High-QualityBlueCarbonPrinciplesandGuidanceATriple-BenefitInvestmentforPeople,Nature,andClimateContentsForeword4ExecutiveSummary6AudienceandApplication9Principles10Guidance14SafeguardNature15EmpowerPeople16Employthebestinformation,interventions,andcarbonaccountingpractices18OperateLocallyandContextually22MobilizeHigh-IntegrityCapital23Recommendations24BuyersandInvestors24SuppliersandProjectDevelopers26Governments26Conclusion27AppendixA:SampleQuestionstoVetHigh-QualityCredits28AppendixB:Glossary30AppendixC:TableofExistingStandards32AppendixD:ResearchMethodology34AppendixE:WorksConsulted35ForewordPhotoby©AppleNewsroomToavoidtheworstClimatechangeisthebiggestchallengehumanityhasimpactsoftheclimateandeverfaced,anditisunfoldingatthesametimeasvast,biodiversitycrisesandhuman-causedbiodiversityloss,aswellastremendousadvanceclimatejustice,wehumansuffering,inequality,andinjustice.Thescientificmustinvestinhigh-qualitycommunityoverwhelminglyagreesthatwemustsolutions,likebluecarbon,dramaticallycutourgreenhousegasemissionswithinthatdeliveroutcomesforthisdecadetoavoiddevastatingconsequencesaswellpeople,nature,andclimate.asreversebiodiversityloss.ProtectingandrestoringecosystemsrichincarbonandbiodiversitycanprovideuptotengigatonsCO2e(carbondioxideequivalent)emissionsreductions(Grissometal.2017),roughly30percentofthemitigationneededtoaddressthisclimatecrisis.Coastalecosystemslikemangroveforests,tidalmarshes,andseagrassmeadowssequesterandstorevastamountsofcarbonandarenowbeingrecognizedfortheirroleinmitigatingclimatechange(InternationalUnionforConservationofNature2017).These”bluecarbon”ecosystemsserveasbarriersagainststormsurges,flooding,anderosion.Theyprovidecriticalhabitats,cleanourairandwater,andregulateourclimatebysequesteringandstoringcarbon.Coastalbluecarbonecosystemsarevaluedatover$190billioninU.S.dollarsperyear(Bertrametal.2021)andareestimatedtoreducecostsassociatedwithimpactssuchasfloodingbyoverUSD$65billionannually(LealandSpalding2022).4Despiteprovidingthesebenefits,bluecarbonecosystemsaresomeofthemostendangeredecosystemsonEarth,disappearingatarateof0.1–2percentperyear(Macreadieetal.2021).Todate,anestimated67percentofallmangroveforestshavebeendestroyedbypollution,coastaldevelopment,extractiveactivities,andunsustainableaquacultureandagriculturalpractices.Ifcurrenttrendscontinue,ourplanetwillbedeprivedofthesepreciousecosystems—andtheirmanyessentialbenefitsandservices—withinacentury(Pendletonetal.2012).Thefirstprioritymustbetoreducegreenhousegasemissionsandlimitglobalwarmingto1.5degreesCelsiusabovepreindustriallevels,pertheworldwideagreementtocurbclimatechangethatwaslaidoutinParisin2015.Investmentsthatvaluenatureaswellasbuildresilienceandadaptivecapacityarekeytomeetingthesegoals.Theinternationalcarbonmarketconsistsofcarboncreditsthatrepresentavoidedemissionsorremovedcarbon(oritsequivalent)fromtheatmosphere.High-qualitynature-basedcarboncreditsareapowerfultoolfordrivingclimatemitigationandresiliencethroughtheconservationandrestorationofnature.Thesizeofthevoluntarycarbonmarket(VCM)in2021wasmorethanUSD$1billionannually(EcosystemMarketplace2021)andisprojectedtoincreasebyafactorof15by2030andby100by2050(Blaufelderetal.2021).Whilebluecarboniscurrentlyasmallsliceofthecarbonmarket“pie,”bluecarbonfinancehasthepotentialtogrowoverallinvestmentincoastalandoceannature-basedsolutionsandresilience.Thismayoccurthroughhigh-qualitycarboncreditprojectsthatcatalyzeachievementofclimatetargetswhileprotectingpeople,respectingandaccountingforlocalknowledgeandtenurerights,andsecuringbiodiversitybenefits.Mobilizingprivateandpublic-sectorfinancetowardtheprotectionandrestorationofbluecarbonecosystemsis,therefore,asignificantopportunity.Growingdemandforbluecarboncreditsandtheaccompanyingsurgeofinterestinbluecarbonhaveattractedmanynewactorsintothisspace.Tolearnfromthepastaswelooktofuture,wemustalignnewandincumbentstakeholdersaroundasharedvisionforhigh-qualitybluecarbonthatcanachievelastingandmeaningfulresultsforpeople,nature,andtheclimate.Todevelopthissharedvision,weundertookanopenandconsultativeresearchandoutreachprocessoverthefirsteightmonthsof2022.Weengagedthoseworkingontheground,tryingtomeetnationaltargetsandbuildingsustainableinvestmentportfolios.Welistenedtostakeholdersfromdifferentsectorsandlearnedaboutwhattheyneedtocreatehigh-qualitybluecarbonprojectsandcredits.Theresultsarearticulatedhereintheformofprinciplesandguidancethatoutlinewhathigh-qualitybluecarbonprojectsandcreditdevelopmentmean.Thisisthebeginningofajourneythatwearetakingtogethertoensureaccountability,sustainability,andtransparencyinthismarketplace,andmuchworkremains.Wehopetheseprinciplesandguidanceserveasaclear,high-qualityfoundationformovingforwardwithdeterminationandcollaborationtoensurehigh-qualityandclearguardrailsforsustainablemarketdevelopment.5ExecutiveSummaryAsacontributiontothisgrowingUrgentactionisneededtoaddresstheclimateandbodyofwork,theseprinciplesbiodiversitycrisesandensureclimatejusticeglobally.Inandguidancehavebeendevelopedadditiontoreducingemissionsthroughtechnologyandtoalignstakeholdersaroundadecarbonizedsupplychains,weneedtoinvestinthesharedvisionforhigh-qualityincrediblepowerofnaturetobuildresilience,increasebluecarbonprojectsandcredits.adaptivecapacity,andmitigatetheimpactsoftheseglobalThissharedvisionforqualitythreatsatscale.Investinginbluecarbonprojectsisonecanserveafoundationalrolepowerfulwaytodoso.inbuildingconfidenceinandmomentumaroundbluecarbonHigh-qualitybluecarbonprojectscanconserve,protect,projectdevelopmentandandrestorelostanddegradedcoastalecosystems.Indoinginvestments.so,theycanimprovelivelihoods,protectculturalheritage,maintainfoodsecurity,andprovidecoastalprotectionforlocalcommunities.Inaddition,healthycoastalecosystemsimprovewaterquality,serveasnurserygroundsforfisheries,andcaptureandstorecarbon.SafeguardNatureMobilizePrinciplesEmpowerHigh-integrityofHigh-QualityPeopleBlueCarbonCapitalEmploythebestinformation,Operateinterventions,andLocallyandcarbonaccountingContextuallypractices6Atthegloballevel,thebenefitsoftheseecosystemsTheterm“bluecarbon”usedthroughoutthisareoftenframedaroundmitigatingclimatechangedocumentreferstonature-basedsolutionsincoastalthroughreducedoravoidedcarbonemissions.Butandmarineecosystemswhereanthropogenicbluecarbonecosystemsbenefitlocalcommunitiesthreatscanbemitigatedtomeasurablyreducetoo.Theysupportfisheries,createalternativeclimatechangeimpactsusingrobustandacceptedlivelihoods,andhelpcommunitymembersmeetday-methodologies(seetableinAppendixC).Theto-dayneeds.Scientists,policymakers,andcivilsocietybluecarbonecosystemscurrentlyassociatedwithincreasinglyrecognizebluecarbonecosystemsforstandardsandmethodologiesbasedonthebesttheircriticalroleintacklingtheclimatecrisisandareavailablesciencearemangroveforests,seagrassdedicatedtoimplementinghigh-qualitybluecarbonmeadows,andsaltmarshesandarethefocusofthisprojects.Currently,theglobalsupplyofcertifieddocument.Otherprojecttypes,suchasseaweedbluecarboncreditsisfaroutpacedbyincreasingconservationandkelpfarming,requireadditionaldemand.Keyfactorsinhibitinghigh-qualityblueresearchandthedevelopmentofnewcarboncarbondevelopmentrelatetoecosystemcomplexity,methodologies,whichareunderdevelopment.knowledgegaps,anduniquefundingneeds.Theresearchgaphasnowclosedconsiderably.RobustThisdocumenthasbeenwrittentoapplytonewmethodologiesnowalsoexistbutmuststillbemethodologieswhentheybecomeavailable.socializedandadopted.FurtherinnovationisneededImportantly,itisspecificinscope.Thisreportdoestofindefficienciesinmethodologyapplication.Myriadnotlayoutanewstandard;rather,itdistillsexistingteamsaroundtheglobeareactivelybuildingsolutionsandemergingknowledge,guidance,andbesttosourcefundingandovercomeinhibitorstogrowth.practices1forapplicationinthebluecarboncontext.WhilethisdocumentdoesnotdiscussbluecarbonThefiveprinciples—eachofequalimportance—arecreditsinthecontextofthecompliancemarket,guidepoststoensurethathigh-qualitybluecarbontheapplicationoftheseprinciplesandguidancetoprojectsandcreditsoptimizeoutcomesforpeople,thevoluntarycarbonmarketwillprovideausefulnature,andclimate.precedentforhigh-qualitybluecarbonincompliancemarketsinthefuture.TheseprinciplesandguidanceTheseprinciplesandguidanceweredevelopedshouldbeapplicableandrelevantforseveralyearsthroughaconsultativeandopenprocess,drawingonbut,giventhenascencyofthemarketplace,maytheinsightsandlearningofexpertsworkingoncarbonneedtobeupdatedinthefuture.markets,finance,policy,regulations,nature-basedsolutions,communityresilience,andbluecarbon.ThisAmidunpredictableandincreasinglyintenseclimateworkwassponsoredbyWorldEconomicForum’sscenarios,wemusthaveinterventionsthatnotonlyFriendsofOceanAction,Salesforce,OceanRiskanddrawdowncarbonemissionsbutalsoensurethatResilienceActionAlliance,ConservationInternational,communitiesandnatureareresilient.ProtectingandTheNatureConservancywithsupportfromandrestoringbluecarbonecosystemsarepowerfulMeridianInstitute.Weareverythankfultothescoresinterventions.Humanitycontinuestodestroytheseofpeoplewhocontributedthroughinterviews,vulnerableecosystems.Acceleratedactiontoprotectworkshops,roundtables,writtencomments,andtheirbluecarbonecosystemsandmitigateclimatechangeownthoughtleadership.Thisdocumentisthefirstiscriticalandurgent.Wewillonlybesuccessfulsteptowardworkingwiththisbroadcommunitytoifactionsarescientificallybased,equitable,andpromoteandscalehigh-qualitybluecarboninitiatives.globallyembraced.Raisingambitiontodeliverhigh-qualityprojectsandcreditswilldeliverrealThisdocumentelaboratesontheseprinciplesandoutcomes.Thetimeforactionisnow.Empoweringprovidesmoredetailedguidanceonhowtoapplythedevelopmentofhigh-qualitybluecarbontheminthecontextofbluecarbonecosystemsbyprojectsisaninvestmentinourcommonfuture.includingthefollowingcomponents:1Severalinitiativesarecurrentlydevelopingguidancefornature-ÎAhigh-leveldefinitionofhigh-qualitybasedsolutionsandthevoluntarycarbonmarketmorebroadly.Newguidancetocompelgoodactorsinthevoluntarycarbonbluecarbon.markets,includingtheIntegrityCouncilforVoluntaryCarbonMarkets’(ICVCM)CoreCarbonPrinciples,theVoluntaryCarbonÎPrinciplesthatalignwithexistingguidanceforMarketIntegrity(VCMI)Initiative’sCodeofPractice,andtheTropicalForestCreditIntegrity(TFCI)guideareshapingtheunregulatedhigh-qualitynature-basedsolutionsbroadlyandoperatingenvironment.ICVCMaimstoinformthepathwaytoserveafoundationalroleinfurtherdefiningaprovidingreal,verifiable,high-integritycarboncredits.TheVCMIsharedvisionforbluecarbon.effortisintendedtogovernhowcompaniescanusecarboncreditstomaketransparentandcredibleclaimstowardnetzeroÎGuidancefortheapplicationoftheseprinciplescommitments.TheTFCIguidehelpscompaniesdifferentiatebetweenforestcarboncredits.Thisdocumentfocusesonbluewithinabluecarboncontext.carbonwithinthecontextoftheseotherefforts.