Clean energy use gains traction, but challenges remain

Dar es Salaam. The government’s push for clean cooking initiatives through carbon projects is gaining traction, but experts warn of significant challenges hindering their widespread implementation.

In Tanzania, there are currently 42 carbon projects, according to the National Carbon Monitoring Centre (NCMC), of which only seven are for clean cooking.

Speaking during a high-level policy dialogue yesterday, Biodiversity Conservationist Dr Paulo Lyimo, said the clean cooking carbon projects currently serve just 1.5 million total households.

He said that while Tanzania’s mainland alone has 13.9 million households, according to the National Bureau of Statistics (NBS), there is still potential for over 12 million households to participate in the efficient cool stove carbon projects.

“With opportunity and a friendly policy environment, Tanzania invites the international and national community to invest in clean cooking projects that have multiple environmental and socio-economic benefits,” he said.

Dr Lyimo and other field experts and stakeholders have met to discuss ways to create an enabling environment for companies and enterprises in the clean cooking value chain to viably participate in carbon trading.

Carbon trading is the buying, selling, or transfer of verified or certified carbon emissions, reductions, and removals under recognised international carbon standards. CookFund Programme Manager and Senior Finance Specialist, Mr Imanuel Muro, said there is a need for concerted efforts to drive sustainability financing forward, specifically on carbon projects.

“It’s about creating a clear plan for getting indigenous answers. Thereby enabling domestic businesses to actively contribute to the evolution of clean cooking technologies,” he said.

The CookFund programme is implemented by the United Nations Capital Development Fund (UNCDF) and funded by the European Union.

Tanzania Private Sector Foundation’s (TPSF) policy analyst, Mr Lois Kassana, highlighted several challenges faced by carbon trading and financing carbon projects.

She noted that some projects lack the necessary technical expertise, rendering them non-bankable.

“This suggests a need for capacity-building efforts to enhance the technical know-how within the sector,” she said. Ms Kassana emphasised the importance of collaboration and partnerships in overcoming these challenges.

The private sector representative underscored the crucial role of government support in facilitating carbon projects. Government policies and incentives can significantly influence the viability and success of such initiatives, making it imperative for policymakers to provide an enabling environment for carbon trading and financing.

UpEnergy Tanzania operations manager Ms Jacqueline Ngulla, echoed similar sentiments regarding the challenges of carbon trading and financing.

Ms Ngulla highlighted the volatility and unpredictability of the carbon market, as well as the complexity of regulatory and compliance requirements.

“Upfront investment is a significant barrier for many stakeholders,” she said.

Ms Ngulla emphasised that the upfront investment required for carbon projects is often prohibitively expensive for many individuals and organisations, hindering their ability to participate in carbon trading and financing initiatives.