By Memory Mudzani
There has been a growing concern over the imminent threat of global warming due to increased emission of carbon fuels into the atmosphere which has accelerated the effects of climate change resulting in countries coming together to devise mechanisms to deter heavy emitters of carbon and to incentivize actors who contribute to conservation of the environment through a system of carbon credits.
The International Energy Agency reported that in 2023, carbon emissions increased by 1.1 percent to reach a global record of 37.4 billion tones.
Africa is said to be responsible for just 4 percent of carbon emissions, according to the United Nations Framework Convention on Climate Change.
Zimfact recorded that in 2023, Zimbabwe took a significant step towards a greener and more sustainable future by introducing groundbreaking legislation, Statutory Instrument 150 of 2023, which regulates the thriving carbon credits trading industry.
The Minister responsible for Climate Change Management in terms of section 140(2) (c) of the Environmental Management Act, made regulations that are cited as the Carbon Credits Trading General Regulations 2023.
According to the Zimbabwe Forestry Commission, carbon credit trading is an effective mechanism that enables countries and organizations to offset their carbon emissions by investing in clean energy projects and initiatives.
A carbon credit is a permit which allows a country or organization to produce certain amount of carbon emissions, which can be traded if the full allowance is not used and they work like permission slips for emissions.
When a company buys a carbon credit, usually from the government, they gain permission to generate one tonne of CO2 emissions according to CarbonCredits.com.
Zimfact recorded that one carbon credit represents one tonne of Carbon dioxide or its equivalent (CO2e) gas that an organization can emit, the number of credits issued to a company corresponds to its emissions limit or cap set by a regulatory body and if a company does not go above its cap, it will have excess carbon credits which they can sell in the compliance carbon market regulated by the government.
If the company goes beyond the limit, it can turn to the carbon market to buy the required carbon credits that is over-emitters buy carbon credits from under-emitters.
