Conservation Fencing for Coastal Wetland Restoration: Technical Requirements and Financial Viability as a Nature-Based Climate Solution

This paper investigates whether carbon payments are sufficient to entice private landholders to invest in the rehabilitation and protection of coastal wetlands as a nature-based climate solution. Ecologically intact coastal wetlands, such as mangroves and saltmarshes, are capable of sequestering and storing large amounts of carbon. Reinstating ecological functionality of degraded coastal wetlands may be achieved by installing conservation fences that exclude hard-hoofed domestic and feral animals. This research integrates ecological, technical and economic data to ascertain whether conservation fencing could represent a financially viable investment for coastal landholders in the Australian context, if restored wetlands attracted carbon payments. Data gleaned through literature review and expert interviews about technical fencing requirements, contemporary costs and potential blue carbon income are consolidated into scenarios and tested using cost–benefit analysis. Payback periods are calculated using deterministic parameters. Risk-based cost–benefit analysis accounts for uncertainty of ecological and price parameters; it provides probability distributions of benefit–cost ratios assuming an expert-agreed economic lifespan of conservation fences. The results demonstrate that the payback period and benefit–cost ratio are highly sensitive to wetlands’ carbon sequestration capacity, fencing costs and the carbon price going forward. In general, carbon payments on their own are likely insufficient to entice private landholders to protect coastal wetlands through conservation fencing, except in circumstances where restored wetlands achieve high additional carbon sequestration rates. Policy measures that reduce up-front costs and risk and remuneration of multiple ecosystem services provided by restored wetlands are required to upscale blue carbon solutions using conservation fencing. The research findings bear relevance for other conservation and land-use contexts that use fencing to achieve sustainability goals and generate payments for ecosystem services.