ÎRecommendationsforparticipatinginthebluecarbonspacewithintegrityandimpact.7Thisgraphicshowshowhigh-qualityblueForestSustainableCDMAR—AM0014—carbonprinciplesandguidancefitwithinMethodologyMangroveAfforestationandthebroaderbodyofworkadvancingManagementReforestationofcarbonmarketintegrityandquality.REDD+(ForthcomingDegradedMangroveLate2022)HabitatsArticle6NDCsVM0033—MethodologyforPlanVivoTidalWetlandandClimateGoldStandardSeagrassActionRestorationReserveStandardsandVCMI:MethodologiesProvisionalVerraVM0007—ClaimsCodeREDD+ofPracticeAmericanCarbonMethodologyICVCM:InternationalRegistryFrameworkCoreCarbonAgreements(REDD+MF)PrinciplesTheGuidanceRestorationofforVCMCaliforniaDeltaicandCoastalWetlandsMethodologyBestpracticesHigh-QualityIUCNGlobalTheMississippiforEcologicalBlueCarbonStandardforDeltaicWetlandRestorationPrinciplesandNature-BasedRestorationGuidanceSolutionsMethodologyGuidanceGlobalinitiativesBestpracticesGlobalGlobalforCommunityMangroveBIODIVERSITYAllianceFRAMEWORKEngagementUnitedNationsHigh-QualitySustainableCarbonCreditsDevelopmentGoalsBlueNaturalCapitalFinancingFacilityMangroveBlueCarbonBreakthroughInitiativeInternationalWorldEconomicPartnershipforForum’sMangrovesBlueCarbonWorkingGroup8AudienceandApplicationThisdocumentpresentsasetofprinciplesandrecommendationstoguidethedevelopmentandprocurementofhigh-qualitybluecarbonprojectsandcredits.End-usersincludebuyers,investors,suppliers,developers,andenablers,whomwecollectivelyrefertoas“bluecarbonstakeholders”orsimply,“stakeholders.”Wehopethisguidancehelpsallusersreachtheirgoalstoprotectpeople,nature,andclimate.Justasthesuccessofourendeavortocreatethisguidancehingedondiversecontributions,itsimpacthingesonitsadoptionandimplementationbydiverseend-users.Weinvitethoseworkingonandinvestinginbluecarbontotestandapplytheseprinciplesandguidanceanddevelopnew,innovativeproductsfordiverseuse-cases.Stakeholderscanimplementtheseprinciplesandguidanceby:ÎReferencingandincludingtheseprinciplesandguidanceinrequestsforproposals(RFPs),questionnaires,rubrics,andcontractsandbysharingtemplatesofsuchworkproductswheneverpossible.ÎDevelopingindividualprojectplansconsistentwiththeseprinciplesandguidance.ÎDevelopingtoolkitsthatenablepractitionerstoquicklyimplementtheprinciplesandguidance.ÎPublishingcasestudiestoshowwhattheprinciplesandguidancelooklikeandshowcasetheirimpact.ÎBuildingcapacitysobluecarbonprojectsand/orcreditingeffortsthatfallshortoftheseprinciplesandguidelinescanmakenecessaryimprovementstoachievehighquality.ÎInternalizingtheseprinciplesandguidanceinallaspectsofprojectassessment,design,andimplementation.Werecognizethattheseprinciplesandguidancedefineavisionforhigh-qualitybluecarbonacrosseveryprojectcharacteristic.Wealsorecognizethatfewprojectswilllikelymeeteveryelementoftheguidanceinfulltoday.Ourintentisnottosetabarthatisimpossibletoreachandthereforeexclusionary,butrathertoprovideapathwayforstakeholderstodeliverthebestpossibleoutcomesforpeople,nature,andclimate.Withallthebenefitsnatureprovides,investinginhigh-qualitybluecarbonprojectsisawin-winstrategy.9PrinciplesPhotoby©AppleNewsroomHigh-qualitybluecarbonprojectsandcreditsoptimizeoutcomesforpeople,nature,andclimateinatransparentandequitableway.Theseprojects(1)sequesterandstorecarbonwithhighfidelity;(2)restoretheecologicalintegrityandresilienceoftheecosysteminquestion;and(3)openpathwaysforlocalandIndigenouscommunitiestoequitablyparticipateinandbenefitfromthevoluntarycarbonmarket.Thefollowingfiveprinciples—eachofequalimportance—alongwiththesubsequentguidancearefoundationaltothedevelopmentanddeploymentofhigh-qualitybluecarbonprojectsandcredits.SafeguardNatureBluecarbonprojectsprovideuniqueopportunitiestopreserveandenhanceecosystemresilience.ÎConserveourplanet’sremainingintactecosystems.ÎDesignprojectsinaccordancewithscience-basedecologicalprotocols.ÎDonoharm.10EmpowerPeopleÎEstablishaccuratecarbonbaselinesthroughMostbluecarbonprojectstakeplacewhereevidence-basedassessments.peopleliveandwork.BluecarbonpractitionersmustimplementsocialsafeguardstoprotectandÎDemonstrateadditionalityusingclearenhancecommunitymemberrights,knowledge,andleadershipandfosterequitableaccesstotheevidenceandreasoning.globalcarbonmarket.ÎAssessthreatstodurability.ÎEnsurethatfree,priorandinformedconsentÎEstablishmeasurestomitigateriskofreversal.ÎEmployadaptivemanagementprotocols.(FPIC)isestablished.ÎWeighthetradeoffsbetweenactualandÎEnsureinclusiveparticipationandleadershipanticipatedcredittypes.ofIndigenousPeoplesandlocalcommunitiesOperateLocally(IPLCs),women,andothermarginalizedandContextuallygroupsinprojectdesign,governance,andmanagement.Bluecarbonecosystemsareincrediblyheterogeneouswithrespecttotheirroleinlocalcustoms;genderandÎEnsurefeedback,accountability,andgrievancepowerdynamics;resourceuse,management,andownershipregimes;andsocial,policy,andgovernancemechanismsareavailabletoallrightsholdersstructures.andstakeholders.ÎDesignprojectsaccordingtothelocalsocialandÎRespecttraditionallandusepracticesandlegalecologicalcontext.rightstoland,resources,andcarbon.ÎAccountforthelocalimplicationsofinternationalÎProvideequitableaccesstotheglobalpolicies.voluntarycarbonmarketbyempoweringlocalcommunitieswiththemeanstoparticipateÎAdvancepoliciestopromotehigh-qualityblueandlead.carbonprojectdevelopment.ÎEnsurelocallyrelevantgenderintegration.ÎEstablishadiversenetworkoflocalpartnerstoÎEmpowerlocalcommunitiestodefineensureprojectsuccessandlongevity.equitablebenefitsharing.MobilizeEmEpmloploythebestinformation,High-integrityCapitalinformaWecannotachievethebestoutcomesforpeople,initnerterventions,andcarbonnature,andclimatewithouthigh-integritycaarcbocnoauntingpracticesfinancialflows.praÎSetscience-basedtargetsforlimitingglobalTheintegrityoftheVCMhinges,inpart,ontheaveragetemperatureincreaseto1.5degreesqualityofinformationusedtodesignprojectsCelsiusandcompensateforremainingandcommunicatetheresultingcarbonvalueofemissionswithhigh-qualitycarboncredits.thecreditsgenerated.ÎDesignagreementsandcontractstoÎUsethemostappropriateinterventionsandthepromotefairandtransparentpricingbestavailablescientificknowledge,includingandcompensation.Indigenous,traditional,andlocalknowledge.ÎEnsuretransparentandaccurategreenhousegasaccountingandmonitoringbyusingascientificallysoundmethodologyorprotocol.11UniqueConsiderationsInAdaptivemanagementBlueCarbonEcosystemsAdaptivemanagementplansforbluecarbonAccuracyandgreenhouseprojectswilllikelyneedtoaccountforoneorgasaccountingmoreofthefollowinglong-termchangesinmarineandcoastalenvironments:seaTherearediversegreenhousegaslevelriseandfall,warmingseas,andmorefluxesandstocksinbluecarbonfrequentandintensestorms.ecosystems.Fluxesincludeair-seagasexchange,photosynthesis,bothaerobicandanaerobicrespiration,andphysicaltransportofdissolvedandparticulateformsofcarbon.Relevantcarbonstocksincludebothabove-groundbiomass(leaves,stems,trunks,etc.),below-groundbiomass(roots),andsoil(variesfrompeattosandysubstrates)carbonstocks.ConservationandrestorationConservationandrestorationprojectsinbluecarbonecosystemshaveverydifferentcharacteristicswithregardstothequantityofcreditsthatcanbegenerated,thecosttogeneratethosecredits,thechallengesincarbonaccountingforgeneratingcredits,andthetimelinestodelivercredits.12AdditionalityandbaselinesDurabilityandriskofreversalIftheresourceprotectioninterventionsAllnaturalclimatesolutionprojectsaredonotinvolvethemanagementofcarbonsubjecttosomeriskpertainingtodurability.assets,orarenotbeingfullyimplemented,Bluecarbonprojectsfacemarine-specificthenabluecarbonprojectmaybeabletorisks,includingsealevelriseandfall,demonstrateadditionality.Forexample,extremestorms,oceantemperatureinamarineprotectedareawherefishingchange,andotherclimatechangescenariosregulationsareenforcedbutregulationsthatplayoutovermultipletimescales.onmangroveextractionarenotenforced,Scientificmodelsforthesethreatstoaprojectcandemonstrateadditionality.durabilityshouldbeusedtoestimateProjectsmustcontinuetoassessthedurabilityhorizonsandcommunicatethecircumstancesovertimeandadaptassociatedlevelofuncertaintyorriskaccordingly.associatedwiththosehorizons.MitigatingriskofreversalOnemeasuretomitigatemarine-specificrisksistotakealandscape,seascape,or“ridge-to-reef”approach.Byprotectingandrestoringneighboringecosystems,projectscanenhancetheresilienceofthebluecarbonecosystem.Forexample,ahealthycoralreefcanprotectaseagrassbedormangroveforest.Likewise,ahealthyuplandforestandwatershedcanenhancetheresilienceofamangroveforestdownstream.LocalcontextinbluecarbonecosystemsThelocalcontext,bothsocialandecological,canbeincrediblyheterogeneouswithinabluecarbonprojectarea.Acoastlineoratollisoftenapatchworkofintermixedmangrove,seagrass,andcoralreefecosystems.13GuidanceThefollowingguidanceelaboratesontheaboveprinciplesanddetailsspecialconsiderationsforapplyingthemwithinabluecarboncontext.Pleasenote:theorderinwhichtheprinciplesarepresenteddoesnotreflectprioritization.Thisguidanceismeanttoinformthedecisionsandactionsofbluecarbonstakeholderssoastosteertheiractivitiestowardthebestpossibleoutcomesforpeople,nature,andclimate.14Photoby©AppleNewsroomSafeguardNatureConservationandÎConservetheremainingintactecosystemsRestorationinBlueonourplanet.WhilerestorationisandwillCarbonEcosystemsbeneeded,itrarely,ifever,fullyrestoresthediversityandintegrityofdegradedorConservationislessexpensiveanddeliversdestroyedsystems.Avoidingemissionsagreaterquantityofcreditsbecauseofandpreventingnature-lossisasimportantthehighamountofcarbonstocksbeingasremovinggreenhousegassesfromtheprotected.However,demonstratingatmosphereandrestoringecosystems.additionalityinconservationprojectscanbeWhilemarketdemandoftenprefersdifficultbecause,asinothernature-basedrestoration,stakeholdersshouldalsoconservationcreditingprojects,theprojectprioritizeconservationofcurrentecosystems.mustprovethatanegativeimpactdidn’tCombiningconservationandrestorationhappenbecauseoftheprojectinterventions.sitesincreasesthepotentiallocationswhereInmostcases,thisisdeterminedbasedonprojectscouldbeimplemented,andtheareferenceregionwithsimilarthreatsandhighercarbonbenefitfromconservationmaygovernance.However,unlikeinforestry,subsidizerestorationcosts.wheremostthreatsrelatetologging,threatsinbluecarbonsystemscanvarygreatlyÎDesignprojectsinaccordancewithfromonelocationtothenext(e.g.,cuttingforcharcoalproductionmaythreatenonescience-basedecologicalrestorationlocationwhilesedimentationchangesrelatedprotocolstomaintainorimprovethetowaterdiversionforagriculturefieldsmayhealthoftheecosystem.Projectsmustbethreatenanother).Thismakesfindingenoughdesignedtorecoverecologicalintegrityandcomparableareasdifficultandreferencingconnectivityandtoenhanceopportunitiesforregionaccuracymoreuncertain.naturalregeneration.RestorationinherentlyimpliesthattheprojectobjectiveistorebuildRestorationinvolveslongertimehorizonsanecosystemthatiseithernolongerextantforremovingcarbonfromtheatmosphereorthatisheavilydegradedinanarea.Sitebecause,insomecases,likemangroveandselectionmustmeettherighthydrologicalotherforests,ittakesyearsfortheecosystemandsubstraterequirementsforthetore-establishitselfandbematureenoughecosystemtype.Appropriatespeciesmusttobegincapturingsoilcarbon.Similarly,beselectedforrevegetationefforts.Projectsinmarshesandseagrasses,thegrassmustalsomanagebiodiversity,resilience,anditselfcanbequicklyrestoredbutlostsoilecologicaladaptationinthefaceofevolvingcarbonregeneratesveryslowly.Restorationconditionsduetoclimatechange.projectsareoftenmorecostlybecauseinterventionsthatmayberequired,likeÎDonoharm.Projectdevelopersmusthydrologicalengineeringandoccasionalplanting,arecostly.Forrestorationprojects,avoidcausingecologicaldisturbanceormethodologiesforestablishingabaselineandotherenvironmentaldamageincluding,butthenmodelingcarbonsequestrationrequirenotlimitedto,lossofbiodiversity,habitat(1)aproxysitetoproveremovalsand(2)loss,habitatconversion,invasiveornon-accurateprojectionsofemissionslevelsovernativespeciesintroduction,reducedwatertimeiftheprojectwerenottooccur.(Seequality,increasederosion,andincreased“AdditionalityandBaselinesinBlueCarbonnetemissions.ConservationandrestorationEcosystems”above.)projectsinbluecarbonecosystemshaveverydifferentcharacteristicswithregardtothe15quantityofcreditsthatcanbegenerated,thecostofgeneratingthosecredits,thechallengesincarbonaccountingofgeneratingcredits,andthetimelinestodelivercredits.EmpowerPeopleÎEnsurefree,priorandinformedconsent(FPIC)isestablished.AsafundamentalrightofIndigenousPeoplesandLocalCommunities(IPLCs),freepriorandinformedconsent(FPIC)isconsideredabestpracticeandmustbethefirststepforanybluecarbonproject.FPICinvolvesmeaningfulandculturallyappropriateconsultationswithstakeholdersengagedwithorimpactedbyaprojectthroughtheirrepresentativeinstitutionsandbymeansinwhichtheycanfreelyparticipate.Thisrequiresregularengagementonprojectinformation,progress,andresultsoverthecourseoftheprojectlifetimeinlocallanguagesandinformatsthatarewidelyaccessibletostakeholdergroups(i.e.,written,video,in-personmeetings,etc.).Italsomeansensuringsufficientcontextandinformationarecommunicatedtokeyrepresentativestobuildtheirunderstandingoftheintendedproject’sactivitiesandoutcomes.Theseengagementsmusttakeplacepriortoanyexplorationofresources.Communitiesmustalsohaveappropriatetimeandresourcestointernalizeandconceptualizetheinformationprovidedinrelationtotheproject.Thismaynecessitatethatthecommunitybesupportedwithresourcesintheformofacceptableexpertstoadvisethemontheproject.UnderFPIC,communitieshavethefullpowersofconsent,whichincludetherighttowithdraworwithholdconsentand/orrefuseanymitigationactivitiesatanypoint.2ÎEnsureinclusiveparticipationandleadershipofIPLCs,women,andothermarginalizedgroupsinprojectdesign,governance,andmanagement.Projectsmustbedesignedthroughaninclusiveapproachthatrecognizesandengageskeystakeholdergroups.Thehighest-qualityprojectsarethoseinwhichcommunitieshaveasignificantgovernanceandmanagementroleorthatareledentirelybythecommunity.Communitypartnership,buy-in,andagencyinshapinganddrivingaprojectenhancetheproject’sdurabilityandintegrity.ÎPromotelocallyrelevantgenderintegration.Experienceshowsthatsustainablechangesaremostfullyrealizedthroughactivitiesfocusedonengagingbothmenandwomeninsuccessfullyimplementingprojectsanddeliverbeneficialclimateandsocialoutcomes.Thesafetyofallpeople,butespeciallymarginalizedpopulationssuchaswomenandchildren,shouldbeprioritizedinallaspectsofprojectdesignandimplementation.Genderequityisespeciallyimportantinbluecarbonecosystemswherecommunitiesrelyoncoastalwetlandsforsustenancethroughfisheriesandfoodproduction.Inmanymangroveforests,womentendtorelyonandmanagecoastalresources(e.g.,shellfishharvesting),whereasmentendtofocusmoretimeandeffortonnear-andoff-shorefisheries.Projectsshouldbedesignedtotakegenderconsiderationsintoaccount.16ÎEnsurefeedback,accountability,andThismayincludeenhancingcommunities’capacitytoengageincarbonmarketsandmanagegrievancemechanismsareavailableecosystemresources,possiblyinpartnershipwithtoallrightsholdersandstakeholders.localuniversities.ItmayalsonecessitatetrainingLocalresourceusersandcommunitiesmustinareasincludingfinancialliteracy,sustainablehaveopportunitiestoexpressconcernsandresourcemanagement,ecologicalrestoration,andreceiveresponses(includingmitigationandscientificmeasurements,monitoring,andreporting.compensationmeasures)totheirconcernsDatacollectedforuseintheprojectmustbesharediftheyareadverselyimpactedbyprojectwithlocalstakeholdersusingcommunicationtoolsactivities.Thisisessentialtoensurefairandthatareappropriatetothecontexttoensureallequitablebenefitsharingdeterminedjointlypartiesarewellinformed.withaffectedcommunitiesandstakeholders.Toensureeffectiveimplementation,projectÎEmpowerlocalcommunitiestodefinedevelopersmustadapttheprojectactivitiesaccordingtochangingcommunityneedsandequitablebenefitsharing.Voluntarycarbonevolvingcircumstances.Projectdevelopersmarketfinanceisatoolforprovidingregularandinvestorsmustpartnerwithandbeandpredictablefundingintoprojectstosecureaccountabletocommunities,includingIPLCs,thelong-termmanagementandprotectionofthatmaybeinvolvedwithand/orimpactedcarbon-richenvironments,whichalsobenefitlocalbytheproject,irrespectiveofthetypeorcommunities.Ultimately,projectsmustdeliveronmagnitudeofitsimpact.theirclimatechangemitigationoutcomesandbedesignedtoenhancethelivelihoods,foodsecurity,ÎRespecttraditionallanduseandlegalrightswellbeing,andresilienceoflocalcommunities.Goodgovernancearrangementsmustbeintegratedtoland,resources,andcarbon.Developersintotheproject’sstructurefromtheoutset,andmustidentifytheownersofaproject’sbeneficiariesmustbeabletoobligatefundswhereland,resources,andcarbonrightsbecausetheyaremostimportantforthecommunity.ownershipoftheseelementsvaries.Thepolicy,legal,andgovernancemechanismsthatgovernThereareasmanystructuresofbenefitsharinghowfinanceswillflowinaccordancewithasthereareprojectsthemselves.Benefit-sharingownershiprightsmustbeestablished.Thesearrangementsmust(1)benegotiatedbeforeconditionsinclude:thesaleofcredits;(2)transparentlydisclosetheportionofrevenuesthatgoesdirectlytoClarityovercarbonrightsandlandtenuresocommunities;and(3)clearlyindicatehowthosestakeholdersunderstandwhoownsandcanfundsareapportioned.Theprojectcosts,financetransactbluecarbon.flows,andrevenuesharingmustbetransparentsothatcommunitiesandstakeholdershavetheClearbenefit-sharingarrangementsthatinformationtheyneedtodeterminewhethertheestablishhowfinanceswillflow.HbeCn2efit-sharingstructureisfair.Casestudiesshouldbedevelopedtoshowcasebenefit-sharingTransparencyandsafeguardmechanismsstructuresthatworkwellforinvestedstakeholders.toensurebeneficiariesunderstandtheapplicationanduseoffinances.2TheUnitedNationsFoodandAgricultureOrganizationguidelinesofferthefollowingstepsforimplementingFPIC.NotethateachFairandeffectiveparticipationofIPLCs.stepmustbeextensivelydocumented:Robustmonitoringsystems.•IdentifytheIndigenousPeople’sneeds,concerns,perspectives,andappropriaterepresentatives.ÎProvideequitableaccesstotheglobalVCM•Documentgeographicanddemographicinformationthroughabyempoweringlocalcommunitieswiththeparticipatorystakeholder-mappingprocess.meanstoparticipateandlead.Aholisticdevelopmentapproachisneededtocreateand•Workwithkeyself-determinedrepresentativestodesignenablecommunitiestoinvestinconservationacommunicationsplanfortheprojectthatenhanceswhilestillmeetingotherbasicneeds.Third-transparencyandeffectivelyinformsandengagesstakeholders.partydevelopers,forexample,shouldconsiderofferingcommunitymemberstheopportunity•Receiveanddocumentconsentandidentifyandcommunicatetomanageorsharemanagementofaproject.howtheneedsofIndigenousPeoplesandlocalcommunitiesareIfcommunitieselecttohaveamanagementaddressedintheproject.role,projectdevelopersshouldprovideresourcesfortherequisitecapacitybuilding.•Establishanaccountabilityandgrievancemechanismwithrobustlocalcontactpointstoensurekeystakeholderscansubmitfeedbackand/orgrievancesatanytime.•Conductparticipatorymonitoringandevaluationoftheproject.