Mangrove-based carbon market and ecotourism in Southeast Asia

By Jorge Montenegro

In the Southeast Asia region, ecological functions such as coastal protection, carbon sequestration, and animal habitat derived from mangroves are vital for general community and environmental well-being and development. The role of mangrove forests in coping with climate change and sustainable development in the region is of interest not only to researchers but also to investors, governments, local communities, and tourists alike. Ecotourists want to experience sustainable tourism activities while preserving nature. Due to the recognition of mangrove ecosystem services, such as carbon sequestration potential, biodiversity conservation, leisure and recreation, and support to community livelihoods, an interesting question has emerged: How can mangrove-based carbon market projects support ecotourism initiatives in the Southeast Asia region? 

Ecotourism is defined as "responsible and purposeful travel to natural areas that provide and sustain social and economic benefits to tourists and local livelihoods while conserving the environment." This definition lies in the well-known mangrove ecosystem services. Mangrove-based ecotourism is a key component for conservation financing and maintaining mangrove forests, generating awareness among visitors about the importance of these ecosystems, leveraging restoration initiatives, and promoting nature-based tourism. In one of our recent studies, “Ecotourism and mangrove conservation in Southeast Asia: Current trends and perspectives” we identified the link between mangrove ecotourism activities and the associated cultural ecosystem services such as recreation and leisure, aesthetic value, educational opportunities, cultural heritage, folklore medicines and extracts, and spiritual and religious contributions.  On the other hand, the mangrove-based carbon market involves selling carbon credits generated from the carbon sequestration potential of mangrove forests, estimated at 1,023 tonnes of carbon per hectare. Companies or individuals looking to offset their carbon emissions can buy these credits.

‍

Mangrove-based carbon projects and ecotourism: an interesting duo

Environmental benefits derived from mangrove ecotourism position this strategy as a crucial source of financing conservation and restoration initiatives. Traditional methods used by Southeast Asian governments to capture revenue from ecotourism include user fees, concessions, royalties, taxation, and donations' outcomes revenue retention. These ecotourism management economic tools can be categorized as Corporate Social Responsibility, Contingent Valuation Methods, and Choice Experiments. A study developed by the World Bank estimates the median value of mangrove tourism services per hectare at USD 553 in Southeast Asia per year (calculated by the value transfer method). For instance, in Indonesia, 319 tourist sites were identified within 53,925 ha of mangrove forests, with a tourism value of around USD 30 million per year. Although the figure could underestimate the economic potential of mangroves in terms of tourism in the country, it allows us to appreciate the importance and value of these ecosystems from an economic lens. 

In Indonesia, the community-based mangrove forest management (CBMFM) approach in Bukit Batu Sub-district is a carbon reduction emission project for carbon credit. Through the development of this carbon project integrated with ecotourism initiative activities, mangrove forest degradation was reduced, and the ancient knowledge of the community was enforced as a cultural value to increase tourists' environmental awareness.

Our research in the realm of mangrove-based ecotourism has shown that ecotourism companies are important agents in blue carbon projects, since they can play a role in the board game of mangrove-based carbon credit dynamics. They can be either a source of demand or an offer for carbon credits. The synergy between both ecotourism and carbon markets amplifies both strategies' impact. On one hand, the positive effects of ecotourism raising awareness in support of mangrove conservation are crucial for general acknowledgment and customer education. On the other hand, carbon markets provide financial resources required for planning and implementing large-scale restoration projects. When combined, the sustainability and resilience of mangrove forests and the community-level socio-economic development  benefits are evident.

Challenges: Keep an eye on the evolution of the mangrove-based carbon market in the region

Fragmentation has always been a threat to policies as well as how standards may vary from country to country. Southeast Asian current policies for nature-based solutions (NbS), such as those for mangroves and carbon markets are highly fragmented. This is because each nation has specific methodologies and regulations for carbon credit verification and carbon project development. Inconsistency that leads directly to uncertainty for hinders and investors in regional or global markets. If applicable, the pivotal factor of policy harmonizing and standard development across the Southeast Asia region will eventually attract investment and scale-up mangrove-based carbon projects. 

The registered carbon offset project in Bengkalis District in Indonesia showed its benefit three years after it started, having a significant impact on integrating mangrove biodiversity with community-based livelihoods, ecotourism, and inland aquaculture. However, training in the usage of the carbon credit system and issues in the planning, managing, and implementation of their budgets were some concerns that stakeholders faced in the project. 

This opens the door to the need for capacity building in future mangrove carbon project initiatives in Southeast Asia. Capacity building and skills development needs to be extended to the local communities and stakeholders at different levels, such as the substitutions of livelihoods that could affect the ecosystem for ecotourism activities which can go hand in hand with nature following the concept of sustainable tourism. 

Other aspects such as transparency in data practices (sharing and collection) and expertise in the management of tangible benefits with a carbon price discovery are key elements that the mangrove-based carbon project stakeholders need to consider for the development of this carbon market in the region. Carbon markets essentially function based on reliable data on carbon sequestration potential in various NbS projects and socio-economic impact on local communities. The underdevelopment of mechanisms for data collection and sharing in Southeast Asia countries undermines trust in markets and obstructs general growth. 

The integration of methodologies and regulations and building of local stakeholder capacity and transparency will generate trust in investors, which can potentially be from the traditional tourism sector who are looking to expand their portfolio of services and products, offering nature-based tourism experiences to the visitors, as well as for new ecopreneurship endeavors, such as the Kilim Karst Geoforest Park (mangrove forest) in Langkawi, Malaysia. 

Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, have the most ecotourism and mangrove conservation studies associated with their larger mangrove extent and highest number of vibrant mangrove ecotourism sites in the Southeast Asia region.  It is important that interested parties reinforce the protocols and promote mangrove-based carbon markets in these countries to get the most out of their potential and also their mangrove extent cover. Promoting activities such as boat tours, bird and wildlife watching, kayaking, and snorkeling are part of the range of ecotourism activities that tourist visitors will experience and be connected with nature through mangroves. 

‍