2024 A BLUE CARBON READINESS MOZAMBIQUE ASSESSMENT © 2024 The World Bank Group 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000 | Internet: www.worldbank.org This work is a product of the staff of The World Bank Group, with external contributions. “The World Bank Group” refers to the legally separate organizations of the International Bank for Reconstruction and Development (IBRD), the International Development Association (IDA), the International Finance Corporation (IFC), and the Multilateral Investment Guarantee Agency (MIGA). The World Bank Group does not guarantee the accuracy, reliability, or completeness of the content included in this work, or the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever, or for reliance thereon. 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All queries on rights and licenses should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; email: pubrights@worldbank.org. PHOTO BY JULIANA CASTAÑO-ISAZA PHOTO BY JULIANA CASTAÑO-ISAZA 5 AC ACKNOWLEDGMENTS This report, “Mozambique: Blue Carbon Readiness Assessment,” was produced by a core team of the World Bank Group (WBG) and external partners led by Juliana Castano-Isaza, Natural Resources Management Specialist, and Sylvia Michele Diez, Senior Environmental Specialist. The report was written by Moritz von Unger, Raquel Bustamante, Regina Sánchez Sasso, and Mackenzie Taggart, all of Silvestrum Climate Associates. The team expresses gratitude for the insightful and technical contributions from the Government of Mozambique, especially the following entities: MIMAIP, ProAzul, MTA, MEF, MADER, FNDS, InOM, and BioFund. We convey special thanks to Daniel Segura (ProAzul), Isabel Omar (ProAzul), Tércio David (ProAzul), Emidio Andre (InOM), Muri Soares (FNDS), and Albano Manjate (MEF). Furthermore, we extend our heartfelt appreciation to all participants for their active involvement in the “Workshop Quadro de Preparação para o Carbono Azul” held on September 6, 2023, in Maputo, Mozambique. The following experts provided valuable advice: João Moura Estevão (Natural Resources Management Specialist), Peter Kristensen (Lead Environmental Specialist), Katharina Siegmann (Senior Environmental Specialist), Ivan Abdul Dula Remane (Natural Resources Management Specialist), and Rosta Simão Mate (Senior Forestry Specialist Consultant), and Manuel Mutimucuio (Natural Resources Management Specialist). Guidance and strategic direction were provided by Juergen Voegele (Planet Vice President), Valerie Hickey (Global Director, Environment Natural Resources and the Blue Economy), Christian Peter (former Practice Manager, Global Platform Unit), and Africa Eshogba Olojoba (former Practice Manager, Eastern- Southern Africa Region). Our sincere appreciation is extended to Samanmalee Kumari De Alwis and Madalena Manjate for their diligent administrative support, to Pablo Porta and Laura Hidalgo (Estudio Relativo) for their creative graphic design contributions, and to Shaheera Syed for her strategic communications expertise. The team is thankful for the funding support provided by PROBLUE. The findings, interpretations, and conclusions expressed in this document are those of the authors and do not necessarily reflect the view of the Executive Directors of the World Bank, the governments they represent, or the counterparts consulted during the study process. Any factual errors are the responsibility of the team. 6 TC TABLE OF CONTENTS AL I II ABBREVIATIONS LIST 8 EXECUTIVE SUMMARY 9 THE BLUE CARBON CONTEXT 17 III READINESS FINDINGS 19 3.1 Data and Analytics: Blue Carbon Ecosystems (Pillar 1: 1-A)..............................20 3.1.1 Mozambique’s Blue Carbon Ecosystems.......................................................20 3.1.2 Data Capacity..................................................................................................23 3.1.3 Drivers of Loss Analysis.............................................................................. 24 3.1.4 Socioeconomic Valuation of BCEs..............................................................26 3.2 Data and Analytics: GHG Inventory (Pillar 1: 1-B)..............................................29 3.2.1 REDD+/ Forest Reference Emission Levels (FREL)..................................31 3.2.2 Achievements and Areas of Improvement................................................32 3.3 Policy and Institutions (Pillar 2) ........................................................................35 3.3.1 NDC Commitments.......................................................................................36 3.3.2 NDC Implementation....................................................................................37 3.3.3 Mozambique’s Mangrove Strategy .............................................................37 3.3.4 Mozambique’s REDD+ Strategy...................................................................38 3.3.5 Adaptation and Biodiversity Strategies.....................................................39 3.3.6 Marine Spatial Planning and the Blue Economy..................................... 40 3.3.7 Legal Protection for Blue Carbon Ecosystems..........................................42 3.3.8 REDD+ Licensing...........................................................................................47 3.3.9 Community Governance..............................................................................49 3.3.10 Institutional Framework..............................................................................52 3.3.11 Achievements and Areas for Improvement..............................................55 7 3.4 Finance (Pillar 3)................................................................................................58 3.4.1 Blue Carbon Finance Strategy ....................................................................59 3.4.2 Operationalized Funding Tools..................................................................62 3.4.3 Carbon markets as a means of investment ..............................................71 3.4.4 REDD+ Finance .............................................................................................72 3.4.5 Biodiversity Finance ....................................................................................72 3.4.6 Achievements and Areas of Improvement ...............................................73 IV RECOMMENDATIONS 75 4.1 Pillar 1: Data & Analytics........................................................................................................................75 4.2 Pillar 2: Policy and Institutions...............................................................................................................78 4.3 Pillar 3: Finance......................................................................................................................................81 V A BIBLIOGRAPHY 84 APPENDICES 89 Appendix 1: Decision Tree................................ 90 Appendix 2: Laws and Policies......................... 95 Appendix 3: Portfolio Summary Table .......... 97 Appendix 4: Donor Funding Initiatives in Mozambique.................................................. 99 8 AL ABBREVIATIONS LIST ANAC National Administration for Conservation MADER Ministry of Agriculture and Rural Areas Development AFOLU Agriculture, Forestry, and Other Land- MCC Millennium Challenge Corporation Use Sectors MEF Ministry of Economy and Finance AGB Aboveground Biomass MIMAIP Ministry of Sea, Inland Waters, and BANP Bazaruto Archipelago National Park Fisheries BCEs Blue Carbon Ecosystems MICULTUR Ministry of Culture and Tourism BCRF World Bank’s “Blue Carbon Readiness MIREME Ministry of Mineral Resources and Framework,” also known as “Unlocking Energy Blue Carbon Development: Investment MNR Marromeu National Reserve Readiness Framework for Governments” MOU Memorandum of Understanding BGB Belowground Biomass MPA Marine Protected Area BIOFUND Foundation for the Conservation of MRV Unit Monitoring, Report and Verification Biodiversity for REDD+ BUR Biennial Update Report MTA Ministry of Land and Environment CBD Convention on Biological Diversity NDC Nationally Determined Contribution CCP Community Fisheries Council OECM Other Effective Area-based Conservation CBD Convention on Biological Diversity Measure CLCR Coastal Livelihoods and Climate PES Payment for Ecosystem Services Resilience Project POEM Mozambique’s Marine Spatial Plan CMAP Carbon Market Activation Plan PNQ Quirimbas National Park CTV Centro Terra Viva PPP Public-Private Partnership DINAF National Directorate of Forests PRN Pomene National Reserve DMC National Directorate on Climate Change ProAzul Blue Economy Development Fund DUAT “Direito de Uso e Aproveitamento de for Mozambique Terra” / Right to Use the Land PSEPA Primary and Secondary Environmental EBSA Ecologically or Biologically Significant Protection Area or APAIP (“Área de Marine Area Protecção Ambiental das Ilhas Primeiras ECOR National Strategy for the Management e Segundas”) and Conservation of Coral Reefs REDD+ Reducing Emissions from Deforestation EEZ Exclusive Economic Zone and Forest Degradation EDEA Mozambique’s Blue Economy Strategy REPMAR Maritime Fisheries Regulation ER Emission Reduction RJUEM Regulation on the Maritime National ESG Environment, Social, and Governance Space FCPF Forest Carbon Partnership Facility SEforALL Sustainable Energy for All FNDS National Fund for Sustainable SOC Soil Organic Carbon Development TUPEM “Título de Utilização Privativa do Espaço FREL Forest Reference Emission Level Marítimo”/ Use rights over maritime GEAPP Global Energy Alliance for People and spaces Planet UEM Eduardo Mondlane University GMW Global Mangrove Watch USAID United States Agency for International GNR Gilé National Park project Development GHG Greenhouse Gases WS13 2013 Supplement to the 2006 IPCC InOM Oceanographic Institute of Mozambique Guidelines for National Greenhouse IPCC Intergovernmental Panel on Gas Inventories: Wetlands (Wetlands Climate Change Supplement) IUCN International Union for Conservation ZILMP Zambézia Integrated Landscape of Nature Management Program LULUCF Land Use, Land-Use Change, And Forestry MOZAMBIQUE: EXECUTIVE SUMMARY A BLUE CARBON READINESS ASSESSMENT 9 I. EXECUTIVE SUMMARY CHAPTER I II III IV V A PHOTO BY JULIANA CASTAÑO-ISAZA The world has a pressing need to accelerate climate mitigation, enhance climate resilience, and transition to a more productive and resilient “Blue Economy.” MOZAMBIQUE: 10 A BLUE CARBON READINESS ASSESSMENT EXECUTIVE SUMMARY Blue Carbon ecosystems, as powerful carbon sinks, can play a vital role in this change by supporting economies, jobs, and livelihoods. For these reasons, the World Bank Group prepared the flagship report “Coastal Blue Carbon Opportunities for Blue Economy Development,” which aims to support government readiness to scale up public and private sector investments in Blue Carbon. This report, “Mozambique: Blue Carbon Readiness Assessment,” applies the global Blue Carbon readiness framework to the Mozambique context.1 Mozambique has high potential for Blue Carbon development. Multiple factors underlie this positive prospect: the country’s wealth in blue natural capital, its considerable progress to date toward a Blue Economy, and the substantial groundwork already laid for scaling investment. Bottlenecks that exist can be overcome. The Blue Carbon Readiness Framework provides a harmonized pathway for Mozambique to tap its Blue Carbon potential by jointly addressing technical, institutional, regulatory, and financial challenges. The framework is based on three intervention pillars to promote and scale Blue Carbon action: CHAPTER PILLAR 1 PILLAR 2 PILLAR 3 I II DATA AND ANALYTICS POLICY AND FINANCE III INSTITUTIONS IV V The assessment includes a readiness grading exercise that is intended more as shorthand for A the overall findings on the specific section and less as a firm and final ranking on the readiness scale. None of the grades identified are meant to be read as supporting any binary judgment on readiness (ready versus not ready). The assessment uses the following definitions in assessing grades, with the amplitudes in each case indicating a spectrum: L M H “LOW” L M H “MODERATE” L M H “HIGH” Means that relevant data, policy, and Means that several core benchmarks Means that across data, policy, and finance benchmarks and elements are and readiness elements are met finance points, relevant benchmarks not yet met or not yet in place. or that there is a clear pathway to and elements are met or in place. meeting them. 1 See World Bank 2023. MOZAMBIQUE: EXECUTIVE SUMMARY A BLUE CARBON READINESS ASSESSMENT 11 PILLAR 1: DATA AND ANALYTICS All three established Blue Carbon ecosystems – mangroves,2 salt marshes,3 and seagrass beds4,5– are CHAPTER found in Mozambique’s coastal zone. I II III 2 Mangroves are a type of tropical forest, found at the edge of land and sea and flooded regularly by tidal water. They are among the most carbon-rich forests in the tropics. It is estimated that the annual carbon sequestration rate for mangroves averages between 6 IV and 8 Mg CO₂e/ha (tons of CO₂ equivalent per hectare). These rates are about two to four times greater than global rates observed in V mature tropical forests. See https://www.thebluecarboninitiative.org/about-blue-carbon. A 3 Tidal marshes are coastal wetlands with deep soils that build up through the accumulation of mineral sediment and organic material and are flooded with salty water brought in by the tides. Almost all of the carbon in tidal marsh ecosystems is found in the soil, which can be several meters deep. Estimates suggest that the annual carbon sequestration rate for tidal marshes averages between 6 and 8 Mg CO2e/ha (Mg of CO2 equivalent per hectare). These rates are about two to four times greater than those in mature tropical forests. See https://www.thebluecarboninitiative.org/about-blue-carbon. 4 Seagrasses are submerged flowering plants with deep roots that are found in meadows along the shore of every continent except Antarctica. Carbon accumulates in seagrasses over time and is stored almost entirely in the soils, which have been measured at up to four meters deep. Although seagrass beds account for less than 0.2% of the world’s ocean area, they sequester approximately 10% of the carbon buried in ocean sediment annually (27.4Tg per year). Per hectare, seagrasses can store up to twice as much carbon as terrestrial forests. The global organic carbon pool of the seagrass ecosystem could be as high as 19.9 billion metric tons. See https://www.thebluecarboninitiative.org/about-blue-carbon. 5 Mangroves, seagrass beds, and coastal wetlands are Blue Carbon ecosystems that are part of the established wetlands inventory category for reporting requirements to the United Nations Framework Convention on Climate Change (UNFCCC) and are eligible for Blue Carbon credit schemes. Some marine ecosystems, such as kelp beds and mudflats, are progressing towards becoming actionable for reporting to the UNFCCC, ultimately within a carbon credit scheme. Others, such as coral reefs, oyster reefs, and marine fauna, are currently considered non-actionable. A lack of scientific information on these BCEs is limiting and constraining their actionability and inclusion. For further information, see World Bank 2023. MOZAMBIQUE: 12 A BLUE CARBON READINESS ASSESSMENT EXECUTIVE SUMMARY In fact, Mozambique hosts one of Africa’s largest mangrove ecosystems, covering approximately 300,000 ha. As of 2020, these trees stored an impressive carbon stock estimated at about 87 million metric tons (MMT). While research efforts have for the most part focused on mangroves, all three of Mozambique’s BCEs are threatened by natural occurrences and human activities. Extreme weather events such as cyclones and rising sea levels pose significant dangers, as does extensive harvesting of mangrove wood for industries such as charcoal production and construction. Agricultural expansion, urban development, and mining compound these threats. Effective conservation and management practices will be essential to safeguarding these vital ecosystems. Data-gathering capacity is robust for mangrove habitats, but less so for seagrass beds and salt marshes. Currently, no open-source national maps are available to track salt marsh extent. Similarly, global maps of salt marsh distribution do not show salt marsh extent for Mozambique. With several recent research and mapping initiatives, seagrass ecosystems have acquired some robustness of data, although there is plenty of room for more on extent and area. Mangrove activity data are available for the period 2017-2022 as part of the forest monitoring program of the MRV Unit of the National Fund for Sustainable Development (FNDS for its Portuguese initials). The FNDS integrates a REDD+ MRV Unit with the mission to monitor and report on greenhouse gas (GHG) data from Mozambique’s forest areas, including mangroves. It is well staffed and equipped CHAPTER and has produced a National Forest Inventory with mangrove data for 2018, as well as the country’s first UNFCCC Forest Reference Emissions Level, an accounting measure used in the I framework of the core program known as Reducing Emissions from Deforestation and Forest Degradation (REDD+). II III Mozambique has begun incorporating recommendations in the 2013 Wetlands Supplement into IV its inventory preparations. Efforts continue to maximize use of the supplement’s default data V to accurately calculate emissions and removals from mangrove areas. Data on Mozambique’s A seagrass ecosystems are not included in the current GHG Inventory. PHOTO BY ALEX BOMA MOZAMBIQUE: EXECUTIVE SUMMARY A BLUE CARBON READINESS ASSESSMENT 13 PILLAR 2: POLICY AND INSTITUTIONS Mozambique is among the growing number of countries worldwide that make Blue Carbon-specific pledges in their Nationally Determined Contribution (NDC). Emission reduction and removal efforts from Blue Carbon habitats (limited to mangroves) show – at least in theory – in the country’s NDC update of 2021. The pledge also includes the action- specific target of restoring a mangrove area of 5,000 ha. CHAPTER Mozambique has an older NDC implementation plan (from 2018) in place, linking the then- applicable NDC’s targets on Blue Carbon with domestic policies and institutions. The country also has several policies and laws that help enhance Blue Carbon habitats. These include a National I Climate Change Adaptation and Mitigation Strategy (2012), a Mangrove Strategy (2020-2025), II Regulation for the Implementation of REDD+ Programs and Projects,6 and the REDD+ Strategy III and its action plan (2016-2030). In addition, there are cross-economic strategies on marine IV spatial planning (2021 POEM, a policy milestone) and the Blue Economy Development Strategy V (2023 EDEA, under development), Sea Law nr 20/2019 of November 8, and regulation of A utilization of marine space (Decree 21/2017 of May 24). Other complementary frameworks include the Environment law (Law nr 20/97 of October 1), the Directive for biodiversity offsets (Ministerial Diploma 55/2-22 of May 19), the Green Economy Action Plan (2019-2024), the National Strategy for Development (2015-2020), and mining law and its associated regulations. At the legal level, most of Mozambique’s mangrove forests and seagrass meadows fall under the protection of the 1997 Land Law (Law nr.19/97 of October 1), one of the regulatory touchstones of post-colonial Mozambique. The law defines these habitats as “partial protected areas” outside regular use beyond customary usage by local communities.7 6 Decree 23/2018 - Regulation for the Implementation of Programs and Projects for Emission reduction from Deforestation and Forest Degradation, and carbon enhancement (REDD+). 7 Article 7, 1997 Land Law. MOZAMBIQUE: 14 A BLUE CARBON READINESS ASSESSMENT EXECUTIVE SUMMARY Together with the 1997 Environmental Law, the 2014 Conservation Law added a network of seven Marine Protected Areas (MPAs), most of them including Blue Carbon habitats. Additional legal protection for BCE and, at the least, nucleus sustainable community management formats are granted under the 1999 Forest and Wildlife Law, the 2013 Fisheries Law, the 2020 Fisheries Regulation (REPMAR), and the 2020 Regulation for Management of Coastal Zones and Beaches. The 2018 REDD+ Regulation provides rules and procedures for the recognition of REDD+ projects and programs in Mozambique and is applicable to mangrove conservation as well as restoration activities. While declaring that the State of Mozambique is the original owner of carbon rights (it holds title to emission reductions and certificates), it gives non-state actors the right to apply for REDD+ licenses. Coastal community fisheries councils (Conselhos Comunitários de Pesca or CCPs), as recognized under fisheries legislation, are eligible in principle to apply for REDD+ licenses. So far, however, all license applications have come from private sector firms. Furthermore, the REDD+ Regulation favors jurisdictional (terrestrial plus coastal) interventions, which makes Blue Carbon-centered interventions difficult to implement. Mangrove restoration projects are deemed compliant, however, without a terrestrial nexus. At the institutional level, the Ministry of Sea, Inland Waters, and Fisheries (MIMAIP) is at the center of BCE governance through its responsibilities under fisheries regulations as well as its central role CHAPTER in marine spatial planning and the Blue Economy. ProAzul,8 an important Blue Economy financing facility, is also organized under MIMAIP. However, the issuance and supervision of REDD+ I licenses fall within the scope of MTA, not MIMAIP. Issues related to improved coordination among state agencies and other stakeholders (private sector, communities) need attention to II ensure a conducive institutional environment for Blue Carbon or blue finance projects. III IV CCPs are widely used in coastal areas as the main community representation structure, and many V already have started their process for legal recognition. However, CCPs have yet to have any direct A involvement in habitat governance, legal enforcement, and results-based or carbon project finance. Furthermore, their future involvement depends on the design and approval of CCPs’ management plans, as well as the implementation of any benefit-sharing plans. 