Deep Blue: Opportunities for Blue Carbon Finance in Coastal Ecosystems
Tidal wetlands – which are found along seacoasts - provide essential ecosystem services such as fish, timber, coastal protection, and pollution control - and important livelihood opportunities for local communities.
Although these fragile ecosystems occupy only 0.2 percent of the globe, they are also hotspots for carbon storage, as their soils sequester 10 times more carbon than terrestrial ecosystems. This means that nature-based solutions focused on conserving tidal wetlands are also a cost-effective way to reduce greenhouse gas (GHG) emissions.
This is where “blue carbon” comes in. Carbon credits generated from blue carbon projects can be used by companies to neutralize their carbon footprint or by governments to support their Nationally Determined Contribution (NDC) commitments under the Paris Agreement.
However, despite growing demand for blue carbon credits and increasing interest in these types of projects, blue carbon projects are still in need of funding. Capital to support climate mitigation activities is available but is slow in finding its way to the right projects. This report provides an overview of the emerging blue carbon market. Financial Institutions (FIs) can play an instrumental role in this market by: