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Who Owns Seabed Carbon? Tenure and Rights for Blue-Carbon Projects

Who legally controls carbon stored in seabed sediments and coastal waters — tenure regimes, marine property rights and what they mean for carbon projects.

Priya RamanBlue Carbon Analyst10 min read
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Ask a seabed-carbon project developer who owns the carbon under their site, and you will often get a confident answer followed, a beat later, by a longer one. The confident answer is usually "the state does." The longer answer — about leases, licences, customary rights and registries — is the truthful one. Tenure is the bundle of rights over a place: who may use it, exclude others, claim benefits from it and transfer those rights. For carbon stored in sediments, drifting in the water column or growing on seeded lines, the bundle is rarely whole in any single pair of hands, and understanding the gaps is now basic project hygiene.

This article maps the tenure question as a working issue for blue-carbon projects on kelp coasts. It deliberately complements two companion pieces: who owns blue carbon and how sea country shapes the answer, which centres Indigenous and customary tenure, and consent before credits, which covers the consent process. Here the focus is the formal legal architecture — and where it is silent.

Marine jurisdiction is layered, and carbon inherits the layers. Under the United Nations Convention on the Law of the Sea, coastal states hold sovereignty over their internal waters and territorial sea — generally twelve nautical miles, including the seabed, subsoil and water column above. Further out lies the exclusive economic zone, to 200 nautical miles, where states hold sovereign rights rather than sovereignty: rights to explore, exploit, conserve and manage natural resources, plus jurisdiction over certain activities. Beyond that, states exercise sovereign rights over seabed resources on their continental shelf, which can extend past 200 miles, while the water column there becomes the high seas.

Why this matters for carbon: most coastal kelp blue-carbon work sits inside national jurisdiction where domestic law fills in the picture, while offshore carbon pathways — kelp detritus exported beyond twelve miles, for instance — begin crossing legal regimes with the current. A tonne of carbon can change governing law while decomposing.

Who actually owns the seabed

Within national waters, the detailed answer varies by country, in ways that surprise project teams moving between jurisdictions:

  • Public sovereign ownership is the default in much of the world: the state holds the seabed and foreshore in trust for the public, granting use rights through leases and licences.
  • Crown ownership models, as in the United Kingdom and several Commonwealth jurisdictions, vest the seabed and most foreshore in the Crown, with management delegated to agencies and, in places, to devolved administrations.
  • Private tidelands exist unusually: in some US states, colonial-era grants and state-specific doctrines allow private ownership of intertidal flats and even submerged lands, sometimes dating from seventeenth-century ordinances.
  • Customary and Indigenous tenure overlays all of these. Courts in Canada, Australia, New Zealand and elsewhere have recognised forms of Aboriginal title, native title and customary marine tenure that can include harvesting rights, and in some cases exclusive possession, over marine areas — rights that exist whether or not a project's lease paperwork mentions them.

No serious project should infer tenure from a cadastral map alone. The map shows formal grants; the case law, statutes and customary practice show the rest.

Three carbons, three tenures

The complication specific to blue carbon is that "the carbon" is not one thing in one place — and different pools sit inside different rights.

Sediment organic carbon

Carbon buried in seabed sediments attaches most plausibly to whoever controls the seabed itself — typically the state, subject to lease rights and customary rights. This is the pool wetland-style methodologies credit, and it is the pool where the "landlord" logic of terrestrial carbon projects transfers most cleanly.

Water-column and exported carbon

Kelp's distinctive pool — detritus exported as particulate and dissolved carbon, some reaching deep water — lives in the water column, which is characteristically a common-pool space even inside national jurisdiction. The closer a project moves from "carbon stored in sediment under our site" toward "carbon our forest exported somewhere the current took it," the weaker the tenure intuition becomes, because the storage location sits outside any one right-holder's bundle, and attribution joins the open methodological debates in where kelp carbon actually ends up.

Biomass on cultivated lines

Where kelp is grown on seeded lines in a leased farm or restoration site, the standing biomass is usually the clearest ownership case: the lease-holder typically owns the crop, as a matter of ordinary aquaculture law. That clarifies who owns the fronds — while, notably, saying nothing automatic about who may claim ecosystem-level carbon effects in the surrounding sediment.

