Embedding nature-based solutions into the social cost of carbon

China, the world's largest CO₂ emitter, is making every effort to transition to a low-carbon economy and fulfill its part of a concerted global commitment to combating climate change. In tandem with decarbonizing energy and industries, feasible supplementary measures are urgently needed to help remove anthropogenic CO₂ from the atmosphere. A burgeoning literature has emphasized the CO₂ removal capability of land re-naturalization (such as afforestation and wetland restoration), thereby regarding cognate land-use conversions as Nature-based Solutions (NbS) and potential climate policy options. However, little empirical evidence exists concerning the effectiveness of different land re-naturalization pathways (such as converting wetlands to forests or agricultural lands to grasslands), and it also remains unclear how NbS alternatives (i.e., land-use conversions resulting in negative CO₂ emission) and non-NbS options (i.e., land-use conversions resulting in positive CO₂ emission) could affect the social cost of carbon (SCC), a conventional measurement for prescribing carbon mitigation approaches. This study aims to fill in this knowledge gap via embedding NbS into the dynamic integrated climate-economics (DICE) model to quantify their impacts on the SCC. Using the Pearl River Delta region (south China) as a case study for the temporal horizon during 2000-2020, we find that both positive and negative CO₂ fluxes have been brought by different natural/semi-natural land conversions, affecting the SCC correspondingly. A total of 7 out of 17 types of land-use conversions could be identified as feasible NbS interventions, including forest restoration, forest-to-wetland, grassland-to-forest, grassland-to-wetland, grassland-to-cropland, cropland-to-forest, and cropland-to-wetland conversions, which could reduce the SCC values (comparing 2020 base-year with 2000 base-year) by 0.0132, 0.0009, 0.0033, 0.0030, 0.0001, 0.0082, and 0.0001 (USD/tCO₂), respectively. While the SCC is mainly determined by energy and industrial structure, the overall effect of NbS is larger than the sum of land urbanization and non-NbS land-use conversions. Via embedding the real-world inter-dynamics of land-use conversions into the SCC quantification, this study presents a pioneer assessment of the impacts of NbS on the SCC in an integrated framework, sheds important insights into the effectiveness of NbS, and offers practical implications for policy-makers to devise comprehensive policies covering all feasible CO₂ abatement options.