Expanding carbon markets in marine ecosystems a major risk for the Pacific

MEDIA RELEASE
10th April 2025

“The rush for high emitting countries and large corporations to commercialise marine ecosystems allows the new entry of carbon markets into the oceans, as the failure of carbon markets to reduce emissions and deliver financing to developing countries becomes clearer” warns the Pacific Network on Globalisation (PANG).

The launch of a new report “Blue Herrings: Carbon Market Lessons for Blue Carbon Frontiers” comes as the region convenes the Pacific Oceans Alliance Ministerial in Suva to discuss the future of our oceans.

PANG has cautioned against the inclusion of marine ecosystems in carbon markets, saying they fail to reduce emissions or deliver financing.

The report, through critical assessment of academic research, expert analysis, and community experiences from land based carbon schemes, has found that carbon markets fail both as an emissions reduction tool and a reliable financial source for the Pacific.

“The expansion of market-based approaches into Pacific marine environments risks worsening land tenure conflicts, particularly by introducing incentives that disrupt customary resource governance. Fisherfolk groups have already voiced concerns about the impacts on marine tenure and Indigenous subsistence practices, reinforcing the need for Pacific governments to reconsider this path,” says PANG Climate Justice Campaigner, India Logan-Riley.

The report highlights how carbon markets are vulnerable to market dynamics like other such traded commodities. As has been observed in both the sovereign bonds space and the history of carbon markets, the effects of price fluctuations, product demand, and project viability will have disruptive impacts on potential income streams from carbon projects.

“This report reinforces what Pacific communities have long warned, that expanding carbon markets into the ocean is a dangerous false solution. These risky schemes allow major polluters to delay the fossil fuel phaseout and evade their obligations to deliver real, grant-based climate finance,” says Pacific Islands Climate Action Network (PICAN) Regional Director, Dr Rufino Varea.

Varea adds that carbon markets threaten Indigenous rights, ignore frontline realities, and divert attention from the urgent action our region needs. Climate justice demands real solutions, not volatile market experiments. PICAN calls on governments to reject blue carbon expansion and instead back community-led solutions that centre justice, respect Pacific sovereignty, and deliver real climate action.

The report explains how carbon markets were never intended as a long-term solution but have instead taken center stage in climate policy, diverting attention and resources from real emissions reductions. Expert analysis and community experiences reveal their failure to cut emissions or provide the stable financial support Pacific communities need.

“The real win-win solutions are grant based finance and keeping fossil fuels in the ground. Measures, such as carbon markets, run too high a risk of exacerbating the climate crisis which will ultimately increase the climate burden that Pacific countries already carry,” says

Logan-Riley.

“The ocean was given as a blessing. In that sense, it is sacred and must be protected. In knowing that we have the obligation to care for this blessing, we have to stand against false solutions like carbon markets and support our communities in calling for real climate action that protects our ocean,” said Frances Namoumou, Pacific Conference of Churches (PCC) Ecumenical Animator for Ecological Stewardship and Climate Justice and Co-Convenor of the Climate Justice Working Group for the World Council of Churches Commission on Climate Justice and Sustainable Development.

“The findings in this report are a timely alarm for Pacific Islands governments and communities who are considering selling marine carbon offsets. Market-based approaches for growing revenue incomes are too unstable for Pacific development needs. We urge extreme caution on blue carbon expansion,” concluded Logan-Riley.