Stakeholders see Tanzania’s strong potential in carbon trading

DAR ES SALAAM: STAKEHOLDERS have highlighted Tanzania’s strong potential in carbon trading, noting its vast forests, expanding clean energy initiatives and growing investor interest.

Stakeholders have pointed to Tanzania’s strong potential to benefit from carbon trading, citing the country’s vast forests, growing clean energy initiatives and increasing interest from investors.

The discussion emerged during a policy dialogue convened by the United Nations Capital Development Fund (UNCDF) through the CookFund Programme, which is funded by the European Union.

The meeting brought together key stakeholders including the Ministry of Energy, Vice- President’s Office (Union and Environment), Ministry of Natural Resources and Tourism Tanzania, National Carbon Monitoring Centre (NCMC), carbon market experts, private sector representatives and development partners.

Speaking during the dialogue held in Dar es Salaam yesterday, UNCDF Senior Investment Officer Abraham Byamungu said Tanzania has strong prospects in carbon trading due to its natural resources and expanding clean energy initiatives.

The dialogue, held under the theme “Strengthening Regulatory Resilience and Investor Confidence in CarbonDependent Clean Cooking Models,” focused on strategies to strengthen policies and attract investment in the carbon market.

Mr Byamungu said carbon trading offers opportunities to reduce global greenhouse gas emissions through initiatives such as energy efficiency, forest conservation and the promotion of clean cooking solutions.

He noted that the country’s national clean cooking strategy aims to enable 80 per cent of the population to transition to clean cooking energy by 2034, creating significant opportunities for carbon credit generation.

According to him, strong collaboration between the government and the private sector is essential to build a supportive policy and investment environment that will enable Tanzania to fully benefit from the sector.

Mr Byamungu pointed out that although Tanzania has significant potential, it still lags behind some regional countries such as Rwanda and Kenya, which have made notable progress due to supportive policies, preparedness and investor-friendly environments.

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However, he said that Tanzania could outperform many African countries given its large land area, ongoing clean cooking initiatives and the fact that about 34 per cent of the country’s land is covered by forests and wildlife reserves, providing strong opportunities for carbon trading through conservation and reforestation projects.

“To ensure that the country benefits from carbon trading, UNCDF is working to bring stakeholders together through knowledge-sharing platforms where experts can exchange experiences and provide guidance,” he said.

“Our goal is to create joint platforms where we can learn from other countries and strengthen our performance in the carbon market.”

Forestry Officer from the Vice -President’s Office, Mr Lucas Sabida said the dialogue is important in helping stakeholders explore how carbon trading can support national development, as seen in neighbouring countries.

He noted that the government, through the National Carbon Monitoring Centre, is committed to supporting the growth of the carbon market by developing laws, regulations and guidelines that will enable the country to benefit from the sector.

Mr Sabida said the centre plays a key role in coordinating carbon trading activities, including project registration and monitoring, to ensure transparency and national benefit.

“We commend UNCDF for organising such dialogues where stakeholders can jointly discuss how carbon trading can deliver positive results for the country,” he said.

He added that the government is also ready to review policies that may hinder the development of the sector in order to create a more favourable environment for carbon trading.