Why carbon trade opportunities still unexploited

TANZANIA: THE government has assured the public that it is creating conducive environment that encourages the public to establish investment projects on carbon trade.

Minister of State in the Vice-President’s Office (Union and Environment), Dr Selemani Jafo, issued an assurance on Friday in Parliament when responding to the question posed by Mbeya Rural legislator, Mr Oran Njeza (CCM).

The MP sought explanation from the government on opportunities brought about by carbon trade, including obstacles that prevent the country from actively and fully participating in the business.

According to Dr Jafo, awareness and understanding on the business among the public is still low, saying more efforts have to be made in sensitising Tanzanians on the matter.

He said there are plenty of benefits that carbon trade can bring to the nation, including conservation of biodiversity and increase of the country’s Gross Domestic Product (GDP). “Recently, various councils received money generated from carbon trade,” he said. However, he said, despite the benefits brought about by the trade, lack of, or low understanding of the business hampers the country from fully exploiting the opportunities.

According to the minister, lack of transparency on carbon trade in the global market also impedes growth of the business. He said despite the challenges, the government will continue creating favourable environment, including empowering stakeholders to establish projects surrounding carbon trade.

In an ongoing parliamentary meeting, some MPs, including Kilolo legislator, Mr Justine Nyamoga ( CCM) have asked the government to provide necessary support so that areas with vast tree plantations and natural forests so they participate in carbon trade. Katavi is currently cited a region that is performing well in carbon trade.

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Carbon trading, also known as carbon emissions trading or carbon market, is a mechanism that allows for the buying and selling of carbon credits, each representing a specific quantity of greenhouse gas emissions, under internationally recognised carbon standards.

The primary objective of carbon trading is to mitigate climate change by creating a financial incentive for organisations and countries to reduce their carbon emissions.

A carbon project is an initiative or activity that seeks to reduce or remove greenhouse gas emissions and generate carbon credits. These projects must adhere to recognised carbon standards and undergo rigorous validation and verification processes to ensure their emissions reductions are real and measurable.

Carbon projects can vary in scope and focus, including renewable energy installations, afforestation and reforestation, methane capture from landfills, and energy efficiency improvements