Where the law is silent

The crucial finding from comparative reviews is that most coastal states have not legislated who owns blue carbon as such. On land, several jurisdictions created explicit carbon-sequestration rights over the past two decades — severing carbon rights from land titles so they can be registered and traded separately. Equivalent statutory treatment for marine carbon is rare. Aquaculture leases talk about gear and stock; foreshore licences talk about occupation; environmental approvals talk about impacts. Carbon benefits sit in the seams between these instruments.

In that silence, practice improvises: project contracts allocate "environmental attributes" between landlords and leaseholders; registries define a "project area" over which the named project proponent claims carbon ownership rights, requiring evidence of those rights at registration; and governments contemplating blue-carbon revenue are beginning to ask, reasonably, whether seabed carbon in state hands should behave more like a royalty-bearing public resource. Governance questions of this shape — who decides, under what authority — are the subject of our piece on who governs ocean carbon removal.

What this means for project developers

Tenure is not a paperwork afterthought; it is a design constraint on the same level as the ecology. Teams that handle it well tend to do five things, in order:

  1. Map every rights-holder, not just the landlord. Seabed owner, foreshore authority, aquaculture landlord, fisheries right-holders, navigation interests, customary tenure — each gets a line in a tenure schedule, with sources cited.
  2. Sever and allocate carbon rights contractually. Where statute is silent, contracts should state expressly who owns sequestration rights and environmental attributes arising on the site, to survive changes of landlord, lease or government.
  3. Match the credited pool to the right argued. Crediting sediment storage? Show seabed tenure or consent. Claiming exported carbon? Articulate plainly why attribution and rights survive the export, or drop the claim.
  4. Register the project area honestly. Registry due diligence will ask for evidence of carbon rights; gaps discovered at issuance are the expensive kind of gap. The sequence of consent and registration steps is mapped in the life of a blue carbon credit.
  5. Start the consent conversation early. Where customary or Indigenous tenure exists, project's legitimacy and durability depend on genuine partnership, not just permits. That work — benefit-sharing, free, prior and informed consent — is where tenure becomes a relationship, and where Tidewright's own community and council partnerships, described at our solutions for governments, begin long before any credit is imagined.

The direction of travel

The trajectory in land-based carbon was clear: ambiguity was legislated away, one jurisdiction at a time, usually in favour of the resource right-holder with statutory carbon rights layered on top. Expect the sea to follow, more slowly, with added public-interest doctrine. Developers who build tenure schedules and consent processes now will find they were building compliance infrastructure ahead of the regulation; those who treated the ocean as ownerless will find, when the laws arrive, that nobody ever thought it was.

Key takeaways

  • Tenure is a bundle of rights — use, exclusion, benefit, transfer — and in coastal waters the bundle is almost never whole in one pair of hands.
  • Jurisdiction layers matter: sovereignty in territorial seas, sovereign rights in the EEZ and the continental shelf, and high-seas regimes beyond; exported carbon can cross legal regimes in transit.
  • Seabed ownership models vary sharply by country, and customary and Indigenous tenure overlays every formal map.
  • Sediment carbon, water-column carbon and cultivated biomass each sit in different tenure logic — the credited pool must match the rights actually held.
  • Most states have not legislated marine carbon rights; contracts, registry project areas and consent processes carry the load in the meantime.
  • The durable projects will be the ones that mapped every rights-holder early and treated customary tenure as partnership, not paperwork.

FAQ

Who owns carbon stored in seabed sediments?

In most jurisdictions the state owns or controls the seabed, so sediment carbon attaches first to state control — but leases, licences and customary rights all modify who may use and benefit from it. There is no universal answer; there is only the jurisdiction-specific one.

Does an aquaculture lease give a project the right to claim carbon credits?

Not automatically. A lease typically conveys rights to occupy water and to the crop, while ecosystem-level carbon rights are usually unaddressed in statute and must be allocated contractually or evidenced to a registry.

Can carbon exported beyond a project's boundary be claimed?

It is the hardest claim in kelp blue carbon: the storage may occur outside any rights-holder's bundle, and permanence and attribution are methodologically contested. Serious projects either evidence the chain conservatively or decline the claim.

Who owns blue carbon in Indigenous sea country?

Formal ownership varies, but customary tenure and Indigenous rights overlay formal titles in many jurisdictions; legitimate projects proceed through partnership, benefit-sharing and consent. Our dedicated piece on sea country and carbon rights treats this properly.

Unlikely. Land-based carbon went through the same ambiguity before statutory carbon rights arrived. Coastal states eyeing blue-carbon revenue have every incentive to legislate, and early movers in project contracting will find their paperwork becomes the template.