Story by Theophilus Chuma
ZIMBABWE has officially entered the global carbon credit trading arena following the launch of the Zimbabwe Carbon Markets Authority and a National Carbon Registry in Harare on Friday.
The milestone positions Zimbabwe among a select group of African nations to establish formal structures to regulate and monitor carbon trading, providing a solid foundation for attracting investment and boosting revenue from carbon markets.
The move comes amid revelations that the country had been losing millions of dollars due to unregulated carbon credit transactions, notably highlighted by the controversy surrounding a trading venture in Kariba that faced allegations of profiteering.
The government has now taken decisive steps to ensure accountability, transparency, and the equitable distribution of revenue from carbon credits, especially to benefit communities most affected by climate change.
“The proceeds from carbon credit transactions will be used to reinvest in local communities, supporting climate adaptation and mitigation projects, benefiting those communities that are most vulnerable to the impacts of climate change. This is a system that will allow Zimbabweans to directly benefit from their participation in the global carbon economy,” the Minister of Environment, Climate and Wildlife, Honourable Evelyn Ndlovu said.
The establishment of a Carbon Registry comes just a few days after the government announced the establishment of the Zimbabwe Carbon Markets Authority mandated to consider and make determinations on the approval and registration of carbon projects.
The formalisation of carbon trading therefore sets out a comprehensive roadmap to promote transparency as well as unlock opportunities in international carbon credit markets.
This is in line with agreed principles under Article 6 of the Paris Agreement.
“This is a very critical development that sets a good position for investment for Zimbabwe. Across the globe, investors will look at the seal of Approval under Article 6 of the Paris Agreement. For Zimbabwe to have achieved this it means the country is better placed to attract critical investments towards it is carbon markets.” Giordano-Terraviva General Manager, Mr Felix Mechnig said.
Across the globe, carbon credit trading is now being utilised as a critical mitigation tool against climate change.
Reforestation becomes a vital avenue for companies to earn their credits.
