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In Cape Town, a carbon credit issuance from restored grasslands has quietly set a global precedent. The Grassland Restoration and Stewardship in South Africa (GRASS) project has issued 266,255 verified carbon units, becoming the first project worldwide to earn the Climate, Community and Biodiversity (CCB) label under Verra’s updated VM0042 methodology.

Developed by carbon project specialist TASC, the initiative focuses on degraded grasslands managed largely by communal livestock farmers. These landscapes, often overlooked by investors, now sit at the centre of a high-integrity carbon model that could shape how future African projects are designed and judged.

This milestone reaches far beyond South Africa. Voluntary carbon markets face rising pressure as buyers question credibility, communities demand fairer benefits, and standards tighten. Against this backdrop, GRASS stands out as a rare land-based project that pairs rigorous measurement with long-term climate value and real gains for rural communities.

South Africa’s Grasslands Face a Quiet Crisis

Grasslands cover vast areas of South Africa. Around 34 million hectares support livestock farming, forming one of the country’s most important rural economies. Yet decades of overgrazing, unmanaged fires, and weak institutional support have taken a heavy toll. Roughly a third of these grasslands are now severely degraded.

Climate change has intensified the pressure. Droughts are more frequent. Rainfall is less predictable. Soil health has declined. Productivity has suffered. Communal farmers, who collectively own about half of South Africa’s livestock, remain marginalised in formal markets. Despite their scale, they supply only around 9 percent of national meat output.

This gap reflects structural barriers rather than a lack of land or labour. Limited access to training, veterinary services, finance, and consistent routes to market has locked many farmers out of value chains. GRASS was designed to work within these realities, not around them.

How the GRASS Project Works

GRASS is built around improved grassland and livestock management. The project applies regenerative practices such as adaptive grazing, better fire management, and active monitoring of soil and vegetation. These changes help rebuild grass cover, increase soil carbon, and improve the resilience of rangelands.

The project operates as a group model. Multiple Project Activity Instances, or PAIs, can join under a single framework. The first PAI focuses on communal livestock farming systems, where land tenure is complex and collective decision-making is essential. More recently, TASC expanded the project to include private, commercial farmers.

Significantly, GRASS was the first project registered globally under Verra’s VM0042 methodology, which is specifically designed for improved agricultural land management. This methodology requires detailed soil carbon measurement and includes safeguards to prevent emissions leakage. It reflects the latest thinking on how to quantify carbon outcomes from land-use change credibly.

A Landmark VCU Issuance Under Stricter Rules

During its first monitoring period from 2021 to 2023, GRASS generated 266,255 verified carbon units across more than 95,000 hectares of communal rangeland. The area overlaps with nine key biodiversity zones, including parts of the Maputaland-Pondoland-Albany hotspot.

What makes this issuance special is the CCB label. It confirms that the project delivers measurable climate benefits while also supporting communities and biodiversity. Under the updated VM0042 rules, GRASS is the first project to earn this combined certification.

For buyers, this matters. They want credits that are real, long-lasting, and socially responsible. GRASS meets these standards through strong monitoring and transparent governance.

carbon credits grassland south africa
Source: Sylvera

Community Livelihoods at the Centre

During the first monitoring period, about 4,000 communal farmers joined GRASS and helped manage the land that generated the initial credits. Nearly 300 people also gained work in ecological monitoring, grazing support, and fire management, which matters in areas with few formal jobs.

Carbon revenues flow through a community trust, ensuring income reaches local communities instead of being captured by developers. While carbon payments alone are not transformative, they help cover the costs of improved land management.

Market access has driven much of the project’s early impact. Through a partnership with Meat Naturally Africa, farmers received training and gained access to mobile auctions and abattoirs. These linkages generated about ZAR56.4 million (roughly $3.35 million) in additional revenue from livestock and wool sales, helping households stabilize income amid rising climate risk.

