Search

It’s time for coastal and marine ecosystems to get the recognition they deserve for their natural ability to sequester carbon.

Why? In 2021, coastal wetlands in the US “sequestered 4.8 million metric tons of carbon dioxide equivalent.” That in and of itself speaks to the potential impact that Blue Carbon projects hold.

Add in the fact that not only are they effective at reducing carbon dioxide emissions, but they can also prevent flooding, protect marine biodiversity, lower water acidification, and improve the quality of life of local populations by providing job opportunities alongside other benefits.

So, if these projects are so great, why haven’t you heard much about them yet? It’s because they’re rather fresh on the VCM scene. 

Whether you’re looking to add a new kind of project to your developer portfolio or if you’re as new to the VCM as Blue Carbon is, we pulled together this blog to take you through how it works, the market for it, benefits, challenges, and even some examples of strong Blue Carbon projects.

By the end of this guide, you’ll know everything that goes into an effective Blue Carbon project.

What is Blue Carbon?

First things first, what does “Blue Carbon” even mean?

Blue Carbon refers to the naturally occurring process of carbon dioxide being removed from the atmosphere and stored by marine ecosystems. These processes take in 23% of human-caused CO2 emissions. 

While it can speak to the carbon sequestered in the deep sea or the coast, the majority of Blue Carbon projects are focused on coastal ecosystems.

After all, it’s no secret that coastal environments are in need of support. Tidal marshes are now under half their historical size. Seagrass global coverage has decreased by 30%. Over half of salt marshes worldwide have been eroded in just the 20th century alone. 

When they deteriorate, they release their stored carbon dioxide back into the atmosphere. This harms biodiversity and the overall ecosystem.

The deterioration of the coastal wetlands is estimated to emit 450 million metric tons of carbon dioxide annually. Meanwhile, global seagrass restoration could “save up to 650 million tons of CO2 emissions annually, roughly equivalent to the entire annual emissions of the global shipping industry.”

How Blue Carbon Works 

According to the United Nations, the ocean is “the world’s greatest ally against climate change” thanks to its natural ability to store carbon dioxide.

Different Blue Carbon projects take advantage of that ability by cultivating species that help sequester carbon dioxide, conserving ecosystems, or even through technological interventions that remove carbon dioxide.

Coastal-Based Blue Carbon Projects

You may already know that plants take in carbon dioxide, but did you know that coastal ecosystems can take it and store it in the soil long-term?

‍

As you can see in the above diagram, carbon dioxide is taken in by the vegetation through photosynthesis and sequestered into both the soil and biomass. Since these marine ecosystems naturally absorb and store carbon, they’re often called carbon sinks.

Not only do they naturally absorb carbon, but they can also store carbon for a prolonged period due to the anaerobic (oxygen-deprived) nature of the soil. This lack of oxygen causes the carbon dioxide to decompose more slowly than it would in other agricultural soils, making it a more stable solution.

Once captured, the carbon dioxide can be stored for up to thousands of years.

Both deep sea and coastal waters are hard at work sequestering carbon dioxide, but coastal ecosystems naturally reap more results. Coastal ecosystems, accounting for only 2% of the ocean, hold 50% of its carbon storage because it contains more vegetation. It’s even been discovered that Mangrove forests have the ability to sequester 5x more carbon than tropical forests.

That’s why most coastal Blue Carbon projects focus on curbing the destruction of existing coastal ecosystems. However, many projects also focus on activities like replanting mangroves or seagrass beds.

Ocean-Based Blue Carbon Projects

Oceans are the world’s biggest carbon sink so it’s no wonder that so many project developers are turning to it to mitigate climate change.

There is a wide variety of marine carbon dioxide removal (mCDR) technologies being developed that remove carbon dioxide from the ocean or store it in the seabed.

‍

As you can see above, carbon dioxide can be safely stored in the ocean through all sorts of different approaches, like incorporating alkaline solutions into seawater or increasing the growth of natural carbon sequesters like macroalgae.