8 https://www.proazul.gov.mz/ MOZAMBIQUE: EXECUTIVE SUMMARY A BLUE CARBON READINESS ASSESSMENT 15 PILLAR 3: FINANCE While Mozambique has made significant progress toward establishing a cohesive Blue Economy framework to enable blue financing, it needs to take important additional steps to facilitate and leverage funding into blue carbon conservation and restoration activities. CHAPTER The Government of Mozambique has adopted constructive strategies in recent years with a focus on planning and investment, including marine spatial planning and the Blue Economy. I It has also employed nimble organizations, notably ProAzul, the Government’s Blue Economy II development fund, as well as the Foundation for Biodiversity Conservation (BIOFUND). III BIOFUND, a private non-profit Mozambican institution with public utility status, mobilizes and IV manages financial resources for the benefit of biodiversity conservation in Mozambique. Over V the years, BIOFUND has effectively created and managed endowment funds, pass-through A funds, and project implementation funds. It has given vital support to programs focused on coastal ecosystems, including the Biodiversity Offsets Program, and the World Bank-financed projects MozNorte, MozRural, and MozBIO. ProAzul manages Blue Economy projects and activities, designs financial mechanisms, and actively approaches national and international organizations for new funding opportunities – such as the World Bank-financed projects MozNorte and MozRural. ProAzul recently introduced the Blue Investment Opportunity Portfolio, a strategic instrument to expand financing for Blue Economy projects. It identifies initiatives to meet environmental and economic challenges related to natural resources and oceans. It seeks to promote sustainable economic growth and protect the environment by engaging stakeholders, including governments, companies, civil society, and local communities. Among the projects the Portfolio has identified, two involve conserving and restoring Blue Carbon ecosystems. MOZAMBIQUE: 16 A BLUE CARBON READINESS ASSESSMENT EXECUTIVE SUMMARY Despite these strong developments, actual investment levels – beyond government-to-government grant funding – remain low, and concrete investment opportunities benefiting BCE are missing. The Government has ambitious plans to introduce new frameworks to regulate emission reduction and removal initiatives across the economy. The Ministry of Finance has announced a carbon market regulation for the near future and recently moved to broaden the scope of payment-for-ecosystem services by introducing, as a concept, biodiversity offset credits. However, these efforts still need to show results on the ground. BLUE CARBON READINESS Mozambique’s state of readiness for blue carbon interventions and investments is mixed along the different intervention pillars. While there are strong elements in all three pillars – decent mapping and inventory capabilities (Pillar 1), explicit references in Mozambique’s 2021 NDC, advanced horizontal planning, and operational REDD+ results-based funding available for Blue Carbon restoration (Pillar 2), and nimble financing facilities and efforts to use markets to further investments (Pillar 3) – there remains much to do to improve the country’s Blue Carbon readiness. RECOMMENDATIONS OF THIS REPORT INCLUDE: CHAPTER (Pillar 1) Better data management and greater use of the 2013 Wetlands Supplement in the short I or mid-term, as well as robust habitat valuation and establishment of a restoration monitoring tool in the long term. II III (Pillar 2) Improvement of the NDC commitments on Blue Carbon in the 2025 NDC, flanked by IV a clear commitment to apply the 2013 Wetlands Supplement for NDC accounting purposes; V substantial revisions of the REDD+ Regulation, including to offer the ministry in charge (MTA) A technical tools and capacity to make informed decisions to grant or turn down licenses for REDD+; and design of a comprehensive governance structure strengthening the role and powers of MIMAIP and linking its remits with the carbon pricing and investment approaches managed by the Ministry of Finance. (Pillar 3) Design of a comprehensive financing strategy and development of a portfolio of shovel-ready investment opportunities benefitting Blue Carbon conservation and restoration action; use of public-private-partnerships to leverage private-sector involvement and funding; and positioning Blue Carbon within the future carbon market regulation and future Article 6 transactions under the Paris Agreement. MOZAMBIQUE: CONTEXT A BLUE CARBON READINESS ASSESSMENT 17 II. THE BLUE CARBON CONTEXT PHOTO BY ALEX BOMA PHOTO: RED CHARLIE “Blue Carbon” refers to coastal and marine CHAPTER ecosystems – mangroves, saltmarshes, and seagrass I meadows, as well as macroalgae (such as kelp) and II benthic sediments – that provide essential ecosystem III IV services for humanity. V A They both mitigate climate change — Blue Carbon habitats can bury three to five times more carbon per unit of area than tropical forests – and adapt to it through flood and storm protection, freshwater filter systems, soil fertilization, food, and more. Despite their economic, environmental, and social importance, Blue Carbon ecosystems (BCE) are under severe pressure from a range of degradation drivers, including agriculture, aquaculture, infrastructure, and urban development. Rapid, substantial action is needed to scale targeted protection and restoration measures and provide the necessary funding. While the benefits of sustained Blue Carbon action – environmental, social, and economic – outweigh the costs by far, achieving them will require considerable resources in terms of data, MOZAMBIQUE: 18 A BLUE CARBON READINESS ASSESSMENT CONTEXT science, finance, and tailored regulatory and institutional interventions. Governments – in their role as regulators, administrators, law enforcers, landowners, and social and economic mediators – are center stage in this process. With the pressing need to tackle climate mitigation, enhance climate resilience, and transition to a more productive and resilient “Blue Economy,” the World Bank Group launched the flagship report “Unlocking Blue Carbon Development: Investment Readiness Framework for Governments.”9 It aims to support government readiness to catalyze and scale up public and private sector investments in coastal Blue Carbon. The current report, “Mozambique: Blue Carbon Readiness Assessment,” applies the global Blue Carbon readiness framework to the Mozambique context. Mozambique has high potential for coastal Blue Carbon development. The Blue Carbon Readiness Framework provides a harmonized path for Mozambique to tap this potential by simultaneously taking on technical, institutional, regulatory, and financial challenges. The Framework builds on three intervention pillars to promote and scale Blue Carbon action. These are data and analytics (Pillar 1), policy and institutions (Pillar 2), and finance (Pillar 3). Appendix 1 of this report is a decision tree and checklist to help countries navigate the various steps and action items on process and content. The further they move along, the greater the upside they enjoy in terms of robust and refined data, predictable and effective policies, and broad and efficient funding streams capable of crowding in the various sectors of private finance. CHAPTER The Mozambique Blue Carbon Readiness Assessment I II III Report summarizes findings of how far Mozambique IV V has moved along the Blue Carbon path. The findings A are based on a piloting exercise that included a mission to the country in early September 2023, a roundtable with government officials, a stakeholder workshop, and multiple bilateral meetings and interviews. 9 World Bank 2023.  MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 19 III. READINESS FINDINGS PHOTO BY JULIANA CATAÑO-ISAZA The readiness findings are structured under the three CHAPTER pillars: Data and analytics (Pillar 1, divided into 1-A I and 1-B), policy and institutions (Pillar 2), and finance II (Pillar 3), and are organized along the decision tree. III IV V VI Overall, the decision tree proved helpful in navigating the in-country discussions, including the roundtable, the workshop, and the assessment itself (see Figures 1, 3, 4, and 7). A The summary tables at the start of each of the following subsections include a grading exercise that is to be understood more as shorthand for overall findings on the specific section and less as a firm and final ranking on the readiness scale. More importantly, none of the grades identified are meant to be read as supporting any binary judgment on readiness (ready versus not ready). The authors understand readiness both as a growth curve and as a moving target. With this in mind, we have used the following guidance when assessing the grades (the amplitudes in each case indicating a spectrum): “low” means that relevant data, policy, and finance benchmarks and elements are not yet met or not yet in place; “moderate” means that several core benchmarks and readiness elements are met or that there is a clear pathway for meeting them, and “high” means that across data, policy, and finance points, relevant benchmarks and elements are met or in place. MOZAMBIQUE: 20 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 3.1 DATA AND ANALYTICS: BLUE CARBON ECOSYSTEMS (PILLAR 1: 1-A) FIGURE 1. SUMMARY TABLE OF PILLAR 1A STATUS BASED ON READINESS FRAMEWORK. DECISION TREE PATHWAY STATUS STATUS EXPLANATION Does your country currently Yes – mangroves (primary BCE due have any of the following Blue H to extensive data), salt marsh, and Carbon ecosystems (BCEs)? seagrass beds. High-quality data exist on BCE Do you have data on the extent/area (seagrass, mangroves). following for BCEs within Activity data for mangroves are M your country: extent/ area, robust, covering deforestation human activity? and charcoal production, and are available up to 2022. Current monitoring system carried out by the MRV Unit of FNDS CHAPTER is not specific to mangroves. As such, activity data for mangrove deforestation are collected as I part of terrestrial forests at the provincial level. II III IV QUALITY L M H PROGRESS → → ACHIEVEMENTS MISSING V LOW HIGH LIMITED ADVANCED VI A 3.1.1 MOZAMBIQUE’S BLUE CARBON ECOSYSTEMS All three established Blue Carbon ecosystems – mangroves, salt marshes, and seagrass beds – can be found in abundance in Mozambique’s coastal zone. They perform vital environmental functions that include carbon storage and coastline protection, but are also sights of great natural beauty and cultural significance. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 21 MANGROVES Mozambique boasts one of Africa’s most extensive mangrove ecosystems, covering an estimated 300,000 ha as of 2020.10 The Global Mangrove Watch (GMW) platform supplies current maps and spatial data, with information on mangrove extent, area change over time, and carbon stock estimates (biomass and soil). In addition to GMW, various in-country sources – including reports from completed and ongoing mangrove restoration, reforestation, and conservation projects – strengthen estimates of existing mangrove extent and area. The Zambezi River Delta stands out as the most extensively studied region in Mozambique, particularly concerning mangrove ecosystems, with numerous restoration initiatives currently underway. National estimates of mangrove biomass FIGURE 2. MAP OF MOZAMBIQUE’S BLUE CARBON carbon stocks are robust and are ECOSYSTEMS. provided as part of Mozambique’s GHG inventory and current Forest Emission Note: Spatial data on salt marsh ecosystems are not currently available. Reference Level (FREL). Estimates of national mangrove soil carbon stocks are limited, however. This is primarily CHAPTER due to disparate research initiatives that have a regional, not national focus. Some estimates developed using I in-country data are available as part II of a pre-feasibility study for assessing III Blue Carbon in Mozambique but values IV reflect regional, not national, estimates V of soil carbon stock. A desktop study VI of global mangrove carbon stocks conducted by Silvestrum Climate A Associates for the World Banks’s Changing Wealth of Nations Report Mozambique’s Blue estimated total carbon stock for Carbon Ecosystems Mozambique to be roughly 87 million Seagrass Beds metric tons (MMT) of carbon as of 2020. Mangroves National Boundary A variety of research initiatives between 2012 and 2016 amassed several 0 105 210 420 km datasets on mangrove carbon stocks for Source: World Bank, adapted from Global Mangrove Watch (GMW). 10 Bunting et al. 2022. MOZAMBIQUE: 22 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS the Zambezi River Delta.11 The research conducted by Stringer et al. estimated total mangrove carbon stocks – living biomass and soil carbon – for the delta to be roughly 1.4 x 107 metric tons. Carbon stock estimates from this initiative were integrated into Mozambique’s National Forest Inventory and provided the platform for a Blue Forest project, a GEF-funded project implemented between 2015 and 2020 by WWF-Mozambique. Other notable studies similarly focus regionally, and in several cases, focus solely on one portion of total mangrove carbon stocks (either soil or biomass). Global maps of mangrove soil organic carbon stock,12 and biomass carbon stock13 provide reliable platforms for estimating national carbon stock but require in-country capacity for analysis. SEAGRASS BEDS Mozambique’s seagrass beds have been the subject of several recent research and mapping initiatives aimed at improving the understanding of ecosystem extent and carbon stocks. A map of national seagrass ecosystem extent and carbon stock – developed through machine learning of Sentinel-2 data – was recently released.14 Several small-scale studies provide information on seagrass extent regionally.15 Estimates of total carbon stock for Mozambique’s seagrass beds – carbon stored in the living biomass and soil – range between 922 and CHAPTER 2447 metric tons of carbon per square kilometer.16 Each square kilometer of Mozambique’s seagrass beds has carbon stocks roughly equal to the I annual emissions of 15,000-41,000 cars (EPA 2023). Maps depicting Mozambique’s seagrass ecosystems could be improved through the II inclusion of extent and area data from regional seagrass surveys. There is III considerable technical capability in-country to accomplish this – notably IV within the Eduardo Mondlane University system, the Wildlife Conservation V Society, and a Pew Charitable Trusts initiative to improve seagrass VI mapping and carbon stock assessments in the Western Indian Ocean. A SALT MARSHES Mozambique’s roughly 1,000 ha of salt marshes are predominantly found in low-lying regions between mangrove and terrestrial ecosystems in several estuaries in Cabo Delgado and Nampula provinces. By area, the largest marshes occur within the Limpopo Estuary (>300 ha) and 11 Stringer et al. 2015, Trettin et al. 2017, and CIFOR 2012. 12 Sanderman et al. 2018. 13 Simard et al. 2019. 14 Traganos et al. 2022. 15 Gullström et al. 2018 and Poursanidis et al. 2020. 16 Traganos et al. 2022. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 23 Maputo Bay (>500 ha).17 Salt marshes have expanded into degraded mangrove areas in the Limpopo River Estuary. In-country data sources on salt marsh distribution are limited, with current information provided primarily by a research study of salt marsh extent in eastern Africa. While this study provides general information on salt marsh distribution and extent, estimates of the marshes’ size are limited due to scarcity of available data. Therefore, increased research would improve understanding of salt marsh distribution and status in Mozambique. 3.1.2 DATA CAPACITY Data capacity remains strongest for mangrove habitats for which the MRV Unit of the National Fund for Sustainable Development (FNDS for its Portuguese initials) has collected activity data for the period of 2001 to 2022. These data result from systematic sampling of known mangrove areas (100m x 100m plots), across all land-cover change classes.18 In 2017, the MRV Unit switched to a hybrid approach for collection of activity data, enabling it to produce annual estimates of deforestation and resulting emissions. A 2016 study on how charcoal production affects forest degradation in Mozambique provides additional data on forest degradation and emissions.19 Moving forward, robustness of data remains an issue, especially with regard to forest degradation. Activity data on mangrove CHAPTER deforestation cannot be easily disaggregated from data on terrestrial forests—this would require additional staffing and funding. I Disaggregation would likely involve a spatial II analysis of known mangrove areas and III terrestrial forests to extract annualized carbon IV data. Currently, the authors are unaware of V any sources of activity data for seagrass or salt VI marsh ecosystems in Mozambique. A Leveraging the Earth Observation for Sustainable Development (EO4SD) Initiative of the European Space Agency (ESA) could further increase Mozambique’s data capacity for forest monitoring.20 The EO4SD Initiative addresses geospatial information needs of developing PHOTO BY ALEX BOMA countries across several thematic areas, 17 Bandeira and Balidy 2016. 18 Muri Soares 2023. 19 Sedano et al. 2016. 20 EO4SD-FOREST – forest management MOZAMBIQUE: 24 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS including forest management. In the case of Mozambique, the initiative’s Forest Management Project is helping assess mangrove vegetative extent, change, and health. The resulting information stands to improve national understanding of mangroves and increase data capacity in future iterations of Mozambique’s REDD+ program, as well as their FREL and GHG Inventory. The calculation of carbon stocks (soil organic carbon, or SOC) requires varying levels of effort for each of Mozambique’s Blue Carbon ecosystems. National estimates of SOC are provided by Global Mangrove Watch.21 while regional estimates come from several recent studies and research initiatives. Using these values for GHG inventory reporting, however, requires certain considerations. The MRV has committed to use Tier 1 values from the 2013 Wetlands Supplement for the calculation of SOC stocks for mangroves in the next GHG inventory report and FREL – indicating capacity for that initial calculation. Meanwhile, SOC estimates for seagrass beds are becoming more robust as various initiatives upgrade understanding of seagrass extent in Mozambique. But directly calculating a national value for mangrove and seagrass SOC instead of using a Tier 1 value would require financial resources that the MRV unit does not currently have. In the meantime, national and regional estimates of SOC for the third major Blue Carbon asset, salt marsh ecosystems, will not be possible until improved data on ecosystem extent are available. 3.1.3 DRIVERS OF LOSS ANALYSIS CHAPTER Considerable literature is available on deforestation and degradation trends, which are sometimes I hidden by natural habitat changes that can lead to an overall extension of Blue Carbon habitats (see Table 1). The extraction of mangroves for their wood resource continues to be the most II significant driver of degradation and deforestation country-wide.22 Notable logging locations III include the Incomáti estuary close to Maputo city, Nhangau (near Beira city), and Quelimane. IV V The production of charcoal is also a major driver of mangrove deforestation in Mozambique, as VI trees are cut down for conversion into this fuel. This is most common in urban and densely A populated areas.23 In the context of fisheries, the extraction of tannins and quarrying activities contribute to environmental degradation through increased sedimentation and fragmentation of coastal habitats. More recent threats include salt production, which can alter hydrological patterns, and the intrusion of saltwater.24 In Maputo Bay, Mossuril, Pemba Bay, and Mecúfi, salt works are causing loss of mangrove areas, particularly near populated or peri-urban centers.25 Furthermore, disturbed hydrology from coastal development and pollution are increasingly harming mangrove areas. 21 Bunting et al. 2022. 22 Macamo et al. 2021. 23 Macamo et al. 2021. 24 Monteiro and Marchand 2009. 25 Barbosa et al. 2001. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 25 TABLE 1. TRENDS IN MANGROVE AREA COVERAGE AND DEGRADATION IMPACTS REGION IN SITE PERIOD AREA (km2) % OF MAJOR IMPACTS SOURCE MOZAMBIQUE OF STUDY CHANGE T0 T Local use for firewood, Ferreira et al. Cabo Delgado 1995-2005 325 369 +13.5 building material 2009b Harvesting, pathways, Macamo et al. Olumbi 1991-2013 7.24 5.56 -25.4 invertebrate harvesting 2018 Aquaculture, saltpans, Macamo et al. Pemba Bay 1991-2013 21.43 31.30 +23.1 logging 2018 North Local harvesting, Quirimbas Nicolau et al. 1991-2013 112.44 123.48 +9.8 natural sedimentation, National Park 2017 and erosion Nacala Bay, Macamo et al. 2013-2016 0.365 0.276 -24.9 Port development new port area 2019 Zambezi Shapiro et al. 1994-2013 333.1 370.34 +10.1 Erosion, natural causes Delta 2015 Uacane and Ombe CHAPTER 2016; Salomão Chiveve River 2016-2017 0.23 0.1 -43.5 Urban encroachment Bandeira, Central (Beira city) personal observation I Cyclone impact Macamo et al. II Save River 1999-2014 147.44 84.02 -56.9 in 2000 2016 III IV Limpopo Bandeira and 1999-2001 9.28 3.82 -58.8 Floods in 2000 Estuary Balidy 2016 V South VI Incomáti Macamo et al. 1991-2003 42.31 44.51 +5.1 Deforestation A Estuary 2015 Source: Adapted from C. Macamo et al. 2021. Mangroves also face considerable degradation from natural factors, such as cyclones and floods. Cyclones Eline (2000), Japhet (2003), and Favio (2007) struck the Save delta hard, causing a 50 percent loss of the total mangrove area.26 The Pomene Reserve’s mangroves and other nearby forests were also damaged, though subsequent studies suggest they will make a gradual recovery.27 26 Massuanganhe et al. 2016 and Macamo et al. 2018. 27 Balidy et al. 2005. MOZAMBIQUE: 26 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS More recent natural disasters, such as Cyclones Idai (2019), Kenneth (2019), and Freddy (2023), further harmed central and northern Mozambique’s mangroves, resulting in loss or severe impact in about 2,500 ha.28 The Limpopo estuary had already witnessed considerable transformation during the 2000 floods, with approximately 5.5 square kilometers (half of the area) cleared due to submersion for more than 45 days.29 Moreover, natural sedimentation that weakens mangrove areas has afflicted parts of the Zambezi Delta 30 and the Quirimbas Natural Park.31 The looming challenges posed by climate change, including rising sea levels and heightened storm frequency and severity, cast a shadow over mangroves throughout Mozambique, but particularly in the central and northern regions. Research concludes that these areas will likely bear the brunt of such impacts.32 While recovery is possible, through natural means or restoration, Mozambique needs to assess whether portions of the recent habitat decline in mangroves are irreversible. CHAPTER I II III PHOTO BY JULIANA CASTAÑO-ISAZA IV V VI 3.1.4 SOCIOECONOMIC VALUATION OF BCES A The economic value of mangrove forests – the resources and ecosystem services they provide – has been assessed for several key ecosystems of the forests in Mozambique.33 The mangroves of the Zambezi River Delta and the Limpopo Estuary are among the most important in Mozambique and were the focus of this study. An estimated value for each ecosystem service and resource of importance to the communities residing within the studied regions was calculated and is documented in Table 2 below. 28 IUCN 2020 and Blue Ventures 2023. 29 Bandeira and Balidy 2016. 30 Shapiro et al. 2015. 31 Nicolau et al. 2017. 32 Cabral et al. 2017. 33 Macamo et al. 2021. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 27 TABLE 2. MANGROVE ECOSYSTEM VALUATION IN THE ZAMBEZI RIVER DELTA AND THE LIMPOPO ESTUARY. GOOD OR ECOLOGICAL SERVICE ESTIMATED VALUE (USD) PER YEAR ZAMBEZI DELTA LIMPOPO ESTUARY Charcoal 44 440 800 5 990 Poles 38 315 560 738 088,2 Coastal protection 740 680 000 Not assessed Habitat and nursery 22 220 400 5 198 172 CO2 Carbon sequestration 222 204 000 635 337,2 Natural and traditional medicine Not assessed 12 715,98 CHAPTER Honey production Not assessed 833,3 Source: Macamo et al. 2021. I II III Wood – formed into thin poles known as lacalacas – is the most common good/natural resource IV extracted from Mozambique’s mangrove ecosystems. The poles are commonly used in V construction. But mangrove wood also serves as a source of domestic fuel and dye across the VI country and is processed into charcoal in several regions. Mangrove charcoal has a distinct and preferable quality over charcoal made from terrestrial species. Rates of mangrove A wood extraction vary across Mozambique because different species are preferable to others for construction or charcoal production. For example, the species Rhizophora mucranata (red mangrove) is a high-quality building material that is harvested heavily around the Mauputo River Estuary, while Avicennia marina (white mangrove) is more preferable for charcoal but is also used in construction around Maputo Bay due to its easy availability. Mangroves are also relied upon in the country’s agricultural (honey, cattle grazing) and fishery industries (nurseries and habitat for economically valued species). Non-extractable uses for Mozambique’s mangroves range from water purification and coastal protection to cultural and recreational uses. Mangrove stands can serve as navigational landmarks for individuals in small vessels on the ocean. Many mangrove species – and other MOZAMBIQUE: 28 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS species that thrive alongside mangroves– serve as an invaluable resource for cultural remedies and food, as well as ceremonies performed by traditional healers and indigenous communities. Local people rely on many of the associated species as a valuable food source that does not require money to obtain. Associated species of significance include Phragmites australis, a reed used for weaving baskets and fishing nets, and Thespesia pulpunea, a tree whose bark is used to produce rope. The Zambezi River Delta, classified as a Ramsar site, is home to mangroves that have high rates of carbon storage and actively support the most productive fishery in the country.34 Though some mangrove degradation has occurred in the delta, the trees there are directly protected by their Ramsar designation. In contrast, the mangrove ecosystems of the Limpopo are now only about half of their historic extent and face continued degradation, primarily by floods.35 Overall, the decline of Mozambique’s mangrove ecosystems poses a direct threat to regional and national economics alike, and places pressures on communities that rely on these resources. In several regions of the country, restoration initiatives operate in conflict with local extraction of mangroves. This has resulted in increased degradation in formerly untouched mangroves or slowed the progress of initiatives. CHAPTER I II III IV V VI A PHOTO BY JULIANA CASTAÑO-ISAZA 34 Macamo et al. 2021. 