Financing Options for Blue Carbon: Opportunities and Lessons from the REDD+ Experience

When development pressures transform mangroves, seagrass, and coastal wetlands, carbon stored in their biomass and soil is released to the atmosphere as carbon dioxide. One way to counter these pressures and thereby conserve the carbon stored in these habitats (referred to as “blue carbon”) is to provide payments for the environmental services they provide. This paper analyzes current and potential options for carbon mitigation payments as a source of blue carbon finance. With other work that has focused on the payments needed to secure blue carbon, this paper can help stakeholders assess funding gaps and direct scarce resources to those activities that will provide the greatest blue carbon benefits.