A case for a UK Saltmarsh Carbon Code: Evidence, Intervention and Investment
The Saltmarsh Carbon Code project aims to create a UK-specific certification standard for saltmarsh restoration, enabling the sale of carbon credits from these habitats.
With the UK having lost 85% of its saltmarshes since the 1800s, the project focuses on using private finance to restore these critical coastal ecosystems through managed realignment of coastal defences.
The code will provide a framework for saltmarsh restoration projects, helping to unlock carbon finance and support biodiversity. The Saltmarsh Code will address gaps in the blue carbon market, providing a tool for UK companies to invest in and support coastal habitat restoration.
This project is one of 24 case studies published in 2024, alongside a report evaluating the process, impact and value for money of NEIRF Rounds 1 and 2.
Access full case studySaltmarshes can play an effective role in climate change mitigation by trapping and storing carbon dioxide from the atmosphere. Sustainably managing these blue carbon habitats, and restoring and recreating habitat where possible, will protect and enhance the multiple benefits they provide to society. There is growing interest in the voluntary carbon market by businesses seeking to voluntarily offset their emissions of CO2, motivated by corporate social responsibility, and aligning their businesses with the Paris Agreement on emission reduction targets. The development of a UK Saltmarsh Code, or adoption of a code already in existence, will enable UK saltmarsh carbon to be marketed and traded as carbon offsets, whilst providing assurances to buyers that the climate benefits being sold are real, quantifiable, additional, and permanent. Revenue generated will create vital financing opportunities to create more habitat through restoration projects.
This project is the first to bring together key stakeholders required to review the need for and develop a science-led and commercially viable carbon code, including scientific, conservation delivery, and investment finance experts across the charity, finance and academic sectors.
Project Aim
To review the need for developing a UK Saltmarsh Code, or the adoption of a code already in existence, to enable saltmarsh carbon to be marketed and purchased by private investors, thus providing an income stream for restoration projects. The project will review the current evidence on carbon benefit of saltmarsh restoration in the UK, review and analyse established international codes and standards for applicability to the UK, develop illustrative investment cases for pilot sites, and make recommendations for developing a UK Saltmarsh Code.
Project partners
Funding model
The project aims to generate revenue through the sale of Saltmarsh Carbon Credits in a similar way as some projects registered under the existing Woodland Carbon Code and Peatland Code sell Woodland Carbon Credits and Peatland Carbon Credits respectively. 1 Saltmarsh Carbon Credit will represent 1 tCO2e sequestered by the restored saltmarsh habitat. We will seek to sell credits to corporates as part of their decarbonisation and environmental strategies.
While the credits will not yet be able to be used as official offsets within UK environmental reporting guidelines, this will be the ultimate long-term aim that this project will aim to advance towards. In the meantime, we will be seeking corporate buyers looking to support the blue carbon sector and catalyse its development. Furthermore, we expect due to the wider environmental benefits of the saltmarsh beyond just carbon, the credits will command a premium to existing UK carbon credits.
As part of this project, a high-level business case is developed for two pilot sites to better understand what role private finance could play in saltmarsh restoration based on the ability to sell carbon credits. Overall funding will need to come from multiple sources, as carbon income alone is unlikely to be able to support the full upfront funding requirement for saltmarsh restoration interventions.
Future Investment Potential
A Saltmarsh Code will facilitate monetisation of the carbon sequestration services provided by saltmarsh habitats, allowing carbon to provide an income stream for restoration projects via the sale of verified Saltmarsh Carbon Credits. Carbon income will create vital financing opportunities for restoration schemes that are often shelved/scaled back due to funding shortfalls. The funding opportunity is growing as voluntary carbon prices and corporate demand for UK offsets rise.
UK Saltmarsh restoration targets, and area identified as potentially suitable for restoration, range from 22,000 – 258,000 ha.
25 YEP outcomes this project directly contributes to:
- Mitigation of and adaptation to climate change
- Protection from and mitigation of environmental hazards
- Thriving plants and wildlife
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