Base Carbon Inc. has entered a letter of intent with the Danish Red Cross to scope and assess “Blue Carbon” reduction projects in Southeast Asia. Base Carbon Inc., through its subsidiary Base Carbon Capital Partners Corp, has entered into a letter of intent with the Danish Red Cross to scope and assess — and potentially develop — one or more mangrove-related carbon reduction projects in Southeast Asia which are anticipated to follow VERRA “Tidal Wetland and Seagrass”, methodology. The parties have committed to work together until at least October 2024 with respect to such potential projects in the region.

The Danish Red Cross are recognized innovators in designing investment and underwriting structures related to the commercialization of carbon, climate and social benefit projects. Potential projects related to the prospective partnership will be jointly funded by the Danish Red Cross including other Red Cross affiliated entities. The parties anticipate that any project will be insured by Dunant Re IC Limited, an insurance company established by the Danish Red Cross and Replexus.

The Company anticipates providing regular updates as the parties work together. Blue carbon refers to the carbon captured by ocean and coastal habitats such as seagrass meadows, whale habitats and mangroves, which act as robust sinks by sequestering and storing large amounts of carbon in both the plants and sediments below. By the numbers, 83% of the global carbon cycle is circulated through the ocean and coastal habitats cover less than 2% of the total ocean area — but account for 50% of the total carbon sequestered in ocean sediments.

By comparison, these habitats store two to four times more carbon than terrestrial forests making them a key component of nature-based solutions to climate change and effecting in helping corporations achieve their net zero commitments. In addition to acting as powerful carbon sequestration properties, mangrove projects mitigate the impacts of natural disasters, prevent erosion, and help reestablish fish and other marine life habitats. In addition to acting as natural carbon capture and sequestration (CCS) agents, mangroves also serve as a natural barrier against the effects of hurricanes and as habitats for species that are crucial to the ecological and economic health of coastal communities.

Despite their numerous benefits, these ecosystems are experiencing rapid degradation from anthropogenic activities and climate change at a worrying rate, transforming their impressive capture capabilities into climate liabilities: When mangrove forests are cleared and destroyed, they release massive amounts of carbon dioxide into the atmosphere.