35 Ibid. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 29 3.2 DATA AND ANALYTICS: GHG INVENTORY (PILLAR 1: 1-B) FIGURE 3. SUMMARY TABLE OF PILLAR 1B STATUS BASED ON READINESS FRAMEWORK. DECISION TREE PATHWAY STATUS STATUS EXPLANATION Yes – the latest inventory was Are BCEs included in your released in 2016 and includes H country’s GHG inventory? biomass data for mangroves. Inventory updates are on the way. The current inventory does not include data on SOC or dead organic matter for mangroves or any data for seagrass. Yes – the National GHG Inventory Does your country apply currently uses 2006 IPCC the 2013 Wetlands Supplement M Guidelines (along with 1996 and (WS13)/2019 Refinement 2003) and partially integrates CHAPTER (R19)? guidance from WS13. WS13 is expected to be more comprehensively integrated in I future updates. II III IV Yes – the latest FREL was released in 2018. It includes mangrove V Has your country submitted a biomass (AGB, BGB) and SOC, Forest Reference Level (FRL) VI H leveraging Tier 1 Default Values or Forest Reference Emission from WS13 for the estimations. A Level (FREL)? Mozambique has a REDD+ strategy and was awarded FCFP funds. Dead organic matter and SOC will be integrated into the updated FREL using default values from WS13. QUALITY L M H PROGRESS → → ACHIEVEMENTS MISSING LOW HIGH LIMITED ADVANCED MOZAMBIQUE: 30 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS A National Greenhouse Gas (GHG) Inventory serves as a comprehensive database of annual GHG emissions and removals resulting directly from human activities. Inventories commonly track emissions and removals by source and economic sector and are updated annually with the latest data. Inventories are submitted to the United Nations in accordance with the Framework Convention on Climate Change. The development of a national inventory enables a country to address emissions and identify reduction opportunities and can support national and regional policy decisions. Mozambique’s latest update to its National GHG Inventory was completed in 2016 and includes biomass carbon data for mangrove ecosystems as a part of natural forests, but it does not include data on soil carbon or seagrass ecosystems (Ministry of Land and Environment 2022). The GHG inventory was developed using guidance from four IPCC publications: Revised 1996 Guidelines for National Greenhouse Gas Inventories, 1996 Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Emission Inventories, and the 2000 and 2003 versions of Good Practice Guidance for Land Use, Land Use Change, and Forestry. The primary resource for the development of the inventory was the 2006 Revised IPCC Guidelines. Partial utilization of the IPCC 2013 Wetlands Supplement has already improved mangrove biomass calculations, and there’s potential for even greater integration to enhance the upcoming inventory. Activity data surrounding deforestation is included within the inventory for the years 2001-2016 but is not disaggregated by forest class (mangrove vs broadleaf forest). CHAPTER While the 2013 Wetlands Supplement (WS13) is only partially applied for inventory reporting, the REDD+ MRV unit intends – at the technical level – to integrate WS13 guidance in the future for I estimating emissions and removals from mangroves (seagrass does not yet fall in the unit’s scope). There are strong indications that data availability and infrastructure will improve in the short II to medium term. Benefitting from the REDD+/FCPF developments in recent years, Mozambique III can rely on its REDD+ MRV Unit’s advanced experience in gathering, processing, and preparing IV comprehensive data for REDD+ monitoring and reporting. The unit is currently working on V GHG inventory data for 2019, and it will – to the extent possible – apply guidance from the VI 2013 Supplement, though this will not extend to seagrass data. There is no capacity at present to A improve default data or do Tier 3 modelling. The MRV Unit’s team is highly knowledgeable and outspoken about the opportunities concerning data management for Blue Carbon; they are also prepared to act as anchor institution for Blue Carbon data management, subject to adequate staffing and funding. They confirm that they have the technical capacity to provide disaggregated data on mangrove baseline (reference level) emissions, including soil carbon. However, they need additional personnel and financial resources to conduct this work. The team is also eager to start collecting seagrass-related data, again subject to appropriate staffing and finance. Improved communication and collaboration with other data providers in the area such as MIMAIP and the Oceanographic Institute of Mozambique (InOM) would strengthen the MRV’s capacity to carry out robust inventory improvements. MIMAIP – which has legal authority over seagrass areas – is currently MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 31 understaffed and operating with a budget which has limited its capacity to undertake seagrass mapping. Issues regarding institutional arrangements for Blue Carbon could use further clarification. In addition, coordination mechanisms should be regulated and enforced. 3.2.1 REDD+/ FOREST REFERENCE EMISSION LEVELS (FREL) Mozambique has a National Strategy for REDD+ covering the period of 2016 -2030. The strategy outlines objectives and actions for mangrove conservation and restoration. In support of its national strategy, Mozambique released its first Biennial Update Report (BUR) in 2022 and updated FREL in 2018. The BUR includes data and estimates from the latest National GHG Inventory as well as the FREL. A FREL is a key component of a country’s efforts to reduce emissions from deforestation and forest degradation. It is a baseline against which a country’s progress in reducing forest-related emissions is measured. By documenting historical emissions from deforestation and forest degradation, the FREL serves as a reference point for determining the effectiveness of REDD+ activities in reducing these emissions. In support of Mozambique’s National REDD+ Strategy, the country’s first FREL was submitted in 2018. It established a reference period of 2003-2013 and covered all natural forest areas (including mangroves), which account for approximately 43 percent of the country’s total land area. While the FREL is estimated at the national level, CHAPTER results are reported at the provincial level. The FREL was developed using the 2006 IPCC Guidelines for National Greenhouse Gas Inventories I as well as the 2013 Wetlands Supplement. Biomass carbon stock estimates and national II emissions factors included in the report were provided by Mozambique’s National Forest III Inventory (NFI) for all forest types, excluding mangroves. Biomass carbon stock estimates for IV mangroves were calculated using Tier 1 default values and root-to-shoot ratios (R:S) provided V in the 2013 Wetlands Supplement. The MRV Unit carried out a Land Use, Land-Use Change, and VI Forestry (LULUCF) analysis for the 2001-2016 period, which produced annual forest cover and forest change maps for each year during this period. The MRV Unit then followed the 2006 IPCC A Guidelines to generate annual activity data for deforestation at a national scale for 2003-2013, in keeping with the FREL reference period. Currently, activity data and emissions estimates are only provided for deforestation, but planned improvements over the coming years include the integration of methods to estimate emissions from forest degradation. Other improvements include the addition of carbon stock estimates for soil organic carbon (SOC) and dead organic matter (DOM) for all forest types. Data for both types of carbon pools for natural forests were collected by the NFI but are still being processed. Plans call for carbon stock estimates for SOC and DOM for mangroves to be carried out utilizing the Tier 1 Default Values provided in the 2013 Wetlands Supplement. MOZAMBIQUE: 32 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 3.2.2 ACHIEVEMENTS AND AREAS OF IMPROVEMENT ACHIEVEMENTS Overall, Mozambique’s status in data quality and progress for Pillar 1 (Sections A and B) is considered moderate. Data on BCE extent and area are generally robust, with mangroves serving as the primary BCE due to extensive datasets and refinements currently underway. National and regional data on ecosystem extent and carbon stocks are available for Mozambique’s mangrove and seagrass ecosystems. In-country technical capacity is primarily provided by the MRV Unit which has accomplished several notable successes including (as a joint work with the National Directorate of Forests—DINAF) the design of Mozambique’s National Forest Monitoring System (NFMS) and the technical work behind the country’s FREL. That work integrates mangroves and WS13 guidance for biomass carbon estimates and was recently awarded Forest Carbon Partnership Facility (FCPF) funds to further REDD+ emission reductions. The National Forest Monitoring System has successfully installed a quarter of planned permanent sampling plots – essential tools for monitoring forest health and degradation – and is on track to start annual monitoring of forest degradation and health. CHAPTER Notable next steps by the MRV Unit include the implementation of participatory MRV (PMRV) at a national scale (the first PRMV was enacted in 2020), and contributions to the 2nd Biennial I Update Report (BUR) submission in 2024 as well as to the 2nd FREL and 1st Biennial Transparency Report (BTR) submission in 2025. Expansion of in-country capacity is supported by local II research institutions such as Eduardo Mondlane University, and external NGO and non-profit III organizations including the World Wildlife Fund and the Pew Charitable Trusts, both of which IV are funding research initiatives in Mozambique. V VI A PHOTO BY JULIANA CASTAÑO-ISAZA MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 33 AREAS OF IMPROVEMENT There is room to improve data collection in the BCEs. Mozambique’s salt marsh ecosystems are the least researched of the three BCEs present in the country. Currently, no open- source national maps are available to track salt marsh extent, and global maps of salt marsh distribution by the UN Environment Programme do not show extent for Mozambique. Annual monitoring of mangrove forests will improve access to up-to-date activity data, but disaggregation of that data regarding mangrove forests from terrestrial forests remains a challenge. Activity data for seagrass beds exist but are limited – what are available come primarily from work by local researchers and NGOs. Activity data for salt marshes, meanwhile, are severely limited. What is known is broad-scale and focuses on a few select regions (Zambezi River Delta and Maputo Bay). These data mainly cover generalized habitat trends (increasing, stable, decreasing) and land use pressures. National estimates of mangrove soil carbon stocks are limited. The MRV Unit is concerned about an over- reliance on Tier 1 default values for estimates of soil carbon stocks. Estimates of seagrass total carbon stock (biomass and soil) are provided by a robust study released in 2022.36 But no estimates of the total carbon stock of salt marshes are currently available. CHAPTER Mozambique’s GHG inventory currently acts on guidance from several IPCC reports (1996, 2000, 2003, 2006, and partially the 2013 Wetlands Supplement) for the methods used to estimate carbon stocks, emissions, and removals. While this guidance provides a solid platform for GHG I reporting and calculations, newer guidance provided by the 2013 Wetlands Supplement should II be further integrated. By applying Tier 1 Default values for mangrove aboveground biomass III (AGB) and soil organic carbon (SOC), along with the updated root-to-shoot ratio for calculating IV belowground biomass (BGB), Mozambique could achieve more comprehensive estimates V of emissions and removals in the updated inventory. As annual monitoring of mangroves VI improves, Mozambique can work towards developing country-specific emissions factors and default values for calculating carbon stocks and emissions and removals for mangroves. A Leveraging guidance from the 2013 Wetland Supplement, Mozambique can then follow Tier 2 and Tier 3 approaches, both of which rely on country-specific data, to improve their estimates. Further exploration of WS13 applications to include BCE restoration activities, such as accounting for emissions and removals during the restoration of degraded mangroves, presents another opportunity to strengthen the updated inventory. Mozambique’s current FREL integrates guidance from the 2013 Wetlands Supplement for estimates of mangrove biomass carbon stock. These data could be utilized, along with activity data surrounding deforestation, to inform future GHG inventories and improve harmonization 36 Traganos et al. 2022. MOZAMBIQUE: 34 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS between the two. In addition, guidance on the inclusion of coastal wetlands in national GHG inventories can be leveraged to improve future iterations of Mozambique’s Inventory.37 From a data governance point of view, the MRV Unit relies on impressive infrastructure for data assessments in terms of offices and equipment, but organizational challenges remain. On one side, there is the recent integration of the Unit into the hierarchy of the Ministry of Agriculture (MADER) and away from MTA. On the other, there is a partial institutional overlap between the Unit and the National Directorate for Forests (DINAF), which remains under the purview of MTA. Both facts point to a lack of recognition and administrative coherence, as well as the inefficient use of resources, hampering the overall efficiency of the management of mangrove forests. Regarding seascapes, MIMAIP plays a central role as the primary government authority responsible for governing seagrass areas. While MIMAIP has acknowledged its limited technical capacity for mapping and conducting seascape studies, it relies on the Oceanographic Institute of Mozambique (InOM) to carry out such tasks. The primary challenge, though, has been the scarcity of financial resources, which has hindered the development of comprehensive maps and seascape studies. In addition to MIMAIP and InOM, other organizations such as WCS and Eduardo Mondlane University are actively engaged in data collection and analysis efforts related to seascapes in Mozambique. CHAPTER I II III IV V VI A PHOTO BY ALEX BOMA 37 Coastal-Wetlands-in-National-Greenhouse-Gas-Inventories.pdf (bluecarbonpartnership.org) MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 35 3.3 POLICY AND INSTITUTIONS (PILLAR 2) FIGURE 4. PILLAR 2 STATUS BASED ON DECISION TREE FRAMEWORK. DECISION TREE PATHWAY STATUS STATUS EXPLANATION GHG Accounting | NDC includes forest and Are emissions and mangrove biomass (but not soil carbon). AFOLU removals from BCE(s) H falls within scope. FREL includes mangrove carbon included in your NDC? estimates (AGB, BGB). Other BCE(s) not considered. WS13 is expected to be more fully integrated into the updated GHG inventory. REDD+ | Mitigation strategies include REDD+ H (including mangrove deforestation). Other BCE(s) not integrated. CHAPTER Action-Based Targets | Adaptation target – H 5,000 ha of mangroves restored by 2025. I II Older NDC implementation plan exists. III Do you have an NDC Range of policies addressing BCE(s): Mangrove H IV implementation plan? Strategy, REDD+ Decree, MSP, and a Blue V Economy Strategy. VI Updates needed to mangrove restoration target. A REDD+ decree lacks integration of all BCEs. Does your plan incorporate appropriate M Modest institutional governance. institutional/governance frameworks? Improve coordination between ministries and agencies. QUALITY L M H PROGRESS → → ACHIEVEMENTS MISSING LOW HIGH LIMITED ADVANCED MOZAMBIQUE: 36 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS Mozambique is moderately advanced in Blue Carbon policy development and governance (Pillar 2). The country’s regulatory framework (see Figure 4) is overall protective of mangroves. The protection of seagrass beds is patchier. With its powerful 1997 Land Law, Mozambique recognizes customary rights of coastal communities, and through more recent legislation it provides several tools for community governance. There is also a growing set of rules and procedures concerning the recognition of carbon rights and the right to monetize ecosystem services, including the Ministry of Finance’s current interest in enabling a regulatory framework for a carbon market. 3.3.1 NDC COMMITMENTS Mozambique is among the growing number of countries worldwide that make blue carbon-specific pledges in their Nationally Determined Contributions (NDC). Emission reduction and removal efforts from Blue Carbon habitats (limited to mangroves) show – at least in theory – in the country’s NDC update of 2021, which promises an all-sector reduction target (i.e., a target that includes forestry and, thus, mangroves) of 40 million tons of CO2 compared to business- as-usual over the period 2020-2025.38 However, as the updated NDC falls short in presenting sector contributions in a disaggregated way, and given Mozambique’s limited capacity for data collection, monitoring, and tracking of progress towards the target, the top-level commitment arguably has limited value for putting Mozambique on a clear mitigation path for Blue Carbon. CHAPTER Pledges that are more specific on forests, including I mangroves, can be found in the NDC’s adaptation and transversal actions sections, with the latter combining II mitigation and adaptation action. Mozambique, it says, III seeks to regenerate “mangroves and [implement] IV protective measures for seaweed and seagrass, V corals and other breeding and feeding areas for fish.” VI Furthermore, the NDC restates the target from the A National Strategy and Action Plan for the Management of Mangroves 2020-2024, known as the “Mangrove Strategy.” In other words, Mozambique will attempt to restore a mangrove area of 5,000 ha. The NDC extended the timeframe for this restoration target, however, from 2022 (as per the Mangrove Strategy) to 2025. PHOTO BY JULIANA CASTAÑO-ISAZA 38 Further details of the target are provided in Mozambique’s BUR 2022: “Mozambique expects to reduce about 40 million tCO2eq in the period between 2020 and 2025. The emission reductions proposed in the mitigation contribution of Mozambique would represent a mitigation effort of about 1.2 tCO2eq per capita by 2025, a very relevant figure when compared to the total GHG emissions per capita of Mozambique, which were respectively 0.6 tCO2eq in 1990 and about 2 tCO2eq today (total emissions with LULUCF).” MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 37 3.3.2 NDC IMPLEMENTATION Mozambique’s NDC includes guidance on Blue Carbon implementation. It notably defines REDD+ as the “key means of implementation to operationalize mitigation ambition” and it refers to specific programs under implementation or planned in the country, including the World Bank projects MozBio, FIP, Sustenta, MozNorte, and the Zambézia Integrated Landscape Management Program (ZILMP). Mozambique has developed a NDC Implementation Plan for 2020-2025 (Plano de Operacionalizacao da NDC de Moçambique in Portuguese), but has not kept it up to date. It was released in 2018, supported by the World Bank. The plan establishes actions, as well as corresponding measures to implement the NDC. Relevant to Blue Carbon, it aims to increase the resilience of fishing grounds, aligned with the National Strategy for Climate Change Adaptation and Mitigation (NSCCAM – see Section 3.3.5). For this, the plan considers important the “regeneration of mangroves and implementation of measures to protect algae and seagrasses, as well as coral reefs and other fish reproduction and feeding areas.” Furthermore, it seeks to manage and protect biodiversity and coastal ecosystems through the “rehabilitation of deforested areas” and the “establishment of transboundary conservation areas to maintain ecosystem functions and enable the migrations of wild fauna.” Another prescribed action is to match the development of tourist zones and coastal areas with climate change mitigation goals. CHAPTER This should be done by promoting good practices, conservation of ecosystems, and coastal zone protection. Despite these provisions, it is essential to note that the plan has not been updated since 2018. It requires timely revisions to ensure integration with the current (2021) and I subsequent NDCs. II III 3.3.3 MOZAMBIQUE’S MANGROVE STRATEGY IV V VI Mozambique’s Mangrove Strategy serves as a solid backdrop for directing mangrove-related A policy development and implementation. The document provides core information on mangrove habitats in Mozambique, threats and degradation trends and opportunities for better conservation, restoration, and management. Importantly, it identifies the MIMAIP as the lead institution to drive the implementation of the Strategy. The Strategy has five pillars: PHOTO BY ALEX BOMA MOZAMBIQUE: 38 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 1 2 3 4 5 Management, Reinforcement Capacity Environmental Research and protection, and of monitoring building and education and knowledge sustainable use and legislation coordination awareness management of the mangrove ecosystem The most palpable element of the Strategy is its restoration target of 5,000 ha. While the initial timeframe (2022) was missed, MIMAIP recently announced that the country is comfortably on track, having achieved 96 percent of the target by the end of 2022.39 As there is no comprehensive monitoring of restoration campaigns, it is not immediately clear what activities MIMAIP counted towards the target. It is also hard to verify the results achieved to date by ongoing initiatives (see Table 5). 3.3.4 MOZAMBIQUE’S REDD+ STRATEGY CHAPTER As mangroves are considered forest in Mozambique, the National Strategy for REDD+ (2016-2030) I contains additional elements relevant to mangrove conservation and restoration. The Strategy sets II out relevant objectives or “strategic actions” III for the national forests (including mangroves). IV Specific actions include identifying forests to be V protected and areas to be restored, promoting the VI sustainable use of forest resources, and promoting A restorations and rehabilitations of degraded areas. Each strategic action is identified with indicators and targets to be achieved. The Strategy estimates costs and potential implementing actors, as well as the geographic regions with higher potential for implementation of the policy goals. These also include restoring 150,000 ha of degraded forests (all types of forests, including mangroves) in Zambézia, Nampula, and Cabo Delgado. PHOTO BY JULIANA CASTAÑO-ISAZA 39 https://www.mimaip.gov.mz/mocambique-ja-cumpriu-96-de-restauracao-do-mangal-2/. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 39 The Strategy’s action plan follows a phased approach for REDD+. PHASE PHASE PHASE 2016-2019 1 2020-2024 2 3 consists of “preparation is the “implementation and addresses the “consolidation and of the environment and massification of investments and evaluation of performance and experimentation for sustainable consolidation of actions to reduce payment for results in reducing governance of the natural deforestation and degradations.” emissions from deforestation and resources.” forest degradation.” Responsibility for executing the policy goals lies mostly with government actors – such as MTA, Ministry of Mineral Resources and Energy (MIREME), and MEF – but also on NGOs such as WWF and IUCN.40,41 Regarding execution of REDD+, the main instrument providing a framework for the development of forest conservation and restoration work is the 2018 REDD+ Decree. In particular, the regulation provides rules for licensing of REDD+ projects – including mangrove forest projects – and CHAPTER therefore provides a pathway for the country to access carbon finance. Section 3.3.8 provides for further discussions about the licensing process for REDD+ projects. I II 3.3.5 ADAPTATION AND BIODIVERSITY STRATEGIES III IV Mozambique has other policies that directly or indirectly relate to protection of Blue Carbon V ecosystems. These include the National Strategy for Climate Change Adaptation and Mitigation VI (NSCCAM or ENAMMC / 2015-2035). The NSCCAM sets a goal to increase fisheries resilience through actions such as “to regenerate mangroves and implement measures to protect A algae and seagrass, corals and other fish breeding and feeding areas.” Likewise, to improve agriculture, forestry, and land use sustainability, it prescribes the management of biodiversity and coastal ecosystems through the development of “programs for the sustainable exploitation, regeneration and protection of mangroves, algae and seagrass associated with the potential for capturing and sequestering sequestration potential.”42 40 2016-2030 National Strategy for REDD+. 