Delta State, an oil-rich area in Nigeria, has granted a UK-based company the rights to develop projects on about 9% of its land to generate carbon credits by restoring degraded mangroves.
Driving The News
Delta State signed a memorandum of understanding with Serendib Capital to lease land for 30 years, renewable for another 30 years, to restore the mangroves and seagrass beds.
By The Numbers
The project could potentially store away 5.32 million tons of carbon each year, prevent the deforestation of 250,000 hectares, and replant 20,000 hectares, according to the project developer.
The developer is targeting certification from the offset registry Verra and aims to keep 45% of the revenue, with 55% going to Delta State and the communities.
What They’re Saying
“With this kind of arrangements, some of the oil companies will hopefully see this as a vehicle through which they can restore the environment,” said Delta State’s commissioner of economic planning, Sonny Ekedayen.
“Forest-related carbon credits have been subject to scrutiny over the past 18 months, especially mangrove credits,” said Serendib Capital Chief Executive Officer Rafat Ali Rizvi. “That’s why we were very clear to meet the highest requirements.”
Zoom Out
Oil majors such as Royal Dutch Shell Plc, Eni SpA, Chevron Corp., TotalEnergies SE, and ExxonMobil Corp. have been blamed for much of the damage that’s historically destroyed the area’s wetlands and farms. They, in turn, could now become some of the biggest buyers of carbon offsets.
Why This Matters
Foreign companies have been drawn to forest-based offset projects in Africa because they offer a potentially easy way to cancel out their homegrown, hard-to-abate greenhouse gas emissions. But the market has cooled recently amid increasingly sharp criticism from scientists and experts.
Mangrove restoration is the most common type of “blue carbon” project that companies are buying to offset their emissions. The term refers to projects that sequester carbon in marine ecosystems.
The Bigger Picture
Blue carbon projects are typically more valuable than those from most other sectors because of their high carbon dioxide absorption capacity. In addition to the mangroves, the Delta State project also proposes to restore the seagrass bed, which also absorbs CO2.
The project will require at least two rounds of consultations with local communities. That will allow the developer and their partners, including the Foundation for Partnership Initiatives in the Niger Delta, or PIND, to assess their needs.
Catch up on news and other tidbits on our WhatsApp Community Page, Twitter/X, and subscribe to our weekly newsletter to ensure you don’t miss out on any news.
