Blue Carbon Credit Prices

What is Blue Carbon?

The term "blue carbon" refers to the storing of carbon dioxide in the coastal and marine ecosystems. Examples of these systems range from mangroves and saltmarshes to seagrass.

These are referred to as "blue" due to their location around the ocean, with the CO2 being stored in the top layers of the ecosystem's soil and silt, down to six meters below the surface of the seabed.

Why is Blue Carbon so Important?

Blue carbon ecosystems play a crucial role in mitigating the effects of global warming. Even though they account for only 2% of the surface of the oceans, they are actually responsible for half of its CO2 absorption capacity.

According to World Bank estimates the protection of seagrasses would save up to 650 million tons of CO2 every year, or about 3% of global emissions. Additional benefits include providing communities with food security and protection from erosion and floods.

What are Blue Carbon Credits?

Blue carbon credits represent one ton of sequestered carbon dioxide by coastal ecosystems like mangroves, seagrass and saltmarshes. The credits are generated either by human-led projects that restore or grow the three main types of blue carbon projects or are attributed to natural systems that are being protected from intervention.

What is the difference between blue and green carbon credits?

Whereas "green carbon" is used to describe the CO2 in vegetation and soils on land, "blue carbon" refers to marine and coastal ecosystems that store carbon dioxide. Though both ultimately extract the gas from the atmosphere, a distinction between them is necessary to describe their location, functionalities and the specific risks they face (fires, erosion, etc.)

How much are Blue Carbon Credits worth?

Like any market, supply and demand determine the price of blue carbon credits. Factors like location, ecosystems and the involvement of the local community also play a role in determining their value.

At the time of writing (April 2024) the six-month range of prices according to Viridios AI has been $19.45 and $26.83.

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