According to the Boston Consulting Group, mCDR projects, especially those that focus on activities like mineralizing carbon, stand out because they have a very high level of permanence. When they’re stored in those types of stable forms, they can be preserved in the deep sea for thousands to millions of years.

Other mCDR projects focused on improving natural sequestration are more scalable in comparison but risk decomposition and carbon leakage over the years.

This method of carbon dioxide removal has the potential to remove gigatons of carbon annually by 2050.

A Blue Carbon Market Overview 

Thinking of adding a Blue Carbon project to your repertoire, but not sure how it’ll fit in? Here’s an overview of what things currently look like for Blue Carbon in the VCM.

The Current State of the Blue Carbon Market

Blue Carbon is one of the newer sectors in the VCM, according to BeZero, a respected carbon ratings agency.

However, despite being more recently developed, this carbon credit project type has been assessed to be worth up to $190B in the VCM. 

Blue Carbon projects are also highly rated. In fact, “Two out of the five top-rated projects on the BeZero Carbon Ratings (BCR) framework are [B]lue [C]arbon projects.” Since Blue Carbon projects are a more recent addition to the VCM, this is a great indicator of their quality.

BeZero has only rated five Blue Carbon projects so far, all of which land at either AA or BBB.  

What Makes a Good Blue Carbon Project? 

There are certain factors you should take into consideration when it comes to constructing a top-quality Blue Carbon credit project. 

To start, the Intergovernmental Panel on Climate Change (IPCC) suggests ensuring you’re introducing appropriate native plant species and considering present and future “social, economic, policy, and operational” roadblocks and solutions.

The key here is to consider both nature-based and community impacts when constructing these projects. Not only should you aim to help the local community by utilizing carbon finance to improve their quality of life, but you should be deeply involving them. After all, BeZero says that “Successful [B]lue [C]arbon projects typically have the commitment and support from the local community.” 

This is especially critical for Blue Carbon projects, where you might have to navigate multiple groups of people and their respective land rights. 

So, if you’ve been focused only on the climate science side of things, start mapping out your long-term plan to involve the local communities now. 

Quality Blue Carbon Project Factors

To break things down further, high-quality blue carbon projects can usually answer these six attributes:

• Additionality 
• Quantification
• Permanence 
• Carbon accounting 
• Leakage
• Co-benefits

Having this detailed and clear information in your PDD can signal quality in your projects.

Take, for example, VCS 1764: Reforestation and Restoration of Degraded Mangrove Lands, Sustainable Livelihood and Community Development in Myanmar. It’s a Blue Carbon project that has been rated AA by BeZero.

They share straightforward answers about their project’s level of additionality, quantifiable results, and co-benefits. See for yourself:

• Level of additionality: Planting mangroves in an already degraded Mangrove forest
• Quantification/Carbon accounting: Planting 9.1 million Mangrove trees with the expectation of reducing 3.6M tCO2e in twenty years
• Co-benefits: Expect to impact 11,000 people across 16 villages through educational, vocational, and sustainability-focused programs 

Blue Carbon Project Pricing 

Without the right pricing strategy, you risk being left without the funding you need to scale or reinvest in local communities.

Good news: Blue Carbon credits are valued highly. According to BeZero, “The average price traded for BC credits is between USD 13 - USD 35, with some credits as high as USD 40 a tonne.”

BeZero explains that we are seeing high prices for Blue Carbon projects likely because there’s a lot more demand than there is supply. Plus, all the benefits likely fold into the price too.

However, they go on to say that “BC projects are also likely to be more costly to implement and maintain than terrestrial nature-based solutions projects. … Higher project costs would thus need to be reflected in the credit price for the project to remain viable.” So, while project developers can cash in on price premiums, they still have to account for potentially high implementation and maintenance costs.

