Strong leadership is necessary to reassess past decisions and strive for improved future market performance. This is currently unfolding in Tanzania, where the Government is undertaking a review of the October 2022 carbon trading regulation. The purpose of this review is to align the regulation with market realities and enhance the overall carbon market ecosystem.
Recently, I had the privilege of participating in the High-level Inter-Ministerial Dialogue on Carbon Trading in Tanzania, a well-attended event organized by the Tanzania Private Sector Foundation (TPSF). Distinguished attendees, both physically and virtually present, included key figures such as the Minister responsible for Environment and Carbon Trading Hon. Dr Seleman Jafo, the Deputy Minister responsible for natural resources Hon. Mary Masanja, the President’s Advisor on Environment and Climate Change Dr. Richard Muyungi, the Director of Environment Dr Andrew. M. Komba, and the Conservation Commissioner Dos Santos Silayo, among others.
The session yielded several significant insights, including:
- There are no plans to introduce new or any additional fees in forthcoming updated regulation for carbon projects within the country. Any other news contrary to this is purposefully misleading so take it with one ton equivalent of salt.
- The registration fee for projects can now be paid in full or in up to four installments within a year, providing flexibility to Developers.
- The Government responded to Developers concern on benefit sharing by clarifying benefit sharing for REDD+ projects will differ from other projects that necessitate upfront investments, such as Sustainable Technologies projects and others.
- The updated regulation will support all article 6 carbon market and non-market approaches, reflecting a comprehensive approach to carbon trading.
- Bilateral discussions are underway for an Article 6 Cooperative agreement, indicating a commitment to collaboration.
- The Government is open to cooperating with the private sector on Article 6, reinforcing the importance of public sector in addressing climate challenges.
Briefly, the ongoing review of Tanzania’s carbon trading regulation to be finalized by August, demonstrates the country’s dedication to adapting and optimizing its carbon market strategies. By fostering cooperation between the Government and the private sector and maintaining transparency in the regulatory process, Tanzania aims to foster a sustainable and thriving carbon market ecosystem that aligns with global climate goals.
Many thanks to Raphael Maganga?? Marc Baker Rehema Mbalamwezi Joy V. Kendi South Pole Eliakimu Zahabu
