Tanzania, Djibouti agree to cooperate in carbon trading for aviation, maritime transport sectors

DODOMA: TANZANIA and Djibouti have initiated strategic discussions on cooperation in carbon trading, targeting the aviation and maritime transport sectors as part of efforts to tackle climate change and boost Africa’s green economy.

During the talks that brought together Tanzania’s National Carbon Monitoring Centre (NCMC) and Djibouti’s Africa Sovereign Carbon Registry (ASCR) Foundation, the focus was on developing mechanisms that require high-emitting industries, particularly airlines and shipping companies, to contribute directly to financing climate action projects across the continent.

Speaking during the discussions in Dodoma on Wednesday, the Permanent Secretary in the Vice President’s Office (Union and Environment), Dr Richard Muyungi, said Tanzania is keen to learn from Djibouti’s model.

The deputy Minister noted that Tanzania’s major ports, including Dar es Salaam and Tanga, as well as its international airports, could be integrated into such a system to strengthen regional collaboration.

“This partnership has the potential to position Tanzania as a regional hub for carbon trading in aviation and maritime transport,” he said.

Additionally, he said the initiative aims to ensure that revenues generated from carbon trading remain within Africa, while enhancing the continent’s role in global climate change mitigation efforts.

On his part, ASCR Secretary General Ambassador Ahmed Araita Ali said Djibouti has already introduced a carbon pricing system for vessels using its ports.

He said the system requires shipping companies to transparently report and pay for their carbon emissions in line with international standards.

Moreover, he said that revenues generated from the system are being used to finance clean energy projects, as well as forest and coastal conservation initiatives.

Ambassador Ali further underscored Djibouti’s commitment to encouraging other African countries, regional institutions, and development partners to collaborate in establishing a unified, transparent, and credible carbon market framework for the continent.

The National Carbon Monitoring Centre (NCMC) was established under Section 29 of the Environmental Management Act, Cap 191, as a strategic national institution responsible for coordinating carbon trading activities.

Carbon trading is an economic mechanism that allows the buying and selling of carbon credits, with the goal of reducing greenhouse gas emissions in the atmosphere.