On 22 August 2024, Gold Standard introduced the Methodology for the Sustainable Management of Mangroves to launch remote-sensing applications for measuring and quantifying the impact of sustainable mangroves.
Complementing the new methodology, Gold Standard has also launched the Blue Carbon and Freshwater Wetland Activity Requirements, outlining the eligibility criteria for projects relating to coastal and freshwater wetlands ecosystems.
Both publications are available on Gold Standard’s new hub for nature-based solutions (NbS), a web page hosting resources and tools to support and navigate nature-based solutions for project developers.
The new mangrove methodology provides a framework for quantifying and monitoring greenhouse gas (GHG) emission reductions from activities seeking to manage mangrove ecosystems sustainably. It covers the restoration of degraded mangroves and the establishment of new mangrove areas. The methodology is globally applicable and aims to positively impact carbon sequestration, biodiversity conservation, and community benefits. It also incorporates technology through remote sensing techniques for efficient monitoring and verification of the mangroves.
The methodology was developed in partnership with FORLIANCE, owned by Macquarie Group. FORLIANCE specializes in developing and implementing nature-based solutions and working with businesses to create and manage projects that generate carbon credits.
With the launch of this methodology, FORLIANCE and Gold Standard seek to advance blue carbon initiatives. “By combining innovative technology with sustainable practices, we are enabling meaningful climate action that not only protects vital ecosystems but also directly improves the livelihoods of coastal communities,” said Andreas Schnall, CEO of FORLIANCE. “This methodology sets a new standard for effective, community-centred climate solutions.”
This new framework enables the development and certification of mangrove-based carbon projects, potentially expanding the scope of blue carbon initiatives in the voluntary carbon market. Earlier this year, the United Nations Environment Programme noted that restoration projects, like mangroves, can gain investments of up to USD 177 billion per year by 2030.
Existing mangrove-based projects are already underway in countries like Taiwan, Kenya, and Indonesia, demonstrating the growth of these types of blue carbon initiatives. Gold Standard’s new methodology creates a path for increased investments by enabling quality carbon credits from these projects. A 2023 International Finance Corporation report states, “Mangrove restoration/afforestation projects can command prices between USD 15 - 35 per credit and potential premiums due to sustainable development benefits.”
Regarding existing methodologies, Verra has VM0033, a specific Methodology for Tidal Wetland and Seagrass restoration under the Verified Carbon Standard (VCS) program. The high-level differences between Gold Standard and Verra’s methodology on this type of blue carbon initiative are:
- Verra’s methodology applies to tidal wetland and seagrass restoration projects, which include mangroves, while Gold Standard’s methodology is specifically designed for mangrove restoration projects.
- Gold Standard’s methodology includes afforestation and reforestation, which Verra also does, though the latter plans to include the conservation of mangroves in the future.
- Under the Gold Standard methodology, only removal credits may be claimed, whereas Verra allows developers to generate emission reduction credits by conserving soil organic carbon stock and preventing coastal erosion. Critically, avoidance credits from avoided deforestation and degradation may not be claimed under either methodology.
Introducing Gold Standard’s new methodology for the sustainable management of mangroves can enable the expansion of blue carbon projects due to increased credibility. As mangroves are recognized for their high carbon sequestration potential and additional ecosystem services, more project developers may be incentivized to engage in restoration/afforestation efforts, increasing blue carbon credits.
The methodology's emphasis on community-centred climate solutions and co-benefits, such as improved livelihoods and biodiversity, may attract a wider range of investors, including those focused on sustainable development. This could increase capital flow into the voluntary carbon market (VCM), particularly for projects that align with the United Nations Sustainable Development Goals (SDGs).
As these methodology changes continue, the supply of credits is perceived as high-quality, and market participation is expected to increase. These developments reflect the trend of registries in the VCM improving their crediting methodologies to improve market confidence. Project proponents and registries are expected to continue driving these methodology changes to receive labels for their credits and attract buyers. For example, the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles (CCP) label is expected to be a key driver of demand in the market. Registries are expected to work towards aligning their crediting methodologies with the ICVCM to obtain future approval for the CCP label.
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