In a groundbreaking move, Tanzania is stepping into a new era of carbon trading, where the carbon market is not only seen as a tool to combat climate change but also as a source of significant benefits for the environment, local communities, and the national economy. The government’s initiative has already enticed more than 20 companies poised to invest over $20 billion, marking the carbon market as a lucrative business in the country.
Since the adoption of regulations and guidelines on carbon trading last October, the government has successfully attracted over $1 billion in investments annually through carbon trading across the nation. Dr. Selemani Jafo, the Minister of State in the Vice President’s Office (Union and Environment), emphasized the pivotal role carbon trading will play in achieving the country’s Nationally Determined Contributions (NDCs), targeting a 30-35 percent reduction in greenhouse gas emissions by 2030.
At the High-level Inter-Ministerial Dialogue on Carbon Trading in Tanzania, organized by the Tanzania Private Sector Foundation (TPSF), Dr. Jafo stressed the need for cooperation between Tanzania and carbon credit investors to benefit both the economy and future generations. Deputy Minister for Natural Resources and Tourism, Mary Masanja, revealed that over 20 companies from various countries, including Kenya, Russia, Singapore, the USA, and more, have expressed interest and are in talks to invest in Tanzania’s reserved forests, tree planting programs, and wildlife management areas.
With 48 million hectares of reserved forests, Tanzania presents a vast opportunity for carbon trade. The newly introduced carbon trade regulations aim to discourage deforestation, encouraging citizens to capitalize on the available potential. Raphael Maganga, Executive Director of TPSF, highlighted the unique opportunity for Tanzania to position itself strategically in the carbon market, leveraging its extensive forest coverage.
Maganga emphasized the importance of creating an attractive regulatory framework that doesn’t deter potential investors. Simplifying and streamlining regulations is key to positioning Tanzania as the most favorable destination for the nascent carbon industry. Nestory Kissima, Principal Investment Officer at the Tanzania Investment Centre (TIC), announced the government’s plans to prepare a special package for carbon trading, further underscoring the paramount importance of this transformative initiative.
As Tanzania embraces carbon trading, it not only combats climate change but also opens doors to innovative solutions, technological advancements, job creation, and economic growth. The private sector in Tanzania has a critical role to play in this transformative journey, and the time to act is now. The potential benefits for Tanzania’s environment, economy, and future generations are vast, marking a significant leap towards sustainable development.