NASSAU, BAHAMAS- The Bahamas and Laconic Infrastructure Partners Inc. have forged a new climate finance initiative to support the country’s Enhanced Conditional Ambition under the Paris Agreement.
The project will use carbon credits generated from the Bahamas’ seagrass ecosystems to raise funding through a new financial product called Sovereign Carbon Securities.
The agreement is structured around Laconic’s Sovereign Carbon Security, a unique financial instrument that enables nations to monetize natural assets without requiring sovereign guarantees. Carbon Management Ltd. (CML), a Bahamian public-private partnership backed by the government, will manage the scientific oversight of up to 150,000 square kilometers of seagrass to generate carbon removals in full compliance with Article 6.2 of the Paris Agreement.
This deal marks the world’s first Blue-Carbon Sovereign Carbon Securities transaction and will enable the Bahamas to scale up climate action over the next five years while attracting long-term foreign investment.
“The Commonwealth of the Bahamas is committed to becoming a full economy net-remover of atmospheric carbon by 2035,” said Anthony Ferguson, Director of CML. “By working with Laconic, we will be able, for the first time, to generate sufficient development financing, technology transfer, and capacity building to enable our country to make this commitment a reality – enhancing our Sectoral Conditional Ambition under the Paris Agreement to the benefit of not only our own people, but the entire global community.”
Laconic’s Sovereign Carbon Securities are the first carbon-linked instruments that function as bona fide financial securities. They provide governments a scalable, transparent, and regulated mechanism to unlock the value of environmental assets while appealing to institutional investors seeking sustainable, long-term opportunities.
“Sovereign Carbon Securities are the only mechanism that provide a transparent, regulated, and reliable means for governments to monetize their environmental assets at the scale required to meet humanity’s collective NetZero goal,” Laconic stated, highlighting their potential to set a global precedent for climate-aligned economic development.
At the core of Laconic’s offering is SADAR™, a proprietary cloud-based platform that manages environmental data streams to ensure regulatory compliance and streamline the technical complexities of carbon asset management. It enables governments to focus on achieving their Nationally Determined Contributions (NDCs) under the Paris Agreement while accelerating the transition to a low-carbon economy.
“The Bahamian commitment to Blue-Carbon solutions is a shining example of how governments can use global capital markets to finance national-level conservation and sustainable development initiatives that drive meaningful long-term economic growth whilst contributing to global decarbonization efforts,” said Andrew Gilmour, CEO of Laconic. “This partnership is proof that the capital markets are now awakening to the immense opportunities in carbon finance, and we are excited to work with the Bahamas to unlock a new source of permanent foreign direct investment (FDI) for the country’s economy.”
Founded in 2021, Laconic is headquartered in Chicago, with offices in Toronto, London, and Singapore. The company continues to lead in carbon market innovation, helping governments worldwide tap into the growing potential of environmental finance.
