A blue carbon initiative funded by the government of Japan, implemented by the UN Development Programme (UNDP) Indonesia, and backed by the ASEAN Secretariat Coordinating Task Force on Blue Economy was launched this week in Jakarta, with an aim to unlock regional climate finance.
Launched on Wednesday, the ASEAN Blue Carbon and Finance Profiling (ABCF) initiative will help 11 ASEAN economies and Timor-Leste fully utilise carbon market opportunities in seagrass, mangroves, and peatlands ecosystems, according to a statement.
The initiative will involve identifying, mapping, and valuing carbon stored in marine and freshwater ecosystems, using scientific analysis, satellite technology, and field assessments to estimate the carbon sequestration potential in marine ecosystems.
“The blue carbon market, though nascent, is emerging as a potential revenue stream for countries investing in conservation and restoration,” said the deputy secretary-general of ASEAN for the ASEAN Economic Community, Satvinder Singh.
“The ABCF project will support the member states in developing strategic, science-based, and finance-ready policies to unlock the full potential of blue carbon ecosystems.”
It also aims to unlock new funding pathways such as blue bonds, blended finance, and results-based payments for scaling conservation beyond traditional grants, according to Aretha Aprilia, head of the environment unit at UNDP Indonesia.
“Protecting and leveraging seagrass and peatlands is not just an environmental imperative – it is a strategic economic and climate opportunity for ASEAN,” Aprilia said in a LinkedIn post.
By Mar. 2026, the initiative aims to deliver 22 national blue carbon and blue finance profiles, produce two ASEAN-level consolidated profiles, establish a regional network of experts and institutions, and develop policy recommendations to drive sustainable blue investment.
ASEAN is home to around a third of the world’s seagrass beds and about 40% of tropical peatlands, yet the region remains one of the most threatened.
According to official projections, disturbance of seagrass beds could release up to 150 million tonnes of CO2 annually, which is equivalent to 3% of global emissions from deforestation.
By enhancing the scientific understanding of blue carbon ecosystems and creating financial instruments to support their conservation, the project aims to facilitate the inclusion of blue carbon credits in international carbon markets, thereby contributing to global climate mitigation efforts.
Meanwhile, Japan, a leader in blue carbon conservation efforts, has incorporated blue carbon into its national climate goals and has been actively supporting such initiatives across the world, particularly in the ASEAN region.
The Japan Blue Economy Association (JBE), the government-endorsed association that runs Japan’s blue carbon market is seeking to share its unique experiences with the rest of the world, with its lessons learned applicable to other natural capital markets elsewhere, an official recently told Carbon Pulse in an interview.
The news comes as Chubu Electric Power and Mitsui Sumitomo Insurance earlier this week announced they are working to develop a blue carbon methodology eligible to earn domestic J-Credits.
It will be based on seaweed bed restoration and marine seaweed cultivation, though the parties did not provide a timetable for when the methodology might be ready for use.
By Nikita Pandey – [email protected]
