial feasibility and methodology selection through PDD development, validation support, MRV design, financing structuring, and OTC credit placement with corporate buyers and institutional offtakers. We also advise landowners and developers on credit commercialisation strategy and pricing.
  • We work with NBS projects across a range of sizes, though the economics of project development generally favour larger land areas or higher credit volumes. As a rough guide, projects generating fewer than 10,000 credits per year may face development cost challenges relative to revenue potential. We assess each project on its specific characteristics and can advise on whether aggregation, bundling, or a different project structure might improve viability.

If you are a landowner, developer, or institution with a nature-based solutions project at any stage of development, submit your file for a structured intake review.

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Disclosure. FG Capital Advisors is not a carbon registry, standard body, or direct buyer of carbon credits. Advisory services are delivered on a best-efforts basis and all project outcomes remain subject to methodology compliance, standard body approval, third-party validation, and market conditions at the time of credit placement.