Public Commentary: The following overview outlines FG Capital’s approach to seagrass-restoration carbon projects. It is provided for informational purposes only and does not constitute investment advice or a solicitation.
SCS Carbon Projects – Seagrass Carbon Sequestration Structuring
Submerged seagrass meadows sequester carbon at rates comparable to mangroves and salt-marshes while stabilising sediments, improving water quality, and supporting fisheries nurseries. By executing evidence-based planting, protection, and monitoring programmes, sponsors can generate high-integrity blue-carbon credits and unlock diversified revenue. FG Capital delivers the technical diligence, capital structuring, and market access necessary to convert seagrass stewardship into durable cash flow.
Project Scope
• Site Identification & Baseline Mapping:
Side-scan sonar, drone photogrammetry, and sediment-core assays.
• Nursery & Transplant Operations:
Seed harvesting, in-situ germination cages, and biodegradable matt deployment.
• Mooring-Impact Mitigation:
Installation of seagrass-friendly anchoring systems and vessel-exclusion zones.
• Water-Quality Improvement:
Run-off management and nutrient-load reduction enhancing survivorship.
• Monitoring, Reporting & Verification (MRV):
Remote sensing, diver transects, and carbon-stock resampling every five years under Verra VM0033 Module 3 or equivalent blue-carbon methodologies.
Advisory Framework
1 | Feasibility & Baseline Assessment
• Hydrodynamic modelling, light-attenuation studies, and tenure verification.
2 | Capital Structuring
• Development loans, subordinated facilities, and sponsor equity staged to planting and issuance milestones.
• Advance credit-purchase agreements providing early liquidity.
3 | Implementation Oversight
• Detailed planting logistics, community engagement, and biodiversity-monitoring plans.
4 | MRV & Certification
• High-resolution imagery (Sentinel-2, WorldView), sediment-core carbon analysis, and third-party validation.
5 | Credit Monetisation
• Long-term offtake contracts with compliance entities and voluntary buyers; spot-sale facilitation following credit issuance.
Indicative Financial Parameters
| Metric | Seagrass Projects |
|---|---|
| CapEx (USD / ha, Year 1) | 5 000 – 11 000 |
| Annual Sequestration (tCO 2 e / ha) | 4 – 9 |
| Forward Credit Price (USD / t) | 12 – 18 |
| Target Equity IRR (post-tax) | 14 % – 18 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Development Loan | Pledge over SPV shares and escrowed credit proceeds | 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; make-good provisions | Fixed price USD 14 / t | Compliance entities, corporate buyers |
| Sponsor Equity | Residual cash flow | Target IRR 14 % – 18 % | Concession holders, NGOs |
Stakeholder Benefits
- Coastal Communities: Fisheries enhancement, shoreline stabilisation, and equitable revenue sharing.
- Credit Purchasers: High-integrity removal credits with transparent MRV and strong SDG alignment.
- Investors: Predictable cash flows supported by long-term offtake and resilient natural-capital assets.
- Governments: Support for Nationally Determined Contributions and marine-conservation objectives.
Engagement
Sponsors and investors interested in seagrass-restoration initiatives are invited to connect with our advisory team. We would be pleased to discuss feasibility assessments, optimal financing arrangements, 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.
