Story by ZBC Reporter
THE cancellation of more than 15 million carbon credits from Zimbabwe’s Kariba REDD+ project by Verra, the world’s largest voluntary carbon standard, has raised urgent questions about the stability of voluntary carbon markets and the imperative for Zimbabwe to establish its own national carbon registry.
For years, Zimbabwe has sought to monetise its vast forest and climate resources through carbon finance, with the Kariba project representing one of the country’s flagship initiatives. However, Verra’s unilateral action in September, voiding millions of credits it deemed “excess,” has exposed the fragility of investor rights in voluntary markets.
Investors, including corporate buyers and international funds, discovered that credits are contingent on private registry discretion, with no recourse to challenge cancellations or seek compensation.
“The Kariba case is a wake-up call,” said a Zimbabwe-based carbon market consultant. “Credits issued in voluntary schemes are not recognised as property under national law. Without a national registry and enforceable legal frameworks, investors are left entirely exposed to the decisions of private standards.”
Zimbabwe, like other developing countries, is now looking to Article 6 of the Paris Agreement to secure carbon revenue streams with legal certainty. Compliance credits under Article 6 known as internationally transferred mitigation outcomes (ITMOs) are issued and tracked under a national registry, with oversight mechanisms that protect both governments and investors.
By establishing a national carbon registry aligned with Article 6, Zimbabwe aims to ensure that: carbon credits have legally enforceable property rights; investors and developers have judicial or regulatory avenues for appeal in cases of cancellation; the issuance, transfer, and retirement of credits are transparent and auditable.
The Kariba incident underscores why this framework is essential. Without it, voluntary credits remain volatile instruments, vulnerable to registry discretion, opaque rules, and contractually imposed risk waivers.
Verra’s action may have been framed as a victory for environmental integrity, but it highlights a strategic opportunity for Zimbabwe: building a credible, legally defensible carbon market. A robust national registry would: Restore investor confidence in local projects, attracting private capital; Enable Zimbabwe to fully leverage its climate resources for sustainable development; Provide a template for integrating voluntary projects into the broader compliance market under Article 6.
Tatenda Chimusoro, Head of Clustered Agriculture and Industries at Mutapa Investment Fund, noted, “Investors are increasingly seeking carbon credits with defensible property rights. Zimbabwe’s move to implement a national registry is essential to stabilise the market and attract long-term finance for climate-resilient projects.”
The lesson from Kariba is clear: voluntary carbon credits, while valuable for climate mitigation, carry structural investment risks. For Zimbabwe, the path forward lies in national governance, legal recognition, and Article 6 compliance, ensuring that credits not only reduce emissions but also drive sustainable development and secure investor confidence.
