Rewarding Mechanisms – The example of Label-Bas Carbone

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France

European Climate

Benefits of the practice

  1. Result-based rewards
  2. Credible and Transparent Carbon Certification
  3. Flexibility and Market Opportunities

Thematic Area

Rewarding Mechanisms

Summary for practicioners on the main finding(s)/Innovative solution(s)

The Label Bas-Carbone is a voluntary climate certification framework established by the French government to support projects that contribute to greenhouse gas emission reductions and carbon sequestration in France. It provides a structured approach to monitoring, reporting, and verifying carbon reductions or removals, ensuring transparency and credibility in the national voluntary carbon market. Farmers, farm advisors, and other agricultural operators can utilize this mechanism to adopt sustainable practices while securing financial rewards from private, public, or mixed funding sources.

The Label Bas-Carbone framework operates on a result-based rewarding method, meaning that financial compensation is tied to measurable environmental outcomes. Farmers implementing low-carbon practices must conduct a carbon audit at the start of the project and another at the end to assess progress. These practices fall under six approved farming methodologies and include actions such as reducing mineral fertilizer use in field crops, optimizing herd management in livestock farming, decreasing reliance on imported soybean feed, using cover crops, and planting hedges. Project proposals must be approved by the French Ministry of Ecological Transition, and independent auditors assess progress throughout the project cycle. Once the certification is obtained, project developers and their partners can contract with financiers to pay for the change of practices. Contracts are negotiated over the counter, but it has been observed that funding for agricultural projects is around €40-60/tCO2.

The governance of the Label Bas-Carbone is managed by the French Ministry of the Environment, which oversees the approval of methodologies, ensures compliance with regulatory standards, and supervises the work of third-party auditors. By leveraging this framework, farmers can contribute to climate mitigation efforts, enhance farm sustainability, and access new revenue streams within the carbon market.

Contact

Laurène Lebelt

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Stelios Dritsas

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