Enabling nature-based carbon offsetting in Oxfordshire

**Background**

All the local authority project partners have ambitious carbon reduction targets, are working towards net zero carbon by 2030, and are encouraging the wider districts to become carbon neutral.

Building on 2021's Pathways to a Zero Carbon Oxfordshire project, an Oxfordshire Net Zero Route Map and Action Plan is being finalised, which identifies 14 key areas for collaborative working to meet the councils' net zero targets, including exploring new funding mechanisms supporting net zero delivery and investigating opportunities to enhance carbon sequestration.

**The challenge**

Oxfordshire local authorities and businesses need to offset residual carbon emissions to reach net zero but existing carbon offsetting schemes do not offer opportunities to invest in schemes delivered within the county. Establishing an Oxfordshire scheme requires an innovative new mechanism; current carbon offsetting mechanisms and markets are limited to:

* tree/woodland planting: limited by Oxfordshire's land availability.
* peatland restoration: minimal scope in Oxfordshire.

**The opportunity to innovate**

This project will develop a new and innovative approach to carbon offsetting, providing Oxfordshire's businesses and local authorities' opportunities to invest in nature-based carbon sequestration schemes within the county, increasing investment in nature-based solutions whilst helping reach shared net zero ambitions. We will build on existing work in this area, to deliver multi-functional nature-based offsetting schemes, providing benefits such as:

* delivery of new natural capital, designed to deliver specific ecosystem services such as flood prevention.
* creating investment opportunities for localised nature-based carbon offsets, bringing benefits to the local economy, employment, and skills.
* provision of high-quality green infrastructure schemes close to where people live and work, providing health and well-being benefits, and aligning with Natural England's Green Infrastructure Strategy.
* providing funding for projects arising from the forthcoming Oxfordshire Local Nature Recovery Strategy.

**Deliverables**

Working with local stakeholders, the project will:

1. Research and agree an approach and methodology for measuring carbon sequestered by different nature-based interventions.
2. Define potential mechanisms, such as Area-Based Insetting that would allow investment in nature-based carbon offset projects in Oxfordshire.
3. Develop at least one investment ready nature-based carbon offset pilot project.

This innovative project has potential to fundamentally change approaches to carbon offsetting by defining a scalable and financially sustainable approach, not limited to tree planting and peatland restoration, but through a diverse range of local habitat creation schemes. This represents significant value for money for the partnership's local authorities, the taxpayer, and the wider UK.