Navigating the Future

Blue Carbon as a catalyst for change

By GRID-Arendal

February 15^th, 2024

This story was written by Steven Lutz, Blue Carbon Lead, and Rob Barnes, Senior Outreach Coordinator, as a follow-up to COP28.

At the Intersection of Oceans and Climate Justice

In the vibrant atmosphere of the UNEP Pavilion, located in the Blue Zone of the United Nation’s 2023 international conference on climate change, a ground-breaking session titled “Partnerships to Improve Blue Carbon Market Integrity” was convened by UNEP and GRID-Arendal.

This gathering of government representatives, experts, and innovators embarked on a journey to delve into the vast potential of blue carbon as a crucial, nature-positive, and market-based solution for climate change. With the blue carbon market on a swift ascent, the discussions aimed to forge a path that ensures accountable and verifiable climate mitigation, combined with social and climate justice, while amplifying the myriad benefits blue carbon brings to climate, biodiversity, and communities around the globe.

“The ocean hosts 95% of the planet’s life... absorbing 93% of its excess heat and about 30% of human-generated carbon dioxide.”

The Power of Blue Carbon

Leticia Carvalho, Head of UNEP’s Marine and Freshwater Branch, laid the groundwork for understanding the vast potential of blue carbon, emphasising that “the ocean hosts 95% of the planet's life... absorbing 93% of its excess heat and about 30% of human-generated carbon dioxide.” Underscoring the significance of blue carbon’s potential, she stated, “we need all the tools in our toolbox to address the global climate challenge, and blue carbon is a vital tool.” Her introduction highlighted the collaborative efforts required to leverage the oceans' blue carbon potential fully.

From Indonesia, Victor Gustaaf Manoppo, Director General of Marine Spatial Management at the Ministry of Marine Affairs and Fisheries (MMAF), highlighted his country’s commitment and strategic approach towards utilising blue carbon ecosystems as part of its national climate change policy. He discussed Indonesia’s efforts in developing a comprehensive blue carbon methodology and designing a national roadmap to guide blue carbon initiatives.

“This institutional mandate has the consequence that we are authorised to develop a blue carbon methodology that will apply nationally and design a national roadmap for blue carbon.”

Director Manoppo emphasised the importance of high-quality and integrated blue carbon investment that contributes to environmental conservation and ensures social and economic benefits for local communities. Reflecting on Indonesia's national strategy for blue carbon, Director Manoppo stated, “This institutional mandate has the consequence that we are authorised to develop a blue carbon methodology that will apply nationally and design a national roadmap for blue carbon.” His message showcased Indonesia's proactive stance in integrating blue carbon into its climate action and marine conservation efforts.

Left: Steven Lutz, Right: Grace Catapang

A Multifaceted Challenge

The forum underscored the complexity of the blue carbon market. Grace Catapang, Frontline Youth Representative of the Global Fund for Coral Reefs, speaking from her experiences in the Philippines, highlighted the importance of community engagement and protecting mangrove forests in the Philippines as part of blue carbon initiatives. She discussed the ongoing efforts to consult with local communities to ensure that blue carbon projects are designed to benefit both the environment and the people living near these critical ecosystems.

“To ensure blue carbon market integrity, we need to invest in people first.”

Ms Catapang pointed out the challenges of establishing projects in areas where mangrove forests are privately owned and the necessity of involving local communities in the conversation about conservation and restoration efforts.

She stated, “to ensure blue carbon market integrity, we need to invest in people first,” underscoring that the sustainability and success of blue carbon projects hinge on putting community interests at the forefront of market-based conservation strategies.

Advancing the critical role of technology and community empowerment in enhancing the integrity and effectiveness of blue carbon projects, Jane Glavan, Founder of Distant Imagery, pointed out that “empowering communities through accessible technology enables a grassroots approach to ecosystem restoration and monitoring.”

Ms Glavan emphasised the democratisation of technology, advocating for solutions that are not only sustainable but also built around and by the communities they aim to benefit. Ms Glavan highlighted her work in providing communities with the tools and training necessary to monitor, restore, and protect their ecosystems, thereby fostering a sense of ownership and responsibility. She argued for a shift in perception towards seeing communities as leaders and integral parts of blue carbon market project development and execution. Ms Glavan underscored the importance of inclusive and participatory methods in achieving high-integrity blue carbon markets.

“Empowering communities through accessible technology enables a grassroots approach to ecosystem restoration and monitoring.”

Voices from the Global Stage

Al Binger, Secretary General of SIDS DOCK, emphasised the unique challenges and opportunities Small Island Developing States (SIDS) faced in leveraging blue carbon markets for sustainable development and climate resilience. He underscored the importance of establishing international standards and best practices to prevent exploitation and ensure that blue carbon initiatives genuinely benefit island communities and ecosystems. Secretary General Binger advanced the need for capacity building, knowledge sharing, and global cooperation to support SIDS in harnessing the blue carbon potential of their coastal and marine ecosystems.

