Carbon trade to earn govt 10bn/-, strengthen climate financing

DAR ES SALAAM: TANZANIA is expected to earn more than 10bn/- from carbon trading after the government approved four projects that will sell 4.2 million verified carbon credits in the regulated international market, a move expected to strengthen climate financing and support sustainable development efforts.

The Minister of State in the Vice-President’s Office (Union and Environment), Engineer Hamad Yussuf Masauni, announced the development yesterday during a press briefing in Dar es Salaam, saying the approved projects will contribute to environmental conservation while creating economic opportunities for Tanzanians.

He said the projects approved include a clean cooking energy project implemented by Burn Manufacturing, a social impact programme managed by AP Energy Group in collaboration with Sayari SA Limited, a clean water project implemented by Water Mission International Tanzania and an improved cookstoves project implemented by Bridge Carbon Tanzania Limited.

“These projects will contribute to reducing greenhouse gas emissions through the use of clean cooking energy, improving access to clean and safe water, creating employment opportunities and supporting the government’s target of ensuring that 85 per cent of Tanzanians use clean cooking energy by 2034,” Eng Masauni said.

The minister explained that the expected revenue will come from the government’s eight per cent share of carbon credit sales as provided under the Carbon Trading Management Regulations.

He said the 4.2 million verified carbon credits have a market value of more than 52.1 million US dollars, equivalent to approximately 135.5bn/-, with the government expected to receive more than two million US dollars, or over 10bn/-, from the transactions.

“These funds are a result of the government’s efforts to build a strong carbon trading system that protects national interests and increases the contribution of this sector to the economy,” he said.

Eng Masauni said the government has continued strengthening legal, policy and institutional frameworks to ensure carbon trading is conducted transparently, efficiently and in a way that benefits Tanzanians.

He said through amendments to the Environmental Management Act, Cap. 191, the government established the National Carbon Market Centre (NCMC), which is responsible for coordinating carbon trading activities, including project registration, monitoring, verification, reporting and coordination of revenues generated from the sector.

“The establishment of the National Carbon Market Centre has strengthened the management of carbon trading by ensuring projects undergo proper registration, monitoring and verification before approval,” Eng Masauni said.

According to the minister, by July this year, the NCMC had registered 117 carbon trading projects, while the National Project Assessment Committee continued conducting technical assessments before advising the government on projects that meet approval requirements.

He added that the government will continue evaluating more projects in sectors including water, biodiversity, transport and electric mobility to expand opportunities in carbon trading and enable Tanzania to benefit further from the global carbon market.

Among the approved initiatives, the clean water project is expected to provide significant social and economic benefits as it will be implemented across all 26 regions of mainland Tanzania.

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Eng Masauni said the project will create employment for 1,000 Tanzanians directly and provide opportunities for more than 100 distributors involved in supplying the required services.

He added that water projects in Kigoma and Dodoma regions will support efforts to improve access to safe and clean water, benefiting more than one million households and creating more than 350 jobs for Tanzanians.

“The government will continue ensuring that carbon trading contributes not only to environmental protection but also to improving livelihoods, creating jobs and strengthening Tanzania’s participation in the global carbon market,” he said.

The minister said the initiatives demonstrate how carbon trading can serve as a source of climate finance while supporting Tanzania’s broader economic and environmental goals.