Efforts to conserve mangroves are building momentum, but significant funding from insurance, philanthropy, and carbon is still needed to achieve international objectives, according to a report released Friday.
Since 2022, significant progress in outlining financial needs of mangroves has been made, alongside the targeting of raising $4 billion from public and private actors at COP28 last year for the coastal trees, said the Global Mangrove Alliance in The State of the World’s Mangroves 2024.
The pathway to finance for mangrove protection is now clearer thanks to the publishing of the Mangrove Breakthrough’s Roadmap last year in partnership with the UN, it said.
“These commitments signal an impactful moment for mangroves on the global stage. Now we look to mobilise this roadmap,” said the Global Mangrove Alliance in the report.
The roadmap recommended financial mechanisms including incubators for new projects, debt for small- and medium-sized enterprises, microfinance, blue bonds, and innovative mangrove-linked insurance.
“No single organisation can deliver this alone. Private, public, and philanthropic capital with different mandates and risk-return profiles must all step up,” the alliance said.
“Combining these sources of capital in blended mechanisms will be key to de-risking private investment in nascent business models and emerging markets.”
Last year, some 21 countries endorsed the Mangrove Breakthrough initiative, which aims to restore 15 million hectares of mangroves by 2030.
This decade is our “last best chance” to reverse mangrove decline, making it crucial for the financial sector to increase its commitments, the report said.
Investing in mangroves not only protects ecosystems but also boosts economic gains from tourism, fisheries, and carbon sequestration, while preventing losses from storm surges and flooding.
INSURANCE
Healthy mangrove forests act as natural barriers against hurricanes, storm surges, and erosion, which is highly relevant to the insurance industry, said Suzanne Scatliffe, global head of sustainability at a division of insurer AXA called XL, in the report.
“There are many ways that insurance companies can help to protect these critical ecosystems,” said Scatliffe:
- Funding mangrove protection projects through NGO partnerships to increase resilience against natural disasters
- Collaborating on research initiatives to better quantify the economic value of mangroves to inform insurance pricing
- Investing in mangroves to benefit communities by building their resilience
CARBON
Carbon markets can significantly finance mangrove conservation and restoration, with over 1 mln ha viable for carbon finance, sequestering over 30 mln tonnes of CO2e annually, said Whitney Johnston, director of ocean sustainability at US software giant Salesforce, in the report.
Mangrove projects have been among the first off the shelf in the emerging blue carbon field, with the Delta Blue Carbon project in Pakistan (VCS 2250) already having been awarded almost 3.3 mln credits by Verra.
“While corporate buyers can play a critical role, many players and levers will be needed to realize the potential of blue carbon.”
“Each blue carbon investment represents a unique opportunity and risk profile that must be matched with the appropriate types of capital and risk mitigation measures.”
Last year, Salesforce committed to spending $10-mln on 1 mln blue carbon credits as part of its nature positive strategy.
PHILANTHROPY
Philanthropies can provide essential funding for mangrove conservation via early-stage projects, developing innovative business models, and reducing risks, said Peter Bryant, ocean programme director at US-headquartered impact company Builders Vision.
“I’m pleased to say that Ocean Resilience & Climate Alliance (ORCA) just passed $300 mln in new commitments to oceans-climate solutions,” said Bryant. ORCA focuses on mangroves and other blue carbon systems.
“Over the next one to three years, my hope is that philanthropic investments will have laid the groundwork for sustainable mangrove conservation models.”
By Thomas Cox – t.cox@carbon-pulse.com
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