FIS completes the first “blue carbon” exchange

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Freight Investor Services (FIS), one of the world’s leading brokers in the freight and commodity futures markets, announced that it closed its first “blue carbon” exchange in Singapore on November 2, 2022.

Freight Investor Services (FIS) is working closely with a global company that has purchased the first verified carbon credits from the Delta Blue Carbon Project (DBC-1), the largest mangrove restoration project in the world. It is located on the southeast coast of Pakistan and covers 350,000 hectares, an area larger than Luxembourg.

Mangroves were once a dynamic and diverse landscape before experiencing large-scale deforestation. They were used for fuel, timber and fodder, with open-air grazing by livestock causing further damage. Thanks to the Delta Blue Carbon Project (DBC-1), things are changing now. In six years of operation, tens of millions of mangrove seedlings have been replanted, restoring more than 73,000 hectares of degraded mangrove forests and swamp swamps. The shipping industry can have a direct impact on the oceans in which it operates by investing in blue carbon programs to offset its environmental impact. Freight Investor Services (FIS) is proud to offer these credits to its customers.

The project expects to deliver its first three million carbon credits later this year and will sequester around 142 million tonnes of CO2e over its 60-year lifespan. Blue Carbon programs focus on mitigating climate change by conserving and restoring coastal and marine ecosystems. Coastal ecosystems are among the most productive on the planet. They provide us with essential ecosystem services, such as coastal protection from storms and nursery grounds for fish. We also know that they provide another integral service: the sequestration and storage of “blue” carbon from the atmosphere and oceans.

This will be an essential part of the solution to global climate change. DBC-1 is one of the first projects to use Verra’s new blue carbon swamp methodology. The state-of-the-art methodology takes into account the effects of sea level rise on the life of the project. The technical analysis and documentation for DBC-1 was developed in partnership with Silvestrum Climate Associates.

Théodore Goulios, Carbon Emissions Market Manager, said: “I am proud to have completed our first ‘Blue Carbon’ trade. Apart from the fact that this project signals the premium that some buyers were willing to pay for unique and high-quality types of credit, it especially helps to secure the long-term future of the project. »
Source: Freight Investor Services (FIS)

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