By Benardetta Mia:
Malawi has generated K150 million through carbon trading, having leveraged projects under the Green Development Mechanism and the Reducing Emissions from Deforestation and Degradation in Developing (REDD+) initiative.
This is according to information from the Ministry of Natural Resources and Climate Change.
Principal Secretary Natural Resources and Climate Change Yusuf Mkungula said in an interview on Monday that the government had finalised the Malawi Carbon Regulatory Framework, a legislation designed to facilitate the implementation of carbon trading projects in the country.
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“Just last week, we finalised the validation of the framework with various experts, including those from the Carbon Market Initiative, which was launched by President Lazarus Chakwera last year,” Mkungula said.
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He further disclosed that the ministry had received about 38 expressions of interest for various carbon projects from investors, some of which have already received letters of no objection to proceed with developing project documents.
Over the past five years, Malawi has been implementing green development mechanisms to promote sustainable utilisation of natural resources.
This, according to Mkungula, has resulted in the generation of 1.5 million carbon credits, of which 75,000 have been sold, raising approximately K150 million for the government.
REDD+ is a United Nations (UN)-led climate action framework which encourages countries to establish forest protection initiatives as part of the UNFCCC Paris Agreement.
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It is aimed at limiting global surface temperature rise to below 1.5°C.
Malawi has been implementing the REDD+ programme since 2012 to mitigate the impacts of climate change, as the country’s economy heavily relies on rain-fed agriculture, making it vulnerable to climate change risks.
In 2023, the government launched the Carbon Market Initiative, aiming to generate annual revenue of approximately $600 million (equivalent to K1.4 trillion).
The initiative seeks to capitalise on the country’s estimated 19.9 metric tonnes of carbon stocks by utilising forest reserves and other land resources.
Meanwhile, Total Landcare is implementing a carbon project called Restore Africa in Mzimba District,
Total Landcare Project Manager Mphatso Thawe, urged the government to expedite the implementation of relevant policies and regulations, including the Malawi Carbon Regulatory Framework.
“By planting trees and taking care of existing ones and other nature-based resources, landowners earn credits for the carbon stored on their property. These credits are purchased by corporations to offset their emissions,” Thawe said.
During CoP27 in Egypt in 2022, President Lazarus Chakwera highlighted Malawi’s potential to meet its climate change financing needs through carbon trading, with a capacity to raise over $100 million from carbon credits toward climate change financing.
Carbon markets allow for the trading of carbon credits, and these credits enable companies or individuals to offset their greenhouse gas emissions by purchasing them from entities that are involved in activities meant to remove or reduce emissions.
