Sumitomo Corporation has entered into carbon credit projects for mangrove reforestation in Madagascar and Mozambique, Africa. The projects aim to generate carbon credits equivalent to 34 million tons of CO2, making them among the largest mangrove restoration initiatives in Africa and contributing to global decarbonization efforts.
Mangroves can sequester four times more carbon dioxide per hectare than rainforests, according to recent research. They’re a key source of blue carbon as well as a healthy nursery for aquaculture. They are also essential for biodiversity conservation and provide protection against coastal erosion.
The company will procure blue carbon credits by funding a mangrove reforestation project in Madagascar developed by a joint venture between Singapore’s Value Network Ventures (VNV), a global leader in carbon credit initiatives, and Bondy, an enterprise engaged in reforestation projects in Madagascar. The first phase of the project aims to generate a total of 800,000 tons of carbon credits over 21 years, with Sumitomo Corporation responsible for sales to customers, primarily Japanese companies.
In Mozambique, Sumitomo Corporation will invest in a blue carbon project through Summit Removall, a joint venture with Removall, a French carbon project developer that handles carbon credit development, investment and sales. In its initial phase, the project is expected to generate approximately 2.5 million tons of blue carbon credits over a 40-year period, with the support and cooperation of the local community. Sumitomo Corporation and Removall will jointly manage the sale of a portion of the generated carbon credits to regional clients.
Both projects aim to generate carbon credits from the growth of mangroves over the long term that will be sold to companies in Europe, the Americas and Asia, including Japan. Together with VNV and Bondy, Sumitomo Corporation ensures both local anchorage and international standards.
In the future, each project aims to expand its reforestation efforts to 40,000 hectares, targeting a total of 34 million tons of carbon credits (14 million tons from Madagascar and 20 million tons from Mozambique), making them initiatives on the largest scale in Africa.