Blue Carbon Project Methodologies

More and more Blue Carbon project methodologies are being explored and proposed. However, there is still more research to be done on which are the most reliable.

Coastal Project Methodologies 

You can apply afforestation methodologies to your coastline forestry efforts.

Many choose to follow CCP (Core Carbon Principles) certified methodologies. CCPs are the ICVCM's quality benchmark to try and raise integrity within carbon credit projects

At the time of writing, the only CCP-approved methodology that can be applied to Blue Carbon projects is VM0047: Afforestation, Reforestation, and Revegetation – v1.0.

However, there are other methodologies that are used as well:

• AR-AM0014: Afforestation and reforestation of degraded Mangrove habitats
• ACR Afforestation and Reforestation of Degraded Lands – v1.2
• Gold Standard Afforestation/Reforestation (A/R) GHG Emissions Reduction & Sequestration Methodology
• VM007: REDD+ Methodology Framework 
• VM0033: Methodology for Tidal Wetland and Seagrass Restoration 

Keep in mind, that this isn’t an exhaustive list of applicable methodologies. Think of it as a starting point for any additional research.  

Ocean Project Methodologies 

Marine carbon dioxide removal (or mCDR) is still an evolving field and there’s no single methodology or framework that has been proven to trump the rest.

These are some that you can find and model your project after:

• Ocean Alkalinity Enhancement from Coastal Outfalls
• Wastewater Alkalinity Enhancement
• Electrolytic Seawater Mineralization

While there is no standardization in the field just yet, many mCDR projects pride themselves on robust MRV and/or are choosing to get certified by registries like Puro.earth.

Blue Carbon Project Registries 

There’s a broad spectrum of carbon credit project registries out there. While there are no specific registries for Blue Carbon projects, some stand out for a medley of reasons.

Nature-Based Project Registries

Verra is one registry option where you may encounter a lot of Blue Carbon coastal projects. Especially since Verra’s VM0047 methodology is CCP-approved, it’s likely to be an option for developers to consider.

Technology-Based Project Registries

There are a couple of registries to choose from for your mCDR projects.

Two popular choices are:

• Puro.earth
• Isometric

Both of these options are reputable in the field for technology-based carbon credit projects.

Benefits and Co-benefits of Blue Carbon Projects

Blue Carbon projects do so much more than just remove emissions. From strengthening coastlines to communities, there are plenty of co-benefits that drive the value of these projects. When describing and selling these projects to carbon credit buyers, suppliers should be sure to emphasize the following:

Boost Coastline Durability

By increasing the number of coastline vegetation, one can keep coastline erosion at bay. 

For example, If you plant a Mangrove forest, its roots trap sand, dirt, and silt allowing these particles to accumulate and fortify the coastline. Stronger coastlines can then protect local communities from flooding during intense climate-related activities.

Thanks to their hearty roots, Mangrove forests can protect up to 200 million people across the world. Salt marshes can similarly prevent flooding and “absorb up to 1.5 million gallons of floodwater … per acre.”

Water Purification

A benefit of coastal ecosystems like Mangrove forests is their ability to naturally clean water. 

Mangroves naturally purify pollutants out of water that could eventually cause harmful algal blooms. Salt marshes have been estimated to have saved Galveston Bay, Texas taxpayers over $100M because they filtered the water before it reached the municipal wastewater treatment plant.

Ocean Acidification Mitigation

Not only does coastal vegetation remove carbon dioxide from the atmosphere, but it also naturally removes carbon dioxide from the ocean. mCDR technologies can achieve this same outcome too.

This reduces ocean acidification  – a process brought on by climate change that endangers marine life.

Marine Wildlife Support

The restoration of degraded marine ecosystems creates a better environment for the native wildlife, ensures their role in carbon cycling, and even addresses food insecurity.

Salt marshes are the homes and feeding supply for over 75% of US fisheries species. Seagrass beds feed 20% of the world’s largest fisheries. As they are cultivated, so are the fish that inhabit them and the business that they drive. 

