The Bahamas' blue carbon credits hold significant value, potentially exceeding $50 billion, and could generate annual revenue in the hundreds of millions, according to Antoine Bastian, Executive Chairman and CEO of Genesis Fund Services Limited. In an article published on International Investment, Bastian highlighted the transformative potential of selling the country's carbon credits.
Under the Climate Change and Carbon Initiatives Act, 2022 (CCCIA), The Bahamas government established a regulatory framework for accrediting and transacting blue carbon credits. The recently enacted Carbon Credit Trading Act, 2022, empowers the Securities Commission of The Bahamas to regulate the trading of carbon credit securities, facilitating the emergence of this new asset class.
While entities or individuals can manage the monetisation of blue carbon sales or trading, the government retains ownership of seagrasses, salt marshes, and mangroves. As per the current arrangement, 92.5% of the proceeds, after operational costs, will belong to the government of The Bahamas.
Read more: Landmark auction of 250 000 tonne blue carbon credits at $27.80 per tonne
Antoine Bastian estimates that the country's natural assets, functioning as carbon sinks, could attract a value of $50 billion. Last year, Barbara Ann Bernard, CEO of Wincrest Capital, proposed that The Bahamas could earn $375 million annually from carbon credits. The revenue generated could drive the transition to renewable energy sources, ensuring energy independence and positively impacting the government's balance of payments.
Scientific research conducted on The Bahamas as a carbon sink indicates that by 2024, around 2.5 million carbon credits could enter the market, with up to 10 million available on the voluntary market by 2030. Analysts predict that by 2030, carbon credits may be priced at approximately $90 or more per credit. However, the prices in the voluntary market have been volatile, influenced by various factors, including project nature, additionality verification, transparency, and community impact.
Read more: Net zero: benefits, challenges, strategies, and the power of nature-based solutions
Antoine Bastian suggests that the proceeds from carbon credits could significantly contribute to enhancing food security in The Bahamas, where 90% of food is imported. This new revenue stream has the potential to address this critical issue, creating a positive impact on the country's economy and environment.
At DGB Group, our commitment extends beyond carbon sequestration. We understand that genuine sustainability encompasses social and economic dimensions. We are therefore dedicated to empowering local communities through nature-based solutions that are beneficial to both the environment and people. By doing so, we aim to enhance their quality of life while simultaneously restoring ecosystems. Together, we can foster a future that prioritises holistic sustainability, benefitting people and the planet.
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