Executive Summary

Papua New Guinea (PNG) has a developing framework for nature-based carbon credit projects on the Voluntary Carbon Market (VCM). While no mangrove projects are currently registered, eight nature-based carbon projects exist under Verra’s standard. The Climate Change (Management) (Amendment) Act 2023 introduced regulations for carbon markets, and the Climate Change and Development Authority (CCDA) has set criteria for REDD+ projects. However, whether these requirements apply to other nature-based projects remains unclear. PNG has also developed national guidelines for REDD+, covering project development, Free, Prior, and Informed Consent (FPIC), benefit sharing, and grievance mechanisms. Since 2022, a national moratorium has suspended new voluntary carbon
market agreements to enhance safeguards, landowner protections, and regulatory oversight. The status of this moratorium remains uncertain.
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To participate in the VCM, project developers must obtain authorization, and landowners must meet key requirements, including securing an ILG certificate, mapping the project area, developing a land-use plan, and ensuring FPIC. Developers must submit a Project Concept Note (PCN) and a Project Design Document (PDD) for approval. All projects must be registered in PNG’s national REDD+/Carbon Registry System. Benefit-sharing is legally required, allocating at least 60% of benefits to customary landowners, up to 40% to developers, and the rest to the CCDA and subnational governments for oversight. FPIC is mandatory for all nature-based projects, aligning with PNG’s national REDD+ guidelines. MRV is required but lacks detailed procedures. Clarifying REDD+ rules for other nature-based projects will be key to ensuring transparency, investor confidence, and effective climate action.
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PNG has a well-established customary land tenure system, covering 97% of land, with the remainder divided between freehold and state-owned land. Despite clear regulations on land tenure and customary land protection, challenges persist in identifying, demarcating, and registering customary land due to conflicting claims. The Land Act of 1996 allows lease agreements of up to 99 years for agriculture, business, and special purposes. Customary landowners can lease land through Incorporated Land Groups (ILGs), enabling communities to manage and lease their land. However, carbon rights remain legally unclear. While REDD+
guidelines suggest customary landholders own sequestered carbon, the 2023 Climate Change (Management) (Amendment) Act repealed the previous definition without a replacement. This legal uncertainty poses risks for developers and landowners, making government engagement essential to clarify carbon rights.

Overall, Papua New Guinea has ambiguous enabling conditions for blue carbon projects. There are precise requirements for REDD+ projects; however, the government should clarify requirements for non-REDD+ projects, develop detailed MRV procedures, and establish precise mechanisms for securing carbon rights, particularly in mangrove areas.

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