Feasibility of Mangrove Carbon Credit

Carbon credit system aims to reduce GHG emissions by issuing permits that allow emissions up to a certain limit, encouraging companies to adopt clean energy sources like tidal, solar, wind, and ocean thermal energy instead of fossil fuels. These credits can be traded in carbon markets, providing financial incentives for companies to reduce emissions and adopt clean technologies. Integrated into Corporate Social Responsibility (CSR) initiatives, the price of credits varies based on supply and demand. The life cycle of a carbon credit project includes conception and design, validation and registration, implementation, verification, issuance of credits, trading, retirement, reporting and disclosure, and review. Each phase has benefits and challenges, e.g. designing projects promotes sustainability but is costly; validation ensures credibility but is time consuming; implementation enhances corporate responsibility but requires significant resources; verification builds trust but can be delayed; credit issuance offers financial incentives but is subject to market risks; trading expands market reach but faces supply–demand uncertainties; retirement prevents double-counting but involves bureaucratic delays; reporting ensures transparency but is complex in terms of processing; and reviews monitor progress but may lack standardization. However, it is needless to state that carbon credit system promotes environmental and economic security by capping emissions and encouraging green practices. Market dynamics and lack of universal policies pose challenges and risks to the mangrove carbon trading process.