Special thank you to Diana Denke, Co-Founder and CEO of Fair Carbon, for answering the NCEC Interview questions below. Fair Carbon is a Swiss-based NGO dedicated to protecting and restoring these ‘blue carbon’ ecosystems through education, capacity building, early-stage funding, and policy development.

NCEC Interview Questions

1.     How does Fair Carbon contribute to removing carbon from the atmosphere?

Coastal and marine ecosystems, such as salt marshes, mangrove forests, and seagrass meadows, are among the planet's most productive ecosystems. ​They play a crucial role in climate mitigation, storing up to 10 times more carbon per hectare than terrestrial forests; the wealth generated by blue carbon ecosystems represents over US $190 billion per year.​ They also increase the resilience of coastal communities, offering cost-effective climate adaptation, reducing extreme weather costs by over USD $65 billion annually.​ Additionally, they are often found in biodiversity hotspots, providing food, refuge, and nursery habitat for wildlife, and  for more than 75% of fisheries species, upon which the livelihoods of millions of small-scale fishermen depend.​ ​

2.     What are the biggest challenges you’ve faced in carbon removal? 

Despite growing demand for nature-based solutions, the blue carbon market faces systemic barriers – both on the supply and demand sides - that hinder investment, namely:​

Technical barriers:

·       Lack of technical expertise – Up to 80% failure rate in blue carbon projects due to fragmented, highly technical, and inaccessible knowledge.​

·       High project development costs and inefficiencies – Dependence on a scarce pool of blue carbon experts, leading to slow and costly project accreditation.​

Financial barriers:

·       Limited early-stage funding – Lack of tailored financial mechanisms, long lead times to revenue, and low financial structuring capacity among project teams.​

·       High due diligence costs – Limited transparency, no centralized databases, and varying investor requirements increase investment uncertainty.​

·       Perceived and real investment risks – Financial risk (e.g. volatile credit pricing), operational risk (e.g. challenge of securing community buy-in, concerns over permanence), and reputational risks​ (e.g. integrity of voluntary carbon markets questioned in recent media scrutiny).

Policy barriers:

·       Regulatory complexity – Evolving global frameworks and shifting country regulations create uncertainty for project developers and investors.​

Without addressing these obstacles, blue carbon will remain a niche market, and the vast potential of coastal and marine ecosystems will remain untapped.​ We at Fair Carbon aim to find solutions, together with partner organisations, that lower these barriers and enable many more high quality projects come to market. We envision a thriving, high-integrity blue carbon market, where long-term protection and restoration of coastal ecosystems is sustained by equitable financing and benefit sharing with local communities.

3.     Who are the key stakeholders in the carbon removal space?

A carbon removal project involves multiple key actors working together to ensure compliance, implementation, and credit issuance.

The Project Coordinator(s) (or Proponent(s)) legally own the project, receive carbon credits, and are responsible for following carbon standard rules, submitting documentation, implementing activities, and ensuring compliance with local laws. They may work with Implementing Partners, such as project developers, who specialize in designing and managing carbon projects and may receive partial ownership rights.

Stakeholders include:

• Primary stakeholders – Directly impacted groups by the project, often land owners, the project proponents and local communities.

• Secondary stakeholders – Local businesses, organizations, or government agencies involved in coastal or land use.

Additional key players include:

• Carbon Standard Organizations (e.g., Verra, Gold Standard, Plan Vivo) set methodologies, and issue carbon credits.

• Third-Party Validators & Verifiers conduct independent audits to ensure compliance with the methodologies of chosen carbon standards.

• Investors & Funders (e.g., impact investors, NGOs, government programs) provide financial backing to carbon projects.

• Carbon Credit Buyers purchase credits to offset their emissions.

• Host Country Governments & Regulators set the enabling environmens for projects in the form of local laws and regulations about land tenure, carbon rights, and market mechanisms, and oversee compliance with national policies.

• Research & Technical Experts conduct assessments, for example on carbon sequestration and biodiversity baselines, and later on, monitoring.

• NGOs & Local Organizations support community engagement and crafting a fair benefit-sharing mechanism.

• Technology & Data Providers help with monitoring progress, using remote sensing via satellite imagery to enhance transparency.

Together, these actors ensure that carbon removal projects are effectively implemented, verified, and contribute to climate mitigation efforts.

4.     How is this a viable financial model?

A well-structured carbon removal project can be a financially viable model by generating revenue through the sales of carbon credit sales and leveraging co-benefits (for biodiversity, community livelihoods) that enhance long-term sustainability of the project.

At the core of its financial model, a carbon project removes or avoids CO₂ emissions, which are verified and converted into carbon credits. Each credit represents one metric ton of CO₂ and can be sold to companies, governments, or individuals looking to offset their emissions. These credits are traded in either compliance markets (regulated systems like the EU Emissions Trading System) or voluntary carbon markets, where businesses buy credits to meet their sustainability goals (e.g. Net Zero commitments). The price of carbon credits varies depending on market demand, certification standards, and project type, ranging from $5 to over $100 per ton.