41 The strategy also presents a description of strategic actions, indicators, and targets to be achieved. It estimates costs and potential implementing actors, as well as geographic regions that have higher potential for reaching policy goals. 42 2015-2035 National Strategy for Climate Change Adaptation and Mitigation (NSCCAM or ENAMMC). MOZAMBIQUE: 40 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS The Strategy and Plan of Action for the Conservation of Biological Diversity in Mozambique (2015-2035) provides for a range of principles and action targets, some of them affecting Blue Carbon assets. Its four objectives are i ii iii iv reducing the direct improving the improving the sharing improving implementation and indirect causes conservation status of benefits from through participatory of biodiversity of biodiversity, biodiversity and planning, knowledge degradation and loss, safeguarding the ecosystem services management and capacity diversity of ecosystems, to all sectors of building, and synergies habitats, species, and government and between national genetic conservation, society, and and global targets for biodiversity conservation. The country’s focus on protection of coral reefs also led to the recently launched National Strategy for the Management and Conservation of Coral Reefs (ECOR/2022-2032). Seagrasses are mentioned in the policy once, concerning monitoring and mapping efforts. Notably, ECOR CHAPTER should result in coral reefs and associated seagrass extents being adequately mapped by 2026. Ultimately, ECOR represents an important incentive to expand the number of MPAs to I achieve the target of including 30 percent of coral reef area in protected zones – which, in turn, would directly benefit the protection of seagrasses in these areas. MIMAIP is the institutional II coordinator of the policy.43 III IV V 3.3.6 MARINE SPATIAL PLANNING AND THE BLUE ECONOMY VI A Mozambique adopted its first national Marine Spatial Plan – Plano de Ordenamento do Espaço Marítimo or POEM – in November 2021. POEM’s main objective is the responsible utilization of national marine resources, including through the management of protected areas. Responding to the High Ambition Coalition for Nature and People to safeguard 30 percent of the world’s oceans by 2030, POEM identifies priority areas for the designation, in the future, of new conservation areas. PHOTO BY JULIANA CASTAÑO-ISAZA 43 2022-2032 National Strategy for the Management and Conservation of Coral Reefs (ECOR). MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 41 POEM envisages better protection of marine and coastal zones through better integration of diverse policy frameworks, including the evolving framework of the Blue Economy. It serves as a tool for efficiently allocating space and resources in marine and coastal areas. POEM enables the country not only to identify MPAs but also to incorporate Other Effective Conservation Measures (OECMs) within various sector-specific development plans.44 This means that POEM allows for the comprehensive management of marine resources, including conservation efforts, alongside other sectorial developments. It started in 2017 as the National Policy and Strategy for the Sea (POLMAR) to explore the space for a “blue, profitable and sustainable economy at sea,” bringing the different coastal sectors into view (including fisheries, tourism, oil and gas, research and more). Now it has led to the design of a full-fledged Mozambique’s Blue Economy Development Strategy, approved on June 17th, 2024. Through an exercise called “benchmark,” the development of the Mozambique’s Blue Economy Development Strategy (2024 EDEA) was developed considering best practices – at national and international levels – for promoting the Blue Economy in accordance with Mozambique’s national reality. The integrated approach of EDEA includes diverse sectors such as fishing, tourism, maritime transport and ports, renewable marine energy, aquaculture, and others. The policy includes specific actions for each of the strategic goals. EDEA’s goals include the improvement of “the conservation state of natural capital so that it CHAPTER continues to provide the relevant ecosystem services” and the promotion of “knowledge of the economic value of aquatic and coastal ecosystems and its respective services…to ensure financing necessary to improve the management, financial situation, and efficiency of MPAs I and other sensitive ecosystems.” The strategy explicitly seeks to promote “the conservation II and restoration of coastal ecosystems (mangroves, coral reefs, and seagrasses) capable of III minimizing coastal erosion and the negative impacts of the growing number of extreme IV climate events.” V VI Emphasizing sustainable development, the country also has its 2021 National Plan for Territorial Development (PNDT), with “sustainability” as one of its core principles. The plan (referencing, A among others, the Mangrove Strategy of 2018) supports wide safeguarding of natural resources in Mozambique. Forests should be protected from “exploration and unsustainable practices.” At the same time, it acknowledges the “potential for the development of fishing and the Blue Economy.” At the regional level, the country has development plans such as the Zambezia Strategic Development Plan (2011-2020) or Plano Estratégico de Desenvolvimento da Zambézia, which equally promotes the “sustainable use of lands, forests, and fauna.” 44 OECMs are defined in the 1992 Convention on Biological Diversity (CBD) as “a geographically defined area other than a Protected Area, which is governed and managed in ways that achieve positive and sustained long-term outcomes for the in situ conservation of biodiversity, with associated ecosystem functions and services and where applicable, cultural, spiritual, socio–economic, and other locally relevant values…” MOZAMBIQUE: 42 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 3.3.7 LEGAL PROTECTION FOR BLUE CARBON ECOSYSTEMS FIGURE 5: MOZAMBIQUE LEGAL FRAMEWORK: BLUE CARBON. MOZAMBIQUE LEGAL LAWS FRAMEWORK POLICIES Constitution (2004) Policy and Strategy for the Sea (POLMAR/2017) National Strategy Land Law (1997) and Action Plan for the Management of Mangroves (2020 - 2024) Environmental Law (1997) Marine Spatial Plan (POEM/2021) REDD+ Decree (2018) Nationally Determined Contributions Regulation on the (NDC/2017) Maritime National Space (RJUEM/2017) National Strategy for REDD+ (2016-2030) Law of the Sea (2019) CHAPTER National Strategy for Climate Change Fisheries Regulation Adaptation and Mitigation (REPMAR/2020) (NSCCAM or I ENAMMC / 2015-2035) Biodiversity Offsets II Regulation (2022) National Land Policy III (1995) IV Conservation Law (2014) National Strategy for the Management and V Conservation of Coral VI Fisheries Law (2013) Reefs (ECOR/ 2022-2032) A National Blue Economy Forest and Wildlife Law Policy (EDEA/2023) (1999) Environment Regulation for Mine Activities (2004) Regulation for Prevention of Pollution and Protection of Marine and Coastal Ecosystems (2006) Regulation for Management of Coastal Zones and Beaches (2020) Source: World Bank, 2023. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 43 The 2004 Constitution (CRM) gives the government of Mozambique exclusive ownership of all lands and resources – including Blue Carbon resources. Prior to that, the 1999 Forest and Wildlife Law had already declared all forestry resources to be “State property.” That of course included mangrove forests.45 Most of Mozambique’s mangrove forests and seagrass meadows fall under the protection of the 1997 Land Law as “partial protected areas.” These areas include, among others, a b c d the bed of inland the continental shelf, the the strip of land of up to the land strip waters, the territorial seafront strip and the 100 meters wide from inland surrounding dams sea, and the contours of islands, bays and water sources (i.e., refers to and reservoirs Exclusive Economic estuaries, measured from the areas of land that are adjacent up to 250 meters Zone (EEZ), line of maximum high tides to or directly bordering bodies wide (Article 8). of up to 100 meters adjoining of water, such as rivers, lakes, the water sources, seas, etc), and CHAPTER As the government owns all natural resources, other actors are left with the possibility of obtaining use rights or licenses. At the same time, the partial protection status of Blue Carbon I ecosystems entails that “no rights of land use and benefits can be acquired” over such areas. II The ban includes any title under usufruct rights (known as Direito de Uso e Aproveitamento de III Terra or DUAT), a type of land usufruct commonly granted for agricultural and forestry lands IV across Mozambique. The legal regime for the use of maritime space is established under the V legal framework of utilization of marine space (i.e, RJUEM regulation or Regime Jurídico de VI Utilização do Espaço Marítimo Nacional), approved by decree 21/2017, which implements the 2019 Law of the Sea. RJUEM, which is administered by MIMAIP, creates coastal use rights – A similar to the DUATs for land – and referred to as TUPEM or private title of utilization of marine space (Título de Utilização Privativa do Espaço Marítimo). TUPEM can be granted by MIMAIP through concession, license, or authorization.46 Nonetheless, communities can rely on their customary use rights to any coastal areas, including BCEs. Alternatively, the government can issue special licenses for specific activities, such as fishing or mining and potentially REDD+ (though such licenses usually come at significant costs).47 Licensing authorities are provincial governors, unless an area 45 IUCN and WWF (2016). National Blue Carbon Policy Assessment. Mozambique. IUCN, WWF. 26pp. 46 Articles 43 and 46, Decree 21/2017 / RJUEM. 47 Article 9, Land Law. MOZAMBIQUE: 44 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS is declared a “total protection area,” in which case licenses must be issued by MIMAIP48 and under the authorization of the legal framework for utilization of marine space (RJUEM), approved by decree 21/2017, which implements the 2019 Law of the Sea. The network of conservation areas is legally shaped by the 1997 Environmental Law49 and the 2014/2017 Conservation Law (Nr. 16/2014, amended and republished by Law No 5/2017), which created a “national system of conservation areas.” Today, Mozambique has a network of seven Marine Protected Areas (MPAs): two national parks, three reserves, one environmental protection area, and one total protection area (see Figure 6).50 Five of the protected areas51 are internationally recognized as “Ecologically or Biologically Significant Marine Areas” (EBSAs) under the CBD, i.e., “special areas in the ocean that serve important purposes, in one way or another, to support the healthy functioning of oceans and the many services that it provides.”52 One of the protected areas , the Marromeu in the Zambezi Delta, is also a Ramsar site (the other Ramsar site in Mozambique is Lake Niassa and its coastal zone).53 The seven protected areas cover a total area that is comparatively small, however. Together they make up about 2 percent of the country’s Exclusive Economic Zone (EEZ) and include few mangrove and seagrass areas (as a share of the total such habitats in Mozambique).54 CHAPTER I II III IV V VI A PHOTO BY JULIANA CASTAÑO-ISAZA 48 Article 22, Land Law. 49 Article 13, 1997 Environmental Law or Environmental Act. 50 A list of all protected areas can be found at https://sibmoz.gov.mz/protected-areas/ and at https://www.anac.gov.mz/ 51 Quirimbas National Park (QNP), the Primeiras and Segundas Environmental Protection Area (PSEPA), the Bazaruto Archipelago National Park (BANP), the São Sebastião Cape total protected area, the Maputo Special Reserve (MSR) – which comprises two MPAs: the Inhaca Marine Reserve and the Ponta do Ouro Partial Marine Reserve (PPMR) – and the Zambezi and Cherringona Coast. 52 Convention on Biological Diversity (CBD). About EBSA. 2023. https://www.cbd.int/ebsa/about 53 Ramsar sites Information Services, 2023. https://rsis.ramsar.org/ris-search/mozambique?f%5B0%5D=regionCountry_en_ ss%3AAfrica&f%5B1%5D=regionCountry_en_ss%3AMozambique&pagetab=1 54 Pereira 2021. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 45 FIGURE 6. MARINE PROTECTED AREAS IN MOZAMBIQUE. 6. MOZAMBIQUE 32°0'E 36°0'E 40°0'E 44°0'E 10°0'S 10°0'S a vum Ru TANZANIA er Riv wa A Quirimbas A St Lazarus ng L ua Bank MOZAMBIQUE Pemba io Lú r 14°0'S 14°0'S er MALAWI Riv B Primeiras and Ri ve Segundas hire Ri rL ve ig er S rZ on am B ha Riv be zi Quelimane 18°0'S 18°0'S C Riv C Marromeu er Pu ng uè Beira n el han C D R iv e r S a ve ue D Bazaruto River Man goky biq 22°0'S 22°0'S zam Cabo São Sebastião la h y ni Mo Ri ve O rL er R iv Pomene im CHAPTER po po Vilanculos E Ponta do Ouro Maputo 26°0'S 26°0'S E I to II pu Ma Towns er III Riv Main rivers Marine Protected Areas 0 95 190 380 km Coral reef IV Mangroves Sources: ESRI,UNEP-WCMC-.http://data.unep-wcmc.org/ V 32°0'E 36°0'E 40°0'E 44°0'E VI Figure 1: Mozambique Marine Protected Areas. A Source: M.A.M. Pereira 2021. management, monitoring and research, communications well as the Sea Policy), and as a result of decreasing catch- and business plans), as well as adequate science to es and habitat degradation at local level, about 17 locally support them (Pereira and Fernandes, 2014). Several managed areas have being established in Cabo Delgado, Most MPAs include ecosystems and species conservation of mangrove (e.g. seagrass beds, mangroves, forests Nampula among their key and Inhambane objectives, Provinces. Thesewhile salt are general- marshes and seagrasses are not always mentioned (see Table 3). In fact, several ecosystems and dugongs, manta rays and whale sharks) are still poorly ly very small areas 55 incorporate either temporary or and represented and protected under the current MPA net- permanent zones (sometimes both) and in total cover an work in – species including seagrass beds and mangroves-- Mozambique. seem approximate poorly area of 79km represented 2 under stocks and aim at replenishing the current MPA network in Mozambique. One study also showed that most MPAs are geared around 56 57 and habitat restoration through closed seasons, gear and The concept and implementation of non-formal pro- effort restriction, and protecting endangered marine coral reefs and do not consider seagrass distributions, although there are still cases in which tection of marine areas, by local communities and/or resources (Marques da Silva et al., 2015). the protection authorities zones is still are clearly in its infancy defined in Mozambique by the area extension of seagrass beds—for example, (Rocliffe et al., 2014). Only very recently, a conducive and appro- priate legal and institutional framework was put in place 55 (which Menon includes the Biodiversity and Fisheries Laws as et al. 2021. 56 Pereira 2021. 57 Gullström et al. 2021. PART III: MARINE & COASTAL AREAS UNDER PROTECTION 121 MOZAMBIQUE: 46 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS Ponta do Ouro Partial Marine Reserve which covers all seagrasses around Inhaca Island. MTA is in charge of coordinating coastal and marine conservation efforts of MPAs, particularly through its National Administration for Conservation Areas (ANAC) agency. The overall performance of conservation goals, however, is bleak, especially since MPAs often lack resources (including finance, staff, and infrastructure) and tools for effective management (including business and management plans, monitoring, and research).58 TABLE 3. EXISTENCE OF BLUE CARBON HABITATS IN ESTABLISHED MPAS. *Comprises Inhaca Marine Reserve and Ponta do Ouro Partial Marine Reserve (PPMR). PROTECTED AREA MANGROVE SEAGRASS SALTMARSHES Presence: Yes (seagrass beds Quirimbas National Park Presence: Yes (Extensive) to the west of the main line Data not available (QNP) Scale: Not available of islands) Scale: Not available Primeiras and Segundas Presence: Yes Presence: Yes (extensive Environmental Protection Scale: Over 57,000 ha of coastlines with seagrass beds) Data not available Area (PSEPA) mangrove forests Scale: Not available CHAPTER Presence: Yes Presence: Yes Presence: Yes Scale: 170.3 km comprise 2 Scale: 170.3 km2 comprise Scale: 170.3 km2 comprise I Marromeu National coastal ecosystems coastal ecosystems coastal ecosystems (mangroves, Reserve (MNR) (mangroves, estuaries, (mangroves, estuaries, II estuaries, coastal dunes, coastal dunes, seagrass coastal dunes, seagrass III seagrass beds) beds) beds) IV V Bazaruto Archipelago Presence: Yes Presence: Yes Data not available National Park (BANP) Scale: Not available Scale: Extensive VI A São Sebastião Total Presence: Yes Presence: Yes Data not available Protection Area Scale: Not available Scale: Not available Pomene National Presence: Yes Presence: Data not available Data not available Reserve (PRN) Scale: Not available Scale: Not available Presence: Yes Presence: Yes Presence: Yes Maputo Special Reserve* Scale: Not available Scale: Not available Scale: Not available Source: Menon et al. 2021. 58 Pereira 2021. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 47 In alignment with the vision outlined in the Global Biodiversity Framework (GBF), particularly Target 3,59 the government of Mozambique currently aims to increase its MPA from 2 percent to 10 percent of its territorial waters by 2024, and from 10 percent to 30 percent by 2030.60 Seven areas have been identified by marine development partners, including the Wildlife Conservation Society (WCS), the World Wildlife Fund (WWF), and Centro Terra Viva (CTV) as highly likely to be granted MPA status in the future.61 Outside the Land Law’s definition of total or partial protected areas, and outside site-specific protection (MPA), a number of laws and regulations recognize coastal wetlands as sensitive areas for which any form of degradation is prima facie forbidden. These legal instruments – most of them falling under the administrative remit of MIMAIP – include the 2014 Environmental Law, the 2013 Fisheries Law, the 2020 Fisheries Regulation (REPMAR), and the 2020 Regulation for Management of Coastal Zones and Beaches. There are other laws for which MTA is the main engaging authority, such as the 1999 Forest and Wildlife Law. The 2013 Fisheries Law provides a legal protection regime for mangroves, specifically banning the destruction of mangrove forests for aquaculture (Article 63(1)). Cutting mangroves for the installation of aquaculture tanks – or other purposes – without restoring lost mangroves is also a violation punishable by law (Article 101). But the law creates an exception for interference with mangrove forests for “the construction of water pumping stations, water intake channels for fixed ground installations and small berths or for the cultivation of species whose habitat is the mangroves,” but also “subject to a commitment of replacing the destroyed mangrove and to a technical and CHAPTER environmental impact study” (Article 63(2)). Further, the 2020 Regulation for Management of Coastal Zones and Beaches considers wetlands (including mangrove forests, seagrasses areas and coral reefs) as “sensitive” ecosystems for which special rules apply in terms of protection I and usage. In this sense, destroying or polluting sensitive ecosystems such as mangroves II and seagrass meadows is prohibited and punishable by law (Article 50). In addition, the 2020 III Fisheries Regulation (REPMAR) – although not explicitly mentioning mangroves or seagrasses – IV sets out rules for fishing practices whose purpose is to protect coastal ecosystems. The law also V bans the harvesting of live corals. VI A 3.3.8 REDD+ LICENSING While these strategic documents offer little in terms of pathways and specific implementation tools, the nod to carbon crediting is instructive. Indeed, the 2018 REDD+ Regulation provides rules and procedures for the recognition of REDD+ projects and programs in Mozambique. While declaring that the State of Mozambique is the original owner of carbon rights (it holds title to emission reductions and certificates), it gives non-state actors the right to apply for REDD+ licenses. 59 Kunming-Montreal Global Biodiversity Framework 2022. 60 WCS Mozambique 2022. 61 Menon et al. 2021. MOZAMBIQUE: 48 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS Licenses are issued by the Minister of the Environment (MTA) with provincial and national technical support of FNDS (Fundo Nacional de Desenvolvimento Sustentável). According to FNDS, any REDD+ project that involves mangroves will need an official technical opinion from MIMAIP (and InOM integrates the government evaluation team for REDD+ projects in mangroves). MIMAIP, together with MEF and other ministries, holds a seat on the REDD+ Oversight Committee,62 which, among other functions, facilitates multisectoral implementation of the REDD+ Strategy, as well as REDD+ programs and projects, and proposes improvements to FNDS activities. Management of the REDD+ licensing process is the responsibility of the National Directorate on Climate Change (DMC), with MTA responsible for decisions on licenses. The FNDS’s MRV Unit provides technical support for the management of the REDD+ registry platform, as well as preparing dossiers of REDD+ licenses for MTA. Licenses are valid for 20 years, with the possibility of renewal for an equal period. Under the regulation, all types of legally recognized entities – government entities (including a “REDD+ program”), private sector firms, or NGOs running a REDD+ project) – are eligible to become project proponents for REDD+. For communities, though the regulation explicitly recognizes “community REDD+ projects,” to be eligible they must establish themselves legally, e.g., through a CCP with a legal personality (see below). CHAPTER The application process is phased. The first step is the submission of an expression of interest. The second is the feasibility stage. As long as an applicant submits the documentation required I throughout the process (the regulation is vague on application timelines), they are pre-selected, in the sense that no other applicant is permitted to submit an application for the same area and II the same program/project type (conservation or restoration). This seniority right applies and III continues through implementation, unless the project is rejected for failing to comply with the IV terms of the regulation. Note that the authorities grant a one-year window for the conducting of V the feasibility study and extend the window on account of actual progress. VI A Projects can be “nested” in larger ones. While there are few details on how projects can be integrated – or, using a technical term from international REDD+ practices, “nested” – into larger projects or programs, the practice of nesting is recognized (cf. section 18.f) as long as the smaller (nested) project accounts for at least 200,000 tCO2eq over its lifetime. The lead project or program must follow a jurisdictional approach, i.e., a REDD+ license must cover at least one district entirely. For example, a project developer would currently not be able to obtain a license to conserve (reduce emissions from deforestation and degradation) only mangrove forests in a district unless the license also covers the terrestrial forests in the same district. 62 Article 11 and 12, 2018 REDD+ Decree. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 49 The situation is different for carbon restoration activities, which also fall within the scope of the REDD+ Regulation (the “+” signifies stock enhancement strategies, including through restoration). While there is little in the text of the regulation itself, the MRV unit of the FNDS has clarified that both the FNDS and the MTA interpret the regulation as permitting restoration (but not conservation) activities that focus on coastal habitats or mangroves only. The jurisdiction-level requirement, in these cases, does not apply – the applicant can request a REDD+ restoration license without having to cover terrestrial trees in the district as well. That explains why outside the Zambézia Integrated Landscape Management Program (ZILMP) – a program developed with support from the Forest Carbon Partnership Facility (FCPF)– the only Blue Carbon active initiatives under the REDD+ Regulation concern restoration interventions. Conservation actions would require a combination of terrestrial and coastal interventions or some form of program integration (“nesting”), a complex and untested procedure. To date, applicants have made ample use of the restoration path under the 2018 REDD+ Regulation. Across the country, 32 REDD+ projects have been “registered” (that is, they have been listed, but not necessarily approved), 10 of them along coastal districts.63 There is one active project (the FCPF one) and three “under licensing,” among them the mangrove restoration initiative MozBlue of project developer Blue Forest. CHAPTER 3.3.9 COMMUNITY GOVERNANCE The 1997 Land Law recognizes the right of land use and benefit acquired by “occupancy by I individual persons and by local communities, in accordance with customary norms and practices II which do not contradict the Constitution” (Article 12). This right – which applies to all land areas III covered by the law, including Blue Carbon ecosystems – is automatic and does not require IV formalization. However, titling is an option, and local communities can obtain a title in their V name (Article 13). Tenure recognition and community governance, in this constellation, go VI hand in hand. Headed by the FNDS – which is under MADER – the government has its MozLand project (Terra Segura), which aims to accelerate the registration of DUATs and consolidate the A use of lands.64 In general, land laws are enforced by MADER, although other institutions, such as MTA, can be involved in supervising land usage. Coastal community governance has recently gained momentum outside the titling process. MIMAIP’s approval of the revised Fisheries Maritime Regulation (REPMAR) in 2020 was described by Rare65 as “a major step toward giving coastal communities the formalized right to 63 See http://143.198.245.84/maps/new?layer=geonode:SRPP_atualizado&view=True#/ and https://app.powerbi.com/ view?r=eyJrIjoiODYzMjMx MGUtNzQ2ZS00YjQ4LWIwN2ItZjgxZGY4Y jIzZTA2IiwidCI6IjQwNTRkZDM4LWFjIzZTA2IiwidCI6 IjQwNTRkZDM4LWF mMzktNDQxYi04MjFkLWUyOThkOWIxZGQ1NCJ9 64 FNDS. Terra Segura Project. https://www.fnds.gov.mz/index.php/pt/nossos-projectos/listagem-de-projectos/terra-segura 65 https://rare.org/story/moz-mentum-landmark-legislation-paves-the-way-for-empowered-coastal-communities-in-mozambique/ MOZAMBIQUE: 50 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS access and steward coastal waters for their fisheries.” The 2020 regulation enables communities to set up locally managed marine reserves where fishing and any other invasive activities are off-limits, allowing fish populations to rebound. Under the law, communities can form community fisheries councils (Conselhos Comunitários de Pesca or CCPs). These bodies receive a wider role to manage fisheries areas, including those located in mangrove and seagrass areas. According to the 2020 regulation, the CCPs can designate rules for access to marine resources and designate community management areas. Specifically, the law provides a “path for CCPs to become legal entities, which will allow them to designate community management areas and implement rules regulating access to marine resources.”66 MIMAIP is in charge of facilitating the work of CCPs, particularly due to the task that the REPMAR regulation assigned to the ministry, the ensuring of adequate execution of this law. The laws also permit public-private and community partnerships for the purpose of managing conservation areas. The State’s right to establish partnerships with the private sector and national or foreign organizations to administer conservation areas is recognized in both the 2014 Conservation Law and the 2017 Regulation on Protection, Conservation, and Sustainable Use of Biodiversity. Article 9 of the Conservation Law allows “Public-Private and Community Partnerships,” outlining that “the State may establish partnerships with the private sector, local communities, national and foreign civil society organizations through contracts and funding, in whole or in part, from the private partner for the administration of conservation areas, creating synergies in favor of the conservation of biological diversity, without prejudice to the sharing CHAPTER of responsibilities in the costs and benefits of conservation area management.” It is noted that these conservation partnerships are distinct from the “concession agreements” that are I also laid down in Article 9 of the law. Concession agreements are concluded when the private sector or local communities seek to pursue activities to generate income (such as mining or II potentially carbon financing). The 2017 Regulation sets out compliance requirements for such III concession licenses. They concern, among other things, environmental impact assessments and IV monitoring requirements. V VI Despite these laws, development of public-private partnerships in Mozambique has stalled.67 A The Functional Unit of Supervision of Acquisitions (operated under MEF) is the oversight agency for all procurement activities, including public-private partnerships, but it lacks the capacity and authority to coordinate such projects across government entities. Likewise, the National Directorate for Development Support of the Private Sector (operated under the Ministry of Industry and Commerce) supports investments in the country, but it is not a dedicated agency for public-private partnerships. Furthermore, contracts and documents from such partnerships are not easily accessible to the public, which hinders goals of transparency and efficiency. There is also a lack of robust and specific legislation on the governance aspects of these partnerships.68 These shortcomings certainly show in coastal management: While the 2014 Conservation Law 66 See https://news.mongabay.com/2021/01/mozambiques-new-fisheries-law-expands-protections-but-old-problems-persist/ 67 Economist Intelligence Unit 2021. 68 Ibid. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 51 permits ANAC to conclude conservation partnerships with non-state actors, not a single case of formalized co-management has yet appeared. Laws and regulations require that projects’ benefits be shared with local communities, but are often vague about how much. Various laws and regulations require that communities receive a portion of fees, taxes, or other benefits to finance community governance and enhance local livelihoods. The measures that prescribe benefit sharing include the 1999 Forest and Wildlife Law, the 2014 Conservation Law, the 2017 Regulation on Protection, Conservation, and Sustainable Use of Biodiversity, and the 2022 Decree on Forests and Wildlife. However, specific distribution keys are often not provided. A ministerial diploma of 93/2005, established under the 1999 Forest and Wildlife Act, defined a mechanism for channeling and utilizing 20 percent of the value of certain licensing fees to special management committees for the benefit of local communities. Similar arrangements – here benefiting CCPs – exist under fisheries regulations for a share of fishing licensing fees. Then, under the 2014 Conservation Law, 20 percent of the profits generated from the use of forest resources and other natural resources are specifically allocated to local communities. There is no benchmark value under the REDD+ Regulation, however. While REDD+ applicants must propose a benefit sharing plan, there is no clear word on what is considered a fair community share and how it is to be distributed, though the country has some experience with terrestrial REDD+ projects. The older Nhambita Project had set aside 30 percent for communities. The 2019 Benefit Sharing Plan of the Zambézia Integrated Landscape Management Program (ZILMP) earmarks 70 percent of the net revenues from carbon CHAPTER finance (after deduction of program costs) for community activities.69 I II III IV V VI A PHOTO BY JULIANA CASTAÑO-ISAZA 69 The ZILMP program area includes the Gilé National Reserve (GNR REDD+), an initiative led by ANAC. It is mainly a conservation project, but also promotes some sustainable management activities, such as agro-ecology, and supports value chain development for cashew nuts. Its area comprises a national reserve composed of Miombo forest and the open grassy and wetlands area known as Dambo. Gilé receives 4 percent of benefits from the benefits sharing plan (BSP) of FCPF (Implementation Status & Results Report, FCPF WBG, June 2023). MOZAMBIQUE: 52 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 3.3.10 INSTITUTIONAL FRAMEWORK From this discussion we can identify four types of Blue Carbon stakeholders: STAKEHOLDER GROUP 1 STAKEHOLDER GROUP 2 State authorities charged with regulating Blue Communities using Blue Carbon areas for economic Carbon areas or other aspects of the pipeline for and subsistence purposes, such as fishing or restoration and conservation — for example, MEF extracting of resources. making decisions regarding the new carbon market framework. STAKEHOLDER GROUP 3 STAKEHOLDER GROUP 4 Other users, including holders of licenses for State actors and non-state actors (national and specific economic use in total and partial protected foreign) promoting Blue Carbon protection and areas (these groups are often drivers of degradation restoration activities. This group includes funding but may also be active in restoration campaigns, institutions as well as research institutions and CHAPTER such as Total Energies), and REDD+ license holders. the private sector. I II Appendix 3 to this brief provides a comprehensive list of stakeholders from all four groups. III IV V 3.3.10.1 STAKEHOLDER GROUP 1: VI GOVERNMENT ENTITIES A Blue Carbon habitats fall directly or indirectly into the remit of multiple ministries and agencies. MTA grants licenses for REDD+ restorations and conservations, while the REDD+ MRV Unit of FNDS provides technical input and robust data for deforestation and degradation monitoring, with MIMAIP and MEF having a seat on the REDD+ Oversight Committee for consultation and supervision of the licensing process. Licenses for economic uses can be granted by different agents: MIMAIP usually controls the maritime and tidal areas, providing mostly fishing licenses, MICULTUR provides licenses for activities within its scope, such as permits for hotel construction, and MIREME provides licenses for mining. Other government entities, notably those that manage areas on the ground, such as the provincial and district governments, grant licenses for economic use of Blue Carbon areas. Further, ANAC, which is an agency under the MTA, is charged with administering total conservation areas. MEF leads MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 53 discussions for a carbon market framework in Mozambique and coordinates international efforts to advance natural ecosystems protection in Mozambique through leveraging carbon finance. Implementation of NDC targets, meanwhile, falls under the remit of MIMAIP, MTA, and MADER.70 The governance framework for Marine Spatial Planning and the Blue Economy sector, on the other hand, is more horizontal by design. As the policies’ aim is to help diverse sectors intersect with each other, a diverse set of regulators and administrators is meant to collaborate to establish rules for the management of the marine and coastal resources. For instance, MIMAIP, ANAC, and MIREME each have administrative responsibilities for coastal development, though MIMAIP is considered “the central driving force to address enabling environment actions for the Blue Economy.”71 The governance framework is also tilted towards the facilitation of investment. Thus, financial actors, notably ProAzul (see below), play important roles. 3.3.10.2 STAKEHOLDER GROUP 2: COASTAL COMMUNITIES Coastal fishing communities hold customary tenure over the country’s Blue Carbon habitats (see above, Community Governance), and they can apply for REDD+ licenses for conservation and/or restoration, subject to their acquisition of legal personality. Beyond terrestrial areas, use rights CHAPTER can be granted by a local authority, such as MIMAIP or provincial governors. These licenses are usually linked to economic activities, such as fishing. Customary use rights can also be a reality, as most of the laws allow subsistence rights to exist in favor of local communities for such I activities as fishing or extraction of natural resources. II III Note that in past years Mozambique’s laws have provided for forms of community governance, IV thereby mixing Stakeholder Group 1 (State Authorities/Regulators) and Stakeholder Group 2 V (Communities). Currently, community Fishery Councils (CCPs) are recognized to manage VI fisheries areas, including those located in mangrove and seagrass areas. According to a 2020 regulation, the CCPs can designate rules for access to marine resources and designate A community management areas — the law provides a “path for CCPs to become legal entities, which will allow them to designate community management areas and implement rules regulating access to marine resources.”72 Communities may also function as degradation drivers. The customary use of mangrove resources by local people is widespread. Though the authorities nowadays discourage selling of mangrove wood, extraction and local trade often continue in clandestine ways. 70 2018 NDC Implementation Plan. 71 Menon et al. 2021. 72 See https://news.mongabay.com/2021/01/mozambiques-new-fisheries-law-expands-protections-but-old-problems-persist/ MOZAMBIQUE: 54 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 3.3.10.3 STAKEHOLDER GROUP 3: OTHER USERS Mining, including mining for heavy mineral sands, has become increasingly disruptive and harmful to Blue Carbon habitats and the environmental services they provide. While stark differences persist among the many operators and investors in pursuing environmental and social sustainability strategies, in sum the socio-economic impacts can be severe.73 At a time when the Ministry of Energy has given out large numbers of concessions, resistance among communities is growing. The fishing industry is also critical, given its often direct, harmful impact on fish stocks and fishing grounds. Total Energies is the leading firm in the consortium investing in Mozambique’s $23 billion liquefied natural gas (LNG) fields. The project had been on hold due to the Islamist insurgency in the north of the country but seems back on track. The environmental impact on the Quirimbas Archipelago and beyond may be significant. A new sub-group of users has emerged, firms and organizations that seek REDD+ licenses to engage in Blue Carbon conservation and restoration activities (see above, REDD+). 3.3.10.4 STAKEHOLDER GROUP 4: CHAPTER BLUE CARBON INVESTMENT FACILITATORS I Several international donors are promoting Blue Carbon activities in Mozambique. They include multilaterals such as the World Bank, as well as development agencies, notably USAID, II the Millennium Challenge Corporation, and the Blue Planet Fund of the UK. III IV National actors include research institutions such as the Eduardo Mondlane University (UEM) V and the Oceanographic Institute in Mozambique (InOM) – the latter an agency under MIMAIP. VI Both institutions are active in research and mapping of coastal ecosystems in Mozambique, A including seagrass meadows. They include firms and organizations specializing in community tenure and land registration (a pre-requisite for many governance models including REDD+), such as the firm Terra Firma, which maintains, together with local partner Centro Terra Viva, an online land governance platform for Mozambique. First and foremost, however, this stakeholder group includes dedicated funds and financing facilitators, namely BIOFUND and Pro Azul (see below, Pillar 3). 73 Bisht and Martinez-Aller 2023. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 55 3.3.11 ACHIEVEMENTS AND AREAS FOR IMPROVEMENT ACHIEVEMENTS In the Blue Carbon Readiness Framework for Pillar 2, Mozambique shows strengths on several levels. Blue Carbon features prominently in the country’s NDC commitments. GHG emissions and removals from mangroves fall within the mitigation as well as the adaptation scope. They are also part of Mozambique’s REDD+ accounting. The NDC includes a specific (if not too ambitious) action-based target for mangrove restoration. Regarding NDC implementation, the 2021 NDC offers guidance on Blue Carbon, and the country has moved to formulate a (now outdated) Implementation Plan (2018). The NDC highlights the importance of REDD+ for the implementation of mitigation targets, including through World Bank-supported projects MozBio, FIP, Sustenta, MozNorte, and the Zambézia Integrated Landscape Management Program (ZILMP). The Implementation Plan assigns responsibilities for the achievement of NDC targets to specific government agencies and ministries and integrates the protection of biodiversity and coastal ecosystems (including BCEs) into mitigation and adaptation goals. The government has also issued a dedicated Mangrove Strategy alongside CHAPTER its REDD+ Strategy and a national adaptation plan. Horizontal policy commitments on marine spatial planning (2021 POEM) and the Blue Economy (2017 POLMAR, 2023 EDEA) mainstream coastal protection into all other economic sectors. I II Mozambique also has several strong legal provisions for mangrove and seagrass protection and III management, especially under the 1997 Land Law, the 2014 Conservation Law, and the 2020 IV Fisheries Regulation (REPMAR). The 2018 REDD+ Regulation has proved a fit-for-purpose V mechanism to foster the development of REDD+ activities along the coast of Mozambique. VI The material law commitments are matched by several robust institutional structures and A actors. Fishing communities are widely organized in CCPs, many of which are on the way to legal recognition. MIMAIP is the lead government agency, responsible for overseeing policy development, implementation, and – through ProAzul (see next section 4.2) – financial facilitation. The REDD+ institutional framework, with FNDS’s REDD+ MRV Unit, provides rigorous technical management and oversight. While they are yet to go into operation, the country has enacted legal frameworks that foresee public-private and community partnerships. MOZAMBIQUE: 56 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS AREAS FOR IMPROVEMENT There is plenty of room for improvement — the current NDC lacks a firm commitment to the use of the 2013 Wetlands Supplement when defining the NDC mitigation scope and the NDC accounting framework. Mangrove forests are part-in and part-out (since soil carbon is excluded). Seagrass beds and salt marshes are not covered at all. The REDD+ reference level omits soil carbon (see also above, Pillar 1). The action-based target (5,000 ha restoration) was recycled from the Mangrove Strategy and watered down in ambition, with the timeframe moved from 2022 to 2025. On NDC implementation, the 2018 Plan should be updated, especially to align with current and subsequent NDC targets, as well as targets of other policies such as the Mangrove Strategy. That said, conservation and restoration targets for Blue Carbon, for the short, mid-, and long term, are still missing. New implementation plans should consider setting priorities, as well as firm action commitments within a roadmap that contemplates technical, policy, community, and financial aspects. In fact, it is not clear whether the government plans (at the very least) a new Mangrove Strategy for the time beyond 2024/2025. CHAPTER While most BCEs benefit from abstract legal protection (they are in partial protected areas), concrete protection is scarce. There are few Marine Protected Areas with considerable presence I of BCE. However, while there is consensus among stakeholders that this should change through a substantial scale-up of protected areas, and while priority areas have long been identified II (including at the level of POEM), regulators have been procrastinating on the issue. The reality III is that additional legal protection does not necessarily mean heavy additional commitments of IV administrative personnel and finance. V VI Existing legislation allows at numerous levels for tailored public-private partnerships, including for A the co-management of protected areas and for cooperation with communities, but public-private partnership opportunities lie mostly dormant. This applies to the single most effective instrument in Blue Carbon enhancement connecting public management entities with the private sector and leveraging private finance: the REDD+ Regulation. While public entities are nominally entitled to operate a REDD+ program, the regulation does not actually promote public-private partnerships. The upshot is that actual opportunities for public sector entities – which will struggle to fully operate a REDD+ program in-house—fall flat. In fact, all of the REDD+ licenses under consideration are private sector-driven, without a clear path for public sector entities such as ANAC, which is responsible for the management of MPAs. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 57 The REDD+ Regulation is also weak in securing land access and carbon title. While the regulation declares that carbon rights are a priori owned by the State and that the State can give out REDD+ licenses, these general rights collide in practice with the legitimate holders of land title, including communities that rely on customary rights. Beyond a vague reference to “benefit sharing,” there are no clear provisions in the REDD+ Regulation on how REDD+ license applicants can secure land title and involve communities. This seems to generate bottlenecks for implementation as well as challenges to environmental equity. At the institutional level, despite the presence of strong government and private (including community) actors, Blue Carbon governance as a whole remains frail and little coordinated. Enforcement of mangrove protection lies mostly with under-resourced districts. MIMAIP is the central regulator, planner and executer, yet it is not clear whether it has the resources it needs to carry out its wide set of duties. These include habitat protection, fisheries governance, and powers under marine spatial planning policies, as well as the Blue Economy. Competing agencies often take precedence. A case in point is the Ministry of Energy, whose permits trump any other permits, including a REDD+ permit. MIMAIP, although linked to REDD+ licensing for mangrove forests, could have a bigger role in providing for government action. The Ministry takes part in the “consultation” and “supervision” of REDD+ strategies, as part of the REDD+ Supervision Committee. However, it could get involved in the entire REDD+ licensing process from delineation to definition of a theory of CHAPTER change, from integration of communities to securing land access and benefit sharing. In the same way, MEF, another member of the REDD+ Oversight Committee,74 could expand its role I into decision-making. While MEF is currently designing a carbon market regulation which has II implications for the future of REDD+, its influence is somewhat limited in the domains of REDD+ III licensing and the mechanisms for generating carbon benefits. Its more guiding than decision- IV making role in REDD+ poses a potential threat to the Blue Carbon sector in future regulation V and the broader investment framework for Blue Carbon. VI Across stakeholders, a platform is missing that could connect currently siloed activities. A This platform could tap into the large pool of resources, technical capacity, and knowledge of government agencies, research organizations, communities, NGOs, and the private sector to create meaningful levels of support for Blue Carbon interventions. 