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illuminem summarises for you the essential news of the day. Read the full piece on Carbon Credits or enjoy below:
🗞️ Driving the news: Blue carbon credits have reached a record high, with Platts’ DBC-1 benchmark hitting $29.30/mtCO₂e in late August 2025
• The surge reflects soaring demand for credits linked to coastal and marine ecosystems, while supply remains constrained by slow project development and complex implementation challenges
• The sharp rebound in prices marks blue carbon’s emergence as a premium, sought-after asset in voluntary carbon markets
🔭 The context: Blue carbon credits are generated by protecting or restoring carbon-rich coastal ecosystems—mangroves, seagrasses, and salt marshes—which absorb carbon up to four times faster than terrestrial forests
• While these credits offer strong co-benefits like biodiversity conservation and coastal protection, fewer than 10 million metric tons are issued annually—far short of market demand
• Constraints include land tenure issues, lengthy verification processes, and underinvestment in coastal regions of Southeast Asia, Africa, and Latin America
🌍 Why it matters for the planet: Blue carbon presents a rare intersection of climate mitigation, biodiversity conservation, and community resilience
• With the potential to offset up to 3% of global emissions by 2030, it offers a high-integrity path to climate impact—yet risks being underutilized due to slow scaling
• The current price spike signals both its value and the urgency to accelerate project development, methodology harmonization, and finance deployment in key geographies
⏭️ What's next: Stakeholders are responding with action: investors are launching dedicated blue carbon funds, Verra and Gold Standard are updating methodologies, and Article 6 of the Paris Agreement could soon integrate blue carbon into compliance markets
• However, bottlenecks in project pipelines and the need for enabling policies may keep prices elevated
• Long-term contracts and early investments will be crucial for companies seeking high-quality offsets and for governments aiming to unlock coastal carbon potential
💬 One quote: “Demand is growing rapidly, but supply constraints mean blue carbon is shifting from niche to necessity in carbon markets.” — Jennifer L., reporting for S&P Global
📈 One stat: Blue carbon ecosystems can sequester carbon up to 4x faster than forests and currently absorb an estimated 0.5 to 1.0 gigatonnes of CO₂ annually
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