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

March 2022

• To fully leverage emerging international markets specific to blue carbon credits, Mexico must establish clear guidance and define the legal rights on the permissible sale/resale of sequestered carbon from the country’s mangroves and seagrass beds. This will provide greater clarity for companies seeking to invest in Mexico and accelerate capital allocation. • SEMARNAT should explore opportunities for cross-border collaboration with the State of California on Nature-based Solution projects, in order to further the Paris Agreement-related commitments on resilience and mitigation through blue carbon ecosystems. • In order to support conservation of such habitats, particularly regarding blue carbon ecosystems, as well as to promote social development and climate resilience, the government should consider establishing a nation-wide Program on Payment for Ecosystem Services, as it has done successfully already for forestry and other critical habitats—such as the Monarch butterfly in Michoacán. • Under applicable Mexican law, registered Mexican NGOs may legally work with CONANP to create NPAs and/or obtain an Acuerdo de Destino and ADVC’s for priority coastal habitats. Such NGO backed mechanisms should be encouraged by CONANP to help protect and sustain priority habitats across Mexico.

FOR PHILANTHROPIC & NON GOVERNMENTAL ORGANIZATIONS:

• An opportunity exists for Mexican NGOs to pursue cross-border habitat mitigation initiatives linking habitats along the Baja California peninsula with projects in California. However, such groups must first be able to ensure a level of permanence for the coastal lands to be protected and must have the legal rights to conserve such lands. o One potential avenue is through

the establishment of an ADD for coastal wetlands within the Mexican Federal “ZOFEMAT” zone. Other opportunities exist in the protection of priority lands owned or acquired by Mexican environmental NGOs through ADVCs. o To promote the creation of Marine Natural Protected Areas or Marine National Parks to increase protection of marine ecosystems.

• In order to catalyze potential cross border solutions for habitat protection, expanded philanthropic leadership by U.S. and Mexican foundations will also be required to help de-risk specific projects by supporting site-specific surveys and the legal analysis necessary to permit such projects to move forward.

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