Public Commentary: The following overview sets out FG Capital’s perspective on mangrove-restoration carbon-credit transactions. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
MRV Mangrove Projects – Restoration Structuring & Carbon Financing
Mangrove ecosystems are among the planet’s most efficient carbon sinks, sequestering substantial biomass and sedimentary carbon while shielding coastal communities from storm surges. By implementing scientifically rigorous restoration programmes and robust measurement, reporting, and verification (MRV) protocols, project sponsors can generate high-integrity emission-reduction units that complement ecosystem-service revenues and donor finance. FG Capital delivers integrated advisory, capital-structuring, and market-access solutions to translate these ecological gains into durable cash flow.
Project Scope
• Hydrological Rehabilitation:
Breach removal, tidal-channel re-establishment, and culvert installation.
• Propagule & Seedling Deployment:
Community-managed nurseries specialising in region-appropriate Rhizophora, Avicennia, and Sonneratia species.
• Erosion-Control Infrastructure:
Brushwood dams and biodegradable wave-breaks mitigating seedling washout.
• Community Stewardship:
Revenue-sharing agreements and capacity-building initiatives ensuring long-term protection.
• MRV Architecture:
High-resolution satellite imagery, LiDAR elevation models, sediment-core carbon assays, and AI-enabled canopy-health analytics.
Advisory Framework
1 | Feasibility & Baseline Establishment
• Land-tenure verification, geomorphology studies, and pre-project carbon-stock assessment (above- and below-ground).
2 | Capital Structuring
• Blended finance combining senior development loans, subordinated facilities, and grant co-funding aligned with restoration milestones and credit-issuance timelines.
• Advance credit-purchase agreements to strengthen early-stage cash flow.
3 | Implementation Oversight
• Engineering design for tidal-flow reinstatement, community-nursery logistics, and phased planting plans.
4 | MRV & Certification
• Remote sensing (Sentinel-2, Planet), sediment-carbon coring every five years, and third-party validation under Verra VM0033 or ART TREES Coastal Wetlands modules.
5 | Credit Monetisation
• Long-term offtake contracts with compliance entities and voluntary buyers; spot-sale facilitation following credit issuance.
Indicative Financial Parameters
| Metric | Restoration Sites |
|---|---|
| CapEx (USD / ha, Year 1) | 3 500 – 7 500 |
| Annual Sequestration (tCO 2 e / ha) | 8 – 15 |
| Forward Credit Price (USD / t) | 12 – 18 |
| Target Equity IRR (post-tax) | 15 % – 20 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Development Loan | Pledge over SPV shares and escrowed credit revenues | SOFR + 275 – 350 bps | Multilateral lenders, impact-debt funds |
| Subordinated Facility | Second-rank charge; cash-sweep covenant | SOFR + 475 – 625 bps | Private credit investors |
| Advance Credit Purchase | Delivery contract with make-good provisions | Fixed price USD 14 / t | Compliance entities, corporate buyers |
| Sponsor Equity | Residual cash flow | Target IRR 15 % – 20 % | Concession holders, NGOs |
Stakeholder Benefits
- Coastal Communities: Enhanced fisheries, storm-surge protection, and equitable revenue sharing.
- Credit Purchasers: High-integrity removal credits with transparent MRV and strong SDG alignment.
- Investors: Predictable cash flows underpinned by long-term offtake and resilient natural-capital assets.
- Governments: Support for Nationally Determined Contributions (NDCs) and coastal-resilience objectives.
Engagement
Sponsors and investors interested in mangrove-restoration initiatives are invited to contact our advisory team. We would be pleased to discuss feasibility assessments, optimal financing structures, and comprehensive MRV frameworks.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information contained herein.
