Blue carbon, green gains

Globally, the protection and restoration of mangroves are gaining substantial consideration because of their high potential in climate change mitigation through ‘blue carbon’.

This refers to the carbon captured and stored by ocean and coastal environments, mainly mangroves, seagrasses, and salt marshes. It is termed ‘blue’ carbon due to its closeness to the ocean: it is stored mostly in the soil and silt up to six metres under the seabed.

According to a World Bank report, oceans act as the planet’s largest heat sink, absorbing 90 per cent of the excess heat generated by climate change and 23 per cent of human-caused CO2 emissions. Blue carbon covers merely 2.0 per cent of the ocean surface but absorbs 50 per cent of carbon dioxide.

For example, mangroves can store five times more carbon per hectare than forests. Seagrasses, another vital blue carbon ecosystem, could stop the release of up to 650 million tons of CO2 per annum, similar to the global shipping industry's emissions. Besides, it is estimated that mangroves protect over six million people from flooding each year and prevent $24 billion in asset losses. Healthy blue carbon ecosystems, such as mangroves, seagrasses, and salt marshes produce carbon credits and provide additional revenue to local communities.

Sindh’s Indus Delta region holds immense potential in this sector. The Delta Blue Carbon (DBC) project is a major example of how Pakistan can blow into blue carbon credits and contribute to the global carbon market, possibly unlocking considerable economic gains.

The Delta Blue Carbon project is one of the largest blue carbon initiatives globally. It was launched in 2015 as a collaboration between Indus Delta Capital Private Limited and the Sindh Forest Department, the purpose of this project is to rehabilitate and restore vast areas of mangrove forests in the Indus Delta. With a lifetime of 60 years, the DBC project is focused on securing 102,000 hectares of existing mangroves while restoring another 226,000 hectares of degraded mangrove land.

The blue carbon resources of Pakistan possess huge market potential. As countries and corporations worldwide endeavour to meet their climate pledges, the demand for carbon credits is rising abruptly. The successful implementation of the DBC project proves the ability to generate high-quality blue carbon credits that can be traded on international carbon markets.

With the global uproar and attention on the reduction of carbon, Pakistan could see a substantial influx of income through the sale of these credits. Consider: only the DBC-1 phase has generated millions of certified emission reductions (CERs), which are tradeable carbon credits.

There is no doubt that the global market for carbon credits has seen exponential growth in the recent past. As it is driven by international commitments to the Paris Agreement and net-zero targets. Countries in Europe, the US, and the Middle East are major consumers of carbon credits. Besides, the companies such as airlines, oil and gas producers, and other heavy industries are also key players in this market, as they seek to balance their greenhouse emissions.

Pakistan’s blue carbon credits, derived from its mangrove ecosystems, could attract interest from such buyers, given the scale and credibility of the DBC project. According to global carbon market estimates, carbon credits can fetch between $10 and $40 per tonne, depending on the quality of the credits and the verification process. Given the scale of Pakistan’s mangrove restoration efforts, the country could possibly earn hundreds of millions of dollars from carbon credit sales over the coming decades.

However, to unlock the full economic potential of blue carbon, Pakistan needs to address certain challenges. First, there should be more standardized and transparent verification systems to ensure the credibility of carbon credits. At present, Delta Blue Carbon follows international standards for carbon offset projects, which adds value to the credits produced. Extending these standards across other blue carbon projects in Pakistan would strengthen the country’s position in the global market.

Second, improved infrastructure is needed to protect and monitor coastal ecosystems effectively. The DBC project’s ongoing monitoring campaigns play a critical role in ensuring that mangrove restoration continues to confiscate carbon as planned. Expanding these efforts to other coastal areas in Pakistan would increase the volume of credits generated and sold.

Last of all, the government and private sector ought to build partnerships to expand blue carbon enterprises. In addition, international organisations, development agencies, and private investors should provide financial and technical support to broaden the DBC model across other coastal areas in Pakistan. With proper governance and investment, blue carbon projects could contribute not merely to climate mitigation but also local job creation and community development.

Pakistan's blue carbon potential, demonstrated by the Delta Blue Carbon project, offers a unique opportunity for the country to engage in the global carbon credit market. As international demand for carbon credits grows, Pakistan’s vast coastal mangrove ecosystems could become a critical part of the solution to global climate change.

By investing in infrastructure, establishing transparent verification processes, and developing international partnerships, Pakistan could generate significant economic returns from the sale of blue carbon credits while also addressing climate and environmental challenges at home.

The writer is an assistant director, Climate Change Adaptation at the Pakistan Red Crescent Society (PRCS), Islamabad.