Employment, Skills, and Local Resilience

As GRASS expanded, it created around 900 jobs across communal rangelands, with nearly one-third held by women. Roles include ecological rangers, grazing coordinators, and data collectors.

The project builds technical skills locally, offering training in fire management and invasive species control. This helps protect ecosystems and reduces the need for outside contractors.

GRASS also works through existing communal governance structures. By strengthening local decision-making and ensuring transparent benefit sharing, it lowers the risk of conflict—an issue that often affects land-based carbon projects in Africa.

TASC is Scaling Grassland Restoration Without Losing Integrity

Today, GRASS spans about 950,000 hectares of communal and private rangeland, placing it among the largest grassland restoration initiatives globally. The communal component alone covers more than 600,000 hectares and is expected to expand to one million hectares over time.

TASC plans to scale the project to two million hectares by 2030. At that level, GRASS could sequester or avoid nearly two million tonnes of carbon dioxide equivalent each year. Over its 100-year commitment period, the project targets the mitigation of around 14 million tonnes within its first 30 years.

These figures are modest compared to national emissions. However, they highlight the cumulative potential of land-use interventions when applied consistently and at scale. They also show that community-managed landscapes can meet some of the world’s most demanding carbon standards.

What This Means for African Carbon Markets

Many African countries see carbon markets as a source of climate finance. Yet progress has been uneven. Concerns over land rights, benefit sharing, and long-term stewardship have slowed investment. Some projects have promised more than they delivered, eroding trust.

The South African grasslands example offers a different path. It shows that community-led projects can achieve high-integrity certification while delivering measurable economic returns locally. It also demonstrates that rigorous methodologies and social safeguards need not limit scale.

As scrutiny of voluntary carbon markets intensifies, examples like GRASS may shape future expectations. Buyers, regulators, and communities alike are shifting their focus from promises to outcomes. Projects that cannot show real climate, social, and biodiversity benefits may struggle to find support.

In that context, GRASS stands out. Not as a silver bullet, but as proof that carbon finance, when designed carefully, can restore ecosystems, strengthen rural livelihoods, and deliver credible climate mitigation at the same time.

The post Why South Africa’s Verra-Certified Grassland Carbon Credits Matter for Voluntary Markets appeared first on Carbon Credits.

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Want a simpler way to buy carbon credits? Discover our carbon marketplace

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Most businesses that decide to act on their net-zero targets reach the same point of friction. Buying carbon credits has meant tracking down brokers, sitting through sales calls, and requesting a quote just to learn a price, sometimes with limited proof of what you are buying.

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Climate-Linked Supply Chain Risk Is Already in Your P&L

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The earnings calls that quietly reframed climate from sustainability question to operating risk.

Three earnings calls in the last 18 months tell the story without any help from a press release.

Hershey, May 2024: cocoa price exposure compresses margin, and the company attributes part of the cost shock to West African weather. Olam, July 2024: coffee climate exposure quantified in the annual report. JBS, January 2025: supply chain climate disclosures expanded materially in response to investor pressure and regulatory expectation. None of these companies issued the announcement as climate news. They issued it as financial news. The climate-linked supply chain risk did not arrive with a sustainability framing; it arrived as a P&L line.

You are probably reading this article because you suspect the same thing is happening to your business. This piece walks through what is showing up on which earnings calls, how procurement and finance leaders are quantifying the exposure, and what serious corporates are doing about it before the regulator asks.

Where climate risk has already appeared in earnings

The pattern is consistent across resource-intensive sectors. A weather event compresses supply, the price spikes, the cost flows through the income statement, and the analyst on the call asks whether the event is anomalous or structural. Increasingly, the honest answer is the second one.

Cocoa is the cleanest example. The 2023 to 2024 West African harvest fell sharply on the back of erratic rainfall and disease. Cocoa futures more than tripled. Companies with concentrated West African sourcing absorbed the cost; companies with diversified sourcing absorbed less. The exposure was not climate as ESG topic. It was climate as cost of goods.

