The Tanzanian government has set its sights on registering carbon trade projects worth $1 billion (approximately Sh2.4 trillion) once the planned schemes are fully operational in the country. This announcement came from Dr. Selemani Jafo, the Minister of State in the Vice President’s Office responsible for Union and Environment, during a parliamentary session held recently.
Dr. Jafo revealed that by the end of December 2023, the government had received 35 applications for carbon trade projects, indicating a thriving interest in this sector. He emphasized that carbon trading has the potential to significantly contribute to Tanzania's economy in the near future.
Responding to questions from Buhigwe legislator Kavejuru Felix (CCM), who sought information on the economic impact of carbon trading and the government's strategy for marketing Tanzania's forests to companies involved in this trade, Dr. Jafo provided insights into the revenue generated from carbon trade projects between 2018 and 2022. During this period, Tanzania received Sh32 billion from various carbon credit projects implemented across different local councils.
Dr. Jafo underscored the importance of raising public awareness about carbon trading initiatives, mentioning engagements with regional and district commissioners, media campaigns, and participation in global events like COP28 in Dubai. He emphasized that carbon trading presents an opportunity for Tanzania to boost its revenue streams and contribute to global efforts in combating climate change.
In the carbon trading framework, payments are made after carbon credits, accumulated from forestry protection efforts, are sold to the voluntary carbon market. Certified carbon credits, generated by protecting forest reserves, are sold to investors, who then trade them on the voluntary carbon market. This process allows communities to access the global financial system while contributing to climate change mitigation efforts.
Tanzania's efforts in carbon trading align with global initiatives aimed at reducing emissions and addressing climate change challenges. The country introduced National Carbon Trading Guidelines in 2022 to regulate and guide stakeholders engaging in carbon trading projects.
With extreme weather conditions affecting various sectors such as agriculture, tourism, and public health, Tanzania recognizes the importance of mitigating climate change impacts. The recent signing of a deal for a large-scale land-based carbon credit project covering six national parks and spanning 1.8 million hectares underscores Tanzania's commitment to environmental conservation and sustainable development.
Carbon credits operate on the principle of offsetting carbon dioxide emissions, wherein organizations purchase credits equivalent to the amount of CO2 they emit. These funds are then allocated to carbon-lowering initiatives, contributing to global efforts to curb greenhouse gas emissions and mitigate climate change effects.