In partnership with HSBC, Earth Security explored the economic value of Queensland’s mangroves and the viability of a “Mangrove Bond”.
Queensland, Australia, is one of 40 locations identified by our M40 programme where mangrove investments can offer not only blue carbon benefits but also significant coastal resilience benefits.
Insurance premiums in Queensland increased by 80% between 2005 – 2013 due to extreme events and the high proportion of infrastructure and population exposed to hazards. Mangroves provide vital cover, but the understanding and mainstreaming of these nature-based solutions into climate adaptation plans is slow.
🏦 Bond options
We have assessed, ranked and validated a range of bond options that would enable government, corporate and project entities to mobilise funding for this nature-based solution. The result provides a specific blueprint for Queensland and a wider scope of options for financial instruments that could be attractive elsewhere based on our framework of value drivers.
💡 A key finding
While the cost of land restoration in Queensland would require the price of blue carbon credits to be 4x higher than it is today, we also found that corporate net-zero commitments could offer an incentive for companies to source blue carbon credits at a premium price if the accrued benefits of projects, such as coastal resilience and community development, are closer to where they operate.
