CHENNAI: Two years after the central government notified the Carbon Credit Trading Scheme, the state Environment, Climate Change and Forest department has decided to develop and monetise high-integrity carbon credits from nature-based solutions.
As part of the pilot project, the carbon credit scheme will be implemented in Muthupet mangroves in Thiruvarur district through the Tamil Nadu Green Climate Company (TNGCC). The department will appoint an expert firm to develop and implement high-integrity carbon projects, maximise revenue and establish a scalable platform for future carbon projects.
High-integrity carbon credits refer to a project that reduces emissions and has verifiable climate impacts.
"By generating high-integrity carbon credits from ARR (afforestation, reforestation, and revegetation), mangrove restoration, and wetland conservation projects, the State can unlock additional financial resources through international voluntary carbon markets. These credits can serve as a new stream of sustainable finance, supporting both the environmental and the socio-economic goals of the State," a department document said.
The initial focus area for carbon credit project development is Muthupet as it represents a critical blue carbon ecosystem along the Tamil Nadu coast, characterised by extensive mangrove forests and estuarine wetlands. This site has been prioritised under the GTM (Green Tamil Nadu Mission) due to its ecological significance, potential for carbon sequestration, and alignment with state-level climate adaptation and mitigation goals.
As per the India State of Forest Report (ISFR) 2023, Tamil Nadu’s forests store an estimated 216 million tonnes of carbon, which is equivalent to 797.72 million tonnes of carbon dioxide, accounting for 2.99% of India’s total forest carbon stock.
Supriya Sahu, department secretary, said mangroves store 3,754 tonnes of carbon per hectare and cut wave heights by 99%, creating a bio shield and shelter for more than 1,500 species. "The Forest Department has planted 2,436 hectares of new mangroves and restored 1,207 hectares," she added.
In Chennai alone, more than 2 lakh mangrove seedlings have been planted and the department has plans to plant more than 6 lakh seedlings in the current year.