What you need to know:
- The minister of State in the Vice President’s Office responsible for Union and Environment, Dr Selemani Jafo, told the parliament yesterday that 35 applications for carbon trade projects were received by the end of December 2023.
Tanzania to register carbon trade projects worth $1 billion, boosting national revenue.
Minister Jafo unveils thriving carbon trade scene, eyes significant economic contribution.
Tanzania initiates public awareness campaigns to highlight the potential of carbon credits in the economy.
Tanzanian officials are currently engaged in efforts to maximize the country’s carbon trade market, with a focus on registering carbon trade projects worth $1 billion (approximately Sh2.4 trillion Tanzanian Shillings). This significant undertaking is poised to come into effect once the country completes the registration of its planned schemes. The investment into this market is expected to substantially boost Tanzania’s overall revenue.
The process of registering carbon trade projects involves various steps, including the identification of eligible projects, the assessment of their environmental impact and carbon reduction potential, and the verification of their compliance with international standards and regulations. Tanzanian authorities are working diligently to streamline this process to facilitate the timely implementation of carbon trade initiatives.
Once these projects are registered and operational, they will not only contribute to mitigating climate change by reducing greenhouse gas emissions but also serve as lucrative investment opportunities. The revenue generated from carbon trading will bolster Tanzania’s economy, providing additional funds for infrastructure development, social programs, and other priority areas.
Furthermore, the expansion of Tanzania’s carbon trade market is expected to attract both domestic and foreign investors, stimulating economic growth and creating employment opportunities in the process. By capitalizing on its natural resources and embracing sustainable practices, Tanzania is positioning itself as a key player in the global carbon market, contributing to both environmental preservation and economic prosperity.
Dr. Selamani Jafo, the Minister of State in the Vice President’s office disclosed to his fellow government officials that by the end of 2023, Tanzania received 35 applications for carbon trade projects, as seen in the Tanzanian newspaper, The Citizen.
“Carbon trade is so thriving in Tanzania that it will significantly contribute to the economy soon,” the minister said, responding to a question from a legislator.
The minister also went on to reveal that Tanzania had received Sh32 billion between 2018 and 2022 from the carbon trade projects implemented in different regions across the country.
“By December 31, 2023, we had received a total of 35 applications for different carbon credit projects. When the implementation of these projects starts, we expect to generate $1 billion, which will have a significant contribution to the national economy,” Dr. Selamani Jafo stated.
He revealed that the government has already initiated conversations with potential catalysts to the market including district commissioners and the media. These conversations are geared toward creating public awareness of the potential carbon credit has in propelling the East African nation’s economy.
“During the COP28 in Dubai, we also marketed our country for carbon trading among the companies involved in the trade. The positive responses we see today are the outcome of such global engagements,” the minister said.
Investors and business owners can trade carbon offsets and credits at the same time on what is referred to as a carbon market. This generates new market possibilities and lessens the environmental issue.
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