As Zimbabwe leads the way in carbon trading regulation, concerns surrounding corruption and greenwashing loom large.
On 16 May, Zimbabwe’s carbon credit players were caught off guard when the government introduced mandatory regulations for the sub-sector, stipulating that 50 percent of the proceeds from the sale of carbon credits be allocated to government funds.
The announcement outlined the establishment of a comprehensive Carbon Credit Framework for Zimbabwe, which encompasses the creation of a National Carbon Credit Registry, the implementation of a National Climate Change Fund and the regulation of carbon credit agreements.
This makes the southern African nation the first country in the Global South to move in to regulate the controversial carbon offset market, after it announced the voiding of all existing agreements, giving players 60 days to align their activities to the new regulation.
Carbon credits refer to the mechanism in which companies, governments, and individuals make payments to enable others to reduce greenhouse gas emissions on their behalf, thus allowing them to receive recognition for their contribution towards climate action.
Move Meant To Empower Country, Communities
The government states the move is meant to curb greenwashing while ensuring real benefits to the nation and to local communities.
Up until now, the carbon credit projects operated by over 30 organisations in Zimbabwe remained largely unregulated, as their registration was limited to local councils and traditional community leaders. As a consequence, the government explains that there has been a lack of reliable data on the scale of the country’s carbon market. Environment and Tourism minister Mangaliso Ndlovu said that moving forward, all carbon projects in the country must be registered with the central government.
Under the new framework, the government of Zimbabwe will take 50 percent of all revenue from carbon projects, with foreign investors limited to 30 percent and the balance of 20 percent funneled to local communities.
“We are determined to make sure that climate finance resources, meant to empower the country, accrue to the most deserving,” Ndlovu said at the launch of the new carbon market policy in the capital, Harare. “We do not want instances