Cross-Border, Nature Based Market Solutions to Protect Blue Carbon Coastal Ecosystems in the Californias

March 2022

ha (1,235,526 acres) of critical habitat that are largely intact, other key locales are at present risk of coastal development from growing urbanization. Among those that are most vulnerable is Bahia Magdalena and the coastal mangroves of Ensenada La Paz—as neither has special protections. The enactment of the General Program for Climate Change by the Mexican government in November 2021 is a big step forward in acknowledging the relevance and important role coastal and marine ecosystems play in the mitigation of climate change and the production of blue carbon, beyond what Mexico has agreed upon through the Paris Agreement. A program such as this will enable the coordination and implementation of strategies to further the intended targets. Furthermore, this program addresses specifically the loss of mangrove and the need to invest in restoration and conservation of these ecosystems. As such, the Mexican Federation has set specific and urgent goals to protect them, for instance, through the need to increase the percentage of the territory covered by ANPs. This places the issue of interest of our paper in the national agenda and makes it all the more likely to be addressed by government institutions. Recommendations • Pursuant to Governor Newsom’s 30x30 Initiative and in support of the recently re-established Commission of the Californias, the California Department of Natural Resources should explore opportunities for cross-border cooperation with the Mexican States of Baja California and Baja California Sur. • Consideration should be given to establishing a pilot, cross-border “habitat-to-habitat” linkage habitat FOR THE STATE OF CALIFORNIA:

mitigation program with the goal of protecting coastal habitats linked to priority migratory bird species of common interest to both the State of California and Mexico. Such a program can be undertaken through California’s mitigation bank program and in partnership with an established Mexican conservation NGO with a track-record of transparency and accountability. o To ensure long-term accountability of funding, an endowment fund can be

established through a California based public foundation or conservation NGO with a track record in Mexico.

FOR COUNTY JURI SDICTIONS : • County jurisdictions in the State of California, in particular in the San Diego County, should carefully consider cross border opportunities for GHG emission mitigation credits in habitats located along the Baja California peninsula.

FOR MEXICO:

FOR THE FEDERAL GOVERNMENT:

• In support of its pledged commitments under the Paris Agreement to increase climate mitigation efforts, the Government of Mexico should proceed forward with its plans to fully operationalize its Emissions Trading System (ETS, or SCE in Spanish). Along those lines, it should continue to pursue the potential linkage with California’s ETS, such as it was done by Quebec. o It should also ensure that blue carbon projects are approved by SEMARNAT as authorized compensation credits.

50 | P a g e