74 Articles 11 and 12 of the 2018 REDD+ Decree. MOZAMBIQUE: 58 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 3.4 FINANCE (PILLAR 3) FIGURE 7. PILLAR 3 STATUS BASED ON DECISION TREE FRAMEWORK. DECISION TREE PATHWAY STATUS STATUS EXPLANATION Partially yes. POLMAR laid the foundation for Blue Economy development. ProAzul assists in Does your country have a the development of Blue Economy Blue Carbon finance and M activities, e.g. it published investment strategy in place? the Portfolio of Blue Finance Opportunities (screens potential investment of $900 million). Develop an actionable plan to operationalize financing through existing policies and institutions. CHAPTER Several financial tools have been implemented: • Private-public partnerships Have you operationalized through MozBio I M specific funding tools? • Results-based finance with II Zambezia ER REDD+ program III • REDD+ finance pipeline for mangroves IV V Finance opportunities missing for other BCEs. Adopt a framework VI that owns Blue Carbon financing A tools. Waiting for the carbon market Does your country intend to strategy to be published. Rules use carbon markets as a means H for Article 6 and VCM to be of investment? incorporated. QUALITY L M H PROGRESS → → ACHIEVEMENTS MISSING LOW HIGH LIMITED ADVANCED MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 59 3.4.1 BLUE CARBON FINANCE STRATEGY While Mozambique has made significant progress in establishing a cohesive framework to enable blue financing, important additional steps remain for facilitating and leveraging funding into Blue Carbon conservation and restoration activities. Following the 2015 reforms to the structure and remit of MIMAIP, the ministry began designing what has become the country’s first Blue Economy agenda (see above, Sections 3.3.6 and 3.3.10.1). The Legal Regime for the National Maritime Zone Use (RJUEM), adopted in 2017, provided initial guidelines for coastal zone management, land use, and zoning. It was followed by the adoption of the Sea Policy of 2017 (POLMAR), which laid the foundation for Blue Economy development. These frameworks served as the starting point for the two-year Marine Spatial Planning process (POEM). In 2007, a conservation conference in Maputo brought together government, academia, the private sector, civil society, NGOs, and donors, all in agreement about the necessity of an environmental fund. This concept advanced further in 2011 with the formal establishment of BIOFUND.75 A private non-profit Mozambican institution with public utility status, it mobilizes and manages financial resources for the benefit of biodiversity conservation in Mozambique. Over the years, the institution has effectively raised and managed endowment funds, pass-through funds, and project implementation funds. It has played a crucial role in supporting programs focused on coastal ecosystems, including the Biodiversity Offsets Program, MozNorte, CHAPTER MozRural, and MozBIO. Subsequently, in May 2019, following the “Growing Blue” conference in Maputo, the Mozambican I Government established ProAzul, a Blue Economy development fund.76 ProAzul aims to promote II the sustainable development of blue economy activities through the allocation of resources III and support for the management of programs, projects, and investments. Since its inception, IV ProAzul has played a crucial role as an intermediary connecting stakeholders and offering V information about project financing needs for Blue Economy development. To date, ProAzul has VI successfully managed and coordinated several projects with donor funding. A 75 BIOFUND (October, 2023). Sobre nós. https://www.biofund.org.mz/sobre-nos/oque-e-a-biofund/ 76 ProAzul. Quem Somos. http://www.proazul.gov.mz/quem-somos/ MOZAMBIQUE: 60 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS PROAZUL PROJECTS PROJECT AND PARTNER DESCRIPTION BUDGET Works to improve the performance of small agricultural producers and fisheries to increase their MOZRURAL productivity and access to markets. Helps MSMEs $24.7 million - World Bank upgrade their sales and implement climate-smart agriculture practices. Aims to improve the livelihoods of vulnerable communities and the management of natural resources in rural areas of northern Mozambique, MOZNORTE including forestry, fisheries, biodiversity, and soil, $21 million - World Bank adopting community-driven and climate-sensitive approaches to enhance the management of natural resources on which rural livelihoods depend. Works as part of a regional collaboration that is tasked with reducing resource degradation SWIOFISH- MZ and strengthening the management of selected $37 million - World Bank priority fisheries at community, regional, and national levels. al levels. Oversees a matching grant program to raise the CHAPTER incomes traditional fishermen, promote micro, MAISPEIXE SUSTENTÁVEL $4.5 million (Phase 1) small, and medium-sized enterprises, and increase - World Bank $14 million (Phase 2) awareness of aligning economic development with I the sustainability of marine resources. II Works to implement an integrated approach in III RESILIÊNCIA DAS sea and coastal areas, covering activities such COMUNIDADES COSTEIRAS ÀS as restoring and managing marine ecosystems, IV $1 million MUDANÇAS CLIMÁTICAS identifying diverse livelihood opportunities, and V supporting the local governance framework for - Sweden VI greater local involvement in decision-making. A Among other activities, oversees the Coastal Livelihood and Climate Resilience (CLCR) projects, MILLENNIUM CHALLENGE which promote sustainable management for marine $100 million CORPORATION resources such as mangroves. The funds will benefit the province of Zambézia and two districts bordering the north of Sofala and south of Nampula. FUTURO AZUL Promotes sustainable management of ecosystems, - BIOFUND, IUCN, RARE, OIKOS AND through the restoration and conservation of $8 million BLUE VENTURES mangroves, seagrasses, and coral reefs. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 61 In a strategic move to match financing to projects in Mozambique’s Blue Economy, ProAzul introduced the Blue Investment Opportunity Portfolio.77 The portfolio identifies initiatives aimed at developing solutions for environmental and economic challenges related to natural resources and oceans. It seeks to promote sustainable economic growth and protect the environment by engaging a wide range of stakeholders, including governments, companies, civil society, and local communities. The portfolio lists blue opportunities in six major sectors. They are: I. II. III. Fishing and Aquaculture, Renewable Energy and Transport and Marine Extractive Industry, infrastructure, IV. V. VI. CHAPTER I Natural Capital, Coastal and Marine Tourism, Governance II Environment, and and and Capacity Building. III the Circular Economy, IV V VI ProAzul prioritizes projects for each pillar and A estimates the required investment. Between all projects, it is screening a total of $900 million in potential investment (see Appendix 5). 77 ProAzul 2023. MOZAMBIQUE: 62 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS Among projects the Portfolio has identified, two involve conserving and restoring Blue Carbon ecosystems. The “Green Infrastructure for a Resilient and Sustainable Blue Economy” project (Pillar 4) focuses on financing initiatives for developing eco-friendly infrastructures to protect the coastal and marine environment, including mangroves, seagrass, dune forests, sand dunes, coral reefs, and their ecosystem services. Part of this project entails identifying economic opportunities for the private sector to advance the conservation and sustainable use of these natural resources. For this project, the Portfolio is screening $20 million in potential investment. The second project, “Building Resilience of Coastal Communities through Ecosystem Adaptation,” aims to mitigate climate impacts on communities in the Limpopo, Zambeze, and Bons Sinais estuaries. One of the planned mitigation activities, which will protect against floods and storms, is stressing nature-based solutions, such as rehabilitating and conserving mangroves. In total, the Portfolio is seeking $50 million in investment for this project. While the Portfolio has effectively identified Blue Economy projects requiring funding, it lacks clarity in explaining how actual investment can be secured. It does not provide specific guidance on the tools or methods that could finance these activities or on ProAzul’s or other Mozambican institutions’ specific roles in the process. Even though Mozambique has progressively developed a framework to support the Blue Economy, it lacks an implementation plan that describes key sectors and available resources. CHAPTER Discussions with stakeholders in Mozambique suggest that the government has not yet surveyed I financing needs, sources, and instruments. In this regard, the development of a Blue Economy satellite account could move the process further along by providing transparency on domestic II and external financial flows related to the Blue Economy. This tool would clearly illustrate the III contribution of relevant sectors to the country’s economy, streamline budget allocation for the IV Blue Economy, and enhance donor coordination. V VI A 3.4.2 OPERATIONALIZED FUNDING TOOLS Mozambique relies on international donor funding to protect its forests and coastal ecosystems. According to studies, Mozambique’s protected area system requires annual funding of $68-135 million per year. Yet the country’s government provides only about $2 million per year.78 To bridge the gap, the country has managed to receive funding through a range of international initiatives (for an overview of anchor initiatives with coastal impact, cf. Appendix 6). 78 Baghai et al. 2018. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 63 3.4.2.1 PUBLIC INTERNATIONAL INITIATIVES The World Bank has been a key international donor partner. Cooperation between the Bank and Mozambique on REDD+, led within the framework of the Forest Carbon Partnership Facility (FCPF), has generated important institutional infrastructure, notably the creation of FNDS REDD+ MRV Unit (see chapter 4.2.7.1) as well as a specific funding program, the Zambézia Integrated Landscape Management Program (ZILMP).79 This results- based carbon finance program – provided under an emission reduction purchase agreement (ERPA) with the FCPF’s carbon fund in the amount of $50 million (ceiling) CHAPTER – includes conservation management activities for some 50,000 ha of mangroves.80 The Bank is also I spearheading programs to improve II the management of conservation III areas, including MPAs, with its IV Conservation Areas for Biodiversity V and Development (MozBio, VI phases I81 and II82). The GEF-funded, grant-based initiatives have a budget A PHOTO BY JULIANA CASTAÑO-ISAZA volume of more than $90 million. 79 Forest Carbon Partnership Facility 2018 80 Emission Reduction Purchase Agreement 2019. 81 World Bank. Mozambique Conservation Areas for Biodiversity and Development Project. 82 World Bank. Mozambique Conservation Areas for Biodiversity and Development Project- Phase 2. MOZAMBIQUE: 64 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS The Blue Action Fund, a multi-donor facility that grew out of Germany’s KfW, funds efforts by WCS (lead) and partners to establish an MPA of at least 1,000 km2.83 Local communities will take part in restoration activities, including mangrove and seagrass rehabilitation and coral reef recovery. Further support will come from several bilateral programs (funding sources include the UK Blue Planet Fund84 and USAID) to improve the adaptive capacities, climate resilience, and prosperity of vulnerable coastal communities in developing countries. The Millenium Challenge Corporation (MCC) has just announced plans to spend some $100 million through ProAzul and BioFund for nature-based and youth and gender-inclusive solutions to restore mangroves and coastal ecosystems, and boost incomes from fisheries while building coastal communities’ resilience to climate change.85 While most of this funding is classic grant finance, the Global Fund for Coral Reefs recently announced a program, MZ CoreInvest (grant base $100,000), that seeks to mobilize blended finance mechanisms for coral reef and mangrove programs and strengthen services in reef- dependent communities.86 The conceptual approach is to combine various funding sources, including carbon finance and biodiversity offsetting finance, under Ministerial Diploma 55/2022 to implement Biodiversity Offsets (adopted under Decree 54/2015 of 31 December: Environmental Impact Regulation. Under this instrument, development projects (coastal as well as terrestrial) that harm biodiversity that is considered very important (including mangroves and seagrass beds) must include offset plans to restore/rehabilitate biodiversity equivalents to what was lost, but in a location outside the direct influence of the development project. CHAPTER As we have seen above, Mozambique has effectively secured funding for its blue ecosystems, even I in the absence of a clearly defined blue financial strategy. The country has primarily relied on two types of funding: results-based carbon finance (FCPF) and donor funding in the form of bilateral II and multilateral grants. The absence of a strategy has meant that Mozambique has missed out III on certain other instruments discussed at the international level, such as blue bonds and debt- IV for-nature swaps. The lack of a comprehensive strategy is further evident in the absence of a V valuation of coastal ecosystem services. If available, it could inform budgetary planning and VI government strategies for attracting foreign direct investment in nature-based solutions for A resilient infrastructure. 83 Blue Action Fund Grant Fact Sheet. 84 Department for Environment, Food & Rural Affairs, United Kingdom 2023. 85 MCC Mozambique Connectivity and Coastal Resilience Compact. 86 UN MPTF Office Partners Gateway. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 65 3.4.2.2 PRIVATE INITIATIVES OF MANGROVE RESTORATION While Mozambique’s past mangrove restoration campaigns have encountered challenges, recent initiatives (particularly for mangroves but also seagrasses) are more promising. Criticism of the earlier efforts focused on ineffective mangrove restoration techniques, lack of monitoring and law enforcement, and poor integration of coastal communities.87 Today, we have several studies to inform on restoration practices, including regional guidelines (for example, UNEP guidelines on best restoration practices for mangrove and seagrass ecosystems) and a national mangrove restoration guideline (2023) released by the Oceanographic Institute of Mozambique (InOM) for MIMAIP. It was produced in collaboration with many of the key Blue Carbon stakeholders in Mozambique (including the World Bank, BIOFUND, the Eduardo Mondlane PHOTO BY ALEX BOMA University, WWF, and WCS).88 CHAPTER Also noteworthy are studies conducted by WWF (2014-2021),89 whose findings underlaid one of the first Blue Carbon project finance initiatives to come from the REDD+ Regulation. All concern I mangrove restoration and all are driven by international private firms. These are Carbon II Capture Singapore (Maputo), Lomasul (Inhambane), Blue and Green Carbon (Nampula), III Total Energies (Cabo Delgado), and Blue Forest (Zambezia). Blue Forest project (often referred IV to as MozBlue) is the most advanced (under licensing with MTA) and – if approved -- will be one V of the largest reforestation projects in Africa. It seeks to restore mangrove across 140,000 ha. VI Its offset potential was estimated at approximately 15 million tons of CO2 emissions during its 20-year lifetime.90 A Table 5 below summarizes some of the most recent restoration campaigns. 87 Bandeira et al. 2016. 88 InOM 2022. 89 See https://www.blueforestsolutions.org/mozambique 90 Blue Forests 2023. III 66 CHAPTER VI IV II A V I TABLE 5. BLUE CARBON RESTORATION CAMPAIGNS IN MOZAMBIQUE. PROJECT PROJECT NAME YEAR DESCRIPTION LOCATION SIZE STATUS DEVELOPER/ PARTNER Blue Forests. Moz Blue To date Largest mangrove reforestation Sofala and Zambezia 140,000 ha. Target Project under REDD+ licensing Project partners include project in Africa. Expected to offset provinces. to plant over 200 in Mozambique. Registration A BLUE CARBON READINESS ASSESSMENT MOZAMBIQUE: MIMAIP, InOM, MTA, approximately 15 million tons of million mangroves. with Verra (VCS, CCB) is FNDS, Eduardo Mondlane CO2 emissions during its 20-year envisaged. University, Eden, WWF, lifetime. Initial planting is underway. GRID-Arendal, and GEF. Total Energies EP N/A 2022 Coral reefs and mangrove Cabo Delgado Expected: Planted more than 12 ha of Mozambique, and Eden restoration. Including sustainable province (pilot in the 5,000 ha mangroves. Reforestation Association fisheries development. district of Palma), (UniLurio University as including Pemba, project partner). Maringanha, Wimbe, and Gimpia. MozParks Holding and N/A 2020-2022 Rejuvenation of mangroves, Green Belt around 260 ha N/A Eden Reforestation replanting of indigenous Beluluane Industrial Association. terrestrial trees, especially those Park in Boane/ Maputo Project partners include bearing fruit high in vitamin C, Maputo government and the preservation of existing indigenous trees. Ecologi and Eden Mussuquelane 2021-2025 Mostly reforestation of Maputo province Expected: Project among those selling best Reforestation Association natural terrestrial forest. 3,000 ha (not all Blue Carbon offsets. Prices to Includes mangroves. mangroves). Target be determined. to plant about 3.3 million trees on READINESS FINDINGS site. The Carbon Offset Casa Partida 2023 Mangrove reforestation with Casa Partida, 854 ha. Expected Project among the those selling Company and Eden (Savane) community management. Southern coastline, to plant more the best Blue Carbon offsets. Reforestation Association Sofala Province than 8.5 million Prices to be determined after mangrove trees. initial contact. READINESS FINDINGS PROJECT PROJECT NAME YEAR DESCRIPTION LOCATION SIZE STATUS DEVELOPER/ PARTNER Ecologi and Eden Irregele Milato 2021-to Mangrove restoration with Quelimane district, 756 ha Project perhaps the first to Reforestation Association date community involvement. Zambezia province sell mangrove credits, though these do not follow a recognized standard. Blue and Green Carbon N/A N/A Application submitted for REDD+ Angoche, Ilha de N/A N/A license covering 7 districts. Mocambique, Memba, Moma, Mossuril, Nacala, Nacala-a- Velha White Green Blue and N/A N/A Together with Eden Reforestation, N/A N/A N/A Eden Reforestation local communities, and other Association partners, the company restores degraded mangrove forests and A BLUE CARBON READINESS ASSESSMENT MOZAMBIQUE: reforests destroyed mangrove lands. IUCN, Blue Forest N/A 2020-2022 Several mangrove plantation Maputo Province 200 seedlings In 2022, IUCN signed a MOU company activities, developed with (Matola river), planted in Maputo. with Blue Forest company. communities and other NGOs. Goal Mecufi district (Cabo 420 seedlings to obtain finance through carbon Delgado), Inhassoro, planted in Dondo. credits. The majority of net income Dondo district. Data not available generated over the multi-year for other districts. project would be channeled to local communities living alongside the mangrove forests. Peace Parks Foundation Part of initiative 2022-2027 Mangrove and seagrass restoration. Matuituíne and Ilha da Goal: Rehabilitate N/A and Maputo National Park “Adaptation Project goals also involve Inhaca 200 ha mangroves, (PNM) authority. Project to Climate promoting sustainable community and 3 ha seagrass partners include ADRA- Change Based development in agriculture and meadows. Mozambique. on Ecosystems, capacitation of CCPs. Conserving, and Building Resilience.” 67 III CHAPTER VI IV II A V I III 68 CHAPTER VI IV II A V I PROJECT PROJECT NAME YEAR DESCRIPTION LOCATION SIZE STATUS DEVELOPER/ PARTNER RARE N/A To date Restoration and conservation of N/A N/A N/A BCEs (planning stage). It is a rare NGO that is working with several communities (CCPs) to protect A BLUE CARBON READINESS ASSESSMENT MOZAMBIQUE: coastal ecosystems. WCS. Project partners Futuro Azul-- 2022 Restoration, conservation, and North of Nampula and N/A WCS has a MOU with MIMAIP include MIMAIP, MTA, Building a blue future sustainable management of South of Mossuril/ and MTA. Collaboration with InOM, ProAzul, BIOFUND, for ecosystems and ecosystems including mangroves, Ilha de Mocambique. InOM in developing a project ANAC, IUCN, Rare, Oikos, people on the east seagrasses, and coral reefs. Memba to expand conservation and Blue Ventures. coast of Africa. areas, including creation of an intersectoral group to integrate the project results into the marine spatial plan POEM. The group includes some members of ANAC. Oikos NGO. Project N/A 2018-2022 Conservation and restoration of São Tomé, Ilha de N/A The project in São Tomé partners include CEPF, mangroves. Oikos, with the support Moçambique and concluded and will be used as a MARE researchers, local of CEPF, brought together MARE Mossuril model for intervention in other communities, Oikos, and researchers and local communities mangrove areas in Mozambique Blue Ventures to improve participatory management of the Malanza and Praia das Conchas mangroves in São Tomé. On the east African coast, Oikos, Blue Ventures, and local communities have worked to promote the conservation and READINESS FINDINGS enhancement of the coastline of the Island of Mozambique and Mossuril. READINESS FINDINGS PROJECT PROJECT NAME YEAR DESCRIPTION LOCATION SIZE STATUS DEVELOPER/ PARTNER Fondation Segré N/A 2021-2022 Restoration of degraded Bazaruto  N/A Started in the second half Blue Carbon ecosystems and of 2022. Current status is conservation of threatened species unknown. and their habitats. Has provided more than $3 million through African Parks to support the Bazaruto Archipelago National Park MPA Solidariedade Part of the 2021 Mangrove reforestation. Mecuburi river, in the 400 mangrove N/A Mocambique. Project implementation of Fungo community, on seedlings planted. partner: Provincial the Resistance and the outskirts of the Area of ​​600m2 Environmental Service of Resilience to Climate main village of Memba Nampula Change Project / Nampula. (PROMUC), financed A BLUE CARBON READINESS ASSESSMENT MOZAMBIQUE: by the United Nations Capital Development Fund (UNCDF), through the European Union (EU). Communities (including National Mangrove 2021 Mangrove restoration program Nampula So far, a plan was  N/A CCPs) Ecosystem announced to plant Restoration Program 34 ha in Nacala-à- in the District of Velha, 91.92 ha in Nacala-à-Velha Moma, 108 ha in Angoche, and 58 ha in Moma (most degraded areas). Until the end of 2024, however, the project expects to have a total of 631.4 ha planted. 69 III CHAPTER VI IV II A V I III 70 CHAPTER VI IV II A V I PROJECT PROJECT NAME YEAR DESCRIPTION LOCATION SIZE STATUS DEVELOPER/ PARTNER UNEP. Project partners: Limpopo River 2019-2023 Restoration of mangrove forests. Mahielene-Xai Xai 38 ha restored N/A GEF, Eduardo Mondlane Estuary First project using hydrological district (about 200 km University restoration in Mozambique. north of Maputo) A BLUE CARBON READINESS ASSESSMENT MOZAMBIQUE: Aga Khan Foundation Locally Empowered 2023 Mangrove reforestation Metuge, Cabo Delgado N/A N/A (AKF) and IUCN. Project Area Protection and sustainable livelihoods province partners: German (LEAP) project implementation. Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, and International Climate Initiative Aga Khan Foundation AKF project N/A Mangrove reforestation Mozambique Island, N/A The project has been used as a (AKF) and sustainable livelihoods Nampula reference for the LEAP project implementation. above. Environmental N/A N/A Mangrove reforestation. Mecufi District N/A N/A Association (AMA) READINESS FINDINGS MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 71 3.4.3 CARBON MARKETS AS A MEANS OF INVESTMENT Mozambique has expressed its intention to access international carbon markets and establish a national market of its own. While the size of funding that Blue Carbon assets might generate has not yet been explored in detail, Blue Carbon finance has considerable potential, as the strong interest in project development under the REDD+ Regulation shows. As a source of funding, it would offer continuity (project crediting may be in place for 20, 30, or more years) and close community involvement. However, as of now, no consistent framework has been developed. In June of 2023, Mozambique joined the Africa Carbon Markets Initiative (ACMI) with the goal of advancing the development of a carbon market within its borders. This initiative is a collaborative effort led by Sustainable Energy for All (SEforALL), the Global Energy Alliance for People and Planet (GEAPP), the Rockefeller Foundation, and the UN Economic Commission for Africa, with support from the UN Climate Change High-Level Champions. Its objective is to lay the foundation for a thriving carbon market ecosystem in Africa by 2030. For Mozambique to successfully establish a carbon CHAPTER market, it must define carbon pricing approaches and issue rules for carbon transactions and Article 6. I Furthermore, MEF’s role in overseeing procurement II III activities (including PPPs necessary for carbon IV V agreements) and coordinating such projects across VI government entities should be streamlined in the A carbon market framework, particularly by upgrading the agency’s authority and capacity. MOZAMBIQUE: 72 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS 3.4.4 REDD+ FINANCE While no consolidated estimates are available concerning the potential value of Mozambique’s REDD+ results or disaggregated data for mangroves results, preliminary calculations point to considerable potential. Considering that the potential GHG benefit from one hectare of avoided mangrove deforestation in Mozambique stands at about 500 tCO2 (or 700 over 30 years, as sequestration builds up), that annual loss of mangroves is in the range of 350 ha, and that the human-induced loss is about 50 percent of that value, the annual potential is in the range of 87,500 tCO2 from mangrove conservation alone, excluding restoration work. At a price of $20, that would be $1,750,000 per year. The fact that REDD+ license applications have been submitted for almost all coastal districts (in most of them, two applications per district) is a strong indicator that private carbon finance has high practical relevance in the country. Although an overall carbon market framework is still missing in Mozambique, the REDD+ Regulation provides guidance on how to build one. 3.4.5 BIODIVERSITY FINANCE  In 2022, the government of Mozambique issued a regulation on biodiversity offsets. Under the CHAPTER law, offsets are defined as measurable conservation outcomes generated from actions designed to compensate for adverse impacts on biodiversity caused by the development of a project – I after appropriate measures to avoid, minimize, and restore the local biodiversity to its status quo have been attempted first (mitigation hierarchy). Implementing legislation is needed, II and currently, a biodiversity offsets mechanism is under development by the MTA, with the III support of BIOFUND and WCS. Biodiversity offsets will occur through establishment of new IV conservation areas, located away from the project’s own zone. Many are to be managed by local V communities. Generally, the mechanism will allow the private sector to contribute financially to VI the management and monitoring of biodiversity conservation activities.91 A The biodiversity offset mechanism has yet to be applied to protect Blue Carbon ecosystems, but the ministry in charge of this development, MTA, has recognized two mangrove initiatives as having biodiversity-rich ecosystems that could benefit from finance – including biodiversity finance. These initiatives are the Gilé National Reserve project (GNR REDD+) and the Quirimbas National Park (PNQ), designated as a Marine Protected Area.92 91 ProAzul 2023. 92 MTA 2019. MOZAMBIQUE: READINESS FINDINGS A BLUE CARBON READINESS ASSESSMENT 73 3.4.6 ACHIEVEMENTS AND AREAS OF IMPROVEMENT ACHIEVEMENTS Applying the Blue Carbon Readiness Framework for Pillar 3, Mozambique shows overall strengths on several levels. It has accessed international funding sources (government, philanthropy, results-based) for a significant portion of Blue Carbon ecosystems—even in the absence of a clearly defined blue financial strategy. The government relies on a set of nimble financial actors – notably ProAzul but also the BIOFUND – that provide targeted research, guidance, and funding along Blue Economy priorities. These include the protection and enhancement of blue natural capital, i.e. Mozambique’s BCE. Other bright spots to which Mozambique can point are its strong experience with REDD+ funding, and the existence of an operational mechanism to steer private investment to REDD+ jurisdictional programs—these put the country apart from most others in Africa. The new mechanism on biodiversity offsets may prove a smart tool for diversifying the country’s payment for ecosystem services. CHAPTER IMPROVEMENTS I II III While Mozambique has secured base funding for its blue ecosystems, even in the absence of a IV clearly defined blue financial strategy, it depends for the most part on grant-based funding that is V delivered either through bilateral (government-to-government) means or international funds and VI development banks. Some philanthropy finance has become available and several international NGOs are active in the country (most of them linked to bilateral programs). However, private A sector funding has been minimal. There are few examples of direct investments in conservation or restoration from private sources. The Government of Mozambique has so far failed to present a pipeline of investable projects. For these, think private conservation areas and private restoration projects to mitigate coastal impact. The government has also not yet offered public-private partnership tools to manage conservation areas with public entities such as ANAC, or with communities. Public-private partnerships seem well suited to connecting government planning with private investment (think: blue, resilient infrastructure). MOZAMBIQUE: 74 A BLUE CARBON READINESS ASSESSMENT READINESS FINDINGS Dedicated funding tools with high international recognition – blue bonds, debt for blue nature swaps – and strategies to implement blended finance opportunities are missing. The offset-driven biodiversity finance is still largely untested, and REDD+ -based carbon finance opportunities remain largely untapped. None of the projects has received a REDD+ license, and there is lingering uncertainty about land access and carbon rights (see above, Pillar 2). PHOTO BY JULIANA CASTAÑO-ISAZA CHAPTER I II III IV V To address these gaps, the World Bank’s “Financing VI A Mechanisms for Sustainable Development in Mozambique” report has suggested that the Government of Mozambique, through ProAzul and other conduits, explore financing mechanisms from public and private finance These would include market- based instruments, blue bonds, debt conversions, carbon credits, and investment opportunities through impact investment. That suggestion remains valid. MOZAMBIQUE: RECOMMENDATIONS A BLUE CARBON READINESS ASSESSMENT 75 IV. RECOMMENDATIONS PHOTO BY JULIANA CASTAÑO-ISAZA CHAPTER 4.1 PILLAR 1: DATA & ANALYTICS I II III RECOMMENDATION 1 Monitor and gather disaggregated IV activity data for BCEs and develop V A S M L MID-TERM a framework to improve capacity for collection of activity data on salt → Refer to Checklist 2 of the BCRF. marsh and seagrass ecosystems. Developing a framework to improve data collection on salt marsh extent and area would enable Mozambique to leverage WS13 guidance to develop biomass and soil carbon estimates for salt marshes that could then be integrated into its national GHG inventory. If the current trend of salt marsh expansion into degraded mangrove ecosystems persists, understanding the salt marsh extent will be critical to accurately accounting for Mozambique’s BCEs. While activity data are robust for mangrove ecosystems, disaggregation of mangrove forest activity data from terrestrial forest activity data is needed. Increased annual monitoring of mangrove ecosystems will enable improvements to existing activity data. MOZAMBIQUE: 76 A BLUE CARBON READINESS ASSESSMENT RECOMMENDATIONS RECOMMENDATION 2 S M L SHORT-TERM Utilize Tier 1 default values from → Refer to Checklists 3 and 4 of the BCRF. WS13 to integrate mangrove soil → Explore the Mangrove Alliance report on carbon data into the GHG Inventory. mangrove socioeconomic evaluation and conservation in Mozambique. → Leverage guidance from this report for the inclusion of coastal wetlands in GHG Inventories. Estimates of mangrove carbon stocks are robust regionally thanks to research and restoration initiatives over the past decade. A good next step would be to increase coordination between organizations and research institutions that maintain data on regional mangrove carbon stocks. Development of a national dataset of mangrove soil carbon stocks would enable the calculation of a regional default value for mangrove carbon stocks and reduce reliance on the use of generalized Tier 1 default values. Mozambique can strengthen its GHG Inventory through further integration of guidance from the 2013 Wetlands Supplement (WS13). Inclusion of estimates of mangrove soil carbon should be a primary goal for inventory improvements. As activity data and area estimates for salt marsh and seagrass ecosystems improve, integration of biomass carbon, and eventually soil carbon, estimates can be integrated into the inventory. CHAPTER I RECOMMENDATION 3 Address valuation of mangrove II ecosystems by building upon III S M L LONG-TERM existing studies that assess IV → Refer to Checklist 5 of the BCRF. Mozambique’s mangrove V → Follow up on guidance provided in Pillar 2 of this report. ecosystem services. A Obtaining a better assessment of Mozambique’s national mangrove ecosystem services will rely heavily on understanding where mangrove ecosystems are located and the drivers behind degradation and loss. The MRV Unit will play a key role in improving the national data capacity surrounding mangroves. Leveraging data from local research institutions can further scale data capacity. Global and regional (West Africa) research can help in this scaling as well. A 201393 study calls for an improved understanding of global biodiversity from the standpoint of human-nature interactions. Overall, improved research in this area could enable Mozambique to access biodiversity offsets or credits individually or as part of the journey towards carbon finance. 93 Pereira 2013. MOZAMBIQUE: RECOMMENDATIONS A BLUE CARBON READINESS ASSESSMENT 77 RECOMMENDATION 4 Establish a restoration monitoring system for Mozambique, determine S M L MID-TERM tools needed to define restoration targets, and integrate these into → Follow guidance from the Restoration Monitoring Tools Guide. existing and future MRV efforts. While the MRV unit has made important advancements in its ecosystem monitoring system, needed improvements include developing restoration monitoring systems and tools to define restoration targets. A critical step to achieving this goal is creating a landscape monitoring system for Mozambique’s existing restoration initiatives. The World Resources Institute provides an interactive Restoration Monitoring Tools Guide which can be a starting point for developing such a system. The guide walks the user through various questions and assists in determining which tools and guidance to leverage. Developing a national restoration monitoring system will bolster Mozambique’s existing efforts in the expansion of MRV. Given the scope of work, the authors believe a political mandate, additional capacity in-country to support the MRV Unit, and additional finance are needed. CHAPTER I II III IV V A PHOTO BY JULIANA CASTAÑO-ISAZA MOZAMBIQUE: 78 A BLUE CARBON READINESS ASSESSMENT RECOMMENDATIONS 4.2 PILLAR 2: POLICY AND INSTITUTIONS RECOMMENDATION 1 For the 2025 NDC – Include S M L SHORT TO MID-TERM new and ambitious Blue Carbon commitments. → Refer to Checklist 5 of the BCRF. The 2025 NDC will be an important touchpoint for new and ambitious Blue Carbon commitments. Among those should be a procedural commitment to apply the 2013 Wetlands Supplement to future NDC accounting (short-term/mid-term recommendation). This is important because, depending on the state of the GHG inventory and the capacity to report emissions and removals in line with the 2013 Wetlands Supplement, Mozambique may include BCE comprehensively within its economy-wide target. (Note: The country can always present stand-alone, action-based targets for BCE, regardless of the state of the inventory.) Mozambique should set out, in the next NDC update (if WS 2013 is not yet integrated), a clear timeframe for when it will report GHG emissions and removals. CHAPTER RECOMMENDATION 2 Renew the 2018 NDC I II S M L MID-TERM implementation plan and develop a III bespoke Blue Carbon Strategy. IV → Refer to Checklist 7.2 of the BCRF. V A The 2018 NDC implementation plan should be renewed in lockstep with future NDC commitments (2025), while a bespoke Blue Carbon Strategy takes shape. The implementation plan may go beyond the NDC commitments but should ensure that everything that is committed internationally will be implemented nationally. It should include all Blue Carbon habitats (seagrass beds and salt marshes among them), ascertain socio-economic values providing a sound Blue Carbon valuation, and identify conservation and restoration targets short, mid-, and long term. In addition, it should set priorities (including for interventions and project sites) and firm action commitments. All should be within a roadmap that contemplates technical, policy, community, and financial aspects. MOZAMBIQUE: RECOMMENDATIONS A BLUE CARBON READINESS ASSESSMENT 79 RECOMMENDATION 3 Scale up the network of MPAs and S M L SHORT TO MID-TERM OECMs, targeting BCEs specifically. → Refer to Checklist 7.6 of the BCRF. At the level of legal implementation and enforcement, Mozambique needs to take up long-incubated plans to scale the MPA network, paying particular attention to BCE and accommodating landscape and seascape interests (short and mid-term). Equally, the country should consider increasing the number of OECMs. This can happen in tandem with deepening horizontal policy tools around MSP and the Blue Economy, or by extending the legal protection of BCEs along the coasts. In terms of legal protection, Mozambique could create clear, transparent, and enforceable frameworks stretching across all BCEs. RECOMMENDATION 4 Operationalize public-private and community partnerships, including S M L SHORT TO MID-TERM for management of Blue Carbon → Refer to Checklists 8.4 and 9.5 of the BCRF. projects. CHAPTER Operationalizing public-private and community partnerships, especially at the community level, would bring broad benefits. This approach should encompass co-management formats, including those designed for I Blue Carbon projects. Partnerships with the private sector are crucial for establishing clear ownership rights for II conservation and restoration investments. Furthermore, these partnerships can play a vital role in identifying III and implementing nature-based solutions, with a focus on Blue Carbon Ecosystems (BCE), and in constructing IV a resilient blue infrastructure. It is equally vital to develop laws that offer robust and specific guidance on governance of these partnerships, including benefit sharing. Mozambique also needs to build capacity within V government bodies (including MEF), enabling them to better coordinate projects across multiple government A entities and stakeholders. MOZAMBIQUE: 80 A BLUE CARBON READINESS ASSESSMENT RECOMMENDATIONS RECOMMENDATION 5 Revise the REDD+ Regulation, establish a process for securing S M L SHORT TO MID-TERM land access and carbon rights, and → Refer to Checklists 7.2 and 9.4 of the BCRF. offer guidance on benefit-sharing. The REDD+ Regulation should be updated to clarify the specific role that communities have as necessary agents and/or partners and to lay out a process for securing land access and carbon rights. It should also include guidance on benefit sharing and define procedural and content benchmarks. For this, Mozambique can rely on World Bank models for community involvement and benefit sharing.94 These models should not be too rigid and should allow for divergence. To move forward, social inclusion aspects such as gender and integration of under-represented people and vulnerable communities must be considered for programs and projects. Then, the revised REDD+ regulation should be opened to mangrove conservation projects along the coast without a strict requirement to follow a jurisdictional, i.e., terrestrial approach. RECOMMENDATION 6 Revise and strengthen institutional roles and responsibilities of S M L MID TO LONG-TERM agencies with a mandate over CHAPTER Blue Carbon areas, and promote → Refer to Checklists 8 and 5.1 of the BCRF. coordination among stakeholders. I II Institutionally, the role of MIMAIP and its responsibility for Blue Carbon conservation and restoration III should be strengthened. That applies to the process of Marine Spatial Planning (where MIMAIP could be IV given veto powers), the REDD+ regulation (where MIMAIP should be more involved throughout the feasibility V process, particularly in decision-making for mangrove projects), and the emerging carbon market regulatory A framework. Furthermore, a close partnership between MEF and MIMAIP should be built to ensure that Blue Carbon conservation and restoration finance are leveraged through a range of regulatory approaches, including a regulatory framework on Article 6. Then, there is a need to build capacity within government bodies (MEF among them), including enhancing their ability to coordinate projects and PPPs across various government entities and stakeholders. Strengthening MEF’s role in REDD+ licensing and carbon benefit mechanisms could be an option to safeguard the Blue Carbon sector in the upcoming carbon market regulation. Finally, to link public and private stakeholders, we recommended creating an institutionalized communication and coordination platform. It would help bring together Government agencies, the private sector, academia, implementation partners, and other relevant actors in the development of Blue Carbon programs and projects. This platform could have a technical system for tracing mitigation and adaptation programs and projects (including restoration campaigns), feeding information into the NDC accounting process, and providing enhanced knowledge and skills for future action. 94 See https://www.worldbank.org/en/topic/climatechange/brief/enable-enhancing-access-to-benefits-while-lowering-emission MOZAMBIQUE: RECOMMENDATIONS A BLUE CARBON READINESS ASSESSMENT 81 4.3 PILLAR 3: FINANCE RECOMMENDATION 1 Develop a blue finance strategy that targets bilateral and multilateral S M L SHORT TO MID-TERM donor funding and implements → Refer to Checklists 9.5, and 9.6 of the BCRF. innovative blue finance tools. Mozambique should make it a priority to develop a blue finance strategy targeting bilateral and multilateral grants.95 The strategy should define key sectors, outline available implementation tools, and pinpoint methods to finance prioritized activities. The financial framework should specify how a variety of financing alternatives and stakeholders will collaborate and complement each other. For instance, the strategy could promote blue blended finance, where public and philanthropic capital catalyze private investment, the issuance of blue bonds, and debt-for-nature swaps. The ProBlue report “Financing Mechanisms for Sustainable Blue Economy Development in Mozambique” can serve as a valuable foundational tool for crafting a comprehensive and impactful blue financial strategy by providing essential insights and guidance. CHAPTER RECOMMENDATION 2 Create a portfolio of investment- I ready Blue Carbon initiatives II III S M L SHORT TO MID-TERM to be funded, with details IV on responsibilities, funding V opportunities, and community A → Refer to Checklists 9.3, 9.4, and 9.5 of the BCRF. involvement, including through benefit-sharing arrangements. Mozambique should create a pipeline of projects that are ready for investment. This entails identifying a list of Blue Carbon initiatives that are financially and operationally viable. They may include private restoration initiatives aimed at mitigating coastal impact. The pipeline should provide detailed information about the stakeholders and conditions for engagement and should outline strategies for involving communities in the short, medium, and long term, incorporating benefit-sharing arrangements as part of the overall plan. 95 See PROBLUE and Biodiversity factsheet at https://thedocs.worldbank.org/en/doc/ dcb50c3383110e23850603bdf92fe065-0320072023/original/PROBLUE-GBF-CLEARED-and-FINAL-May-31.pdf MOZAMBIQUE: 82 A BLUE CARBON READINESS ASSESSMENT RECOMMENDATIONS RECOMMENDATION 3 Develop a Blue Economy satellite account (a tracking tool on S M L MID-TERM cross-sector economic contributions associated with marine and → Refer to Checklist 9.5 of the BCRF. coastal resources). While ProAzul’s Portfolio offers numerous examples of Blue Economy opportunities, it should pay closer attention to Blue Carbon opportunities. To enhance efforts to prioritize activities that need funding, the development of a Blue Economy satellite account96 could provide transparency regarding domestic and external financial flows related to the Blue Economy. This tool would illustrate the contribution of relevant sectors to the country’s Blue Economy, streamline budget allocation for it, and enhance donor coordination. Drawing on the data collected, decision makers could make informed choices about allocating additional finances. RECOMMENDATION 4 Promote public-private partnerships S M L SHORT-TERM (PPP). CHAPTER → Refer to Checklist 9.5 of the BCRF. I Promoting Public-Private Partnerships would reduce policy barriers to scaling private investment in Blue II Carbon ecosystems while ensuring equity and transparency. As pointed out in Pillar 2, Mozambique has a III framework enabling PPPs. These entities should facilitate ANAC’s role in advising private partners interested in IV developing conservation areas and facilitate licensing agreements to participate in REDD+ projects in coastal V areas. Therefore, the PPP mechanism should designate public entities that can engage in PPPs, define terms of engagement, and specify how private initiatives must engage relevant public entities and communities. A Similarly, we recommend that the government establish stable investment parameters for the private sector, complete with models detailing how to involve communities in the short, mid-, and long terms, including through benefit-sharing arrangements. 96 A Blue Economic Satellite Account is an economic tracking tool that focuses on the economic contributions of sectors and activities associated with marine and coastal resources. These include revenue, employment, investments, and other economic indicators. MOZAMBIQUE: RECOMMENDATIONS A BLUE CARBON READINESS ASSESSMENT 83 RECOMMENDATION 5 Create a framework for Mozambique’s carbon market and S M L MID-TERM issue the implementing rules of → Refer to Checklist 9.6 of the BCRF. Article 6. While Mozambique should evaluate the use of diverse financing sources, its commitment to carbon markets is a strength that the country can capitalize on. Through a carbon market framework, Mozambique will incentivize industries and entities to reduce their emissions, while mobilizing funding to nature-based solutions. The framework will bring additional benefits, including flood protection, enhanced biodiversity, food security, and creation of new jobs. Moreover, the government should consider issuing the implementing rules of Article 6 of the Paris Agreement to give certainty to international stakeholders that are interested in the future of the Mozambican carbon market. CHAPTER I II III IV V A UNSPLASH+ IN COLLABORATION WITH JSB CO. 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IV https://faolex.fao.org/docs/pdf/moz214814.pdf org/project/00134274 V A PROBLUE and Biodiversity, Factsheet. Vierros, M. 2017. “Communities and Blue Carbon: https://thedocs.worldbank. The Role of Traditional Management Systems org/en/doc/dcb50c3383110e2 in Providing Benefits for Carbon Storage, 3850603bdf92fe065-0320072023/original/ Biodiversity Conservation and Livelihoods.” PROBLUE-GBF-CLEARED-and-FINAL-May-31.pdf Climatic Change 140, no. 1 (January 2017): 89–100. doi:10.1007/s10584-013-0920-3. Traganos, D., et al. 2022. “Earth Observation for ecosystem accounting: Spatially explicit national von Unger, M., et al. 2020. “Blue NbS in NDCs. A seagrass extent and carbon stock in Kenya, booklet for successful implementation.” GIZ. Tanzania, Mozambique, and Madagascar.” Remote Sensing in Ecology and Conservation. 8 (6):778–792. doi: 10.1002/rse2.287 MOZAMBIQUE: 88 A BLUE CARBON READINESS ASSESSMENT BIBLIOGRAPHY WCS Mozambique. 