Carbon projects attract diverse sources of funding and investment. Private investors and impact funds seek projects with strong environmental and social benefits, while NGOs and philanthropic organizations provide grants for conservation and restoration efforts, and research. Government programs and subsidies can also support local carbon initiatives.

For a carbon project to be profitable, it must balance its cost structure with credit revenue (and income from alternative revenue streams). Initial development costs include land acquisition, restoration, technical studies, and certification fees. Ongoing costs cover monitoring, third-party verification, and reporting compliance. Once operational, a project generates recurring revenue as it continues issuing carbon credits annually. For example, a mangrove restoration project that sequesters 10,000 tons of CO₂ per year and sells credits at $20 per ton would generate $200,000 in annual revenue.

Beyond carbon credit sales, projects can tap into additional revenue streams. Eco-tourism, agroforestry, and regenerative agriculture provide additional sustainable business models. Projects that promote biodiversity conservation and community engagement may also access philanthropic funding from environmental organizations.

The challenge with financing come from the fact that there is a gap on the capital continuum for carbon projects. Carbon projects progress through distinct stages along the capital continuum, from incubation through implementation and scale up, requiring different types and levels of financing at each phase.

In the early incubation stages, where a project is deemed too risky to receive commercial investment, projects often rely on philanthropic funding to conduct feasibility assessments and pilot initiatives. Access to carbon finance typically comes later—only after a project is accredited by a carbon standard, has generated ex-post carbon credits, and is considered lower risk, often taking several years. This creates a funding gap between the incubation phase, which is primarily supported by philanthropy, and the scale-up phase, where commercial capital becomes available.

The implementation stage, which serves as the bridge between early development and commercial readiness, faces a shortage of appropriate financing mechanisms. There is a lack of patient, risk-tolerant capital capable of supporting projects through this transition, leaving many stranded before they reach market viability. Addressing this financing gap is essential to unlocking the full potential of carbon projects and ensuring their long-term success.

5.     What happens to the carbon when removed?

• Is there a market for it?

• How is it stored/managed?

Mangrove forests play a crucial role in carbon sequestration, making them one of the most effective natural solutions for climate mitigation. In a mangrove carbon project, carbon is removed from the atmosphere primarily through photosynthesis, where mangroves absorb carbon dioxide (CO₂) and store it in their biomass—leaves, branches, trunks, and roots—as well as in the soil sediments. Unlike terrestrial forests, mangroves have a unique ability to store a significant portion of carbon below ground in waterlogged soils, where it remains locked away for centuries or even millennia.

Through photosynthesis, mangrove trees absorb CO₂ and use it for growth, accumulating carbon in both their aboveground structures and their extensive root systems. As leaves and organic matter fall, they become buried in anaerobic (low-oxygen) sediments, which slow decomposition and allow carbon to accumulate over time. This process forms thick layers of carbon-rich sediment, creating long-term carbon sinks that can remain stable for thousands of years.

The stability of this stored carbon depends on the health of the mangrove ecosystem. If left intact, mangroves continue to act as effective carbon sinks. However, when mangroves are degraded or destroyed, the carbon stored in their biomass and soils is released back into the atmosphere, contributing to greenhouse gas emissions. This highlights the importance of mangrove conservation and restoration in maintaining their role as critical carbon reservoirs.

Despite covering just 0.1% of the planet’s surface, mangroves store up to 10 times more carbon per hectare than terrestrial forests, making them one of the most carbon-rich ecosystems on Earth. Their dense, tangled root systems not only provide structural resilience against tides and storms but also slow tidal water flow, trapping sediments and organic matter. This ability to capture and stabilize carbon is why mangroves can sequester and store multiple times more carbon than tropical rainforests.

Globally, mangrove forests store an estimated 23 billion tons of CO₂, with 87% of that stored in soils. Even the loss of just 1% of remaining mangroves could release 0.23 gigatons of CO₂ equivalent, which is comparable to the annual emissions of France. Protecting and restoring mangroves is not just about preserving biodiversity—it is a powerful climate strategy that safeguards one of nature’s most efficient carbon sinks.

The carbon credit market is a global system that allows companies, governments, and individuals to buy and sell carbon credits as a way to offset their emissions. It is divided into compliance markets (regulated by governments) and voluntary markets (driven by corporate sustainability commitments).

6.     How are you measuring carbon removal?

• How is it verified?

Mangrove carbon projects remove and store carbon by sequestering CO₂ in both their biomass (trees, roots) and soils. To quantify carbon removal, projects follow scientific methodologies aligned with carbon credit standards such as Verra (VCS), Gold Standard, and Plan Vivo. Accurate measurement ensures that the amount of carbon removed is properly recorded and verified for carbon credit issuance.

Carbon sequestration in mangroves is measured in two key areas: aboveground and belowground biomass and soil carbon storage. In the biomass, carbon is stored in the trunks, branches, leaves, and extensive root systems of mangrove trees. Tree growth is monitored using field surveys, where scientists measure tree height and diameter at breast height (DBH). These measurements are then applied to species-specific allometric equations to estimate the amount of carbon stored. Belowground, root-to-shoot ratios are used to estimate the carbon content in mangrove roots.

