In recent years, Spain has recognised the imperative need to address climate change and reduce its environmental impact. To comply with international commitments on sustainability, the Ministry for Ecological Transition and the Demographic Challenge (MITECO) has promoted innovative legislation that promotes the measurement, reduction and compensation of the carbon footprint of companies. This initiative responds to the growing awareness of the devastating effects of global warming and seeks to encourage corporate responsibility in the fight against climate change.
Calculating and reducing carbon footprint is seen as an essential step in building a more sustainable and environmentally friendly future. Compensating through carbon absorption projects that follow the ministerial framework for project development aims at restoring deforested and degraded land while reducing the carbon footprint of those companies adhering to these projects.
Through our partners on the ground, we develop forest ecosystem restoration and carbon absorption projects, in compliance with MITECO regulations, to reduce the carbon footprint of companies investing with us. These projects are eligible only when the land restored has not been forested at least since 31 December 1989, or the forest areas have been burnt down. The minimum area of restoration is 1 ha, with a minimum tree canopy cover of 20% at maturity, a potential height of 3 meters at maturity and a project permanence of at least 30 years.
To calculate the CO2 absorbed by these projects, MITECO has developed a simplified calculation methodology, which provides estimates for all forest tree species in Spain. This ex-ante absorption calculator estimates the absorption at the end of the permanence period, i.e. it calculates the absorption that is expected to occur after at least 30 years, although it is possible to withdraw (and if necessary sell) only 20% of the total absorptions (and of these, an amount equivalent to 10% will be reserved for the guarantee fund).
Through our restoration activities performed under this framework, each project can contribute to sequestering at least 10 tCO2e in compliance with MITECO regulation and estimated using the methodology applied by the Spanish Government.