Deal #10472

The Government of Liberia has finalized a Memorandum of Understanding (MoU) with Blue Carbon LLC, a company headed by Sheikh Ahmed Dalmook al-Maktoum, a member of Dubai's ruling royal family in the United Arab Emirates. The proposed agreement stipulates that 10 percent of Liberia's land will be allocated to the company for a duration of 30 years (see: https://swedwatch.org/artikel-2/ny-president-i-liberia-10-av-landets-mark-upplats-till-foretag-fran-uae/) (#1_Nzc3oo). The size is 1.000.000 ha but it is unclear how much of this will be LSLAs as defined by the LMI.

According to the agreement, Blue Carbon will compensate Liberia for managing and preserving one million hectares of forest over the next 30 years. The company will then sell carbon credits to major polluters, who will use the credits to offset their own emissions (see: https://www.globalissues.org/news/2023/09/15/34740) (#ZEN2XuHI). However, it is unclear how much Blue Carbon will invest, in what areas, and how it plans to harvest the carbon credits. The contract does not specify the expected number of credits, associated costs, certification standards, verification methods, transaction costs, or the financing mechanism (see: https://www.fern.org/publications-insight/international-statement-on-the-carbon-deal-between-blue-carbon-and-the-liberian-government-2701/) (#VS0zECro).

The confidential contract involves a Memorandum of Understanding signed in March 2023, for a duration of 30 years, between the UAE-based company Blue Carbon and the Government of Liberia. 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.