HomeCarbon CreditsGabon Aims to Issue the Largest Volume of Carbon Credits Ever (187...

Gabon Aims to Issue the Largest Volume of Carbon Credits Ever (187 Million)

The African nation of Gabon is planning to make the largest carbon credits issuance ever. 187 million carbon credits will be issued and 50% of which will be sold on the offsets market.

Gabon comes second to Suriname as the most forested nation. The country wants to harvest its forests in a sustainable manner to generate income for the country.

Last April, Gabon submitted an application to be part of ART’s TREES program. It’s the standard for quantifying, monitoring, reporting, and verifying emission reductions and removals from REDD+ activities.

This application covers Gabon’s entire forest spanning 23.5 million hectares. This is where the carbon credits will be from. They’ll most likely end up on the market before the COP27 event.

Carbon Credits from Protecting Forests

Gabon is 88% covered by tropical rainforest. Its forests are part of the Congo Basin, the Earth’s second-largest tropical forest after the Amazon.

Lee White, Gabon’s environment minister, said that preserving forests is “almost a moral responsibility” and a matter of national security. He also said that:

“The Congo Basin forest sends rainfall to the Sahel, Ethiopia and beyond… and a plunge in precipitation elsewhere could destabilize parts of Africa.”

The country is finding ways to preserve its thick carbon sink while diversifying its economy from oil at the same time. It’s the first African nation to be paid for its forest protection efforts. Such an initiative helps forests capture and store more carbon.

In fact, it received its first payment of $17 million from the Central African Forest Initiative (CAFI) for such work.

The carbon credits Gabon plans to sell can be at around $291 million. It depends on the average price for similar projects calculated by a carbon offsets data provider.

This huge issuance may flood the one billion carbon market if the country sells the credits all at once.

Each carbon credit represents a ton of planet-warming CO2 that’s avoided, reduced, or removed from the atmosphere. Firms use these credits to offset their carbon emissions. They can buy credits traded on carbon exchanges or they can also invest in projects that generate them.

There are some doubts in the impact of REDD+ projects in reducing emissions. Other heavily forested countries suspended their carbon credits programs to ensure proper regulation. Indonesia and Papua New Guinea are some examples.

Yet, REDD+ projects remain the most popular in the voluntary carbon market. In fact, they receive the highest prices and have the biggest share of the market value.

Gabon’s carbon credit generation

White addresses the concern by claiming that Gabon has reduced its emissions by 90 million tons yearly. That’s in comparison to its 2000-2009 baseline emissions. And this is due to preserving its forests and avoiding deforestation/degradation.

In particular, the forest elephants in the country’s jungle increase by over 50% to 95,000. Plus, there are several protected wetland sites, heritage sites, and national parks put up. They help preserve and protect the thick forests.

These vegetation-dense forests suck up more CO2 than they emit. Hence, they’re known as carbon sinks.

The environment minister also revealed the plan of TotalEnergies SE to use the credits as its offsets. This would be via the oil major’s acquisition of Compagnie des Bois du Gabon (CBG). It controls more than 1.48 million acres of forest which is about 2.6% of the country’s land mass.

The oil company plans to produce carbon offset credits along with developing a forest management model. The credits generation will be through reforestation, agroforestry and forest conservation.

But the minister said that they’re relying on allowances (concessions) to fuel their timber transformation efforts. They’d banned the export of unprocessed logs to boost this industry. 

About a dozen Chinese firms own forest concessions in Gabon, with over 30 others processing the wood.

  • He also commented that selective logging is one way to boost carbon capture in the long run than no logging.

That’s because the former lets the sunlight reach the soil ground of the forests. And that’s beneficial as it promotes more tree growth. In effect, more carbon is sequestered.

Meanwhile, Gabon is creating its national REDD+ registry to track payments from different projects. All carbon credits created must enter the registry. And even if issuances are from voluntary carbon standards, the government still owns full rights to them.

Most Popular
LATEST CARBON NEWS

Breakthrough in Low Cost Biofuels from Biomass

The U.S. Department of Energy Bioenergy Technologies Office (BETO) has achieved a major milestone in reducing the price of "drop-in" biofuels made from biomass. Drop-in...

Australia to Merge Compliance and Voluntary Carbon Markets?

Australia's climate policy advisory recently suggested the creation of a fully transparent national carbon market. This may open the doors to global carbon trade...

EKI Energy Shares Decline After India Bans Carbon Credit Export

The world’s largest carbon credit producer, EKI Energy, shares are down over 17% following India's decision to ban the export of carbon credits. India recently...

US Small Landowners Are Taking a Cut of the Carbon Markets

New opportunities in carbon markets are giving US small landowners alternatives to logging while mitigating climate change. According to the nonprofit American Forest Foundation, the largest...
CARBON INVESTOR EDUCATION

The Carbon Credit Lifecycle

Carbon credits, also called carbon offsets, have a crucial role in reaching net zero emissions goals. And while each carbon credit is not created...

Understanding The Carbon Cycle and How it Changes the Climate

Carbon is the foundation of all life on Earth. Humans are made of carbon. We eat carbon and almost everything is built on carbon. Carbon...

Climate Maps of Transformed United States (Under 5 Scenarios)

Rising temperatures are causing drastic effects on the planet’s living conditions while increasing sea levels continue to consume coastlines. Indeed, heat wave by heat wave,...

What Drives the Growth of The Carbon Offset Market? (3 Key Factors)

The demand for quality carbon offsets is at an all-time high due to the strong eagerness of businesses to act on climate change. This leads...