The Tanganyika District Council in Katavi Region is gearing up to embrace carbon trading as a new revenue stream, with ambitious plans to generate over 60 billion Tanzanian shillings annually. Carbon trading, a rapidly growing practice globally aimed at reducing atmospheric emissions, is poised to become a significant source of income for the council.
Chairperson of the Tanganyika District Council, Mr. Hamad Mapengo, revealed during the weekend that the council is set to finalize a contract with Carbon Tanzania next month, with operations expected to commence next year. "Our goal is to generate more than 60 billion Tanzanian shillings annually from carbon trading starting from next year through our partnership with Carbon Tanzania," stated Mr. Mapengo.
Carbon Tanzania specializes in measuring carbon dioxide emissions and employs various methods, including forest protection and tree planting initiatives, to harness the economic value of forests. Mr. Mapengo expressed confidence in achieving the revenue target, citing ongoing efforts by the council to conserve and expand forest areas spanning a total of 748,871 hectares.
Providing a breakdown, Mr. Mapengo outlined the conservation efforts, including Tongwe West (365,088 hectares), Tongwe East (167,832 hectares), the forest corridor (124,000 hectares), and Nkamba forest (91,951 hectares). "We anticipate that once carbon trading operations commence, revenues exceeding 60 billion Tanzanian shillings will be realized. In addition to environmental conservation, carbon trading will bolster our revenue streams and support economic development," he affirmed.
Highlighting the potential for employment generation, Mr. Mapengo noted that carbon trading offers opportunities for youth engagement. Drawing inspiration from eight villages and three wards, which have earned over 22.5 billion Tanzanian shillings in the past four years through forest conservation, he emphasized the tangible benefits accruing from carbon trading initiatives.
With a population of 26,700, along with 4,000 family members from the designated villages, actively participating in forest conservation efforts covering a combined area of 216,944 hectares, significant economic gains are expected. "The council anticipates revenue collection of over TZS 9.9 billion in the 2024/25 financial year, and with the advent of lucrative carbon trading, revenue is projected to exceed 70 billion Tanzanian shillings by 2025/26," Mr. Mapengo projected.
Tanzania's introduction of the National Carbon Trading Guidelines in October 2022 has laid the groundwork for carbon trading initiatives, attracting international, regional, and national stakeholders. With approximately 48 million hectares of reserved forests, Tanzania presents ample opportunities for carbon trading ventures. Under this scheme, organizations purchase carbon credits accumulated from forestry protection efforts in the voluntary carbon market, contributing funds towards carbon-lowering initiatives. This approach aims to maintain or reduce overall carbon dioxide and pollutant emissions, fostering environmental sustainability.