Mangroves differ from terrestrial forests in that the majority of their carbon is stored in soils. To measure soil carbon stocks, researchers extract sediment cores (typically 1–3 meters deep) and analyze them in laboratories to determine carbon concentration and bulk density. In some mangrove ecosystems, up to 87% of total carbon is stored in soils, making them one of the most effective long-term carbon sinks on Earth.

Because mangroves continue to grow and sequester carbon over time, long-term monitoring is essential. This is done through remote sensing, satellite imagery, and LiDAR scanning, which track changes in forest cover and biomass. Additionally, field surveys are conducted periodically to reassess tree growth and soil carbon accumulation.

For carbon credits to be issued, projects must follow an approved carbon accounting methodology for tidal wetland and seagrass restoration. The sequestration data undergoes third-party validation and verification by accredited auditors. Once verified, carbon credits are issued in cycles, typically every five years, based on the measured amount of CO₂ stored.

By following rigorous scientific monitoring and verification processes, mangrove carbon projects ensure that the carbon they remove is accurately measured, permanently stored, and effectively monetized through carbon markets.

7.     How do groups like the New Carbon Economy Consortium allow you to further your progress? 

The New Carbon Economy Consortium (NCEC) plays an important role in advancing carbon markets by fostering collaboration between research institutions, policymakers, and market actors. Fair Carbon benefits from this network in several ways.

As carbon markets evolve, aligning with emerging policies and regulatory frameworks is essential. NCEC’s expertise in carbon policy and market integration helps Fair Carbon stay ahead of industry developments, ensuring our projects remain compliant with the latest standards in both voluntary and compliance markets. Additionally, it provides a platform where we can share and test our policy research on enabling conditions country profiles. These profiles are designed to inform policymakers and help investors and developers assess which countries are ready for blue carbon projects. Our evaluation focuses on core legal requirements such as land tenure, carbon rights, and Article 6 developments, offering critical insights into regulatory landscapes.

Scaling high-quality carbon projects also requires access to innovative financing mechanisms. Through NCEC’s work in developing new financial models for carbon markets, Fair Carbon can explore better ways to bridge the financing gap for early-stage nature-based projects, ensuring their long-term sustainability.

Additionally, NCEC fosters cross-sector collaboration between governments, academia, and private sector actors. This provides Fair Carbon with opportunities to build partnerships, share best practices, and advocate for fair and transparent carbon markets that prioritize both climate impact and community benefits.

8.     How do you work with local communities?

At Fair Carbon, we strive to ensure that carbon projects contribute not only to climate mitigation but also to the well-being and empowerment of the communities that depend on these ecosystems. Through our products and services, such as the Blue Carbon Academy and the Ocean Carbon Accelerator, we prioritize equity and transparency, making sure that local communities are at the heart of project design, implementation, and benefit-sharing.

A fundamental part of our approach is to encourage project developers to work in close collaboration with local stakeholders from the beginning, ensuring they align with community needs and priorities. By integrating local knowledge and traditional practices, we encourage developers to create projects that are both culturally and ecologically appropriate. This participatory model fosters a sense of ownership and ensures that communities play a meaningful role in decision-making and governance—an essential factor for the long-term success of any project.

Fair and transparent benefit-sharing is another core principle of our work. We guide developers in structuring financial models where revenues from carbon credits are reinvested into community-driven initiatives such as sustainable livelihoods, conservation efforts, and infrastructure improvements.

Additionally, we advocate for clear and secure carbon rights to protect communities from external exploitation, ensuring they receive a fair share of the financial benefits from carbon finance. Through our policy work, we also encourage governments to establish regulations that grant communities secure land tenure and carbon rights. This enables those who rely on natural resources to maintain control over their land while receiving the economic benefits of conservation efforts.

By embedding local participation, fair financial mechanisms, and long-term capacity building into every stage of the project design and implementation, we aim to ensure that carbon finance becomes both a tool for climate action and a pathway to sustainable development. We envision a world where local communities are recognized and rewarded for their efforts to protect and restore natural habitats—a world where their contributions lead to tangible benefits, empowering them to support their families and build a future for their communities with dignity and pride.

9.     Anything else you’d like to share?

The voluntary carbon market is projected to grow, by some estimates, tenfold to $250 billion by 2050 (from $2 billion today). However, without proper market infrastructure and finding ways to lower technical and policy barriers, and fill the gap in early-stage financing, the blue carbon segment will remain underdeveloped. However, we firmly believe that overcoming these barriers is possible, and by unlocking the full potential of blue carbon, we can drive systemic change, protect and restore coastal ecosystems, and build climate resilience for the millions who depend on them. Ten years from now, we envision a thriving, high-integrity blue carbon market, where long-term protection and restoration of coastal and marine ecosystems is sustained by equitable financing. It is our fundamental philosophy, that we need to prioritize collaboration over competition, fostering partnerships and working together to increase transparency in the markets and achieve these goals. If you’re keen to join us on this journey, reach out to see how we can collaborate.