Tanzania entered into the lucrative carbon trade by signing a deal to create Africa’s largest and highest integrity carbon offset project.
The Memorandum of Understanding (MOU) entered between the Tanzania Wildlife Management Authority (TAWA) and GreenCop Development PTE, Ltd., a Singapore-registered company, will develop the carbon-offset project as they seek to hook a share of the carbon credit billions to bankroll conservation of a territory covering 2.4 million hectares in Southern Tanzania.
The voluntary carbon offset project that promises substantial new green jobs and multi-million-dollar in revenue will implement measures to avoid greenhouse gas emissions and sequester carbon from the atmosphere on the globally renowned ecosystem comprising Selous, Msanjeni, and Kilombero game reserves.
“The partners in this MOU are joined by a shared vision to secure the long-term financial viability of the Selous, Msanjesi, and Kilombero game reserves by protecting nature and addressing climate change, whilst generating financial and economic benefits for local community by selling carbon credits on the international voluntary carbon market,” said TAWA Conservation Commissioner, Mr. Mabula Nyanda, who signed on behalf of the government, while the GreenCop CEO, Mr. Jean-Jacques Coppee, signed for the investors.
High-quality carbon credits are generated through conservation, restoration, and improved management of Tanzania’s forests and other natural resources.
The project’s responsiveness to the needs and concerns of members of local communities, who will participate in its design and implementation, is critical to its success, reads part of the MOU document seen by eTurboNews.
The communities will directly benefit from the distribution of revenues generated by the sale of carbon credits in line with the applicable Tanzanian laws, regulations, and guidelines.
The project is also expected to stimulate the local economy by providing employment opportunities, funding educational and health initiatives, and developing the use of renewable energies as well as other social-economic programs.
This voluntary carbon offset project will contribute to achieving Tanzania’s international commitments under the Paris Agreement (Nationally Determined Contributions, NDC), and under the High Ambition Coalition’s 30×30 target (30% of land and sea protected areas by 2030).
The project also directly conforms to Tanzania’s National Environmental Master Plan for Strategic Interventions 2022-2032.
GreenCop Development aims to become a leader in the voluntary carbon credit market
The main purpose is to accelerate global transition to a de-carbonized economy by developing environmental assets, nature-based solutions, and register carbon removal projects using latest methodologies. It acts as a proponent for developments and funding opportunities promoting conservation of wildlife while generating economic opportunities for the local population.
The Selous Voluntary Carbon Offset Project has a symbolic significance since GreenCop Development’s management has worked to conserve the Selous game reserve alongside TAWA since 2004. GreenCop Development possesses a long-standing knowledge of the Selous and high expertise of wildlife conservation in the Selous and broader Tanzania.
To successfully design, finance, and develop the project, GreenCop Development has appointed Posaidon Capital AG, a leading global advisory firm on green finance, as its advisor in implementing the project and Tanzania Victory Attorneys and Consultants as a key local advisor. Posaidon Capital AG, a leading capital markets and asset management firm exclusively focused on advising and investing in natural capital is the technical advisor for the project’s development and implementation.
This MOU and the development of the Selous Voluntary Carbon Project (SVCP) to follow marks a significant development in Tanzania’s opportunity for responding in a holistic and strategic manner to challenges posed by climate change through nature conservation and sustainable development.
Dr. Hassan Abbas, the Permanent Secretary in the Ministry of Natural Resources and Tourism, witnessed the ceremony held on May 18, 2023, at the National College of Tourism in Dar es Salaam on behalf of the Minister, Mr. Mohamed Mchengerwa.
Also, in attendance at the ceremony from the government were the Chairman of TAWA Board of Directors, Major General (retired) Hamis Semfuko; Professor Eliakim Zahabu, Coordinator for National Carbon Monitoring Centre; and Professor Suzana Augustino, member of the TAWA Board of Directors.
Mr. Mchengerwa said in a speech read on his behalf by the Permanent Secretary:
“Tanzania stands a great opportunity for benefiting from the emerging carbon market.”
About 307,800 square kilometers – the equivalent of 32.5% – of the land area with wildlife, forests, and wetland resources the ministry mandated to protect, forms strata for carbon sequestration to reduce carbon from the atmosphere as well as global warming, he said.
“The resources attract investment in carbon trading as an international initiative to mitigate the impact of climate change,” the Minister explained.
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