Voices from the Global Stage

Reflecting on the need to address market pressures and the risk of exploitation that SIDS face, he stated, “allow best practices to be shared, allow information to be readily available.... basically, make it difficult for people who are selfish, cowboys as you call them, to not participate in the market, not to benefit from the market.” Highlighting the need for a collective approach towards high integrity, Secretary General Binger advocated for an international framework that recognises the multipurpose value of coastal ecosystems for islands beyond their carbon sequestration potential.

Fegi Nurhabni, Deputy Director for Disaster Mitigation and Climate Change Adaptation at MMAF’s Directorate of Coastal and Small Islands Utilization, highlighted the significance of community inclusiveness, environmental contributions, and robust methodologies as critical factors for high-integrity blue carbon markets.

Deputy Director Nurhabni focused on ensuring that benefits derived from blue carbon projects extend to all stakeholders, particularly local communities living near ecosystems. Emphasising the challenge of equitable benefit distribution, she pointed out the everyday experience of negotiation disparities, where communities are often offered a minimal share of the benefits. She stressed the need for a transparent and equitable agreement process that recognises and compensates the community's role in these ecosystems. Deputy Director Nurhabni summarized her message on integrity by stating, “the biggest challenge right now... is how to make sure that the benefits that come from the carbon market itself are not only for one side or one stakeholder but also for stakeholders with their own portion with the agreement, clear and transparent agreement.”

“The biggest challenge right now... is how to make sure that the benefits that come from the carbon market itself are not only for one side or one stakeholder but also for stakeholders with their own portion with the agreement, clear and transparent agreement.”

Per Fredrik Pharo, Director of Climate and Environment, Norwegian Agency for Development Cooperation (Norad)

Representing the Norwegian Agency for Development Cooperation (Norad), Per Fredrik Pharo, Director of Climate and Environment, underscored the essential integration of national policies and robust regulatory frameworks for the effectiveness of blue carbon markets, citing Indonesia's leadership in forest and marine carbon initiatives. He pointed out the potential of carbon markets to support natural solutions for climate change but cautioned against replicating the flaws observed in REDD+ projects. He highlighted the critical role of anchoring blue carbon initiatives within a supportive policy framework: “The success of blue carbon markets relies fundamentally on their integration into national policies and regulatory frameworks. This is a precondition for their integrity and sustainability.”

“The success of blue carbon markets relies fundamentally on their integration into national policies and regulatory frameworks. This is a precondition for their integrity and sustainability.”

Director Pharo advocated for carbon credits to enhance rather than substitute for emission reductions and stressed the necessity of transparency, social safeguards, and benefit-sharing. He concluded that with integrity and accountability, blue carbon projects hold the promise of significantly contributing to sustainable environmental financing and benefiting both the planet and local communities.

Event moderator, Steven Lutz, Blue Carbon Lead at GRID-Arendal, discussed the vital role of integrity and community involvement in developing blue carbon markets. He highlighted the need for transparent and equitable mechanisms to ensure local communities benefit from conservation projects. He pointed out the potential risk of fraud and exploitation within these markets and emphasised the importance of creating standards that promote high integrity climate, environmental and social actions.

Summarising the event’s collective insight, Mr Lutz stated, "the integrity of blue carbon markets depends on transparent, accountable practices that empower local communities and ensure environmental stewardship.”

Event moderator Steven Lutz, Blue Carbon Lead at GRID-Arendal, discussed the vital role of integrity and community involvement in developing blue carbon markets. He highlighted the need for transparent and equitable mechanisms to ensure local communities benefit from conservation projects. He pointed out the potential risk of fraud and exploitation within these markets and emphasised the importance of creating standards that promote high-integrity climate environmental and social actions.

Blue Carbon at COP28

Within the wider COP28 discussions, Norway was among the many nations pledging funds to support Blue Carbon and mangrove conservation – the so-called ‘Mangrove Breakthrough’. This commitment supports a goal of 15 million hectares of mangroves being protected or restored, underpinned by investments totalling USD 4 billion by 2030.

However, international carbon market issues prevail. At the COP, countries failed to agree on key rules to trade offsets bilaterally and to kickstart a long-awaited global UN-sanctioned market. Market integrity remains the major issue, leaving carbon markets in limbo.

“The integrity of blue carbon markets depends on transparent, accountable practices that empower local communities and ensure environmental stewardship.”

Towards a Sustainable Horizon

The discussions at the forum painted a picture of hope tempered with realism. The potential of blue carbon to contribute to market-based climate action, biodiversity conservation, and socio-economic development is immense. However, realising this potential requires a concerted effort to ensure that market projects develop with integrity, inclusivity, and transparency.

The event highlighted the necessity of marrying high-integrity climate action with social justice through blue carbon initiatives. As we look to the future, the insights shared by the panellists serve as a beacon, guiding us toward a path where real carbon is sequestered, supporting the convergence of environmental sustainability and community empowerment. Together, we can harness the potential of blue carbon to create a more just, sustainable, and resilient world.