•Documentlessonslearnedandshareinformationaboutprojectachievementsbroadly.17EinmfEpolmrompaloythebestinformation,intienrterventions,andcarboncarbonapraaccountingpracticesÎUsethemostappropriateinterventionsandthemethodologiesmustbetransparentlyappliedandshouldfollowsoundscienceandbestpractices.Thisbestavailablescientificknowledge,includingmeansassumptionsarestatedclearlyandjustified,Indigenous,traditional,andlocalknowledge.themostaccurateandtransparentaccountingToensureasuccessfulproject,makeappropriateapproachesarefollowed,andemissionsfactorsandecologicalandsocialinterventions.Forexample,activitydataarewelldocumented.Whenpossible,survivalratesformangroverestorationprojectslocallyavailabledata(suchassite-specificsampling)havebeenaslowas10-20percentinrecentshouldbeemployedbecauseityieldsthehighest-years.However,followingthebestscientificandqualitycarbonaccounting.However,simplyapplyingconservationpractices,suchasrepairinghydrologypeer-revieweddefaultvaluesmaybeappropriateinandplantingnativespeciesinappropriatesomecases.Bestpracticeistoapproximatecarbonlocations,canboostmangrovesurvivalrateto85-benefitsusingdefaultvaluestoinitiateaprojectand90percentafterthreetofouryears.Bestpracticestheninvestinfurthersite-specificsamplingtocreateincludeconductingaroot-causeanalysisthatmorerobustcarbonaccountingovertime.uncoversthedriversofecosystemdestructionandtailoringinterventionsaccordingly.ProjectsStakeholdersarestronglyencouragedtomightrequireasuiteofinterventionsandconsiderindependentthird-partyassessmentstechnologiesthatspansocialconsiderations,suchofmethodologiesusedtounderstandtheiraslivelihoods,sustenance,andwellbeing,aswellweaknessesandstrengths.Third-partyassessmentsasecologicalconsiderationsincludinghydrologyhelpprojectdevelopersmakeinformedchoicesandbiodiversity.aboutwhichmethodologytoapplytotheirspecificprojectcontextsandobjectivesandhelpbuyersRobustscienceisfundamentaltothequalityandinvestorsbetterunderstandrisksassociatedofstandardsandmethodologiesandtothewithprojectsqualityoftheprojectsthemselves.Additionally,IPLCswhohavelivedinornearprojectlocationsWithrespecttoongoingmonitoring,additionalpossessextensivetraditionalknowledgeregardinginnovationandinvestmentareneededtofindnativevegetationandecosystemdynamics.Toscalableandaffordablesolutionsandtechnologiesoptimizeprojectoutcomes,scientificandhistoricalduetotheinherentchallengesofmeasuringandknowledgeofthelocallandscapeshouldthereforeestimatingcarbonfluxesandstocksinaquaticbepairedwithtraditionalknowledgeaswellassystems.Inthemeantime,stakeholdersshouldprovenconservationandprojectmethods.usethebestavailablemonitoringtoolsandmethodologies.ÎEnsuretransparentandaccurategreenhouseÎEstablishaccuratecarbonbaselinesthroughgasaccountingandmonitoringbyusingascientificallysoundmethodologyandprotocol.evidence-basedassessmentsoftheecosystemandApartiallistofwidelyacceptedbluecarbontheamountofcarbonitmaystoreorcapture.AmethodologiesisprovidedinAppendixC,alongcounterfactualbaselineisthecumulativegreenhousewithsomecharacteristicsofeachmethodology.Allgasemissionsthatwouldhavebeenemittediftheactorsparticipatinginbluecarbontransactionsareprojectactivitieshadnotbeenimplemented.Thestronglyencouragedtotrackpublicationofbothcounterfactualisthemostlikelybusiness-as-usualnewandupdatedmethodologiesandtocontributeeffect,weretheprojectnottoexist.dataandfeedbacktoimprovethem.Robust18ExistingmethodologiesofferdifferenttoolsandAccuracyandGreenhousemethodsforcalculatingacounterfactualbaseline.GiventhetypesofdataandnuancerequiredtoGasAccountinginBluesetthebaseline,projectdevelopersmayneedtoapplycertainassumptions.Toensurehigh-qualityCarbonEcosystemscarbonbaselinesthatdonotriskoverestimatingprojects’mitigationbenefits,projectdevelopersTherearemanygreenhousegasfluxesmustclearlyexplainkeyassumptionsandandcarbonstockstotrackinaquaticcalculationsandsupportthemwithaccurateecosystems.Fluxesincludeair-seagasandrelevantdata.Sufficientinformationintheexchange,photosynthesis,aerobicandpubliclyavailableversionofprojectdocumentsanaerobicrespiration,andphysicalshouldbeprovidedsothatotherscaneasilytransportofdissolvedandparticulateandcomprehensivelyunderstandhowtheformsofcarbon.Anaerobicrespiration,baselinewascreated.Projectdevelopersshouldparticularlymethanogenesis,shouldbeseektoestablishaccurateandconservativeconsideredbecausemethaneissuchabaselinesthatalignwithnationalorsubnationalpotentgreenhousegas.Themethanegreenhousegasaccounting.flux,andthusitsimpactonproject-levelaccounting,isoftenuncertain.RelevantTransparentrecordsofscientificmethodsshouldcarbonstocksincludeabove-groundbemadepubliclyavailableasacontributionbiomass(leaves,stems,trunks,etc.),tothebroadernational,regional,andglobalbelow-groundbiomass(roots),andknowledgeanddataonbluecarbonactivitiessoil(whichvariesfrompeattosandyandtofacilitatetheadoptionofsubnationalsubstrates)carbonstocks.Carboncyclesaccountingofbluecarbonecosystems.onavarietyoftimescalesinaquaticsystems,andcarbonstoragevariesÎDemonstrateadditionalityusingclearspatiallyaccordingtophysicalandbiologicalconditions.evidenceandreasoning.Emissionsreductionsand/orremovalsareconsideredadditionalonlyThequantityoffluxesandvariabilitywhencarbonfinanceplaysadecisiveroleinovertimeandspacemakeitcostlyinstigatingtheprojectactivityandintervention.toconstrainthecarbonsystemProjectsarenotadditionalwhenthemitigationwithconfidence.Defaultvaluescanactivitywouldhavetakenplaceintheabsencecircumventexpensiveinstrumentationofcarbonfinanceduetootherincentivesorandsamplingprotocols.Buttheysystematicallyenforcedlaws,regulations,orcomeatahighcost—thepotentialforgovernmentpolicies.compromisedaccuracy—andshouldthereforebeusedconservatively.Projectdevelopersmustdemonstrateadditionalityusingclearevidenceandreasoning.Significantcarbonstocksunderground,Additionalitymaybedemonstratedthroughorunderwaterinthecaseofseagrass,investmentanalysesand/orbarrieranalysesarechallengingtomonitorremotely.thatprovethatprojectactivitieswouldnotlikelyWhileabove-groundcarbonstocksoccurwithoutadditionalfunding,technicalinmangroveforestscanreadilybeexpertise,orpolicyintervention.Theseanalysesestimatedandmonitoredusingsatellitearealreadyutilizedbysomeexistingcarbonordroneimagery,below-groundcarbonaccountingmethodologiesforselectbluecarbonstocks,marshgrasses,andunderwaterprojecttypes(e.g.,tidalwetlandrestorationseagrassesarenotaseasilyestimatedwithintheUnitedStates).Additionalitymayalsowiththistypeofdatacollection.Instead,bedemonstratedbybenchmarkingagainstanproxies,insitusamples,ornewappropriatecomparablereferencesite(i.e.,onetechnologymaybeneededtoenablewithsimilarcharacteristics,suchasthoserelatingaccurateaccounting.geography,size,andecosystemtype).19AdditionalityandBaselinesinÎAssessthreatstodurability.Permanence—BlueCarbonEcosystemstypicallydefinedascarbonstocksnotbeingemittedformorethan100years—istheDemonstratingadditionalitypresentsuniquechallengesmostcommonlyusedtermtorefertotheforcertainbluecarbonconservationprojects,particularlylengthoftimethatcarbonstocksassociatedbecauseoftheoverlapbetweenbluecarbonecosystemswithcarboncreditsremainsequesteredinanddeclaredmarineprotectedareas,nationalconservationtheecosystem.However,inthecontextofpriorities,andsustainablecoastalwetlandmanagementbluecarbon,theterm“durability”ismore(whereprotectionsmayfocusonfisheriesmanagementappropriatebecauseitallowsstakeholdersratherthanmaintainingbluecarbonecosystems).tocomparethelongevityofcarbonstocks,whichcanendurefordecades,centuries,orIfresourceprotectioninterventionsdonotinvolvemillennia.Astock’sdurabilitydependsonmanagementofcarbonassets,orarenotbeingfullypolitical,social,environmental,management,implemented,thenabluecarbonprojectmaybeablefinancial,andotherfactors,whichcanstemtodemonstrateadditionality.Forexample,aprojectinafromdirectorindirectanthropogenicimpactsmarineprotectedareawhereregulationsonfishingbut(e.g.,naturaldisturbancesassociatedwithnotmangroveextractionareenforcedcandemonstrateclimatechange).Forthesereasons,projectadditionality.Projectsmustcontinuetoassesswhetherdevelopersmustassessandtransparentlysuchregulationsaresystematicallyenforcedthroughoutthecommunicaterisk.3projectlifetime(e.g.,throughperiodicupdatestothecarbonbaseline).3DemonstratingeconomicadditionalityforblueÎEstablishmeasurestomitigateriskofcarbonprojectsissimilarlychallenging,mostlyduetoalackofviablecomparisonscenarios.reversal.MitigationmeasuresshouldbeputinplacetoaddressriskofreversalandToestablishadditionalityandbaselines,thefollowingensuredurabilityoverthelongesttimescalerequirementsspecifictothebluecarboncontextshouldpossible.4Somestandardsrequireprojectbeconsidered.developerstosetasideabufferpoolofcredits(thatcannotbepurchased)tocoverForconservationprojects,establishingabaselineandanyreversalsofcarbonbenefitsovertime.additionalityusuallyincludesananalysisofthedrivers,Managementforreversalmayincluderates,andpatternsofdeforestation,degradation,and/landscape-scaleprojectmanagementandorwetlandconversion.Manybluecarbonecosystemssocialandlivelihoodimprovementstoreducefacedriversoflossthatareinstigatedupstream(e.g.,pressuresonecosystemresources.Projectssedimentationorpoorwaterquality).Theseareoftenthatimplementactivitiestomitigatetherisksmoredifficulttomeasureandincludeinprojections.ofreversalandimprovethelikelihoodoflong-lastingcarbonbenefitsmaybeabletoForrestorationprojects,thebaselineshouldaccountforreducetheportionofprojectcreditsthatarebothemissionsremoved(i.e.,carboncapturedbythekeptinabufferreserve(i.e.,aren’tsold).ecosystemsasitisre-established,alsoknownasremovals)aswellasthosethatareavoided.TherequirementtoÎEmployadaptivemanagementprotocols.accountforavoidedemissionsisuniquetobluecarbonecosystemsbecause,whentheyaredestroyed,theProjectdevelopersshouldemployadaptivecarbon-richsoilcanemitcarbonforuptotwodecades.managementprotocolsintheprojectTheamountofavoidedemissionsdependsonwhenthedesigntoadjusttochangingconditionsinterventionhappensrelativetotheoriginaldestruction.andcircumstances.OngoingchangesfromIftheprojectisinitiatedafterallthecarboninthesoilhasclimatedisruptionmayimpactbluecarbonbeenemitted,thenthecounterfactualbaselineiszeroforprojects.Adaptivemanagementhelpsavoidedemissions,akintoareforestationproject.ensurethelongestcarbonstoragepossible;ongoingmonitoringandevaluationmustbeFurthercomplicationsinclude:conductedtoidentifyandresolveemergentthreatstoprojectsuccess.Thelackofreadilyavailabledataneededtoestablishbaselinesacrossallbluecarbonecosystems.Aspartoftheirduediligence,investorsshouldensurethatadaptivemanagementThehighcostofsoilanalysisneededtodeterminetheprotocolsareimplemented.Whilesuchproject’sorganiccarboncontent.managementpracticesmaybearincreasedcosts,theyallowprojectdeveloperstonimbly20navigateprojectdifficulties,reducingriskforallprojectstakeholders.3RefertomethodologiesofPlanVivoandVerra.4Note:Mostguidanceusestheterm“permanence;”weuse“durability”toreflecttherealitythatcarbonstoragecomeswithatimescale,beitdecades,centuries,ormillennia(seetheglossary).Inresponsetochangesinmanagementprotocol,DurabilityandRiskinvestors,aslong-termpartners,shouldalsobenimbleandresponsivetoevolvingprojectofReversalinBluefinanceneeds.CarbonEcosystemsÎWeighthetradeoffsbetweenactualandAllnaturalclimatesolutionprojectsaresubjectanticipatedcredittypes.Bluecarbontosomeriskpertainingtodurability.Bluecarbonstakeholdersshouldweighthetradeoffsprojectsfacemarine-specificrisksincludingbetweenproducingexpostcredits(actualcreditssealevelriseandfall,extremestorms,oceanthathavebeenearnedandvalidated)versusextemperaturechange,andotherclimatechangeantecredits(creditestimatesrelatedtofuturescenariosthatplayoutovermultipletimescales.work)whendecidinghowtoparticipateintheScientificmodelsforthesethreatsshouldmarket.Expostcreditsareoftenpreferred,beusedtoestimatedurabilityhorizonsandandfetchhighpricesonthemarket,becausecommunicatetheassociatedlevelofuncertaintytheyreflectemissionsthathavealreadybeenorriskassociatedwiththem.reducedoravoidedandvalidatedwithrigorousmonitoringandverification.TheycanalsobeMitigatingRiskretiredandusedtomakeoffsettingclaims.However,apolicytopurchaseonlyexpostofReversalcreditscouldexcludelocalcommunitiesthatlacktheresourcestoovercomethemultiyearOnemeasuretomitigatemarine-specificrisksandcapital-intensivebarrierstodevelopablueistotakealandscape,seascape,or“ridge-to-carbonproject.reef”approach.ProjectsthatprotectandrestoreneighboringecosystemsenhancetheblueExantecredits(alsocalledforwardcreditsorcarbonecosystem’sresilience.Ahealthycoralforwardunits)aresoldinanticipationoffuturereef,forexample,canprotectaseagrassbedemissionsreductionsoravoidance.Untiltheyormangroveforest.Likewise,ahealthyuplandhavebeenverifiedandconvertedintoacarbonforestandwatershedcanenhancetheresiliencecreditunderarecognizedstandard,exanteofadownstreammangroveforest.creditscannotbeusedtomakeclaimsregardingneutralizationorcarbonneutrality.ExantecreditAdaptiveManagementininstrumentscarryriskbecausetheyarebasedonprojectionsaroundfutureprojectoutcomes,BlueCarbonEcosystemswhichcanbehighlyvariable.ThetypeofcreditgenerationrequiresacertainlevelofinformationAdaptivemanagementplansforbluecarbonandanalysistodevelopawell-supportedclaimprojectswilllikelyneedtoaccountforoneoroftheprojections.Theriskthatexantecreditsmoreofthefollowinglong-termchangesinmaynotbegeneratedattherateestimatedmarineandcoastalenvironments:sealevelcreatesuncertaintyregardingtheperformanceriseandfall,warmingseas,morefrequentoftheseprojects.andintensestorms,andotherclimatechangescenariosthatplayoutovermultipletimescales.ForwardsaleoffuturecreditsisonepathwayLarge-scaletrendsinsociopoliticaldynamicsandtoprovidemuch-neededcapitaltoprojectshumanactivities(suchasincreasedmigrationandcommunitiesinadvanceofprojectofpeopletoand/orawayfromthecoast)canimplementationandcreditverificationandalsoimpactthesuccessofaproject.Additionalissuance.However,projectdeveloperscanbiodiversitylossorspeciesmovementmightsecureupfrontfinanceinotherways.Manydelivercumulativeoracceleratednegativefundersarewillingtoconsiderconcessionaryimpacts.Whiletheseforcesareoutsidethefundingtosupportupfrontprojectcosts,whichprojectteam’simmediatecontrol,theyshouldcanbedonethroughphilanthropy,bonds,beaccountedforincalculationsofdurabilitydebt-restructuring,orwithpatientcapitalandriskofreversalandaddressedinadaptiveinvestorswhoarewillingtodeferreturns.Othermanagementplans.optionscanincludearightoffirstrefusal5oradiscountfromcurrentmarketpriceattimeof21issuanceinexchangefortheriskassumedbytheinvestor.Projectproponentsshouldexplorealloptions.5Rightoffirstrefusalmeansthatanentityhastheopportunitytoenterintoabusinesstransaction(i.e.,purchasecarboncredits)beforeothersdo.OperateLocallyÎEstablishanetworkofdiverselocalandContextuallygovernmentpartnerstoensuresuccessandlongevityoftheproject.TomoveÎDesignprojectsaccordingtothelocalsocialaprojectforward,securinglocalbuy-inisessential.Thisisespeciallytruegiventhatmuchandecologicalcontext.Localcontextincludescoastallandscapefallsundergovernmentcustoms;genderandpowerdynamics;resourceownershipandmanagementandthatnationaluse,management,andownershipregimes;governmentsareincreasinglyclaimingcarbonandsocial,policy,andgovernancestructures.rights.ProjectdevelopersmustknowwhichProjectdevelopersmustconductduediligencetonaturalresourcemanagementministrieshaveunderstandthelocalcontext.Projectdesignandmanagementauthorityoverresources(includinggovernancestructuremustbeinformedbythewater,forest,6andfisheriesauthorities)andlocalcontextonasite-by-sitebasis.mustengagethemasvaluedpartners.ÎAccountforthelocalimplicationsofLocalcontextinblueinternationalpolicies.Projectdeveloperscarbonecosystemsshould,totheextentpossible,accountforlocalimplicationsofglobalpolicieswhendesigningThelocalcontext,bothsocialandecological,projects.OnecriticallyimportantglobalpolicywithcanbeincrediblyheterogeneouswithinapotentiallocalimplicationsisArticle6oftheParissinglebluecarbonprojectarea.AcoastlineAgreement.Theprocessforissuanceandapprovaloratollisoftenapatchworkofintermixedoftheproject,anddeterminingwhethernationalmangrove,seagrass,andcoralreefauthorizationsforcorrespondingadjustmentsecosystems.Whilebluecarbonecosystemsareavailableand/orrequiredfortheVCM,willoccupyintertidalandsubtidalzones,whichbedecidedonacountry-by-countrybasis.Policyareprimarilygovernment-ownedlands,theyshouldbedesignedtoencouragetherequisitemayextendlandwardandstraddlepubliclyfundingforconservationandrestorationprojectsandprivatelyownedlands.thatwilldeliverthebestpossibleoutcomesforpeople,nature,andclimate.ProjectproponentsAdditionally,theofficialnationaldefinitionsofshouldbeawareofnationalconversationsontheseecosystemtypesandtheirdesignationsvoluntarycarbonmarketsandshouldplantoundervariousgovernmentministriesadaptaccordingly.areoftenunclear.Insomecountries,forexample,statutesdonotclearlydefineÎAdvancepoliciestopromotehigh-qualitymangroveecosystemsaseitherforestsormarineecosystems.Therefore,itisunclearifbluecarbonprojectdevelopment.Wheremangrovesaremanagedbytheministryofpolicybarriersinhibithigh-qualitycarbonprojectforestsortheministryofmarineresources.success,bluecarbonstakeholdersshouldconsideradvocatingforpolicychange.CarboncreditFinally,coastalcommunitiesareoftensmallproponentsandactorsshouldunderstandandtakeandoperateindependentlyofoneanother,intoconsiderationnationalrulesandguidanceforratherthaninacoordinatedorhomogeneouscarbonmarkettransactions.Newregulationsandfashion.Forthesereasons,thelandandaccountingapproachesmayneedtobedevelopedresourceownershipandmanagementtoensuretheappropriateincorporationofblueregimes,aswellasculturalconsiderations,carbonprojectsinjurisdictionalregimesandvaryandaresometimesunclearinNationallyDeterminedContributions(NDCs).Bluebluecarbonecosystemsorseascapes.carbonproponentsandactorscanbeinfluentialProjectdevelopersmustaccountforsuchadvocatesforthepolicychangesneededtoenableheterogeneityonasite-by-sitebasiswithinandpromotebluecarbonprojectdevelopment.theirprojectplansinordertosuccessfullyEarlymoversaretheclosesttothespaceanddeliverontheguidanceoutlinedundertheoftenthefirsttospotgapsorweaknessesin“EmpowerPeople”principleconcerningregulatoryregimes.Developersandinvestorsmaygovernance,FPIC,carbonrights,feedbackandjoinindustryassociations,individuallylobbyandgrievancemechanisms,capacitybuilding,andeducatepolicymakersandregulators(i.e.,inthebenefitsharing.contextofdevelopingandgainingapprovalfortheirprojects),orprovidegranularinsightinto6Regulationsofmangrovesmaydifferfromthoseofmarshesandpolicyandregulatorydevelopmentprocesses.seagrassesdependingonwhethernationaldefinitionsofforestsincludemangrovesandthussubjectthemtoForestReference22EmissionLevels.MobilizeTidalMarsh,Photobycreativenature.nl,adobestockMobilizeHigHh-ingtheg-rIitnytegrityCapCitapitalÎSetscience-basedtargetsforreducingemissionsinlinewithlimitingglobalaveragewarmingto1.5degreesCelsiusandcompensateforanyremainingemissionswithhigh-qualitycarboncredits.Tocurbclimatechange,allcompaniesmustreducetheircarbonemissionsinlinewithscience-basedtargets.Purchasingcarboncreditstocompensateforanyremainingemissionsisanincrediblypowerfultooltodrivechange.Theseactionsarenotinterchangeableorinconflictbutrathercomplementary.Committingtomaintainingnetzeroresidualemissionssupportsabuyer’semissionsreductionsbecausepurchasingcarboncreditseffectivelysetsaninternal“priceoncarbon,”whichis,ataminimum,thecostofbuyingcreditsneededtocompensateforemissionsthebuyercannotyetreduce.This,inturn,incentivizesorganizationstoinvestinsolutionsthatreduceemissions,making“businessasusual”lessdesirablethaninnovation.