Blue Carbon Resilience Credit

About

Overview
Blue Carbon Resilience Credit aims to mobilize finance for adaptation and resilience of vulnerable coastal communities. It is a hybrid blue carbon and resilience credit, where corporations seeking to offset their carbon footprint can buy credits to fund coastal restoration and conservation projects, and for the first time quantify both the carbon sequestration and resilience value of the conservation work they support.

The Problem
Coastal wetlands possess enormous global potential to reduce greenhouse gas emissions and buffer storm surge to ensure resilient communities and economies. Mangroves alone provide more than US$ 82 billion in annual storm protection throughout the world. Meanwhile insurers have paid out over US$ 300 billion for coastal damages from storms in the last decade. Voluntary carbon markets are emerging as a novel way to leverage private capital to restore coastal wetlands. Since the early 2000s, corporations have purchased more than one billion tonnes of carbon in the voluntary market to offset their carbon footprints, a value of $4.8 billion. Coastal wetlands have not yet entered into this market.

The Solution
Blue Carbon Resilience Credit (BCRC) is a blue carbon and resilience credit, where corporations seeking to offset their carbon footprint can buy credits to advance adaptation for vulnerable communities and fund coastal restoration and conservation projects. BCRC integrates mitigation metrics in the form of avoided CO2 equivalent emissions; and adaptation metrics in the form of flood protection benefits that a wetland provides nearby coastal communities. A third-party verified framework ensures purchaser confidence and offers purchasers the added benefit of quantifying their contributions to SDG Goal 13: Climate Action. Target pilot sites include Belize and Papua New Guinea.

Target Impact
The idea proponent, The Nature Conservancy, expects BCRC to drive significant corporate demand, and to present solutions for nations seeking to leverage coastal wetlands to achieve their Paris Agreement commitments, also known as Nationally Determined Contributions and their Sustainable Development Goals. TNC has already identified pilot projects in Belize, Papua New Guinea, and other geographies, and expects to leverage tens of millions of dollars in the coming years. At scale, BCRC markets could mobilize as much as US$ 320 million per year for coastal conservation and restoration projects.