By Alick Ponje in Belem, Brazil:
Malawi, a country that relies heavily on imports, could generate significant foreign currency through carbon credits by selling verified reductions in deforestation and tree planting to international buyers.
This is according to Leslie Durshinger, founder, chief executive officer of California-based Terra Global Capital, a firm dedicated to funding nature-based climate solutions.
Durshinger spoke at a side session she held at the ongoing 30th edition of the United Nations Climate Change Conference (COP30) in Belem, Brazil.
COP30 was designed to be the Implementation COP, according to its presidency Brazil “and week one delivered.”
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Durshinger has been personally involved in Malawi since 2009 through the ‘Kulera’ (nurturing) Reducing Emissions from Deforestation and Forest Degradation plus programme, the company’s longest-running initiative in the country.
“Malawi has far more need for imports than exports, which makes foreign currency extremely valuable,”
“When a carbon project in Malawi sells verified tons of carbon, that money comes in as foreign currency. It is an export product for the country,” Durshinger said.
Carbon credits are treated like any other commodity.
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When a company reduces emissions through verified environmental projects, it can sell the equivalent carbon reductions on the international market.
For Malawi, this means that nature-based projects like the Kulera Redd+ project can become a source of hard currency, paid in United States dollars or euros.
Durshinger said while formal economic analysis has yet to be completed, rough estimates suggest that well-managed projects could generate anywhere from $50 million to $200 million US dollars annually.
These figures depend on projects receiving government approval under Malawi’s new carbon framework, attracting private finance and successfully selling credits in the global market.
“The Kulera Redd+ programme is a working example. By reducing deforestation and increasing tree cover it generates verifiable carbon credits that international companies with decarbonisation commitments can purchase,” Durshinger said.
She added that such initiatives is a way for a way for climate action to also support economic development.
“It is not just about protecting forests, it is about creating a new source of revenue that can help the country import goods, stabilise the currency and invest in sustainable development,” she said.
While it appears small, an inflow of $200 million would be highly significant for Malawi’s heavily stretched forex reserves.
As of recently, the country’s reserves stood at around $570 million, meaning that such a sum would represent roughly 35 percent of the total.
Malawi’s reserves currently cover only about 2.3 to 2.4 months of imports, below the three-month threshold generally considered safe.
At the Brazil summit, Malawi also unveiled a groundbreaking initiative to strengthen its climate action and carbon market governance.
The launch of the Malawi Paris Agreement Implementation Platform, according to government officials, signals a new era of transparency, community participation and innovation in carbon trading.
The initiative, a collaboration between the Malawi government and the Green Economy Partnership (GEP), integrates artificial intelligence and blockchain technology to manage carbon credits, monitor emissions reductions and match climate projects with investors.
Officials say the platform will ensure sovereign oversight, prevent double counting and maintain national accounting integrity.
“Malawi is demonstrating that high-integrity carbon markets are possible and can be led from Africa.
“Climate finance must be transparent, community benefits guaranteed, and nature restored and respected,” Secretary for Natural Resources, Energy and Mining, Richard Pelekamoyo, said.
A flagship component of the initiative is the Namizimu Landscape Restoration Programme, in the Eastern Region of Mangochi, targeting 313 hectares of degraded forest.
The project combines ecosystem restoration, community agroforestry, watershed protection and sustainable livelihoods.
Once validated, it may generate Internationally Transferable Mitigation Outcomes under Article 6 of the Paris Agreement, which is about countries cooperating on emissions reductions through carbon trading with transparency and sustainability.
Community participation is central to the project. Local councils will oversee implementation, and a share of proceeds from carbon credit sales will go directly to communities, ensuring economic benefits alongside environmental gains.
“This is not just a carbon project. It is a national development initiative rooted in dignity, ownership and long-term stewardship,” GEP Managing Director Ivano Iannelli said.
Phase one of the platform covers 40,000 hectares and is expected to reduce around four million tons of carbon dioxide emissions, with plans to expand to 300,000 hectares and 12 million tons in future phases.
Malawi’s pilot project is being seen as a model for the Global South, combining technology, governance and community empowerment to create transparent and bankable carbon markets.
Officials hope it will inspire other countries to adopt similar approaches, ensuring that climate finance directly benefits both people and the planet.
PAIP is a blockchain and AI-powered platform that tracks emission reductions, issues carbon credits, ensures project transparency and facilitates investment matching.
The platform is aligned with Malawi’s nationally determined contributions and the requirements of Article 6 of the Paris Agreement.
This story was produced as part of the 2025 Climate Change Media Partnership, a journalism fellowship organised by Internews’ Earth Journalism Network and the Stanley Center for Peace and Security.
