Delta State, an oil-rich region in Nigeria, has awarded a UK-based company the rights to develop projects in about 9% of its land to generate carbon credits by restoring degraded mangroves.
Driving The News
Delta State signed a Memorandum of Understanding with Capital of Serendib to lease land for 30 years, renewable for another 30 years, to restore mangroves and seagrass.
By The Numbers
The project could potentially be saved 5.32 million tons of carbon each year, prevent deforestation of 250,000 hectares, and replanting 20,000 hectaresaccording to the project owner.
The developer is aiming for certification from the Verra offset registry and aims to retain 45% of the revenue, with 55% going to Delta State and communities.
What they say
“With these kinds of arrangements, some of the oil companies will hopefully see this as a vehicle through which they can restore the environmentβ, said the Delta State Commissioner for Economic Planning, Sonny Ekedayen.
βForest-related carbon credits have come under scrutiny over the past 18 months, especially mangrove creditsβ, said the CEO of Serendib Capital Rafat Ali Rizvi. “That’s why we were very clear about meeting the highest demands.β
Zoom out
The major oil companies like Royal Dutch Shell Plc, Eni SpA, Chevron Corp., TotalEnergies SE, and ExxonMobil Corp. they have been blamed for much of the damage that historically destroyed the area’s wetlands and farms. They, in turn, could now become some of the biggest buyers of carbon offsets.
Because this matters
Foreign companies have been attracted to forest-based offset projects in Africa because they offer a potentially easy way to offset their difficult domestic greenhouse gas emissions. But the market has cooled recently amid increasingly intense criticism from scientists and experts.
Mangrove restoration is the most common type of “blue carbon” project that companies purchase to offset their emissions. The term refers to projects that sequester carbon in marine ecosystems.
The bigger picture
Blue coal projects are usually more valuable than those of most other sectors due to their high capacity to absorb carbon dioxide. In addition to mangroves, the Delta State project also proposes restoring seagrass beds, which also absorb CO2.
The project will require at least two rounds of consultation with local communities. This will enable the developer and its partners, including the Foundation for Partnership Initiatives in the Niger Delta or PIND, to assess their needs.
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