This helps drive economic and food supply stability to local communities which is also critical for their culture. Reliable access to native fish “underpin[s] the cultural heritage and food sovereignty of coastal Indigenous peoples worldwide.”

Local Economic Growth 

As both coastal and deep-sea projects scale, they open up the opportunity for more hands on deck.  

For example, plenty of these carbon credit projects provide locals with employment opportunities. Just look at Delta Blue Carbon — one of the largest-scale Blue Carbon projects — which has hired almost half of the local community that their project is located in.

The Carbon Business Council, in their issue brief on Marine Carbon Dioxide Removal, even points out that mCDR projects can create job openings across the globe since their scope is so vast.

Mangrove forests are also a huge draw for eco-tourist activities and can generate substantial profit for the local community.

Local Infrastructure Enhancement 

The introduction of carbon finance into these often impoverished rural areas can significantly improve the quality of life.

BeZero says that carbon credit sale funds that are incorporated into the local area allow people to “benefit from the project activity through building of local infrastructure, such as schools or community centres, and employment or training programmes such as sustainable fishing practices.” This creates a lasting positive change that goes beyond the duration of the carbon credit project.

Challenges with Blue Carbon Projects 

While there is no shortage of benefits for Blue Carbon projects, there are also a handful of potential obstacles to expect when selling. From reversals to over-crediting risks, be prepared to navigate conversations on how your project is planning on addressing these potential drawbacks.

Risk of Reversal

Like other nature-based solutions, a lot of nature-based Blue Carbon projects are susceptible to reversal. Whether it’s due to forest fires, pollution, rising sea levels, or coastal squeeze, these coastal ecosystems can be severely damaged or wiped out.

This is far from an ideal outcome for both project developers and buyers and something to be taken seriously. Luckily, most developers do aim to mitigate some of these risks with things like buffer reserves, training, and pest control.

However, the unique thing about nature-based coastal solutions is that they move much faster than terrestrial nature-based solutions. Mangroves, for example, can grow at a really quick rate. According to the World Bank Group, certain Mangroves can grow up to five feet in just a year. So, bringing projects back up to speed is much easier to accomplish with Blue Carbon projects.

Land Rights Navigation

Without clear land rights, there is no clear way forward to sell carbon credits.

These marine ecosystems are often a part of public land and it's not always clear who has the legal right to engage in carbon credit project discussions and benefit from the sales. BeZero identifies this as a special issue of importance when it comes to scaling.

Over-Crediting Risk

The nature of these remote ecosystems can lead to all sorts of trouble when it comes to data collection and management. 

For one, it’s often extremely tough just to get to these locations to collect the data. Then, if something goes overlooked in the baseline data, that affects your overall impact and data quality. These factors, according to BeZero, can ultimately lead to potential over-crediting.

High Implementation and Maintenance Costs

Blue Carbon projects are expensive to implement compared to traditional forestry projects. According to McKinsey, the median cost of restoring a hectare of Mangroves alone is $9,000.

BeZero explains that “This is largely due to the complexity of understanding the hydrology of the landscape, which contributes to labour-intensive costs related to measuring, monitoring, and verification within the coastal zone.” 

Even just the tools related to monitoring the marine ecosystem are high-priced since they have to be so complex.

Limited Coastal Project Areas 

The coastal regions that are eligible for Blue Carbon projects only have 0.4% of total land cover. 

That means there are limited coastal projects possible which might be a challenge for Blue Carbon suppliers looking to scale.

Project Location Risks

The IPCC outlines how precarious choosing the location is when it comes to expanding Mangrove forests. For example, putting more Mangroves in areas where salt marshes are dominant can disturb the natural ecosystem and its way of storing carbon.

Plus, there is not enough information on just how small these projects can be while still making an impact. BeZero says, “Smaller Mangrove areas/BC ecosystems could result in areas that are too small to generate profit from carbon finance. More research and understanding surrounding minimum project size is needed, and should be embedded in project methodologies to understand more widely the return-on-investment for BC projects.”

