Indo-German Support Project for Climate Action in India

April-June | 2026
Bilateral

Mitigation of Climate Change

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Stakeholder consultations held in Gujarat and Odisha, followed by a workshop on 24 June 2026, explored opportunities and challenges for supporting wetland restoration through emerging carbon financing approaches.

Project Updates

Unlocking Climate Finance for Wetland Conservation in India

Blue carbon ecosystems are coastal ecosystems like mangroves and salt marshes that naturally absorb and store large amounts of carbon, while also supporting livelihoods and strengthening climate resilience. To unlock this potential, our ongoing work focuses on how wetland restoration can be supported through emerging carbon financing approaches. The objective is to ensure that conservation efforts not only protect wetland ecosystems but also create tangible benefits for local communities. This work is aligned with India’s evolving carbon market framework and focuses on building capacity, strengthening institutions, and promoting sustainable livelihoods.

India’s coastal ecosystems are important carbon sinks and provide essential ecosystem services. However, their inclusion in carbon markets remains limited. The current assignment addresses this gap through a feasibility assessment of blue carbon opportunities in two priority regions: mangroves in Odisha and tidal wetlands in Gujarat, particularly salt marshes. 

Stakeholder consultations held in Gujarat and Odisha brought together village panchayats, NGOs and district officials to understand local priorities and identify opportunities and challenges. Discussions highlighted the wider ecological and livelihood benefits of wetlands, while emphasising the importance of community participation, clear land and usage rights, equitable benefit sharing and financing models that combine carbon revenues with livelihood opportunities.

These findings were further discussed at a 24 June 2026 workshop bringing together the Ministry of Environment, Forest and Climate Change, Bureau of Energy Efficiency (BEE), Gold Standard, project developers, investors, corporates and NGOs. The Joint Secretary, MoEF&CC, emphasised the need for robust science, credible carbon accounting and collaboration, while the Director, BEE highlighted the potential of wetland-based credits as an addition to India’s evolving carbon market.

Discussions highlighted the need for fit-for-purpose methodologies, enabling policies, long-term and diversified financing, and strong community participation. The next phase will focus on detailed site assessments and institutional readiness to identify viable, scalable projects that deliver climate and livelihood benefits.

Photographs: IKI_photos