Perceived Value of Bioacoustics dMRV in Nature-Based Carbon Solutions

Abstract

The carbon credit market is forecasted to grow significantly in both size and complexity, driven by continued global efforts to mitigate climate change. To facilitate the marketplace, carbon serves as the anchor of value for each credit regardless of the capture or reduction method. Nature-based credits (NbC) depend on the natural systems that provide not only carbon sequestration, but also ecosystem services. Carbon credits created through project-level interventions in natural systems (Nature-based solutions, NbS) with added benefits, such as biodiversity, tend to trade at a price premium; nevertheless, questions about durability and the lack of standardized monitoring, reporting, and verification (MRV) plague consumer confidence in NbS. Demand for MRV quality improvements in NbS has inspired advancements in digital Monitoring, Reporting, and Verification (dMRV) technology; however, there is insufficient exploration of the sector’s perceived value of these tools. I investigated the linkages between perceived value and willingness to pay among stakeholders in the NbS carbon market. My research focused on bioacoustics dMRV as one such potential solution, whose application is relatively nascent in NbS carbon projects. Advancements in hardware and software have rapidly expanded the utility of this technology by increasing audio sensitivity beneath ecosystem canopies and expediting signal processing with new AI software. Bioacoustics is an underutilized tool that may help satisfy demand for improved MRV quality in NbS projects by enabling robust biodiversity data collection where field studies have previously been prohibitive. My goal was to inform stakeholders about this rapidly evolving tool, as NbS project quality, MRV, best practices, protocols and standards are under review for revision. I used a mixed-methods exploratory sequential design to gather both qualitative and quantitative data. My stakeholder sampling approach was holistic, including not only those directly involved with NbS projects (such as developers and buyers), but also secondary stakeholders who shape the broader carbon project sector (such as technology service providers, insurance and ratings providers, corporate strategists, and ecosystem specialists). Stakeholders were interviewed and surveyed to assess themes, including perceived value and willingness to pay for bioacoustics dMRV. Triangulation of qualitative and quantitative data revealed both opportunities and barriers to adoption. Results confirmed hypotheses 1, 2, and 3. Hypothesis 4 uncovered a semantic caveat (willingness for ‘price premium’ is supported, willingness for ‘additional budget’ is not). The averages of quantitative survey responses aligned with interviews and background research; however, the high response disparity suggests a lack of consensus across the sector as a whole. A notable link between price, value, and risk was identified as an opportunity to reframe the cost of bioacoustics dMRV not only in terms of co- benefits but also as an indicator of carbon durability risk. These results indicated that stakeholders see value in more robust biodiversity MRV data; it can significantly boost consumer confidence in NbS, increase investment volume, and command price premiums, thereby enabling not only carbon mitigation but also the preservation and improvement of ecosystems. When quality improvements become standardized, quality credits will become the standard, not the exception, and every NbS investment will work harder and better for nature and humanity.