By LEANDRA ROLLE

Tribune Staff Reporter

lrolle@tribunemedia.net

PRIME Minister Phillip “Brave” Davis said yesterday his administration is exploring the idea of establishing a Carbon Exchange in The Bahamas with FTX, “where we will trade our carbon credits”.

Mr Davis made the remarks during his contribution to the debate on the Carbon Credit Trading Bill 2022.

By the end of the sitting, the bill was passed. It will now go on to the Senate for further debate and passage.

The Bill - which builds on the foundation of the Climate Change and Carbon Markets Initiative Act - proposes a complete legislative framework to regulate and manage the trade of carbon credits.Mr Davis described the bill as an historic one and said that it will help put the country “at the forefront of the emerging market of carbon credits.”

“We are making history and positioning our country as the first country that will sell Blue Carbon Credits, as it relates to sea grass, on the Carbon Market,” he told MPs.

“These ocean-based credits will allow the government to tap into a completely new source of revenue that will undoubtedly benefit the Bahamian people as the funds will assist with the financial challenges we face as a result of climate change. “

He also said that monies generated from the sale of carbon credits will help ensure the survival of the nation’s marine ecosystems.

“Marine ecosystems like seagrass beds, mangroves and salt ponds are capable of storing more carbon per square mile than their terrestrial counterparts (trees). The 1,600 square miles of mangroves and other marine ecosystems in The Bahamas are perhaps our most valuable resource,” he said.

“In analysing their role as carbon sinks, we are still in the process of determining what their monetary value is, but early indications suggest that they may be quite valuable.

“Ironically, the very systems that protect us from climate change are also being threatened by climate change as more frequent hurricanes and storms increase the likelihood that damage will be done to our coastal ecosystems.

“Our first use of any revenues generated from carbon credits would be to ensure the survival of these vital systems so that they continue to protect future generations of Bahamians.”

Mr Davis also revealed his administration has formed a partnership with a local company to help manage the sale of the country’s carbon credits.

“Carbon credits themselves are an emerging market and we will be the first in the world to benefit from blue carbon credits,” he said.

“There are always inherent unknowns and risks to being the first to do something. From the government’s perspective, it is necessary to bring on a partner to assist with navigating the complex landscape of carbon markets, which requires knowledge of the valuation of natural resources, monetisation of those resources, the creation of high-value, high-quality carbon credits, and the responsible sale of those credits on the carbon market, among other areas in which experience and expertise ensure that this will be a successful venture.”

He continued: “In accordance with the committee’s recommendation, the Cabinet selected the project management proposal by the NGO Beneath the Waves, operating under the Bahamian company Carbon Management Ltd,” he said.

“The government entered into a Heads of Agreement with Carbon Management Ltd for several compelling reasons. First of all, the scientists at Beneath the Waves have been doing shark research in The Bahamas for over ten years and have identified what is now considered to be the largest seagrass meadow in the world in Bahamian waters. They are already familiar with The Bahamas and, as scientists, they have a vested interest in our marine resources beyond their monetary value. They are truly passionate about conserving the marine environment.”

The Prime Minister also said the government will be exploring the opportunity of establishing a Carbon Exchange in The Bahamas with FTX, “where we will trade our carbon credits.”

“This will be an independent exchange and separate from the FTX Cryptocurrency Exchange. I will say more about this development as those discussions advance,” Mr Davis added.