Climate policy expert, who is also a lecturer in disaster risk management at the Malawi University of Science and Technology (Must), Tamara Kamanga Nthara, has said Malawi has potential to generate between $220 and $440 million annually by tapping into the lucrative carbon trading market.
Carbon credits are certificates representing the reduction or removal of one metric tonne of carbon dioxide or equivalent greenhouse gases.
Countries or companies that reduce emissions can sell these credits to those who exceed their emission limits.
Nthara made a presentation titled ‘Climate Change Adaptation and Leveraging Carbon Trading for Resilience’ at the Economics Association of Malawi annual conference on Thursday.
She said Malawi’s vast forestry resources—currently standing at 2.2 million hectares—positioned the country advantageously in the global carbon credit market.
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“By capitalising on our forested areas and implementing strategic conservation measures, Malawi could generate up to $600 million annually from carbon credits.
“This approach would not only create new revenue streams but also promote environmental conservation and sustainable land management practices,” Nthara said.
On her part, Ecama President Bertha Bangara- Chikadza said there was a need for the government to take deliberate steps to enhance research and awareness on the matter.
“On issues of alternative financing for development, we noted [that] there were issues about carbon credits which have not been discussed more in the country. People just talk about them in passing but they do not understand what it means to claim for carbon, let alone to gain from them,” Chikadza said.
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The initiative comes at a critical time when developing countries face intensifying climate challenges.
Recently, Malawi generated K150 million through carbon trading.