ÎDesignagreementsandcontractstopromotefairandtransparentpricingandcompensation.Fairlypricedcarboncreditslikelyofferthebestassuranceofprojectdurabilityaswellasoutcomesforpeople,nature,andclimate.Elementsforconsiderationinclude,butarenotlimitedto,thefollowing:Projectcostsaretransparentlyaccountedfortoensurethatinvestorsandprojectdevelopershaveamutualunderstandingofwhichactivitiesandexpensesareincludedintheiragreement.Revenueissufficienttosupportcommunitybenefit-sharingagreements.Creditpriceissettoensurethatcoreprojectcostsarecoveredoverthelifetimeoftheprojectwhilealsorecognizingthatsomeprojectactivitiesmaybefundedthroughdiversefundingsources.Climatechangeimpactsareconsideredincontractdesignandrisk/rewardallocationagreementsandpartiestotheagreementarepreparedtoadjustasclimateimpactsmanifestoverthelifeoftheprojectand/orcontractualagreements.Long-termagreements(1)aredesignedtobemutuallyacceptabletoallinvolvedpartieswithclearallocationofrisksandrewardsandhowtheymightchangeovertimeand(2)havearangeoftools(e.g.,floatingprices,7escalationclauses,8discounting,etc.)toaccountforandreflectchangingmarketconditions.Foreseenrisksareallocatedtoparticipatingpartiesbasedonmutualagreementandconsidertheparties’influenceoverthoserisks,thepotentialreturn,and/orexposuretounderperformance(e.g.,aprojectdoesnotyieldasmanycreditsasanticipated),andtheirabilitytoabsorbtheimpactofunderperformance.Investorsinthesesectorsmightpurchaserisktransferproductssuchasinsuranceandguaranteestoprotectagainstpotentialunderperformance.7Theterm“floatingprices”referstovariablesthatcanaffectthepriceofacredit.8Escalationclausesincontractsallowforincreasesordecreasesinpricebasedoncertainconditions.23RecommendationsBuyersandInvestorsAboveall,companiesmustensurethattheuseofcarboncreditsisadditionalto,ratherthanasubstitutionfor,theirownreductionsindirectandvaluechainemissions.Buyersandinvestorsshould:ÎSetscience-basedemissionsreductiontargetsandmakeprogresstowarddecarbonizationintheiroperationsandsupplychains.Companiesshouldfollowhigh-integrityclimateaction,9including:SettingtransparentnetzerotargetsthatarebasedonthebestavailablescienceandinterimemissionsreductiontargetsacrossScopes1,2,and3.10Makingconsistentprogresstowardmeetingthosetargets.Providingdetailedinformationonplansandstrategiesadoptedtoachievetargetsandcommittingtoretireprocuredcarboncredits.Maintainingapubliclyavailable,third-partyvalidatedgreenhousegasemissionsinventorythatfollowstheGHGProtocol11(orequivalent)andcoversallScope1,2,and3emissions.Demonstratinghowthecompany’sadvocacyactivitiesareconsistentwithParisAgreementgoalsanddonotblockambitiousclimateregulation.9OneexampleofemergingbestpracticesistheVCMIClaimsCodeofPracticecurrentlyunderdevelopment.10Scope1and2emissionsrefertoemissionsthatareownedandcontrolledbyacompany.Scope3emissionsareassociatedwiththeemissionsofactivitiesacompanydoesnotownorcannotcontrol.11GHGProtocolisaninternationalstandardforcorporateaccountingandreportingemissions.EmissionsarecategorizedasScope1,2,or3basedonthesource.24Photoby©AppleNewsroomÎPrioritizeprojectsthatalignwiththeInvestors,publicandinstitutionalfunders,andphilanthropistscaneffectivelygrowthesupplyprinciplesandguidanceaboveby:ofbluecarboncreditsbyprovidingearly-stage,risk-tolerantcapital.TheuseofmultipleDesigningsolicitationcriteriaandprojectstreamsoffunding(e.g.,blendedfinance)canevaluationmetricsinamannerconsistenthelpaddressshort-andlong-termfundingwiththeseprinciplesandguidelinesandneedsbecausedifferenttypesoffundershavedirectingfundingtowardhigh-qualitydifferentappetitesforriskandimpact.Fundersprojectsthatoptimizeoutcomesforpeople,withaspecialinterestincommunityandnature,andclimate.biodiversityoutcomescanhelpdrivetheearlystagesofprojectdevelopment.NewinvestorsPrioritizingcreditsthathavebeencertifiedshouldapplytheseprinciplesandguidancebyarecognizedstandard,verifiedbyathirdandupdatetheirinvestmentthesisandcarbonparty,andaretrackedinatransparentandprogramkeyperformanceindicators(KPIs)publiclyaccessibleregistry.toincludecommunitywellbeing,livelihoods,climate,andbiodiversityoutcomes.Wheninterestedinaprojectthatisnotinlinewiththeseprinciplesandguidance,Companiesseekingtopurchasecarboncreditsopeningadialoguewiththeprojectmightconsidersupplyingconcessionarycapitalproponentstoascertainifthereisadesiretohelpcoverthetransactioncostsofprojecttomovetowardhigherquality.Ifso,buyerscertification;thiswouldaddressamajorbarrierandinvestorsshoulddeterminehowtotoprojectdevelopmentandtherebyincreasesupportsuchprogressanddevelopamutualthesupplyofavailablecreditsinthenearterm.understandingofclearandmeasurableIn-kindsupportintheformoftechnology,milestonestowardimprovement.capacity,andinfluencecanalsoadvancebluecarbonprojects.ÎAdoptalong-termmindset.High-qualityblueÎConsidercost,value,andqualitywhencarbonprojectsarealong-termendeavorthatoftenentailyearsofinvestmentandrequireevaluatingthepriceofbluecarboncredits.high-integrity,long-termcapital.BluecarbonBluecarbonprojectsoftendeliversubstantialprojectsrequiretruelong-termpartnershipco-benefitsbeyondclimatechangemitigationandthinking.Themostimpactfulbuyersandthatadddurabilitybenefitsandimpactprice.investorsarethosewhobringcreativityandRestorationactivitiescanincreaseupfrontpatiencetotheirpartnershipwithprojectprojectdevelopmentcosts,leadingtoahigherdevelopersandwhorecognizethatcarboncostpercredit.assetgenerationisnottheendbutratherthebeginningofalong-termrelationshipbetweentheprojectdeveloperandcommunity.25SuppliersandProjectDevelopersÎClarifyownershipoflandandcarbon.SuppliersanddevelopersofbluecarbonprojectsBluecarbonecosystemsareoftenonshould:publiclyownedandmanagedland.Governmentengagement,clearbenefit-ÎPrioritizeprojectsthatalignwiththesharingpolicies,transparentconsultationprocesses,andprioragreementwithprinciplesandguidanceabove.Projectlocaland/orIndigenouscommunitiesdevelopersshoulddesignrequestforproposalshouldbewellestablishedandagreed(RFP)criteriaandprojectevaluationrubricsinuponasprerequisitesforprojectplanningamannerconsistentwiththeseguidelinestoanddeployment.Governmentsshoulddirectfundingtowardhigh-qualityprojects.provideclearandreliable(i.e.,guaranteed)Projectdevelopersshouldseekvalidationcommitmentstocommunitiesabouttheirbyathirdpartyandpubliclylistaprojectonresourcerights,includingtheirrighttosellaregistry.carbonandtoaccruebenefitsfromtheirsale.ÎCreateaholisticbudgetthataccountsnotÎRespectlandtenureandrights.onlyforthecarbondimensionbutalsoforGovernmentsneedtoplayasupportiveandcommunityandecologicaldimensions.ProjectproactiveroleinrespectingtherightsofdevelopersandsuppliersshouldunderstandlocalcommunitiesandIndigenousPeoplesthefinancialresourcesneeded,andforwhatandaddressinguncertaintiesanddisputesduration,toestablishandmaintainhigh-qualityregardinglandandresource(includingprojects.Doingsowillenablethemtogeneratecarbon)ownership.fairlypricedbluecarboncreditsthatgenerateenoughnetrevenuetosupportlong-termÎAcceleratepublicinvestmentfinancing.projectsuccess.GovernmentscandeploydevelopmentÎInvestinhigh-qualitylong-termassistancefinancingatscaletogrowthemarketplacebyunderwritingtherelationships.Suppliersandprojectdevelopersdevelopmentofbluecarbonprojectsthatshouldlookforpartnersandinvestorswhoseekadheretohigh-qualityprinciplesandthatbenefitsbeyondcarbonandwhovaluelong-engagemultilateraldonors,philanthropies,termoutcomesthathigh-qualityprojectsdeliverimpactinvestors,andtheprivatesectorforpeople,nature,andclimate.Theyshouldthroughblendedfinanceinitiatives.alsounderstandthatcarbonassetgenerationGovernmentscanalsoinsureprojectstoisnottheendbutthebeginningofalong-termreduceperceivedrisksarisinginthisnascentrelationshipwiththecommunity.marketplace,therebycrowding-inadditionalinvestmentfrommorerisk-aversesectors.GovernmentsÎProvidesupportfortechnicalassistance.Timelyandappropriateengagementofgovernments,atmultilateral,national,andsubnationallevels,isGovernmentscanprovidemuch-neededkeytoplanningforandimplementinghigh-qualitysupportforbuildingcommunity,scientific,bluecarbonprojects.Throughourresearch,wehaveandtechnicalcapacity,particularlyforidentifiedseveralopportunitiesforgovernmentstosmallislanddevelopingstatesandcoastaldemonstrateleadershipandenablethedevelopmentdevelopingcountries.ofhigh-qualitybluecarbonprojectswithintheirrespectivejurisdictions.ÎClarifytheimplicationsofArticleGovernmentsshould:6andNDCs.AsgovernmentstacklehowtomeettheirNDCsandengageinÎProviderobustregulatoryandpolicycooperativeapproachesunderArticle6oftheParisAgreement,theyshouldaccountframeworksfortheissuanceandsaleofblueforthebenefitsandchallengesofthecarboncreditsininternational(ornational)voluntarycarbonmarketandengagewithVCMsandalignthemwithinternationalprojectinvestors,developers,andlocalframeworks.communitiestounderstandtheimpactsofvariousapproachesanddecisions.26ConclusionBluecarbonoffersatriple-benefitinvestmentthatisdrawingsignificantinterestamonginvestors,sellers,andbuyerswhoseektobuildresilience,reducebiodiversityloss,andcaptureandsequestercarbon.Itspotentialtomobilizeclimateandadaptationfinancetosupportscalingbluecarbonprojectsisgrowing.Theseprojectscouldgreatlybenefitcommunitieswhoselivelihoodsandwellbeingaredirectlylinkedtothatofbluecarbonecosystemsandwhofacesignificantthreatsfromclimatechangeandbiodiversityloss.Inshort,thebenefitsofbluecarboncreditsgofarbeyondreducingcarbonemissions.Withthisopportunitycomesgreatresponsibility.Allinvolvedshouldunderstandandimplementhigh-qualitybluecarbonprojectsthatdeliveroptimaloutcomesforpeople,nature,andclimate.Pleasejoinusinimplementingandlearningfromtheuseoftheseprinciplesandguidancetorealizethefullpotentialofbluecarbon.Photoby©AppleNewsroom27AppendixA:SampleQuestionstoVetHigh-QualityCreditsPRINCIPLESAMPLEQUESTIONSSafeguardÎDoesthisprojectmixconservationandrestorationactivities?Whatistheexpectednaturepercentageinhectaresandcarbonvolume?Whataretheinterventions?ÎIfrestorationisacomponentoftheproject,istheprojectdeveloperfollowingbestpracticesforecologicalrestoration?ÎHowdoesthisprojectdefinesuccessfulrestoration?Howdoesitmeasureprogressandsuccess?EmpowerÎDidtheprojectdeveloperconductanddocumentfree,prior,andinformedpeopleconsentbeforeinitiatinganyprojectdevelopment?ÎDidtheprojectdeveloperconductstakeholdermappingthattookintoconsiderationgenderequityandpowerdynamicswithinthecommunity?Whataretheresultsofthisstakeholdermappingandhowdoesthemappinginformtheprojectdesignandproposedactivities?ÎHowwilldifferentcommunitiesparticipateinprojectdesign,governance,andmanagement?Whataretherespectiverolesofthevariousstakeholdergroups,especiallyIndigenousPeoplesandlocalcommunities,women,andothermarginalizedgroups?Whatsystemsareinplacetoensurethedecision-makingprocessesarefair,participatory,andtransparent?ÎWhatrespectiverolesdidthevariousstakeholdershaveindefiningthebenefit-sharingstructure?Atwhatpointintheprojectdevelopmentwasthebenefit-sharingstructuredefinedandwhatkindsofagreementsareinplacetoformalizethestructure?Howwoulditbemonitoredandgovernedgoingforward?Whohasvisibilityintothebenefit-sharingstructure,projectcosts,andfinancialflows?