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New Zimbabwe Regulations Disrupt World’s Second Biggest Carbon Credit Project
Carbon credit schemes have become popular ways for businesses to offset their emissions
Based in Zimbabwe, Kariba REDD+ is a large forest protection project designed to conserve 785,000 hectares (1.94 million acres) of woodland. Kariba REDD+ is a major beneficiary of carbon credits, as global companies fund projects that claim to remove carbon from the atmosphere to offset the business’ own emissions.
Kariba REDD is led by Carbon Green Africa, a Zimbabwean firm, and South Pole, a Swiss company that has become the world’s leading offset sellers. The 30-year project has generated over $112 million in revenue from 30 million carbon credit sales since it started in 2011, South Pole shared in January.
But the Zimbabwe government recently declared it wants a larger cut of all carbon credit revenue. Under Kariba REDD+ current arrangement, around 50% of revenue goes to Zimbabwean communities and local partners, South Pole said.
Under the new government stipulations introduced in May, 50% of carbon trade revenue will go to the national treasury while the central government blocks regional authorities from independently pursuing new green projects. The policy further caps carbon credit earnings by foreign companies, namely South Pole, at 30%.
The government order invalidates previous agreements with green companies in the country. Following the new policy, Kariba REDD+ backers have suspended their operations in the country, Bloomberg reports.
The global carbon trade is valued at nearly $1 trillion and could more than double to $2.7 trillion as more countries accelerate efforts to control global warming. Although Zimbabwe’s lawmakers are yet to sign the new order into law, it could cool global efforts to offset carbon.
The country’s Attorney General is spearheading efforts to address the legal framework for the new regulation, Bloomberg reported. The government is optimistic that the policy could come into effect soon.
“[T]here was a workshop to discuss the issue this week,” Mangaliso Ndlovu, Zimbabwe’s environment minister, said in an interview with Bloomberg. “If all goes well, maybe by Friday this week the regulations will be gazetted.”
Kariba REDD+ did not immediately respond to The Messenger's request for comment.
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