ITFC and Maldives Sign MoU for Blue Carbon Credits

A Memorandum of Understanding (MoU) has been signed between the Islamic Trade Finance Corporation (ITFC) and the Maldives. The agreement, known as the Blue Carbon Generation Project, explores the potential of generating blue carbon credits from the Maldives’ coastal ecosystem and selling them in international carbon markets.

The MoU was signed by Minister of Finance Dr Mohamed Shafeeq on behalf of the Government of Maldives, with ITFC CEO Hani Salim Sonbol representing the corporation.

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As part of the Maldives’ 2024-2026 Fiscal Strategy, the sale of carbon credits is a new revenue-generating measure. According to the Fiscal Strategy, preserving and rehabilitating the Maldives’ forests and wetlands can facilitate calculating and selling the carbon they sequester.

Carbon credits are typically purchased by companies to offset their carbon emissions and meet regulatory standards. They can also be traded between countries, enabling those with higher emissions to buy credits from those with surplus capacity.

The Finance Ministry has projected that the sale of carbon credits could generate MVR 863.5 million in revenue.