Dar es Salaam. Stakeholders from government, the private sector and development partners have highlighted Tanzania’s strong potential in carbon trading, urging closer collaboration and stronger policies to unlock the sector’s benefits for the economy and the environment.
The call was made during a policy dialogue convened by the United Nations Capital Development Fund (UNCDF) through the European Union-funded CookFund Programme, which promotes clean cooking solutions.
The meeting brought together representatives from the Ministry of Energy, the Vice President’s Office (Environment), the Ministry of Natural Resources and Tourism, the National Carbon Monitoring Centre (NCMC), carbon market experts, private sector actors and development partners.
Speaking during the dialogue in Dar es Salaam yesterday, UNCDF Senior Investment Officer Abraham Byamungu said Tanzania has significant potential to perform strongly in the global carbon trading market.
Carbon trading is a mechanism aimed at reducing greenhouse gas emissions by allowing organisations or countries to buy and sell carbon credits generated through activities such as energy efficiency improvements, forest conservation and the adoption of clean energy technologies.
Mr Byamungu said Tanzania’s national clean cooking strategy, which aims to enable 80 per cent of the population to transition to clean cooking solutions, alongside ongoing forest conservation efforts, provides a strong foundation for carbon market development.
The dialogue, held under the theme “Strengthening Regulatory Resilience and Investor Confidence in Carbon-Dependent Clean Cooking Models,” explored ways to create a favourable policy and investment environment for the sector.
Mr Byamungu said joint efforts between the government and the private sector are essential to unlock the full potential of carbon trading in Tanzania.
“Through cooperation and well-designed policies, Tanzania can create an enabling environment that allows the carbon market to grow and deliver greater benefits to the country,” he said.
He noted, however, that despite its potential, Tanzania still trails several regional peers in developing the sector.
Countries such as Rwanda have made notable progress due to strong policy frameworks, investor-friendly environments and clear strategies for carbon market development, he said.
Neighbouring Kenya has also advanced in the sector by actively engaging stakeholders and implementing supportive policies.
Nevertheless, Mr Byamungu said Tanzania’s vast land area and rich natural resources give it a competitive advantage.
About 34 per cent of the country’s land area is covered by forests and wildlife reserves, creating strong opportunities for carbon credit generation through reforestation and conservation projects.
A forestry officer from the Vice President’s Office, Lucas Jacob Sabida, said the dialogue was important as it allowed stakeholders to discuss how Tanzania could benefit from carbon trading, as seen in neighbouring countries.
Mr Sabida said the government is committed to supporting the sector’s growth through the National Carbon Monitoring Centre, which was established to coordinate carbon trading activities and develop relevant policies and regulations.
He said the centre is responsible for overseeing project registration and ensuring proper management of carbon trading initiatives.
“The government has already created a supportive environment for the growth of the carbon market through the establishment of the NCMC,” he said.
Mr Sabida also commended UNCDF for organising the dialogue, saying such platforms enable stakeholders to jointly explore ways to maximise the benefits of carbon trading.
“We believe that through cooperation between the government and the private sector, Tanzania can achieve significant success in carbon trading,” he said.
He added that the government is ready to review policies that may hinder the sector’s development in order to create a more favourable environment for investment.
