Executive Summary

Vanuatu has limited precedents and regulatory frameworks for nature-based carbon credit projects within the Voluntary Carbon Market (VCM). There are no registered mangrove projects; however, one nature-based carbon credit project operates under the Plan Vivo Standard. The government does not have specific regulations for trading, authorizing, or registering nature-based carbon credit projects in the VCM. It maintains a public registry for Internationally Transferable Mitigation Outcomes (ITMOs) and has established a bilateral agreement with Switzerland under Article 6.2 of the Paris Agreement, which does not cover VCM projects. Vanuatu lacks explicit requirements for benefit-sharing mechanisms, informed consent processes, and Measuring, Reporting, and Verification (MRV) for VCM projects. Despite this, REDD+ readiness efforts include plans to develop equitable benefit sharing systems. Given the absence of standardized requirements for nature-based carbon credit projects participating in the VCM, project developers must collaborate with relevant government agencies to ensure compliance with all necessary regulations.
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Land tenure in mangrove areas follows customary practices, with all land owned by indigenous customary owners and their descendants. Customary lands cannot be alienated, but they may be leased to other Ni-Vanuatu (natives of Vanuatu) with government approval for transactions involving non-indigenous or non-citizen individuals. Leases, which can last up to 75 years, are mandatory for development and require government consent under the Land Reform Act. Private ownership for commercial mangrove use is prohibited, allowing only indigenous citizens to have perpetual ownership. Community ownership and leasehold for commercial purposes are permitted, with land held communally by tribes, clans, or various groups. Carbon rights are defined under the Forestry Rights Registration and Timber Harvest Guarantee Act, which recognizes carbon sequestration's legal and commercial benefits. However, it is essential to clarify carbon credits tied to reduced deforestation. The lack of mandatory surveying and registration for customary ownership further complicates the process of securing land tenure and carbon rights.

Overall, Vanuatu has unfavorable enabling conditions for blue carbon projects. While it is legal to sell nature-based credits, the country lacks explicit regulations governing the requirements for obtaining authorization and trading these credits. Established regulations exist for land tenure and carbon rights; the absence of legal requirements to survey or register customary ownership makes it difficult to identify landowners and secure tenure and carbon rights. Addressing these gaps through more precise regulations and stronger land tenure frameworks will be essential to fostering a more reliable and investable environment for nature-based carbon credit projects.

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