Importance, advantages of carbon trading

FOR several months now, there have been complaints and different opinions from some Tanzanians regarding the signing of the MOU for the investment in forests conservation between the government of Tanzania and BLUE CARBON United Arab Emirates (BLUE CARBON UAE).

The accusation against the government is that it has supposedly sold all the country’s forests to the Arabs through Blue Carbon.

The reason that prompts some Tanzanians to be suspicious to the point of accusing and blaming the government is due to the lack of knowledge about this new type of business.

It is true that, this investment is something new in the eyes of many Tanzanians, although it is not something new in the country or in the world.

Therefore, there is pressing need to educate Tanzanians so that they understand and recognise this new type of carbon business and its benefits.

Basically, investment in preserving forests has many benefits, even so, before I explain those benefits; let me start by explaining why it is important for companies or the government to invest in forests.

It is important to understand that the main objectives of in vesting in forests are to preserve and maintain natural and non-natural forests so that they continue to create natural vegetation to enable trees and grass to absorb carbon dioxide while at the same time enabling them to breathe fresh air (Oxygen).

It is also important to understand that forests are important to our lives, they clean the air we breathe, filter the water we drink, prevent soil erosion and provide important protection against cli mate change.

In addition to these benefits, forests and grasses help to absorb polluted air and breathe fresh air that helps to reduce and compensate for the polluted air (CARBON DIOXIDE EMISSION) resulting from industrial smoke.

Why we need to preserve forests and plant trees in abundance, as I mentioned above, is because forests, grasses and other plants help absorb carbon dioxide and thus reducing air pollution and prevent erosion.

One of the resolutions of the Kyoto Protocol Article 2; requires all large companies that produce smoke that pollutes the atmosphere to compensate for that amount of smoke that comes from their factories.

For example, if a certain factory produces 1 tonne of greenhouse gases, the respective company must ensure that it reduces the greenhouse gas by compensating it with fresh air.

What this means is that all companies that pollute the air in large quantities due to dirty smoke are forced to find alternative ways to reduce that dirty air from the atmosphere.

There are many ways to reduce carbon dioxide.

First, it is by protecting forests and ensuring that trees are not cut or burned.

If the forests are preserved well, they help to absorb carbon dioxide but at the same time generate fresh air.

Secondly, is by planting new trees (reforestation), and third is by having other sources of renew able energy such as solar and wind power etc.

Due to Article 2 of the Kyoto Protocol, big polluters’ companies are prohibited to continue production without hav ing Carbon Credit Certification.

Carbon Credit Certification is given or obtained based on the measurement of the tonnage of greenhouse gases reduced from the atmosphere.

1 Carbon Credit Certificate is equal to 1 tonne of carbon dioxide (Co2) offset in the atmosphere.

Thus, measurements of car bon dioxide emissions reduced in the air are sold on the international carbon market and after the sale; a certificate called a carbon credit certificate is issued which is also sold to companies that produce large quantities of dirty smoke in the world.

It should also be understood that, in the world, there are companies specialising in this business of carbon trading.

Therefore, all the companies that are coming to invest in forests in the country are companies with high expertise and experience and have all the necessary permits to do that business.

Now let me explain why investing in forests is important and very profitable for the country and for Tanzanians in general.

First of all, it should be understood that investors do not go to conserve forests themselves; they bring their money and hand it over to the government through the relevant institutions responsible for maintaining and preserving forests such as TFS, TAWA, TANAPA etc.

But also, even if they preserve the forest themselves, they always use the people who are in the vicinity of the forests to do the work.

After they have invested, their main task is to measure the volume of tonnage of carbon dioxide absorbed from the atmosphere.

After conducting their measurements, they issue Car bon Credit Certification which is sold on the global Carbon mar ket or directly to the respective companies that produce large amounts of smoke in the world.

Secondly, the entire amount of money provided by the investor is for the preservation and maintenance of forests and is provided according to the budget prepared by the relevant institution.

Also, the invested money is for paying salaries, hiring workers and security guards, buying equipment such as cars, fuel, uniforms, armour, food and setting up security systems etc.

Thirdly, apart from creating jobs, the government uses the investor’s money to maintain and preserve forests instead of using its own money.

This is a very big benefit for the government because the money that would have been allocated for preserving forests is directed to other social activities.

Fourth; apart from the invested money, the government takes 70 per cent of the sale of the Carbon Credit Certificates that will be sold on the world’s Carbon markets or to relevant companies.

It should be noted that, 1 Carbon Credit Certification is sold at between 40 and 80 US dollars and each 1 hectare of forest can absorb an average of 10-73 tonnes of carbon dioxide per year depending on the type of trees or grasses.

It should also be noted that Tanzania has more than 40 mil lion hectares of natural and plantation forests.

Therefore, for the size of these hectares of forests we have, if we can invest in only 20 million hectares and if each hectare of forest can absorb carbon dioxide by an average of only 10 tonnes per year, and if 1 tonne of Carbon Credit can be sold at an average of 40 US dollars the government can get at least 5.6 billion US dollars annually from the 70 per cent deduction.

Thus, Tanzanians need to understand that forests are very profitable if the government decides to invest massively.

Investment in forests is one of the most important areas that can bring in more revenue for the nation than many other sectors.

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In addition, investing in forests has greater benefits for the country than the investors themselves because, firstly, the money brought by the investor goes directly to support forest conservation activities, secondly, it creates jobs and thirdly, the government gets additional money from the sale of Carbon Credit Certification.

But also, through such investment our forests continue to flourish and are well preserved.

Therefore, we need to support the efforts made by President Samia’s government to bring in investors to invest in forests to create jobs for Tanzanians and increase the government’s revenue collections.

But also, we need to ignore and reject the false information spread by people who do not like the development of our country.