https://en.sputniknews.africa/20230716/tanzania-pulls-in-over-20-bln-from-numerous-companies-eager-to-invest-in-carbon-offsets-1060564369.html
Tanzania Pulls in Over $20 Bln From Numerous Companies Eager to Invest in Carbon Offsets
Tanzania Pulls in Over $20 Bln From Numerous Companies Eager to Invest in Carbon Offsets
Sputnik Africa
Lately, African countries have been working together to establish shared standards and guidelines for accessing the carbon credit market. This collective... 16.07.2023, Sputnik Africa
2023-07-16T14:57+0200
2023-07-16T14:57+0200
2023-07-16T14:57+0200
sub-saharan africa
east africa
tanzania
gas
carbon
malawi
zambia
zimbabwe
kenya
carbon credits
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The business of producing and selling carbon offsets is gaining momentum in Tanzania, with the government successfully attracting more than 20 companies willing to pour in over $20 billion (equivalent to Sh46.9 trillion) into this venture. Dr. Selemani Jafo, Minister of State in the Vice President's Office (Union and Environment), highlighted that the adoption of regulations and guidelines on carbon trading in October has brought in significant investments, exceeding $1 billion (equivalent to Sh2.3 trillion) annually.This investment will be mobilized through carbon trading activities throughout the country, he said. The growing interest in carbon trading signifies the increasing recognition of the value of carbon offsets in mitigating climate change and offers economic opportunities for Tanzania.Jafo made these remarks during the High-Level Inter-Ministerial Dialogue on Carbon Trading in Tanzania, an event organized by the Tanzania Private Sector Foundation (TPSF).Local media outlets say that Tanzania finds itself on the cusp of an exciting phase, where carbon offsets have the potential to generate substantial advantages for the environment, local communities, and the national economy. In the market, one carbon offset is equivalent to one metric ton of carbon or other greenhouse gas (GHG). These offsets are currently being sold at a rate of $65 (approximately Sh152,100).According to Dr. Jafo, carbon trading will help the nation's Nationally Determined Contributions (NDCs), which aim to reduce GHG emissions by 30-35 % by 2030.Carbon credits are valuable financial instruments that can be bought or sold, representing a reduction in carbon gas emissions. These credits are certified by either governments or independent certification bodies.Because businesses and governments are looking for solutions to reduce their emissions, the market for carbon credits has expanded quickly in recent years. The credits are produced through initiatives like reforestation or renewable energy that minimize greenhouse gas emissions. In May, Zimbabwe, the third-largest credit generator in Africa, which accounts for 13% of the continent's output, caused a stir by requiring that 50% of offset sales go to the government's coffers.Recently, Collins Nzovu, Zambia's Minister of Green Economy and Environment, suggested that his nation, being the fifth-largest supplier of carbon credits, should follow in Zimbabwe's footsteps.Furthermore, on July 7, former South African president and current board member of the Belarus African Foreign Trade Association, Jacob Zuma, declared that the group would list the first carbon credits on a recently established exchange in Zimbabwe. Zuma said that the Belarus-African association has earmarked 2 million carbon credits to begin trading on the Africa Voluntary Carbon Credits Market at a symposium on carbon credits in Zimbabwe's Victoria Falls.Moreover, according to reports, Kenya, the largest producer of carbon credits in Africa, is taking steps to regulate its carbon credit market, while Malawi has established a specialized agency.
https://en.sputniknews.africa/20230704/1060344206.html
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east africa, tanzania, gas, carbon, malawi, zambia, zimbabwe, kenya, carbon credits
east africa, tanzania, gas, carbon, malawi, zambia, zimbabwe, kenya, carbon credits
Tanzania Pulls in Over $20 Bln From Numerous Companies Eager to Invest in Carbon Offsets
Lately, African countries have been working together to establish shared standards and guidelines for accessing the carbon credit market. This collective effort aims to create a unified framework that enables African nations to tap into this market and potentially secure additional funding for their climate action plans.
The business of producing and selling carbon offsets is gaining momentum in Tanzania, with the government successfully attracting more than 20 companies willing to pour in over $20 billion (equivalent to Sh46.9 trillion) into this venture.
Dr. Selemani Jafo, Minister of State in the Vice President's Office (Union and Environment), highlighted that the adoption of regulations and guidelines on carbon trading in October has brought in significant investments, exceeding $1 billion (equivalent to Sh2.3 trillion) annually.
This investment will be mobilized through carbon trading activities throughout the country, he said. The growing interest in carbon trading signifies the increasing recognition of the value of carbon offsets in mitigating climate change and offers economic opportunities for Tanzania.
Jafo made these remarks during the High-Level Inter-Ministerial Dialogue on Carbon Trading in Tanzania, an event organized by the Tanzania Private Sector Foundation (TPSF).
Local media outlets say that Tanzania finds itself on the cusp of an exciting phase, where carbon offsets have the potential to generate substantial advantages for the environment, local communities, and the national economy. In the market, one carbon offset is equivalent to one metric ton of carbon or other greenhouse gas (GHG). These offsets are currently being sold at a rate of $65 (approximately Sh152,100).
According to Dr. Jafo, carbon trading will help the nation's Nationally Determined Contributions (NDCs), which aim to reduce GHG emissions by 30-35 % by 2030.
"We need to establish further cooperation between Tanzania and carbon credit investors and partners for our economy and future generations," Jafo stated. "We are committed to supporting all investors and stakeholders in carbon trading in our country."
Carbon credits are valuable financial instruments that can be bought or sold, representing a reduction in carbon gas emissions. These credits are certified by either governments or independent certification bodies.
Because businesses and governments are looking for solutions to reduce their emissions, the market for carbon credits has expanded quickly in recent years.
The credits are produced through initiatives like reforestation or renewable energy that minimize greenhouse gas emissions.
In May, Zimbabwe, the third-largest credit generator in Africa, which accounts for 13% of the continent's output,
caused a stir by requiring that 50% of offset sales go to the government's coffers.
Recently, Collins Nzovu, Zambia's Minister of Green Economy and Environment, suggested that his nation, being the fifth-largest supplier of carbon credits, should follow in Zimbabwe's footsteps.
Furthermore, on July 7, former South African president and current board member of the Belarus African Foreign Trade Association, Jacob Zuma,
declared that the group would list the first carbon credits on a recently established exchange in Zimbabwe.
Zuma said that the Belarus-African association has earmarked 2 million carbon credits to begin trading on the Africa Voluntary Carbon Credits Market at a symposium on carbon credits in Zimbabwe's Victoria Falls.
"I have the memorandum of intent of these carbon offsets, which have been certified and validated," the former South African president said. "This is our pledge to kick-start the process."
Moreover, according to reports, Kenya, the largest producer of carbon credits in Africa, is taking steps to regulate its carbon credit market, while Malawi has established a specialized agency.