ÎHastheprojectdeveloperdoneabluecarbonprojectfeasibilitystudytoEmplodeterminefeasibilityagainstrecognizedmethodologies?informainterÎHowwilltheprojectdesignandmeasurement,reporting,andverificationcarbonaapproachaccountforthedynamicandhighlyconnectednatureofbluecarbonpraecosystems?EmployÎWhataretheproject’sexpectedimpactsoncarbon,biodiversity,andlivelihood?thebestinformation,Whichacceptedstandardsandmethodologiesareusedtoquantifyimpactandinterventions,howaretheyapplied?andcarbonaccountingÎHowdoeslocalandIndigenousknowledgeshapetheprojectplans?practicesÎWhatistheoriginalcauseforecosystemdegradation(e.g.,conversionforotherlandusesoralteredwaterflow)andwhatmeasuresarebeingtakentoremovethisspecificthreattoecosystemrecoveryandtoensurebiophysicalconditionsareappropriateforrecovery?28PRINCIPLESAMPLEQUESTIONSOperateÎHowdoesthecurrentpolicy,legal,andgovernanceenvironmentsupportsuccessfullocallyandcontextuallydevelopmentofthisproject?ÎTowhatextentdomultiplegovernmentagencieshaveoverlappingoradjacentjurisdictionattheprojectsiteandhowwillthisbemanaged?ÎHastheprojectengagedthesupportoflocalresourceagencies?Aretheirrespectiverolesandbenefitswellunderstoodanddefinedwithintheprojectplan?ÎHowdoesthegovernmentsupportlandtenureforlocalcommunitiesandIndigenousPeoples?Dopoliciesexisttodefinewhoownslandandcarbonrights?ÎWhatarethepolicy,legal,and/orgovernancerisks?Howistheprojectdeveloperactivelyaddressingtheserisks?MobilizeÎHasthecompanypurchasingcreditsestablishedanemissionsreductionstrategyhigh-integrityandmadecommitmentstoreduceemissionsinternallythatareconsistentwithcapitalinternationalstandardsandbasedonthebestavailablescience?ÎHowdoestheinvestordemonstratetheircommitmenttoensuringthelong-termfinancialviabilityoftheproject?ÎWhatisthebuyer’sdemandforemissionsreductionscreditsandremovalscredits?ÎDoesthebuyerorinvestorhaveprogrammaticgoalspertainingtocommunitywellbeingandenvironmentalintegrity?ÎHowareoperationalexpensesandcommunitybenefitsreflectedintheagreed-uponprice?Whatotherfundingsources,ifany,areneededtoensureallexpensesandincentivesarecovered?29AppendixB:GlossaryAdditionality:EnsuresthatthecarboncreditprojectDoublecounting:Countinggreenhousegasoccursoutsideofenforcedmandatedprotectionssuchemissionsreductionsorremovalsmorethanasnationallaws,regulations,orothergovernmentoncetowardmitigationtargetsorgoals.Thispolicies.Aprojectisadditionalif(1)itwouldnothavecanoccurthroughdoubleissuance(issuingtakenplacewithouttheaddedincentivecreatedmultiplecarboncreditstowardthesamebythecarboncreditand(2)thebenefits(includingemissionsreductionorremoval);doubleusecarbonsequestration)wouldnothavebeenrealized(claimingacreditmultipletimesforachievingintheabsenceoftheproject.mitigationgoals);anddoubleclaiming(claiminganemissionsreductionorremovalArticle6:SectionoftheParisAgreementthatlaysbymultipleentities).outprinciplesforhowcountriescancooperatewitheachothertoachievetheirNationallyDeterminedEcosystemservices:EcologicalprocessesContributionsemissionsreductiontargets.Itorfunctionsthatdirectlyorindirectlyenablescountriestotransfercarboncreditsbycontributetohumanwellbeing.Thefourestablishingmechanismsfortradinggreenhouseoverarchingclassificationsofsuchbenefitsgasemissionsandfurtherfacilitatescooperationareprovisioning,regulating,cultural,andthroughfinance,technologytransfer,andcapacitysupportingservices.building.Negotiationsforclarifyingthemodalitiesofimplementationareongoing.Gender:Asocialconstructthatencompassestheeconomic,political,andsocioculturalBaseline:Theprojectedlevelofgreenhousegasattributes,constraints,andopportunitiesemissionsintheabsenceofthecarbonoffsetproject.associatedwithidentifyingasaman,woman,gendernonbinaryperson,etc.Assuch,itBenefitsharing:Distributingmonetaryandvariesacrossculturesandisdynamicandnonmonetarybenefitsthataregeneratedfromtheopentochangeovertime.carbonoffsetprojectwithlocalcommunitiesandstakeholders.Goodgovernance:TheprinciplethattransparentandinclusivemechanismsareBlendedfinance:Strategicfinancingmodelthatinplacetosupportprojectdevelopmentandmobilizescommercialcapitalalongsidedevelopmentmanagementthroughoutthelifecycleofafunding,reducingriskforprivateinvestorsandcredit.attractingcommercialcapitaltowardsustainabledevelopmentindevelopingcountries.Grievancemechanisms:AsourceforcontinuouslearninginwhichgroupsaffectedBluecarbon:Carbonthatisstoredincoastalmarinebytheprojectcanidentifyconcernsandecosystemsincludingmangroveforests,seagrassharmandhaveissuesadequatelyaddressed,meadows,andtidalsaltmarshes.resolved,andavoided,inthefuture.Correspondingadjustments:AruleinArticle6ofFree,prior,andinformedconsent(FPIC):theParisAgreementthataimstoensurecountriesAprincipleofinternationalhumanrightsdonotdoublecount(seenextentry)carbonoffsetsstandardsthatprotectstherighttoself-whentheyaresoldortransferredinternationally.determination.Accordingly,consentforanThedetailsofcorrespondingadjustmentsandhowinterveningprojectmustbegiveninadvancetoimplementthemwillbedecidedthroughongoingandbasedoninformationthatisaccurate,Article6negotiations.timely,complete,accessible,andappropriate.30High-qualitybluecarboncredit:AcarboncreditderivedfromPhotoby©damedias,AdobeStockahigh-qualitybluecarbonprojectthatprovidesmeasurableemissionsreductionsorremovalsofgreenhousegassesthroughtheconservationorrestorationofcoastalmarineecosystems(i.e.mangroveforests,seagrassmeadows,andsaltmarshes).Emissionsreductionsandremovalsmeetthestandardcriteriaforcarboncrediting(e.g.,additionalityandpermanence).High-qualitybluecarbonproject:Inadditiontogeneratinghigh-qualitybluecarboncredits,hgh-qualitybluecarbonprojectsdeliverbiodiversity,social,andeconomicbenefitsthatoftenhavemoreimmediaterelevancetolocalcommunities.BenefitsforlocalandIndigenouscommunities,ecosystemingetrigy,andbiodiversityareintegralelementsofahigh-qualitybluecarbonproject.Carbonprojectsthatprovidemeasurablereductionsorthatprioritizethesepositiveoutcomesare(1)designedwithparticipationfromIndigenousPeoplesandlocalcommunities,(2)adaptivelymanaged,and(3)verifiedunderestablishedstandards.Landtenure:Propertyandnaturalresourcerightsofindividualsorcommunities,protectingtheiraccesstoandmanagementofthelandonwhichtheyresideandtheresourcestheyuse.Nature-basedsolutions:Actionstoprotect,conserve,restore,sustainablyuse,andmanagenaturalormodifiedterrestrial,freshwater,coastal,andmarineecosystemstotacklesocio-environmentalchallengeslikeclimatechange.Thesesolutionsaddresssocial,economic,andenvironmentalchallengeseffectivelyandadaptively,whilesimultaneouslyprovidinghumanwellbeing,ecosystemservices,resiliency,andbiodiversitybenefits.12Permanence/durability:Theassurancethatemissionsreductionsorremovalsgeneratedbyamitigationactivityarenotreversedoveracertaintime.Transparentandaccurategreenhousegasaccounting:Transparencyingreenhousegasaccountingentailsdisclosingrelevantassumptions,explainingmethodologies,referencingdataused,andpresentingfactual,coherentaccountinginformationbasedonaclearaudittrail.Accuracyreferencestheprecise,verifiablequantificationofgreenhousegasemissionsthatenableotherstomakeinformeddecisionswithreasonableassuranceoftheintegrityofcarbonsequestration.Voluntarycarbonmarket(VCM):Amarketplaceforcarboncreditsthatarenotpurchasedforthepurposeofmeetingregulatoryemissionsrequirements.Instead,theydeliverindependentlyverifiedandadditionalemissionsreductionsonaglobalscale.12“UnitedNationsEnvironmentAssemblyAgreesNature-BasedSolutionsDefinition.”Nature.AccessedJune16,2022.31AppendixC:TableofExistingStandardsThistablelistsstandardsusedtocertifybluecarboncredits.ACCREDITINGSTANDARDMETHODOLOGYECOSYSTEMDETAILSAGENCYTheVerifiedVM0033MangroveforestÎAchieveemissionsreductionsVerraCarbonSeagrassmeadowStandard13MethodologyforTidalsaltmarshthroughincreasedbiomassandTidalWetlandsoilcarbonandSeagrassRestorationÎReduceemissionsfromVM0007TidalwetlanddeforestationandforestdegradationREDD+MangroveforestMethodologyForestedwetlandÎVerifiessocialandbiodiversityFrameworkForestedpeatland(REDD+MF)impactsofprojectsCommunity,ÎIncludesrigorousguidelinestoClimate,andBiodiversityensurethatcommunitiesareStandard(CCB)14prioritizedinprojectdesignandimplementationPlanVivoPlanVivo15CDMAR-AM0014MangroveforestStandardV5AfforestationSeagrassmeadowÎRequiresamandatoryandreforestationTidalsaltmarshofdegradedcommitmenttoshareaminimummangroveof60percentofprojectrevenueshabitatsorotherwithcommunitiesandprovidemethodologypubliclyaccessiblerecordsofallpre-approvedbycommunityengagementprocessesPlanVivoÎMeasurementsforbiodiversityoutcomesarerequiredÎMaypermittheuseofInternationalPanelonClimateChangedefaultvaluesorotherpeer-reviewedpublisheddatatobesubmittedforprojectcarbonmodelsÎClaimsmustbeconservativeestimatesbasedontheciteddata13“VerifiedCarbonStandard.”Verra.AccessedSeptember9,2022.14“Climate,Community,andBiodiversityStandards.”Verra.AccessedSeptember9,2022.15“PlanVivoStandard5.0.”PlanVivo.AccessedSeptember9,2022.32ACCREDITINGSTANDARDMETHODOLOGYECOSYSTEMDETAILSAGENCYTidalsaltmarshTheRestorationAmericanofCaliforniaCarbonDeltaicandRegistryCoastalWetlandsMethodologyUsesaWetlandRestorationTheMississippiMethodologyTidalsaltmarshDeltaicWetlandFrameworkthatRestorationcanbeadaptedMethodologytoproject-specificmethodologyClimateWetlandforestÎMethodologieshavebeenActionReservedevelopedinSpanishforforestTheGoldandwetlandforestsinMexicoStandardForestMangroveforestMethodologySustainableMangroveforestMangroveManagement(forthcominglate2022)Currently,Verra’sVerifiedCarbonStandardandPlanVivoarethemostfrequentlyusedstandardsforbluecarbonprojects.TheVerraapproachisscientificallyrigorousand,whenpairedwiththeCommunityClimateandBiodiversitycertification,accountsfornon-carbonbenefitsforpeopleandbiodiversity.ThePlanVivoStandardisnotableforitsrigorousguidelinestoensurethatmustuseengagementwithandbenefitsforcommunitiesareprioritized.ProjectsseekingcertificationunderthePlanVivoStandardmustapplymethodologiesapprovedbythePlanVivoFoundationanddemonstratepositiveoutcomesforbiodiversity.33Photoby©MarianneCampolongo,AdobeStockAppendixD:ResearchMethodologyPreparationofthisassessmentofprinciplesinvolved:ÎDeskanalysisofreports,casestudies,andstandardsforbothcarboncreditsandmarineconservation;ÎInterviewswithstakeholders,includingbusinesses,projectdevelopers,scientists,civilsocieties,andcreditissuers;ÎSynthesisofinformationintoanoverviewofthecurrentconsensusregardingthequalityandintegrityprinciplesincarbonmarketsandmarineconservation;ÎIdentificationoftheuniqueconsiderationsandopportunitiesforissuinghigh-qualitycreditsforbluecarbon;and,ÎIdentificationofthegapsthatneedtobefilledforbluecarbonmarketstobeviable,scalable,anddurable.Eachoftherelevantworksconsultedwasreviewedwithrespecttotwosourcestoconductagapanalysis:“WhatMakesaHigh-QualityCarbonCredit”bytheWorldWildlifeFund,EnvironmentalDefenseFund,andtheOko-Institute,and“AnAppealforaCodeofConductforMarineConservation”(Bennettetal.2017).Additionalstandardsandprinciplesweremappedagainstthecriteriapresentedinthesetworeportstodeterminemainconsensuspoints,drawoutimportantthemes,andrevealgapsthatneedtobeaddressed.Thisexerciseprovidedaframeworktoidentifyareasofalignmentacrossvariousactorsinthecarbonmarketandrevealedopportunitiestoincorporateknowledgeaboutmarineconservationprinciplestopresentaholisticvisionforbluecarbon.34AppendixE:WorksConsultedBeeston,Mark.