February 4, 2021

Climate Change and Green Jobs – Environmental Banking and Private Investment

The Biden Administration last week announced a bold initiative to confront climate change aimed at advancing green jobs for the U.S. 

Environmental banking projects are just such opportunities and recent changes in requirements for consistency across all Corps Districts and IRTs for 404 Mitigation Banks provide yet another driver for creating lasting environmental restoration and ultimately, significant carbon sequestration.

Private business and private investments driving environmental banking restore, protect and preserve streams, wetlands and other habitats. And, while the ecological services of these natural resources are well-recognized (ie: water storage, water filtration, flood prevention, and vital aquatic habitat), there is another important, sometimes overlooked value – these restored resources have potent carbon storage potential. 

According to a study by renowned wetlands expert Bill Mitsch, of Florida Gulf Coast University,  two 15-year-old constructed marshes in Ohio accumulated soil carbon at an average annual rate of 2150 pounds per acre—or just over one ton of carbon per acre per year. The rate was 70% faster than a natural, “control” wetland in the area and 26% faster than the two were adding soil carbon five years ago. And by year 15, each wetland had a soil carbon pool of more than 30,000 pounds per acre, an amount equaling or exceeding the carbon stored by forests and farmlands.

What this suggests, Mitsch says, is that researchers and land managers shouldn’t ignore restored or constructed wetlands as they look for places to store, or “sequester,” carbon long-term. When such wetland areas are discussed in agricultural circles, it’s almost always in the context of water quality. “So, what I’m saying is: let’s add carbon to the list,” Mitsch said. 

NEBA and its members stand ready to help facilitate high quality, privately funded restoration projects. "The framework already provided by the 2008 Mitigation Rule is years ahead of any other option. We will work to build on the proven success of this program far into the future. Environmental bankers are ready, willing and able to serve this great cause," said Donna Collier, Chairwoman of NEBA.

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