Government gazettes carbon credits trading regulations

GOVERNMENT has gazetted the Carbon Credits Trading Regulations whose objective is to provide for the control and management of carbon credit trading projects in the country.

The regulations provide for the legal framework necessary for ensuring sustainable development and account for the country’s contribution towards global efforts to reduce or remove greenhouse gas emissions.

The regulations shall apply to all carbon credit trading projects in Zimbabwe.

The regulations also provide for the legal framework necessary for ensuring sustainable development and account for the country’s contribution towards global efforts to reduce or remove greenhouse gas emissions.

The Government developed a Carbon Credit Framework to promote, institutionalise and regulate the trade in carbon on both compliance market under the Paris Agreement on Climate Change and Voluntary Market governed by independent bodies.

Climate-change

Carbon credits refer to the mechanism in which companies, governments and individuals make payments to enable others to reduce greenhouse gas emissions on their behalf, thus allowing them to receive recognition for their contribution towards climate action.

Zimbabwe is ranked number 12 among countries that trade in carbon credits in the world and the Government, together with climate players, is fighting to conserve forests and allow the participation of local communities and traditional leaders who have indigenous knowledge systems and local conservation strategies, which have proved effective.

According to the statutory instrument, a Designated National Authority shall be established within the Climate Change Management Department and the main functions of the Authority shall be to provide technical advice to the minister on carbon credit trading projects and also prepare reports for the Minister in compliance with national and international reporting requirements.

The Designated National Authority shall also promote, build capacity and raise awareness on carbon credit trading, establish and maintain the Zimbabwe Carbon Credit Registry and link the registry to the Convention and regional registries and also ensure that all carbon trading projects operating in Zimbabwe are registered.

The statutory instrument further states that all existing carbon credit projects deemed null and void shall be given 60 days from the gazetting of the regulations to comply with the provisions of section 8.

A central registry and repository of all carbon trading information in both the compliance and voluntary markets by the Authority known as the Zimbabwe Carbon Credit Registry will be set up.

The registry shall record all carbon credits and registration certificates of projects implemented in Zimbabwe and register transfers of carbon credits and the associated seller and buyer information, including the carbon credit prices.

Added to that, the Registry shall also facilitate the tracking of each carbon credit until retirement and apply corresponding adjustments where applicable, to Zimbabwe’s National Greenhouse Gas Inventory.

Greenhouse

Incomes from the carbon credit will be deposited into the National Climate Fund and channelled towards funding of climate-friendly projects.

Revenue to local investors has been capped at 30 percent while foreign investors will be entitled to at least two percent.

The Government nullified all offset programmes and gave producers of the securities two months to comply with new rules including handing over half of their revenue.

Share of proceeds for carbon projects are also spelt out.

For instance, for the first ten years of the project 70 percent shall be retained by the Project Proponent and 30 percent shall constitute an Environmental Levy to be deposited in the Environment Fund.-chronicles