Funding conservation and restoration of coastal ecosystems : advantages and disadvantages of carbon credits compared to other funding instruments : interim report / by Felix Fallasch, Anne Siemons (Öko-Institut, Berlin), Wilfried Rickels (Institut für Weltwirtschaft, Kiel) ; on behalf of the German Environment Agency ; publisher: Umweltbundesamt ; report performed by: Öko-Institut ; edited by: Fachgebiet V 2.6 Klimaschutzprojekte - Katja Voß (Fachbegleitung)

Abstract

This publication analyses the advantages and disadvantages of carbon credits compared to other financing instruments for protecting and restoring coastal ecosystems. Nine instruments are examined, including emission credits, biodiversity certificates, development cooperation, and blue bonds. Several aspects such as scalability, financial stability, carbon accounting, and project integrity are explored. Findings suggest that carbon credits offer scalability and long-term revenue potential but are hindered by high transaction costs, market volatility, and risks to environmental integrity, particularly when used for emission offsetting. The report targets professionals in climate change, conservation, and sustainable finance.