Tanzania eyes 10.8bn from four carbon trading projects worth 52.1m US dollars

DAR ES SALAAM: THE Tanzanian government has approved four carbon trading projects valued at over 52.1 million US dollars (about 135.5bn/-), with the State expected to earn about eight per cent of the proceeds equivalent to more than 4.2m  US dollars (about 10.8bn/-) from the sale of carbon credits on the international market.

The projects, which have been cleared under Tanzania’s carbon trading framework, are expected to generate 4.2 million tonnes of carbon credits (CO₂e) to be traded through Article 6 of the Paris Agreement, marking a major step in positioning the country as a leading player in Africa’s fast-growing carbon market.

This was announced earlier on Wednesday by the Minister of State in the Vice-President’s Office (Union and Environment), Engineer Hamad Yussuf Masauni in Dar es Salaam and where he outlined the government’s progress in regulating and expanding carbon trading in the country.

He further mentioned the approved projects are being implemented by Burn Manufacturing Company Ltd, UpEnergy Group and Sayari Safi Ltd, Water Mission International Tanzania, and Bridge Carbon TZ Co. Limited.

According to the minister, the projects focus on clean cooking energy, improved cookstoves and access to safe water.

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Elaborating, the minister stated that the initiatives will accelerate the implementation of the National Clean Cooking Energy Strategy by distributing more than 900,000 clean cookstoves, including electric stoves, to over 600,000 households in both rural and urban areas by 2034.

Additionally, he said that the nationwide clean water programme, to be implemented across all 26 regions, is expected to create about 1,000 direct jobs and business opportunities for more than 100 suppliers, while benefiting over one million households, particularly in Kigoma and Dodoma regions.

Engineer Masauni added that collectively the projects are projected to reduce greenhouse gas emissions by between one million and two million tonnes of CO₂ equivalent annually, contributing to environmental conservation, climate resilience and the implementation of the Tanzania Development Vision 2050.

He noted that the government has strengthened the legal and institutional framework governing carbon trading through the establishment of the National Carbon Monitoring Centre (NCMC) and improved regulations to ensure transparency, accountability and national benefit noting that by July this year, the centre had registered  a total of 117 carbon projects.

The minister said Tanzania is targeting to become one of Africa’s leading carbon trading destinations.

“The government is committed to positioning Tanzania as a leading nation in the African carbon market. Currently, the NCMC is reviewing and evaluating additional projects across sectors such as clean water, biochar, clean cooking energy, climate-resilient agriculture, land restoration, forestry, waste management, and electric vehicle infrastructure. Projects that meet the established criteria will continue to be issued with the necessary documentation and letters of authorization, in accordance with the regulations governing this trade,” he said.