How Tanzania plans to benefit from carbon credit business
- Apart from protecting nature and the environment and addressing the challenge of climate change, the project will also generate financial and economic benefits for the local communities by selling carbon credits on the international voluntary carbon market.
Dar es Salaam. Tanzania yesterday started a journey aimed at reaping financial benefits from the carbon credit business following the signing of the Memorandum of Understanding (MoU) between the government and a foreign investor.
The MoU was entered into by the Tanzania Wildlife Management Authority (Tawa) and a Singapore-registered company, GreenCop Development PTE. Limited.
The signing aims at creating Tanzania’s largest carbon offset project through conservation and restoration of the Selous, Msanjesi and Kilombero Game Reserve ecosystems.
During the one to two years of the MoU, a feasibility study and the business document would be prepared for the actual implementation of the project.
Tawa conservation commissioner Mabula Nyanda told a press conference here that during that period, investors will provide $3.6 million, which is equivalent to Sh8.4 billion.
“The amount will be disbursed for maintaining the safety of the game reserves and natural resources and heightening community engagement. Disbursement is expected to be made even before the commencement of the feasibility study and preparation of business documents,” he said.
Mr Nyanda said the extent to which the country would benefit depends on the outcome of the feasibility study and the prepared business document, whose conclusion will pave the way for the signing of the project implementation contract.
He disclosed that there were many companies that had applied for similar projects, noting that at present they were in a better position to sign the MoU with GreenCop Development Limited.
Greencop Development PTE Ltd. chief executive director Jean-Jacques Coppée said the voluntary carbon offset project will implement measures to avoid greenhouse gas emissions and sequester carbon from the atmosphere on a territory covering 2.4 million hectares in southern Tanzania.
“The MoU represents the first and largest carbon offset project in Africa. The size and importance amplify Tanzania’s potential in forestry and wildlife conservation,” he said.
Apart from protecting nature and the environment and addressing the challenge of climate change, the project will also generate financial and economic benefits for the local communities by selling carbon credits on the international voluntary carbon market.
The ministry of Natural Resources and Tourism Permanent Secretary (PS), Dr Hassan Abbas said during the event that the MoU would provide experience to the government in executing such projects in future.
“We would like to reassure Tawa and investors of our commitment to address challenges encountered during the implementation of sections of the MoU,” he said.
Furthermore, he said forestry has attracted many investors since the launch of the Royal Tour documentary.
High-quality carbon credits are generated through conservation, restoration, and improved management of Tanzania’s forests and other natural resources.
The sale of such credits will generate additional financing to support sustainable development locally.
The project’s responsiveness to the needs and concerns of local communities, who will participate in its design and implementation, is critical to its success.