Coastal “Blue” Carbon: A Revised Guide to Supporting Coastal Wetland Programs and Projects Using Climate Finance and Other Financial Mechanisms

Coastal wetlands conservation and restoration efforts aim to preserve biodiversity and generate benefits to local communities. A diverse portfolio of financing sources has been used for these efforts, including philanthropy, multi- and bilateral aid, in-country governmental funding, tourism-related and other usage fees, and fees and levies associated with wetlands-centric extractive industries. More recently, recognition of coastal wetlands as carbon sinks has opened the door for wetland managers to explore funding sources directed toward climate change mitigation. But finding appropriate funding sources to set up a coastal wetland carbon project or to develop a national carbon program (which includes or is solely focused on coastal wetlands) is often a challenge. Additionally, carbon finance alone often cannot support the necessary management activities. This report updates Keep It Fresh or Salty: An Introductory Guide to Financing Wetland Carbon Projects and Programs (2014). It uses revised guidance for program and project developers (governments, NGOs, local communities) and extends analysis to other finance avenues that can link and complement carbon activities with non-carbon-based financing sources such as debt-for-nature swaps. Rather than recommending one mechanism over any other, it encourages users to think holistically about the range of benefits provided by coastal wetlands conservation for climate mitigation and adaptation in order to optimize the full range of financial mechanisms.