Seventy-five people gathered in the Old Library at Lloyd’s of London during London Climate Action Week to discuss a question that sits at the heart of today’s voluntary carbon market: if demand for high-integrity nature-based carbon credits is growing, why do so many strong projects still struggle to secure the finance they need?
The event brought together a diverse audience from across the voluntary carbon market, including investors, financiers, project developers and practitioners. We were delighted to unveil the findings of this landmark report and explore the realities of developing nature-based solutions in practice.
Key lessons shared
The Hamerkop team opened the session by placing the report in the context of today’s voluntary carbon market. Drawing on interviews, case studies and market data, the presentation explored why, despite growing demand for high-integrity nature-based carbon credits, many projects continue to struggle to access finance. It challenged attendees to consider how the realities of project development compare with the assumptions that often shape investment decisions.
There were also key recommendations on practical ways forward, including earlier-stage financing, more proportionate due diligence, stronger recognition of social capital, and more collaborative partnerships between developers and investors.
Exploring the report
Bridging the Disconnect explores the gap between how high-integrity projects are actually built and how finance is currently deployed. This gap, known to many as ‘the missing middle’ has been of great concern to many of the members of the Art of Forests, and we were pleased to bring the experiences of our members to a wider audience and see them shape the wider discussion.
With a number of these developers present at the event, we were able to hear directly about some of the challenges highlighted in the report. Each of them spoke about the years of work required before projects generate any revenue, including community engagement, legal structuring, certification, and assembling multidisciplinary teams. These essential foundations often require significant investment long before projects become commercially attractive.
The emerging themes from developer experiences included a need for earlier and more flexible finance, with discussions around the benefits of catalytic capital, phased finance and bridge finance. There was also a clear need for investment processes that reflect reality, with timelines that align with ecological realities and proportionate due diligence. Across these themes, one message emerged consistently: finance is most effective when it comes with a genuine understanding of how projects develop in practice, and when investors see themselves as partners rather than simply providers of capital.
Community engagement
One of the strongest discussions of the session centred on partnerships with local communities – a subject that repeatedly emerged throughout London Climate Action Week as expectations around high-integrity carbon credits continue to evolve.
This mirrored the report itself, as the developers in the report and at the event spoke of the importance of community engagement, not as a simple ‘box-ticking’ exercise but as the basis for any truly successful development project. Discussions during the latter part of the evening brought up the importance of language, moving away from terms like ‘beneficiary’ to ‘partnership’, ensuring that these are principles built into the foundation of each project. These governance issues are not simply paperwork, participants suggested; but are instead the roadmap for creating a resilient, effective project that guards against becoming extractive. As one participant put it, good community engagement de-risks projects in the long term.
What comes next?
Even after the event had officially concluded, many guests remained to continue their discussions, reflecting the appetite for deeper engagement across the sector. We hope to continue building on that energy through our upcoming Art of Forests events, where many of these themes will be explored in greater depth. Some of our upcoming events include work on Carbon Credit pricing, and Community Benefit Sharing, two key themes from Bridging the Disconnect, with even more dialogue sessions to come.
After months of online collaboration, the event was also the first time the Hamerkop, Art of Forests, iNovaland and Artio teams had all met in person. What a great moment it was to finally see everyone face to face!
Building the bridge
Bridging the Disconnect was never intended to provide a single solution, but instead to make visible the realities of project development, highlight where today’s financing structures create unnecessary barriers, and encourage more informed conversations between developers, investors, buyers and policymakers.
If we are to build carbon markets capable of delivering lasting benefits for climate, nature and communities, these perspectives need to be heard. We invite you to read the report, explore its findings, and become part of The Art of Forests community as we continue creating spaces where these ideas can be shared, challenged and developed together.
Contact info@theartofforests.org to learn more.