Tanganyika DC targets 60bn/- from carbon trading Peti Siyame KATAVI: TAN

 

GANYIKA District Council in Katavi Region is expecting to start carbon trading as a new source of revenue, targeting to earn over 60bn/- annually.

Carbon trading has been growing fast in various countries as one of measures for reducing emissions from the

atmosphere. The Tanganyika District Council Chairperson, Mr Hamad Mapengo said here at the weekend that the council would enter into a contract with Carbon Tanzania next month and the project will be operational next year.

“The council target is to collect more than 60bn/- every year from the carbon trading starting from next year after entering a deal with Carbon Tanzania,” he said.

Carbon Tanzania is a firm measuring the amount of carbon dioxide emissions produced in various ways, including protecting forests and planting new trees in specified precincts to realise the economic value of their forests. Mr Mapengo said he was optimistic that the target is achievable since the council is conserving and thickening four forest areas that measure 748,871 hectares.

Giving a breakdown, Mr Mapengo explained that the council is conserving Tongwe West which measures 365,088 hectares, Tongwe East 167,832 hectares, the forest corridor covering 124,000 hectares and Nkamba forest with 91,951 hectares.

“We hope that once this carbon trade scheme starts operations we will be collecting more than 60bn/-. Apart from protecting the environment, carbon trading will be another source of revenue. We believe carbon trading projects will support the conservation of forests while facilitating economic development,” he said.

He added that carbon trading is also another source of employment for the youth. He said the council has borrowed leaf from eight villages including three wards which in the past four years have earned more than 22.5bn/-.

The 26,700 population people with family members 4,000 from the aforementioned eight villages are benefiting handsomely from carbon trade by conserving a combined forests measure 216,944 hectares.

“The council estimates to collect over 9.9bn/- from its sources during the 2024/25 financial year so once we start benefiting from lucrative carbon trade it means that by 202526, the council will be collecting revenue of more than 70bn/-,” he said.

Increasingly, however, many countries are looking forward to setting up frameworks in which carbon trade is issued and traded.

In October 2022, Tanzania introduced the National Carbon Trading Guidelines aimed to guide international, regional and national stakeholders engaging in carbon trading projects.

Tanzania has a total of 48 million hectares of reserved forests, which is an opportunity for the carbon trade. In the carbon trade, payment is made after carbon credits accumulated from forestry protection have been sold to the voluntary carbon market.

The money paid by the organisation is meant to go towards carbon-lowering schemes, so for every tonne of carbon dioxide emitted, the credit presents a tone of carbon dioxide that was captured.

In this way, the overall amount of carbon dioxide and all other pollutants produced is supposed to stay the same or even lower.