Contested Efficacy of Restoration 

Can restoration truly bring us back to that point before these ecosystems were ever disturbed?

The IPCC explores this pushback and says, “Restored spaces may not store carbon at rates equal to those of undisturbed spaces … and it may take decades to determine or achieve carbon-storage outcomes of restoration.”

Early-Stage Methodologies

There is still a lot to standardize around Blue Carbon methodologies, as touched upon in our methodologies section. 

Four Blue Carbon Projects Making a Big Impact

There is a wide range of Blue Carbon projects that you can model your own after. Some are deep-sea-based. Some are nature-based. Some are technology-based. All are making a significant contribution to our environment and the people in it.

Vycarb

Type: Deep-Sea

Method: Technology-based

Impact: Store carbon from 10,000 to 100,000 years 

Founded by Garrett Boudinot, a carbon chemist whose work served the NY State Climate Impacts Assessment and Cornell University, Vycarb has developed cutting-edge technology that captures, removes, and stores carbon from oceans through a pH-mediated dissolution.  Their unique technology allows them to speed up the ocean’s natural carbon storage process, and go on to store carbon for 10 to 10,000 years.

They pride themselves on high-quality auditable data that’s easily accessible through their innovative sensor. They have impressive clients up their sleeve too — like the U.S. Department of Energy and Klarna.

Gigablue

Type: Deep-sea

Method: Technology-based 

Impact: Remove a gigaton of carbon dioxide by 2035

Gigablue chose to tackle climate change by turning to a natural resource in the ocean – phytoplankton.

They release a particle in the New Zealand ocean designed to attract the local phytoplankton (that absorb carbon dioxide during photosynthesis). This particle feeds the phytoplankton and “improv[es] the sequestration ratio by two orders of magnitude.” Then, within ten days, the particle (with the phytoplankton still surrounding it) travels to the ocean floor.

On top of being an impressive solution, It’s also a heavily scalable solution. They can produce 1 million carbon credits in 10 days.

Delta Blue Carbon

Type: Coastal

Method: Nature-based

Impact: Estimated to remove 142 million tonnes of carbon dioxide

Located along the coast of southeastern Pakistan, Delta Blue Carbon is one of the largest Mangrove restoration projects to date. They expect to restore 350,000 hectares of Mangroves.

The money procured from the VCM sales is being poured back into the local creek villages. They’re doing things like improving access to clean drinking water for over 50,000 people daily by restoring dormant reverse osmosis plants. They’re making it easier to receive necessary healthcare by stationing mobile health centers, providing ambulances, and improving supplies of necessary equipment and medication in existing rural health centers.

Plus, the location they chose is in a Key Biodiversity Area that “protects the habitat of 11 globally threatened species, including three listed as Endangered on the IUCN Red List.”

Ayeyarwady Mangrove Restoration Initiative

Type: Coastal 

Method: Nature-Based

Impact: Estimated to have 184,006 tCO2e emissions reductions 

Based in  Myanmar, this is another Mangrove restoration project that spans 2,000 hectares of land and 16 villages. Their goal is, over 20 years, to plant a forest of 9 million Mangrove trees and “reduce 3.6 million tonnes of carbon dioxide equivalent.”

They’ve been recognized by BeZero with a AA rating which speaks to the quality and efficacy of their work. 

Not only are they protecting villages from flooding and other natural disasters, but they’re even providing vocational training, employing locals, and planning on establishing the first Mangrove gene bank in Myanmar.

Scale Your Impact with Catalyst

Whether you’re working on Blue Carbon projects or not, Cloverly’s purpose-built software Catalyst can put you on the right path to take your projects to market. It’s a straightforward platform that simplifies your carbon credit and sales management — designed alongside fellow carbon credit project developers.

Get your demo here.