“BlueCarbon—MindtheGap,”October2020.“FinancingtheEarth’sAssets:TheCaseforMangrovesasahttps://www.researchgate.net/publication/346561192_Blue_Nature-BasedClimateSolution.”EarthSecurity,2022.https://Carbon_-_Mind_the_Gap_Version_22.earthsecurity.org/report/financing-the-earths-assets-the-case-for-mangroves/.Bennett,NathanJ.,LydiaTeh,YoshitakaOta,PatrickChristie,AdamAyers,JonC.Day,PhilFranks,etal.“AnAppealfora“Free,prior,andinformedconsent:AnIndigenousPeoples’RightCodeofConductforMarineConservation.”MarinePolicy,MayandaGoodPracticeforLocalCommunities.”Foodand15,2017.https://www.sciencedirect.com/science/article/pii/AgricultureOrganizationoftheUnitedNations,2016.https://S0308597X17300672.www.fao.org/3/i6190e/i6190e.pdf.Bertram,C.,Quaas,M.,Reusch,T.B.H.etal.TheBlueCarbonWealth“GlobalMangroveWatch.”AccessedSeptember7,2022.https://ofNations.Nat.Clim.Chang.11,704–709(2021).https://doi.www.globalmangrovewatch.org/.org/10.1038/s41558-021-01089-4.Griscom,BronsonW.,JustinAdams,PeterW.Ellis,andJosephBlaufelder,Christopher,CindyLevy,PeterMannion,andDickonFargione.“NaturalClimateSolutions.”PNAS114(44),OctoberPinner.“ABlueprintforScalingVoluntaryCarbonMarketsto16,2017.https://doi.org/10.1073/pnas.1710465114.MeettheClimateChallenge.McKinseySustainability,January29,2021.https://www.mckinsey.com/capabilities/sustainability/Herr,Dorothée,andE.Landis.“CoastalBlueCarbonEcosystems.”our-insights/a-blueprint-for-scaling-voluntary-carbon-markets-to-InternationalUnionforConservationofNature,January1,meet-the-climate-challenge.2016.https://portals.iucn.org/library/node/48422.“BlueCarbonandNationallyDeterminedContributions.”TheHoward,Jennifer,ArianaSutton-Grier,DorothéeHerr,JoanBlueCarbonInitiative.AccessedJune9,2022.https://www.Kleypas,EmilyLandis,ElizabethMcleod,EmilyPidgeon,andthebluecarboninitiative.org/policy-guidance.StefanieSimpson.“ClarifyingtheRoleofCoastalandMarineSystemsinClimateMitigation.”FrontiersinEcologyandtheClaes,Julien,DukoHopman,GualtieroJaeger,andMattRogers.“BlueEnvironment15(1),February1,2017.https://doi.org/10.1002/Carbon:ThePotentialofCoastalandOceanicClimateAction.”fee.1451.McKinsey&Company,May2022.https://www.mckinsey.com/~/media/mckinsey/business%20functions/sustainability/our%20“InvestorsandtheBlueEconomy.”CreditSuisse,2020.https://insights/blue%20carbon%20the%20potential%20of%20coastal%20www.credit-suisse.com/media/assets/microsite-ux/and%20oceanic%20climate%20action/blue-carbon-the-potential-docs/2021/decarbonizingyourportfolio/investors-and-the-of-coastal-and-oceanic-climate-action-vf.pdf.blue-economy-en.pdf.“Climate,Community,andBiodiversityStandards.”Verra.Accessed“IssuesBrief:BlueCarbon.”InternationalUnionforConservationSeptember9,2022.https://verra.org/project/ccb-program/.ofNature,November2017.https://www.iucn.org/resources/issues-brief/blue-carbon.Cox,Courtney,RoquelitoMancao,ClaudiaQuintanilla,andAbelValdivia.“BuildingEffectiveManagementBodies.”Rare:Fish“IUCNGlobalStandardforNature-BasedSolutions.”InternationalForever,2019(updatedJanuary2021).https://portal.rare.org/wp-UnionforConservationofNature,2020.https://portals.iucn.content/uploads/2021/05/building-effective-management-bodies.org/library/sites/library/files/documents/2020-020-En.pdf.pdf.Leal,MaricéandSpalding,MarkD.(editors),2022.TheStateof“CriteriaforHigh-QualityCarbonDioxideRemoval.”CarbonDirect.theWorld’sMangroves2022.GlobalMangroveAlliance.CarbonDirectandMicrosoft,May16,2022.https://carbon-direct.https://www.wetlands.org/publications/the-state-of-the-com/2022/05/carbon-direct-and-microsoft-release-2022-update-worlds-mangroves-2022/.to-the-criteria-for-high-quality-carbon-dioxide-removal/.Macreadie,Peter,MicheliD.P.Costa,TrishaB.Atwood,Daniel“DraftConsensusStatementonHigh-QualityTropicalForestCarbonA.Friess,JeffreyJ.Kelleway,HilaryKennedy,CatherineCredits.”AccessedJune10,2022.https://merid.org/draft-forest-E.Lovelock,OscalSerrano,andCarlosM.Duarte.“Bluecredit-statement/.CarbonasaNaturalClimateSolution.”NatureReviewsEarth&Environment2,2021.https://doi.org/10.1038/s43017-021-“FairtradeClimateStandard.”FairtradeInternational,January10,2015.00224-1.https://www.fairtrade.net/standard/climate.35Macreadie,Peter,AlistarI.Robertson,BernadetteSpinks,MatthewSanderman,Johnathan,etal.“AGlobalMapofMangroveForestSoilP.Adams,JenniferM.Atchison,JustineBell-James,BrettA.Carbonat30mSpatialResolution.”Environ.Res.Lett.13,April30,Bryan,LongChu,KarenFilbee-Dexter,LaurenDrake,etal.2018.https://doi.org/10.1088/1748-9326/aabe1c.“OperationalizingMarketableBlueCarbon.”OneEarth5,May20,2022.https://reader.elsevier.com/reader/sd/pii/S2590332222002Scheider,Cecile,LeaGlass,NickPiludu,SteveRocliffe,andWillStephens.068?token=FA8140EED81591EDC3C8D0380DBB1CE47325D3CF8“IdentifyingMangroveBlueCarbonBarriers.KeyConsiderationsfor51543245A6637AC29CE026F5E58E6200866D03A02D8E012ED24PolicyMakers.”BlueVentures,October2021.https://blueventures.8649&originRegion=us-east-1&originCreation=20220617155758.org/wp-content/uploads/2021/11/BV_Key-policy-barriers-mangrove-projects.pdf.“MangroveRestoration:ToPlantorNottoPlant.”WetlandsInternational.AccessedJuly29,2022.https://www.wetlands.org/Schneider,Lambert,SeanHealy,FelixFallasch,FelipeDeLeón,Mandypublications/mangrove-restoration-to-plant-or-not-to-plant/.Rambharos,BradSchallert,JohnHoller,KelleyKizzier,AnniePetsonk,andAlexHandafi.“WhatMakesaHigh-QualityCarbon“MangroveTreesaroundtheWorld.”TheMangroveAlliance,FebruaryCredit?”WorldWildlifeFund,EnvironmentalDefenseFund,June4,16,2022.https://www.mangrovealliance.org/mangrove-forests/.2020.https://www.worldwildlife.org/publications/what-makes-a-high-quality-carbon-credit.Menendez,Pelayo,IñigoJ.Losada,SaulTorres-Ortega,SiddarthNarayan,andMichaelW.Beck.“TheGlobalFloodProtection“TaskforceonScalingVoluntaryCarbonMarketsFinalReport.”TaskforceBenefitstoMangroves.”ScientificReports,March10,2020.onScalingVoluntaryCarbonMarkets,January2021.https://iif.com/https://www.nature.com/articles/s41598-020-61136-6.Portals/1/Files/TSVCM_Report.pdf.“Nature-BasedSolutionsforSupportingSustainableDevelopment.”“TheNatureConservancy’sHumanRightsGuideforWorkingwithUnitedNationsEnvironmentalProgram/EA.5/Res.5,March2,IndigenousPeoplesandLocalCommunities.”TheNature2022.InformationonreportsandupdatesbytheTechnologyandConservancy.AccessedSeptember9,2022.https://www.EconomicAssessmentPanel(unep.org).https://wedocs.unep.tnchumanrightsguide.org/wp-content/uploads/TNC-Full-org/bitstream/handle/20.500.11822/39864/NATURE-BASED%20Guide-01-01.pdf.SOLUTIONS%20FOR%20SUPPORTING%20SUSTAINABLE%20DEVELOPMENT.%20English.pdf?sequence=1&isAllowed=y.“TheRestorationofCaliforniaDeltaicandCoastalWetlands.”AmericanCarbonRegistry.AccessedSeptember9,2022.https://“Part4:AssessmentFramework.”IntegrityCouncilforVoluntaryamericancarbonregistry.org/carbon-accounting/standards-CarbonMarkets,July2022.https://icvcm.org/wp-content/methodologies/restoration-of-california-deltaic-and-coastal-uploads/2022/07/ICVCM-Public-Consultation-FINAL-Part-4.pdf.wetlands.Pendleton,Linwood,etal.“EstimatingGlobal‘BlueCarbon’Emissions“TheSustainableBlueEconomyFinancePrinciples.”UnitedNationsfromConversionandDegradationofVegetatedCoastalEnvironmentalProgram.AccessedJune9,2022.https://www.unepfi.Ecosystems.”PLOSONE7.9(2012):e43542.org/blue-finance/the-principles/#:~:text=The%20Sustainable%20Blue%20Economy%20Finance,invest%20in%20the%20ocean%20“PlanVivoStandard5.0.”PlanVivo.AccessedSeptember9,2022.economy.&text=They%20promote%20the%20implementation%20https://www.planvivo.org/standard-documents.of,sustainability%20of%20ocean%2Dbased%20sectors.Polidoro,B.A.,K.E.Carpenter,L.Collins,N.C.Duke,A.M.Ellison,etal.“UnitedNationsEnvironmentAssemblyAgreesNature-Based“TheLossofSpecies:MangroveExtinctionRiskandGeographicSolutionsDefinition.”Nature.AccessedJune16,2022.https://AreasofGlobalConcern,”PLOSONE5(4),April2010.https://doi.www.naturebasedsolutionsinitiative.org/news/united-org/10.1371/journal.pone.0010095.nations-environment-assembly-nature-based-solutions-definition/#:~:text=The%20Fifth%20Session%20of%20“PrinciplesforInvestmentsinNaturalClimateSolutions.”the,social%2C%20economic%20and%20environmental%20effects.ConservationInternational.AccessedJune9,2022.https://www.conservation.org/about/principles-for-investments-in-“VerifiedCarbonStandard.”Verra.AccessedSeptember9,2022.https://natural-climate-solutions#:~:text=Averting%20dangerous%20verra.org/project/vcs-program/.climate%20change%20will,ecosystems%20such%20as%20tropical%20forests.“VoluntaryCarbonMarketsTop$1Billionin2021withNewlyReportedTrades,aSpecialEcosystemMarketplaceCOP26Bulletin.”Ecosystem“ProvisionalClaimsCodeofPractice.”VoluntaryCarbonMarketsMarketplace:AForestTrendsInitiative,November10,2021.https://Integrity(VCMI)Initiative,June7,2022.https://vcmintegrity.org/www.ecosystemmarketplace.com/articles/voluntary-carbon-wp-content/uploads/2022/06/VCMI-Provisional-Claims-Code-of-markets-top-1-billion-in-2021-with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