Executive summary

The Bahamas has no precedent of nature-based carbon credit projects on the Voluntary Carbon Market (VCM), including mangroves, forests, or other ecosystems. However, the country has established a regulatory framework to govern such initiatives. The Climate Change and Carbon Market Initiatives Act (2022), the Carbon Credit Trading Act (2022), and the Emissions Reduction Initiatives and Incentives Regulations (2025) outline clear requirements for the authorization, registration, and monitoring of projects. Developers must obtain permits from the Prime Minister, register with the Securities Commission, and comply with the Certificate of Environmental Clearance process under the Environmental Planning and Protection Act (2019). Additionally, all projects must be registered in the National Emissions Registry and comply with Measuring, Reporting, and Verification (MRV) requirements, with penalties for non-compliance.

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The legislation clarifies that all carbon assets from forests, mangroves, and other ecosystems are vested in the Government of The Bahamas. This establishes the state as the sole owner of credits, while developers can participate only as managers or partners with government authorization. Although private landowners, including those holding generation property, retain ownership of the land, they cannot trade carbon credits independently. Access to state mangroves is possible through leases, licenses, or permits. Communities, however, do not have a dedicated legal pathway for concessions or co-management of state mangroves, limiting their direct participation in projects.

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Overall, The Bahamas has ambiguous enabling conditions for blue carbon projects. While the government has introduced strong safeguards through permitting, registries, and MRV requirements, it has not established clear rules for benefit-sharing, community participation, or the transfer of carbon rights. The lack of explicit provisions for Free, Prior, and Informed Consent (FPIC) and the absence of benefit-sharing mechanisms create uncertainty for developers and local stakeholders. For investors and project proponents, this means that successful project development depends on close negotiation with the state, case-by-case arrangements for revenue allocation, and careful alignment with both domestic regulations and international VCM standards.

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