2023

2053

The confidential contract involves a Memorandum of Understanding signed in March 2023 between the UAE-based company Blue Carbon and the Government of Liberia. The deal would cede over one million hectares of forests for thirty years to Blue Carbon, allowing the company to generate and sell carbon credits from emissions saved by protecting and restoring these forests. The draft contract limits Liberia's ability to use the carbon credits, giving Blue Carbon sole authority to decide on their sale and price (see: https://www.fern.org/publications-insight/international-statement-on-the-carbon-deal-between-blue-carbon-and-the-liberian-government-2701/) (#VS0zECro). The current draft agreement allocates 70 percent of carbon royalties to Blue Carbon and 30 percent to the Liberian government for the first 10 years, shifting to an equal 50-50 split thereafter. Additionally, it designates 50 percent of the carbon royalties, 40 percent interest from the government's shares, and a five percent interest payment from the government's stakes in the project for the communities (see: https://frontpageafricaonline.com/news/liberia-communities-demand-consent-right-in-blue-carbon-deal/) (#555Afjlc). A legally binding contract is yet to follow.