An MoU has been signed with the Islamic Trade Finance Corporation (ITFC) to explore the sale of carbon credits in international markets after calculating the amount of carbon stored in Maldivian seas and lagoons.
The aim of the effort dubbed the Blue Carbon Generation Project is to "explore the potential of generating blue carbon credits from Maldives' coastal ecosystem and selling them to carbon markets," ITFC said in a post on X.
The initiative aligns with ITFC's strategic environmental, social, and governance (ESG) objectives, ITFC said.
Finance Minister Dr. Mohamed Shafeeq signed the MoU on behalf of the Maldives government. ITFC CEO Hani Salem Sonbol signed on behalf of ITFC.
Earning an income for the state from the sale of carbon credits was included as a new revenue-raising measure proposed in the 2024-2025 fiscal strategy published last year.
According to the paper, carbon credits can be sold in the world market by protecting or revitalizing mangroves and seagrass meadows after calculating their carbon sequestration.
Carbon credits are purchased by companies responsible for carbon emissions into the atmosphere in order to reduce their emissions to standards set by regulatory bodies. Carbon credits can also be sold to countries with high emissions.
The Finance Ministry's fiscal strategy estimated that MVR 863.5 million could be earned from the sale of carbon credits.
