Fund to distribute $1.2 million to budding blue carbon developers

Quantum Commodity Intelligence - A new fund aims to distribute AUD$1.6 million ($1.2 million) to budding developers for early-phase design, set-up and implementation of coastal blue carbon projects in developing countries, it said Wednesday.

The Blue Carbon Accelerator Fund (BCAF), established by Australia and the International Union for Conservation of Nature and Natural Resources (IUCN), will focus on readiness and implementation support.

It will open applications from the end of March until 15 May and is looking to award a maximum of $180,000 per project.

"Projects must demonstrate a clear path to entering the carbon markets and to deliver positive habitat outcomes, as well as supporting local livelihoods," reads the project's website.

The funds will cover a range of activities, including feasibility studies, area management plans, environmental and social impact assessments, financial and economic analysis of projects, stakeholder engagement, preparation of regulatory filings and project monitoring.

The first awards are expected to be announced in August, according to a project document seen by Quantum.

Blue carbon projects are dedicated to conserving and restoring coastal and marine ecosystems such as algae, seagrasses, mangroves, and salt marshes.

In September 2020, US carbon standard Verra updated methodology VM0007 to foster the creation of blue carbon emission reduction projects, but there are fewer than 10 registered at the time of writing.

They are typically expensive to set up, which acts as a significant barrier to entry.