Zimbabwe gears up for carbon credit trading, with a 30% cut going to the state

Last year, Zimbabwe was rocked by a carbon credit scandal in Kariba worth more than R1.9 billion.
(JOHN WESSELS / AFP)

• Zimbabwe intends to have a system for carbon credit trading in place by the end of the year.
• The government will take 30% of carbon credit revenue for the first 10 years of all projects – not counting what investors must put into communities.
• One potential carbon credit venture is worth R28.5 billion.

Zimbabwe is putting the pieces in place for an ambitious leap into international carbon credit trading – this time with guaranteed accountability.

Last year, it was rocked by a carbon credit scandal in Kariba worth more than R1.9 billion, where money from the likes of Volkswagen, Nestlé, and Porsche was allegedly misappropriated.

But the country was rapidly setting up the institutional, technical, and legal arrangements for trade under Article 6 of the Paris Agreement, said Environment, Climate and Wildlife Minister Sithembiso Nyoni.

That includes a closely monitored carbon registry, and rules on measuring and verifying impact.

A Climate Change Management Bill would be enacted before the end of the year, she said.

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Under Zimbabwe’s rules, 30% of carbon credit revenue will go to the state for the first 10 years of any project. Developers must spend another quarter on community initiatives related to climate change and adaptation.

Last year, the government announced it had received 13 proposals from international partners that range from regenerative agriculture to waste and energy efficiency, that would qualify for carbon credits.

There was “enormous interest by existing project proponents and the international community in the opportunities offered by Zimbabwe”, said Nyoni.

The executive chairperson of the African Voluntary Carbon Credits Market Forum, Kwanele Hlabangana, said the move by Zimbabwe would place it on a trajectory towards net zero goal and sustainability targets. 

The country’s biggest potential carbon credit venture is a R28.5 billion joint venture with a Dubai-based company, Blue Carbon, which wants to protect and rehabilitate forests for carbon credits.

Blue Carbon entered a similar deal with Liberia in March last year.

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