MercoPress. South Atlantic News Agency

Falklands to launch, Environment Trust for carbon reduction and land recovery projects

MLA Teslyn Barkman, said: “This policy confirms our commitment to sustainable development.

The Falkland Islands Executive Council has approved the establishment of an Environment Trust to deliver carbon reduction, biodiversity and land recovery projects in the Falkland Islands.

Any hydrocarbons licensees who are in the exploitation term of their licenses will be required to make quarterly payments to the Trust based on the scale of their operational emissions. These payments are intended to both encourage licensees to minimize their emissions and to fund environmental projects.

Making payments to the Trust will be accepted by the Falkland Islands Government (FIG) as a way of licensees meeting their natural environment offsetting obligations that arise from the Offshore Minerals Ordinance 1994. Payments to the Trust will be based on a price per ton formula, with the rate per ton to be set by FIG.

The initial rate for payments will be decided within the next year.

The Trust will advertise for applications for projects that deliver reductions in carbon emissions, carbon sequestration, protection or enhancement of biodiversity or land recovery and restoration in the Falkland Islands. Applications will be considered by the Trust Board and funding awarded for the highest-rated applications, which would be scored based on a range of criteria including value for money, planned outcomes and the permanence of the delivered scheme.

The Trust Board will consist of representatives of FIG and licensees, with an independent chair who has demonstrated an interest in and knowledge of the Falkland Islands environment. The licensees’ presence on the board will allow them to have some oversight of how the funds are being used, as it is expected that they may have environmental obligations beyond those required by FIG. The Board will be supported by scientific and conservation specialists in its decision-making and monitoring processes and the effectiveness of the Trust will be reviewed at regular intervals.

The Trust will be established using the Falkland Islands Environment Trust Ordinance 2021, which will be amended to align with the approved proposals, including the revised composition of the board and to enhance governance, for example by requiring recipients of funding to submit annual reports, and for the Trust to publish its annual report and financial statements publicly. The Trust will still be able to accept donations from others, who may specify how they would like those funds spent.

Following approval by Executive Council, FIG is now starting work on the legislative drafting required, with the ambition to launch the Trust by 2026.

MLA Teslyn Barkman, portfolio holder for Natural Resources, said: “This policy confirms our commitment to sustainable development. By linking development with meaningful, locally focused environmental investment, we are taking real steps to balance economic opportunity with long-term ecological resilience.”