Executive summary

Honduras is taking cautious steps toward regulating its participation in the voluntary carbon market (VCM). The country has one mangrove project under development under Plan Vivo and one forestry project registered under Verra, showing early interest in nature-based carbon activities. However, since 2022, a national moratorium has suspended the sale of forest carbon credits outside UNFCCC or Paris Agreement mechanisms. This pause reflects the government’s intent to strengthen transparency, benefit-sharing, and environmental safeguards before reopening the market.

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The 2023 Special Law on Forest Carbon Transactions (Decree 54-2023) established a National Commission for Carbon Transactions to oversee project authorization, monitoring, and benefit distribution. Developers must obtain prior approval, include benefit-sharing mechanisms, and comply with national MRV and environmental requirements. While the law mandates the creation of a national carbon registry and annual greenhouse gas inventory updates, these systems are still under development. FPIC is legally recognized but lacks standardized procedures, leading to inconsistent implementation.

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Honduras’ legal framework allows nature-based projects across public, private, and community-owned mangroves, provided they have approved management plans and comply with national regulations. Both private and community entities can enter into management, usufruct, or co-management agreements with the Forest Conservation Institute (ICF) to develop carbon projects on state lands. However, the country has yet to define carbon rights explicitly; current law implies they are linked to land ownership and tenure, creating uncertainty over who holds tradable rights in different land tenure contexts.

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Overall, Honduras has ambiguous enabling conditions for blue carbon projects. While the 2023 law sets a promising foundation, delayed regulations, the ongoing moratorium, and the absence of a clear carbon rights framework create uncertainty for investors and developers. The country’s cautious approach prioritizes environmental integrity and equity but may slow project implementation in the short term. Clarity on carbon rights, MRV procedures, and the moratorium’s timeline will be essential to unlock private investment and ensure that future blue carbon initiatives contribute to both national climate goals and local community benefits.

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