Communities benefit from carbon revenue

KIGALI: TANZANIA has established a revenue-sharing framework under which resource owners receive 61 per cent of earnings from forest carbon projects, as the government seeks to ensure carbon trading benefits communities and supports environmental conservation.

Minister of State in the Vice-President’s Office (Union and Environment), Hamad Masauni, outlined the arrangement during a ministerial and technical leaders’ meeting on the sidelines of the Africa Carbon Markets Forum 2026 in Kigali, Rwanda yesterday.

“Under the framework, resource owners receive 61 per cent of the revenue, project proponents 31 per cent and the government eight per cent,” he said.

Eng Masauni further said the arrangement promotes transparency and helps minimise disputes among investors, the government and communities participating in carbon projects.

He said strong legislation, accountable institutions, digital systems and fair benefitsharing mechanisms were essential to ensuring carbon trading delivered tangible results for citizens.

“Tanzania is ready to work with investors and African and international partners to develop high-integrity carbon projects that support environmental conservation and climate change mitigation,” he added.

Eng Masauni said carbon trading is part of the country’s efforts to meet its commitments under the Paris Agreement, including reducing greenhouse gas emissions by 30 to 35 per cent by 2030.

He also called for greater cooperation among African countries to establish a common carbon market framework that safeguards the continent’s interests and ensures citizens benefit from carbon trading.

At the opening of the twoday forum on Wednesday, Eng Masauni said Tanzania’s carbon market was gaining momentum, with six projects reaching the carbon credit generation stage.

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He said four mature projects had been approved at the latest meeting of the National Carbon Projects Assessment Committee.

The projects involve clean cooking energy and social benefits and are progressing towards generating verifiable carbon credits.

“The government has continued to strengthen the policy and institutional framework governing carbon trading to ensure projects deliver measurable environmental outcomes and benefits to communities,” he said.

Eng Masauni also said Tanzania had signed four letters of authorisation in August 2026 for carbon credits eligible for use outside the country, following assessments by the National Carbon Projects Assessment Committee.

He cited amendments to the Environmental Management Act in 2025 as part of efforts to strengthen oversight of the sector.

The National Carbon Monitoring Centre is responsible for project registration, monitoring and verification of results, and preventing double counting of carbon trading outcomes.

The forum brought together government leaders, investors, carbon credit buyers, project developers and development finance institutions from across Africa. It attracted more than 500 participants and over 150 organisations and government institutions.