Angela Normino
Tanzania is looking forward to carbon trading as a new source of government revenue, targeting to earn over 2.4 tri/- annually.
The government is now eyeing registering carbon trade projects worth $1 billion (about Sh2.4 trillion) once it completes the registration of the planned schemes in Tanzania.
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.
“Carbon trade is so thriving in Tanzania that it will significantly contribute to the economy soon,” said Dr Jafo, who was responding to a question from Buhigwe legislator Kavejuru Felix who had sought to know how much the carbon trade, which involves reserving forests, has contributed to the economy since the government adopted it.
Mr Felix also wanted to know the government’s strategy towards marketing some 580 forests available in Tanzania to the companies involved in the carbon trade.
Dr Jafo said the government received Sh32 billion between 2018 and 2022 from carbon trade projects implemented in different local councils.
“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 (Sh2.4 trillion), which will have a significant contribution to the national economy,” he said.
Carbon trading, which is still a new concept in the world as well as in Tanzania, has been growing fast in various countries.
While it intends to address climate change effects, carbon trading has also been a source of income for individuals, companies and governments, especially in developing countries where carbon emission is very minimal compared to developed countries.
The government believe carbon trading projects will support conservation of forests while facilitating economic development in the country. The move is a big boost to the country’s green economy which integrates the three pillars of economic growth, which are social welfare and environmental sustainability. It is the economy that pursues low carbon, resource efficient and socially inclusive pathways.
The opportunity for Tanzania to engage in carbon trading is through capacity building, hence he called for effective engagement of the private sector and non-governmental organizations in creating public awareness so that communities could participate in the carbon trading while protecting the environment through reducing carbon emissions.
This, will reduce greenhouse gas emissions economy-wide between 30- 35 per cent relative to the Business-As-Usual (BAU) scenario by 2030, whereby about 138 – 153 Million tonnes of carbon dioxide equivalent (MtCO2e)-gross emissions is expected to be reduced, depending on the baseline efficiency improvements, consistent with its sustainable development agenda.
Additional Source: Citizen
