Climate Impact X (CIX), an environmental credits marketplace and exchange, and carbon finance company Respira International have completed a landmark auction for nature-based blue CO2 credits.
The auction sold 250,000 metric tons of 2021 carbon credits from the Delta Blue Carbon Project in Pakistan, which is the world’s largest mangrove restoration project, at the price of $27.80 per ton.
CIX published the auction demand curve, showcasing the submitted bid prices. 30% of the bid volume was priced at $35.00 per ton or more, or 27% higher than the auction reserve price ($27.50 per ton), showing the premium at which some buyers were willing to pay for high-quality credits.
CIX aims to build trust and transparency in the carbon markets through the discovery of clear demand and price signals, said Mikkel Larsen, CEO of CIX. “This auction offers reassurance to the market that demand for quality carbon credits remains robust. We are proud to work with partners like Respira to deliver landmark auctions, and together help to scale the next wave of impactful carbon sequestration solutions.”
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Mangroves are among the world’s most effective natural carbon sinks and can store up to five times more carbon than upland tropical forests. The Delta Blue Carbon Project spans 350,000 hectares of tidal river channels and creeks, low-lying sandy islands, mangrove forests, and inter-tidal areas along the southeast Pakistanian coast. The project is expected to sequester approximately 142 million tons of carbon, along with driving broader biodiversity and bringing socio-economic impacts.
Nadeem Khan, Founder of Indus Delta Capital and project developer of the Delta Blue Carbon Project said the funds coming from the sale of the Delta Blue Carbon credits will go toward on-the-ground activities that bring environmental and climate benefits and benefit the local communities.
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