A college student picks up plastic garbage at Clungup Mangrove Conservation in Malang, East Java, Indonesia on March 18, 2023. (PHOTO / XINHUA)

Shenzhen in Guangdong will witness the nation’s first auction of mangrove carbons on September 26, with prices starting at 183 yuan per metric ton. The total volume going under the hammer is 3,875 tons of carbon dioxide.

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Mangroves are shrubs that grow mainly on the southern coast of China. While absorbing carbon dioxide and mitigating greenhouse effects, mangroves can also play a role in carbon trading. Firms can use the carbon credit they trade from mangrove conservation and restoration to offset their own emission quota.

Realizing the carbon sequestration value of mangroves is an important practical step in unlocking the value of ecological products. Moreover, it holds significant implications for expanding and innovating climate investment and financing products

More than 50 enterprises from real estate, automobile, electronics manufacturing and financial industries have shown interest. Proceeds from the auction will be handed over to the city's finance authority to support mangrove conservation and restoration efforts.

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Lyu Xuedu, an adviser on sustainable development and climate change with the Asian Development Bank, said that mangroves are valuable in carbon sequestration, biodiversity conservation, and environmental enhancement, so they have garnered significant international attention. 

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He emphasized realizing the carbon sequestration value of mangroves is an important practical step in unlocking the value of ecological products. Moreover, it holds significant implications for expanding and innovating climate investment and financing products, he added.

The winning bidder will receive the first-ever carbon credit certificate in the field of natural resources in Shenzhen.

Contact the writer at grace@chinadailyhk.com