Maldives seeks carbon credits sale to raise over MVR 800m
Discussions have been initiated with two international agencies to carry out this work; the work will be completed next year
Maldives will for the first time sell carbon credits in the international market next year, in a bid to generate over MVR 800 million to the state, according to proposals issued by the finance ministry.
Carbon credits, also known as carbon offsets, are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of one ton of carbon dioxide or the equivalent in other greenhouse gases.
According to the 2026-2024 Fiscal Strategy Statement released by the finance ministry last week, new revenue measures for next year include protecting Maldives' wetlands and regions rich with seagrass, and sell carbon credits in the global market after calculating the carbon storage of these areas.
The ministry estimates:
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A climate vulnerable country like Maldives with relatively high climate adaptation and mitigation costs is more likely to get a good price for carbon credits in the markets
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Discussions have been initiated with two international agencies to carry out this work; the work will be completed next year
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An estimated MVR 863.5 million can be generated from the sale of carbon credits
In addition, new revenue measures for 2024 include the Maldives Fund Management Corporation (MFMC)'s integrated tourism project in K. Gaafaru. Under the project, 14 private islands will be reclaimed and leased for development.
The ministry estimates:
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MVR 462.6 million from the leases
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The islands will be leased over the course three years; by 2025, it will generate an estimated MVR 1 billion
President-elect Dr Mohamed Muizzu, who will be sworn in on November 17, has formed a special committee to submit his proposals to the finance ministry for the 2024 state budget.