2022. “Building a Blue Future for Ecosystems and People on the North Coast of Mozambique.” July 4, 2022. https://mozambique. wcs.org/About-Us/News/ID/17762.aspx World Bank. 2015. “Mozambique Conservation Areas for Biodiversity and Development Project.” Washington, DC: World Bank. https://projects. worldbank.org/en/projects-operations/project- detail/P131965?lang=en World Bank. “Mozambique Conservation Areas for Biodiversity and Development Project- Phase 2.” Washington, DC: World Bank. https://projects. worldbank.org/en/projects-operations/project- detail/P166802?lang=en World Bank. 2021. “Financing Mechanisms for Sustainable Blue Economy Development in Mozambique.” Washington, DC: World Bank. https://documents1.worldbank.org/curated/ CHAPTER en/885071624984316653/pdf/Financing- Mechanisms-for-Sustainable-Blue-Economy- Development-in-Mozambique.pdf I II World Bank. 2023. “Unlocking Blue Carbon III Development: Investment Readiness IV Framework for Governments.” Washington, V DC: World Bank. http://hdl.handle. A net/10986/40334. License: CC BY-NC 3.0 IGO, https://openknowledge.worldbank.org/ entities/publication/304fe159-e9ea-40ef-b568- fa6e8e992bb4 MOZAMBIQUE: APPENDICES A BLUE CARBON READINESS ASSESSMENT 89 A. APPENDICES CHAPTER I II III IV V A PHOTO BY JULIANA CASTAÑO-ISAZA MOZAMBIQUE: 90 A BLUE CARBON READINESS ASSESSMENT APPENDICES APPENDIX 1 DECISION TREE Blue Carbon Readiness Framework Welcome to the Blue Carbon Readiness Framework - a decision tree approach to assessing and identifying steps in pursuing blue carbon readiness within your country. Starting with Pillar 1, move your way through the tree using the below legend as a guide. Pay special attention to ‘Checklists’ which may correspond to a specific action/step. Checklists provide in-depth descriptions of steps to continue along your journey to readiness (refer to Appendix 1.) complementary actions can be completed in tandem with moving onto the next section of the tree. PILLAR PILLAR PILLAR 1 2 3 DATA & ANALYTICS POLICY & INSTITUTIONS FINANCE NDC COMMITMENTS LEVERAGE BLUE A B & IMPLEMENTATION CARBON FINANCE CHAPTER EVALUATE ASSESS GHG BLUE CARBON INVENTORIES ACTIONS I II III IV CO₂ V A MOZAMBIQUE: APPENDICES A BLUE CARBON READINESS ASSESSMENT 91 PILLAR 1 A B 2 3 1 PILLAR CO₂ DATA & ANALYTICS B ASSESS GHG INVENTORIES PATHWAY ACTIONS/ STEPS Are BCEs included in your country’s NO Use the Wetland Supplement and Tier 1 default GHG inventory? values (or Tier 2/3 depending on available data) to determine carbon stock values for your country’s BCE(s). Refer to Checklist 3 for steps YES and guidelines. CO₂ COMPLETE SECTION Improve your GHG Inventory via integration of WS13/R19 1 GHG • Identify where bottleneck(s) are – e.g., soil INVENTORIES Does your country apply the carbon data 2013 Wetlands Supplement NO • Review Checklist 3 for ways to improve your (WS13)/2019 Refinement (R19)? existing inventory ACTIONS COMPLEMENTARY If you are engaging YES in REDD+ CHAPTER • Consider developing a REDD+ FRL/FREL I COUNTRIES REDD+ with Blue Carbon integration • Decide to build a separate blue carbon II framework (using synergies) Has your country submitted a NO Forest Reference Level (FRL)/ III Forest Reference Emission Levels YES • Review Checklist 4 (FREL)? IV 2 REDD+ • Confirm and iterate consistency between FOREST your Forest Reference Levels (FRL)/ Forest V SECTOR PRIVATE REFERENCE Reference Emission Levels (FREL) and your LEVELS GHG inventory A STEPS NO ACTIONS/ • Strengthen calculated carbon stocks USE RESULTS FROM by substituting regional/ local values COMPLETED ACTION/ in place of Tier 1 default values GHG STEPS TO: • Compare calculated carbon stock INVENTORY values to existing activity data, and IS DONE! use results to improve your GHG YOU CAN MOVE inventory ON TO PILLAR 2 • Integrate calculated carbon stocks into your FRL/FREL while improving inventory capacities MOZAMBIQUE: 92 A BLUE CARBON READINESS ASSESSMENT APPENDICES PILLAR 1 A B 2 3 1 PILLAR CO₂ DATA & ANALYTICS B ASSESS GHG INVENTORIES PATHWAY ACTIONS/ STEPS Are BCEs included in your country’s NO Use the Wetland Supplement and Tier 1 default GHG inventory? values (or Tier 2/3 depending on available data) to determine carbon stock values for your country’s BCE(s). Refer to Checklist 3 for steps YES and guidelines. CO₂ COMPLETE SECTION Improve your GHG Inventory via integration of WS13/R19 1 GHG • Identify where bottleneck(s) are – e.g., soil INVENTORIES Does your country apply the carbon data 2013 Wetlands Supplement NO • Review Checklist 3 for ways to improve your (WS13)/2019 Refinement (R19)? existing inventory ACTIONS COMPLEMENTARY If you are engaging YES in REDD+ CHAPTER I • Consider developing a REDD+ FRL/FREL COUNTRIES REDD+ with Blue Carbon integration • Decide to build a separate blue carbon II framework (using synergies) Has your country submitted a NO III Forest Reference Level (FRL)/ Forest Reference Emission Levels YES • Review Checklist 4 IV (FREL)? 2 REDD+ • Confirm and iterate consistency between V FOREST your Forest Reference Levels (FRL)/ Forest SECTOR PRIVATE REFERENCE Reference Emission Levels (FREL) and your A LEVELS GHG inventory STEPS NO ACTIONS/ • Strengthen calculated carbon stocks USE RESULTS FROM by substituting regional/ local values COMPLETED ACTION/ in place of Tier 1 default values GHG STEPS TO: • Compare calculated carbon stock INVENTORY values to existing activity data, and IS DONE! use results to improve your GHG YOU CAN MOVE inventory ON TO PILLAR 2 • Integrate calculated carbon stocks into your FRL/FREL while improving inventory capacities MOZAMBIQUE: APPENDICES A BLUE CARBON READINESS ASSESSMENT 93 2 PILLAR CONSIDER | • Turning this procedural Extending the scope of milestone into a target, POLICY & INSTITUTIONS your NDC to account for e.g., by [Year] or when BCE(s) submitting the second NDC COMMITMENTS & Biennial Transparency • Make sure your GHG Report, [Country] will use IMPLEMENTATION 1 inventory can accurately the WS13 and account for all report emissions and anthropogenic carbon stock removals from BCE(s). If your changes in [BC Habitat] and country cannot yet do this, [BC Habitat 2]. PATHWAY you can still acknowledge the mitigation impact of BC 1 Are emissions and interventions → Move to Box removals from 2 below. IDENTIFY BCE(s) included in COMMITMENTS your country’s NDC? FOCUS ON | • Halt and reverse all ACTIONS/ STEPS YES Acknowledging degradation in [BC Habitat] YES NO mitigation impact • Restore [#] hectares of 2 of BC interventions [BC Habitat] Formulating stand-alone FOCUS ON | 1. Consider inclusion (action) targets: Accounting for Emissions in economy-wide or Reduction/Removals sector-wide (AFOLU) targets [Review Checklists 5 and 6] and/or 2. Include action-specific target COMPLETE SECTION Does your county FOR REDD+ COUNTRIES such as “restore x hectares of have a REDD+ Build reference levels for mangroves by [date]”. framework that conservation aligned with Synchronize and refine with existing policy instruments beyond integrates BCE(s)? REDD+ targets, and define mitigation (and/or climate change), notably National Adaptation sequestration targets Plans NBSAPs for restoration ACTIONS COMPLEMENTARY CHAPTER If you are engaging in REDD+ Review integration of BCE(s) in your REDD+ policy framework 2 IMPLEMENT NEXT STEPS 2. Develop a bespoke Blue 7. create a benefit sharing YOUR NDC Carbon Strategy arrangements 3. Work through MSP and ICZM 8. Policy reforms for BCEs I 1. Where feasible, prepare a 4. Focus on land tenure and conservation, restoration, or COUNTRIES REDD+ cost-benefit analysis for community involvement sustainable management (NBS). II conservation and restoration 5. Tackle bottlenecks to NO options (use CWON and other Refer to Checklist 7 for a detailed Do you have an NDC datasets for valuation) implementation III 6. Design the plan with Section 4 list of next steps Implementation Plan? NO (Financing) in mind IV YES Set out investment parameters Promote private sector initiatives V ADDRESS THE and clear guidance for the private and create institutional structures PRIVATE SECTOR: SECTOR PRIVATE sector engagement (cf. Section 4: for private sector and community A Financing, see below) involvement (planning, decision making, implementation FOCUS ON | Design 1. Identifying and using or • Technical governance (task force / of Bespoke Governance synchronizing with parallel technical unit) for FRL calculation, Framework governance frameworks on MRV, and other Does your plan adaptation/resilience, private • Institutions & policy governance STEPS NO ACTIONS/ [Review Checklist 8] incorporate appropriate sector initiatives, technology • Financial governance (receiving NO institutional/governance FOR REDD+ COUNTRIES transfer, and more. and distributing funding in line frameworks? Checking if your REDD+ framework 2. Developing an institutional/ with benefit sharing arrangements) provides key structures (to be governance framework: • Community governance models to adjusted as needed) drive implementation YES • Use input data to inform biennial • Seek synergies with policy USE RESULTS NDC reporting and accounting actions across the board YOU CAN FROM COMPLETED • Design commitments for (SDG focus) MOVE ON TO ACTION/ STEPS TO: subsequent rounds of NDCs PILLAR 3 and long-term plans MOZAMBIQUE: 94 A BLUE CARBON READINESS ASSESSMENT APPENDICES PILLAR 1 A B 2 3 3 PILLAR FOCUS ON | Developing a framework that integrates with FINANCE the implementation plan LEVERAGE BLUE CARBON FINANCE 1. Scrutinizing existing funding flows to benefit/disadvantage Blue PATHWAY Carbon investments 2. Conduct Stock-take of financing approaches (including the use of mechanisms such as Article 6 and jurisdictional REDD+/RBCF) and sources/instruments (concessional and non-concessional, considering Does your country innovative business models, see ACTIONS/ STEPS have a blue further below) carbon finance 3. Set out stable investment and investment parameters for the private sector, framework in place? including with respect to carbon finance: Define and allocate carbon YES NO rights, create mandates for carbon trading, and present models for community involvement and COMPLETE SECTION benefit sharing FOCUS ON | Accessing Grant CONSIDER | Operationalizing Funding in line with survey above – Have you leverage tools such as: operationalized NO Accessing grant funding for capacity-building specific funding tools? ACTIONS COMPLEMENTARY • Concessional instruments, including and related needs, namely: CHAPTER blended finance instruments • Design and operationalize the governance and philanthropy YES framework • Inventory work • Dedicated sovereign and/or corporate • BCEs mapping, carbon stock assessments debt finance instruments (blue loans, • Preparation of a pipeline of shovel-ready blue bonds) I projects • Blue infrastructure /NBS finance • Conceptualization of blue infrastructure COUNTRIES REDD+ II finance • Business models that stack multiple revenue streams III Does your country • Results Based Carbon Finance (RBCF) IV intend to use carbon • Blue carbon project finance markets as a means of (carbon markets) V investment? SECTOR PRIVATE Review Checklist 9 for examples and A YES NO guidelines on leveraging investment. 1 B STEPS NO ACTIONS/ CONSIDER | • Using Article 6 of the Paris Climate Agreement; 1 A 2 • Allowing Voluntary Carbon Markets with corresponding adjustments YOU ARE READY TO ACCESS CLIMATE & CARBON FINANCE! 3 MOZAMBIQUE: APPENDICES A BLUE CARBON READINESS ASSESSMENT 95 APPENDIX 2 LAWS AND POLICIES LEGAL INSTRUMENT RELEVANCE FOR BLUE CARBON Grants the government ownership of all land and resources and specifies the 1997 Land Law community’s user rights (DUATs). Most mangrove forests are classified as partial protected areas within the law (special protection). Provides principles and overall rules regarding the environment, including a legal 1997 Environmental Law basis for conservation areas. Reinforces the government ownership right to all land and natural resources, including soil, subsoil, interior waters, continental shelf, and EEZ. Specifies that 2004 Constitution mangrove forests and seagrass areas are owned by the State. The right to a healthy environment for communities is protected, with the State as the guarantor of this right, including by adopting sustainable development policies. Is the main legal instrument providing a framework for the development and registration of forest conservation and restoration projects and programs CHAPTER 2018 REDD+ Decree (REDD+). Licenses are granted by MTA, after an opinion from FNDS, and can last for a period of 20 years, renewable for equal time. I Defends the need to develop a Blue Economy framework in the country, as well as 2021 Marine Spatial Plan to promote sustainable development and to ensure conservation and restoration II (POEM) of coastal and marine natural ecosystems in order to minimize the effects of III climate change. IV Establishes the “national system of conservation areas,” with governance V principles that include an obligation for citizen participation in the management A 2014 Conservation Law and benefits of conservation areas, the principle to establish and operate public- private partnerships, the precautionary principle, and the principle to seek international and cross-border cooperation. Creates the legal framework for the generation of biodiversity offsets from actions 2022 Biodiversity Offsets that protect endangered biodiversity ecosystems, particularly through restoration Regulation or rehabilitation of biodiversity or through activities that reduce anthropogenic impact on biodiversity in Conservation Areas or areas of high ecological value. Prioritizes the conservation of marine and coastal resources – including mangroves – in connection with a community’s right to a healthy environment. 2017 Policy and Strategy Reinforces that mangrove ecosystems, coral reefs, seagrasses, coastal for the Sea (POLMAR) dunes, beaches, cliffs, seabed and subsoil should be conserved and properly managed. Objectives also include developing the Blue Economy and promoting sustainable fishing. MOZAMBIQUE: 96 A BLUE CARBON READINESS ASSESSMENT APPENDICES LEGAL INSTRUMENT RELEVANCE FOR BLUE CARBON 2017 Regulation on the Establishes rules for the protection of coastal areas, including rules that govern Maritime National Space concessions and licenses for use of coastal areas. (RJUEM) Establishes rules and limits of use in Mozambique’s coastal zone and maritime 2019 Law of the Sea areas. Provides concession rules for the private use of areas, which on principle should benefit the public interest. Creates the CCPs or community fisheries councils (Comunitários de Pesca), which 2020 Fisheries are the main community bodies in charge of local management of fisheries areas. Regulation /REPMAR Establishes no-take zones and provides rules regarding fishing practices in order to protect coastal ecosystems. The law also bans the live harvesting of corals. Establishes a policy goal to fight deforestation that is due mainly to anthropogenic National Strategy causes. Includes specific targets to ensure sustainable and participative and Action Plan for management of mangrove forests; promote the protection, conservation, and the Management of restoration of mangrove forests; promote diversification of livelihoods for local Mangroves (2020 – 2024) communities; implement sustainable finance mechanisms for mangroves; and reinforce fiscalization, reassess legislation, and promote education. CHAPTER 1999 National Land Defends the securing of customary land rights and promotes the idea of attracting Policy investment into rural areas. I II National Strategy III for Climate Change Highlights the importance of mangroves in increasing fisheries resilience through IV Adaptation and Mitigation the regeneration and implementation of coastal protection measures in mangrove (NSCCAM or ENAMMC / forests. V 2015-2035) A Establishes as main strategic objectives to “by 2032, lose no more than 5% of current live coral coverage and no more than 5% of the current extent of coral reefs due to human causes” – with the rate established using 2022 as reference National Strategy for year – and to have “by 2030, the legal instruments, programs, and mechanisms for the Management and implementing the strategy and at least 30% of the coral reef area in Mozambique Conservation of Coral effectively conserved in Marine Conservation Areas.” Designates MIMAIP as the Reefs (ECOR/ 2022-2032) institutional coordinator of the policy. Mentions seagrasses only once, concerning monitoring and mapping efforts with the objective of having, by 2026, knowledge of seagrass distribution associated with coral reefs. MOZAMBIQUE: APPENDICES A BLUE CARBON READINESS ASSESSMENT 97 APPENDIX 3 PORTFOLIO SUMMARY TABLE QUADRO SUMÁRIO DO PORTFÓLIO INVESTIMENTO PILARES PROJECTOS PRIORITÁRIOS IDENTIFICADOS USD, 10^3 P1.1. Programa de Apoio ao Desenvolvimento da Aquacultura 65.000 Sustentável - Aquablue P1.2. Estruturação da cadeia de produção e comercialização da tilápia 50.000 para os pequenos e médios produtores - Aldeias de Tilápia P1.3. Projecto de produção aquícola nas “terras salinizadas” do 40.000 Regadio do Chokwe I. Pesca e Aquacultura P1.4. Fortalecimento da Rede de Comercialização e Distribuição dos 30.000 Produtos da Pesca P1.5. Programa integrado para o Desenvolvimento Sustentável da 55.000 Pesca Artesanal CHAPTER P1.6. Aumento dos estoques através do repovoamento de espécies de 260 holotúrias (pepino-do-mar) I II. Energias renováveis P2.1. Projecto de criação de alternativas de renda, aumento da e Industria Extractiva 80.000 II segurança alimentar e energética para as comunidades rurais Marinha III IV P3.1 Infraestruturas para o Uso Sustentável dos Recursos Pesqueiros 150.000 III. Transporte e e Conservação do Ambiente Marinho V Infraestruturas A P3.2. Portos Azuis de Moçambique 151.000 MOZAMBIQUE: 98 A BLUE CARBON READINESS ASSESSMENT APPENDICES QUADRO SUMÁRIO DO PORTFÓLIO INVESTIMENTO PILARES PROJECTOS PRIORITÁRIOS IDENTIFICADOS USD, 10^3 P4.1. Infraestruturas Verdes para uma Economia Azul Resiliente e 20.000 Sustentável P4.2. Investigação Científica Sustentável para uma Economia Azul 40.000 Saudável e Competitiva IV. Capital Natural, P4.3. Reciclagem, tratamento e conversão de plásticos 30.000 Ambiente e Economia Circular P4.4. Programa de substituição de Artes de Pesca Nocivas por 30.000 tecnologias de pesca sustentáveis P4.5. Construindo a resiliência das comunidades costeiras através de 50.000 adaptações ecossistêmicas P4.6. Produção sustentável de culturas hortícolas em zonas costeiras 700 P4.7. Projecto Diga não ao desperdício! 150 P4.8. Co-financiamento de Iniciativas para o Desenvolvimento IV. Capital Natural, de Negócios Azuis - Matching Grants para o Desenvolvimento de 20.000 Ambiente e Economia Negócios Azuis Circular CHAPTER P4.9. Incubadora de PMEs voltadas para a Economia Circular no 3.000 quadro da Economia Azul Sustentável I P5.1. Programa de Turismo Azul Sustentável 20.000 V. Turismo Costeiro e II Marinho P5.2. Plataforma de Integração do Turismo na Economia Circular 5.000 III IV P6.1. Reforço da Capacidade Institucional e Capital Humano para o 40.000 Desenvolvimento da Economia Azul V A P6.2. Fiscalização Oceânica e Costeira 20.000 P6.3. Zona Económica Sustentável da Economia Azul 2.000 VI. Governação e Desenvolvimento de P6.4. Promoção de Janela de Oportunidades de Negócio na Economia 2.000 Capacidades Azul em Moçambique - Blue Cluster de Moçambique P6.5. Conta Satélite de Economia Azul 1.000 P6.6. Literacia do Meio Aquático 1.000 P6.7. Salvaguarda do Património Marítimo 605 TOTAL ~900.000 MOZAMBIQUE: APPENDICES A BLUE CARBON READINESS ASSESSMENT 99 APPENDIX 4 DONOR FUNDING INITIATIVES IN MOZAMBIQUE This Appendix shows large donor initiatives who may fund specific conservation/restoration campaigns (including those in Table 5). DONOR FUNDING INITIATIVES IN MOZAMBIQUE INSTITUTION PROJECT NAME DESCRIPTION AMOUNT The two-phase project seeks to Phase I: Financed by the enhance the effective management of International Development the Conservation Areas in Mozambique Association and the Global Conservation Areas and enhance the living conditions Environment Facility, for for Biodiversity and of communities in and around the $46.3 million, channeled World Bank Development Conservation Areas. through the World Bank. (MozBio Phase I and II) Phase II: $45 million International Development Association grant channeled through the World Bank. BAF aims to enhance the management Building a blue future on BMZ, Public and use of coastal and marine the East African coast, CHAPTER Fund founded ecosystems to conserve marine Mozambique was awarded a by the German biodiversity for future generations grant of €5,913,746. Federal Ministry while improving the lives of local for Economic people today. It pursues that mission I Cooperation and by making targeted grants to non- II Development , governmental organizations active in III KfW Development developing countries. For that, BAF has Bank, the Swedish Blue Action Fund the “Building a blue future on the East IV Ministry for Foreign (BAF) African coast, Mozambique” project or V Affairs, Agence “Blue Future”, which aims to have “by A Française de 2027 a new 1,000 km2 sustainable use Développement, the Marine Protected Area” established.97  Norwegian Agency Wildlife Conservation Society leads for Development the project to establish the MPA. Cooperation Local communities will be involved (Norad), and in restoration activities, including Irish Aid. mangrove and seagrass rehabilitation and coral reef recovery. 97 https://wcsbluefuture.com/en/#:~:text=The%20Building%20a%20Blue%20Future,operated%20community%2Dmanaged%20 fishing%20areas%2C MOZAMBIQUE: 100 A BLUE CARBON READINESS ASSESSMENT APPENDICES DONOR FUNDING INITIATIVES IN MOZAMBIQUE INSTITUTION PROJECT NAME DESCRIPTION AMOUNT The program aims to improve the The COAST program has adaptive capacities, climate resilience, £154 million in funding from and prosperity of vulnerable coastal the UK Blue Planet Fund. communities in developing countries Started in 2023, it will run Climate and Ocean (Mozambique is a priority country). to 2030. UK Blue Planet Adaptation and It focuses on key themes: Fund Sustainable Transition • coastal nature-based solutions, (COAST) • small-scale fisheries management, • sustainable aquaculture production, • inclusive coastal planning and governance. This is a blended finance mechanism Stakeholders hope to mobilize towards coral reef ecosystem $500 million in grants and conservation and resilience and investment capital. strengthened services in reef- dependent communities. Among other activities, the In 2022, the Executive Multi-partner trust The Global Fund for MozCorinvest program will provide Board approved $99,441 for fund Coral Reefs (GFCR) carbon finance for the protection and MozCorinvest in Mozambique. CHAPTER long-term development of mangroves in the Primeiras and Segundas Archipelago. Several companies will I develop capacity for reef, mangrove, II and seagrass restoration, for clients needing offsets under Mozambique’s III Biodiversity Offsetting Decree. IV This group aims to drive investment V into coastal natural capital by A developing innovative finance solutions to deliver a sustainable and equitable Blue Economy and more resilient coastal communities.  Ocean Risk and Blended Finance Facility for Marine Multi-sector Resilience Action Protected Areas (MPAs). alliance Alliance (ORRAA) Blended finance is under development to implement sustainable revenue- generating initiatives in marine protected areas in the Bahamas, Belize, Cabo Verde, Dominican Republic, Fiji, Indonesia, Mozambique, Philippines and Tanzania. MOZAMBIQUE: APPENDICES A BLUE CARBON READINESS ASSESSMENT 101 DONOR FUNDING INITIATIVES IN MOZAMBIQUE INSTITUTION PROJECT NAME DESCRIPTION AMOUNT This three-year program aims to USAID will invest more than provide Mozambican partners, public $2 million in PLANETA over USAID and private, with the knowledge three years. Work began Implemented by PLANETA necessary to establish connections in 2023. CrossBoundary LLC and implement nature-based carbon capture projects in Mozambique. RCC aims to improve the resilience of Five-year program awarded coastal communities of South Pemba with $24 million. and North of Maganja de Costa. Part of the coastal and marine ecosystem activities will focus on reducing threats to the ecosystem in high biodiversity Feed the Future areas by leveraging the private sector USAID Resilient Coastal and other sources of investment for Communities (RCC) employment and income generation through sustainable livelihood approaches. Working under the RCC umbrella, one of the project partners, Rare, currently leads a Blue Carbon pre-feasibility assessment. CHAPTER MCC is an independent U.S. Budget of $100 million. government agency working to reduce global poverty through Coastal Livelihoods economic growth. The CLCR project I Millenium Challenge and Climate will use nature-based and youth and II Corporation (MCC) Resilience (CLCR) gender-inclusive solutions to restore III project mangroves and coastal ecosystems and boost incomes from fisheries IV while building coastal communities’ V resilience to climate change. A The LEAP project aims to improve Supported by the German livelihoods in coastal Mozambique Federal Ministry for the while reducing pressure on natural Environment, Nature resources such as mangroves. The Conservation and Nuclear IUCN and Aga Khan Locally Empowered project will draw lessons from a recent Safety (BMU) and the Foundation Area Protection AKF project on Mozambique Island, International Climate (LEAP) project Nampula province, that has seen the Initiative (IKI). successful replanting and protection of mangroves by members of the local community. MOZAMBIQUE A BLUE CARBON 2024 READINESS ASSESSMENT