Coffee follows the same pattern. Brazilian and Vietnamese harvests have moved on weather more sharply across the last several seasons. Roasters with long-tenor supplier relationships and origin diversification have managed the volatility; roasters with spot-market exposure have not. Wheat, sugar, palm oil, beef: the same dynamic in different commodities, a pattern the IPCC AR6 Working Group II report projects will intensify across agricultural systems through mid-century.

What this means: climate risk is no longer a footnote in the 10-K. It is a line item the CFO has to explain on the call.

The three commodity exposures that hit margin first

For most companies with material Scope 3 exposure, three exposures dominate the near-term P&L risk.

  • Concentrated single-origin sourcing in a climate-vulnerable region. If your tier-one supply for any material commodity sits in one geography, you have a concentration risk that climate amplifies. Diversification across origins is the obvious hedge, but it takes years to build and requires relationships you cannot acquire by tender.
  • Supplier financial fragility under climate stress. Smallholder farmers, who supply a large share of the global cocoa, coffee, and palm oil market, do not carry the balance sheets to absorb yield shocks. When yields collapse, they exit. When they exit, your supply base shrinks, and the surviving suppliers raise prices. The risk is structural, not cyclical.
  • Logistics and storage exposure to extreme weather. Hurricane disruptions to Gulf shipping, drought-driven Panama Canal restrictions, flooding in European inland waterways: each of these has moved input costs in the last three years, a pattern documented in Munich Re’s natural catastrophe data. The exposure shows up as a one-quarter event in the financial press but accumulates over time on the cost line.

TCFD and ISSB disclosure changes

The disclosure architecture has now caught up with the risk. The Task Force on Climate-related Financial Disclosures, whose recommendations are now embedded in the ISSB’s IFRS S2 climate standard, requires companies to disclose climate-related risks across physical and transition categories, with quantification where possible.

For physical risk specifically (the climate-linked supply chain risk you are reading about), the disclosure must address both acute exposures (extreme weather events) and chronic exposures (gradual changes in temperature, precipitation, and growing seasons). The disclosure must address the time horizon over which the risk is material, the parts of the value chain exposed, and the financial impact under different scenarios.

The CSRD imposes similar requirements under European law, with double materiality (both financial and impact materiality) embedded in the assessment. The practical effect: your auditors and your investor relations team now need a defensible answer to the climate-linked supply chain risk question, and the answer needs to be quantified.

What procurement and finance can do now

Three actions matter near-term.

Map your exposure. Most companies do not have a clear view of which tier-one and tier-two suppliers sit in which climate-vulnerable geographies. Without the map, you cannot quantify the risk, and without the quantification, you cannot disclose it credibly. The map is the foundation, and World Resources Institute climate risk research provides useful public tooling to start.

Diversify and deepen, in that order. Diversification across origins reduces concentration risk, but the deeper move is to invest in the resilience of the suppliers you already have. Regenerative practices, agroforestry, soil health interventions: these reduce yield volatility under climate stress and protect your input cost trajectory.

Embed the climate spend inside procurement, not outside it. Treating climate risk as a sustainability cost line subordinates it to the ESG budget. Treating it as a procurement and resilience investment puts it in the budget that matters, which is the cost-of-goods budget that the CFO defends quarterly.

Nature-based supply chain investments are the asset class designed for exactly this purpose. They sit inside the value chain, they reduce climate-linked supply risk, they generate verifiable Scope 3 reductions, and they produce the documentation an auditor and a regulator can both test.

If you are quantifying climate-linked supply chain risk in advance of the next earnings cycle or the next disclosure period, the carbon and sustainability experts at Carbon Credit Capital can help you map your exposure and structure a Dual-Value Model response that addresses reduction, resilience, and disclosure-readiness in a single program. Schedule a consultation.

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Where should an SME start with a carbon action plan?

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More and more small and medium-sized businesses are hearing the same question from their larger customers: What is your carbon footprint? That question now travels down entire supply chains, and it arrives next to tender requirements, certification criteria, and rising customer expectations.

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