ENVIRONMENT, Climate, and Wildlife minister Sithembiso Nyoni recently unveiled the government’s plans to implement carbon credit projects.
These include drafting a Carbon Credit Framework, gazetting Statutory Instrument (SI) 150 of 2023, enacting a Climate Change Management Bill, and developing a carbon registry, verification guidelines, and an online portal for public and investor access.
What are carbon credits?
Carbon credits are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases (GHGs). One credit permits the emission of one tonne of carbon dioxide or its equivalent.
Companies or nations are allocated a certain number of credits and can trade them to balance total worldwide emissions.
Compliance market
In a compliance market, companies purchase carbon credits to meet regulatory requirements. If a company emits less than its cap, it can sell excess credits.
Conversely, if it exceeds the cap, it must buy additional credits.
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This system encourages companies to implement net-zero programmes to stay within emission limits, contributing to overall GHG reduction.
Voluntary market
On the voluntary market, companies and individuals purchase carbon credits to meet their own ESG pledges or shareholder demands. This market includes technology-based and nature-based solutions. Technology-based solutions increase industrial efficiency and promote renewable energy projects, such as windmills or direct carbon capture. Nature-based solutions involve reforestation and ecosystem restoration, such as wetland or mangrove restoration.
Potential in Zimbabwe
While technology-based solutions may be uncommon in Zimbabwe's rural areas, communities can realistically engage in nature-based solutions, particularly reforestation.
Landowners or communities can sell carbon credits by enrolling in reforestation or preservation projects that measure and pay for carbon stored.
Income from these credits can fund community development projects, such as water provision, clinics, schools, and crime reduction programmes.
Challenges and considerations
Despite the regulatory details provided by SI 150 of 2023, some aspects require further clarity, such as land ownership. The communal land tenure system's attractiveness to carbon credit investment and the willingness of companies to buy credits from land without title deeds need scrutiny.
Additionally, the determination of GHG emission caps for Zimbabwean companies should be transparent. For instance, the cap for Hwange Power Station, a significant emitter, might differ from that of Tanganda Tea, which regenerates tea plantations.
The upcoming Climate Change Management Bill is expected to address these issues.
Conclusion
The government aims to make Zimbabwe a leader in carbon credits trading by preparing the necessary legislative framework. Carbon credits, designed to reduce GHG emissions, can be traded in compliance and voluntary markets. In Zimbabwe, the general public can realistically participate through nature-based solutions like reforestation. Clarification on land tenure systems is crucial for supporting carbon credits trading.
If implemented successfully, carbon credits can reduce emissions and help achieve climate change targets set by the Paris Agreement.
- Jinga is a certified environment, social and governance analyst and senior lecturer at Bindura University of Science Education.— [email protected]
