As reported by Bloomberg, the Malawi Minister of Natural Resources and Climate Change, Hon. Michael Usi, expressed the government’s intent to strengthen control over carbon credits management by reviewing all offset deals made in the country.
Speaking at the Africa Voluntary Carbon Credits Market Forum held last week in Zimbabwe he shared that the suggested change follows the creation of a governmental regulatory agency announced in June by Malawian President Lazarus Chakwera. The new organization handles the monitoring of the trade and commercialization of offset services on the Malawi market.
The pressure for this change comes from the concern that local African communities and governmental infrastructure are not receiving optimal benefits from the offset industry.
To address this issue, Usi suggested that all carbon dioxide offset deals made prior to the emergence of the regulatory agency should now be reconsidered and modified to justly include local people and authorities.
Relevant: Malawi Launches Carbon Markets Initiative, Sees Huge Potential For Carbon Trading
Malawi is pursuing the example set out by Zimbabwe and Kenya, which are already working on renegotiating deals to include fair revenue for the government. In the case of Zimbabwe, the national authorities requested 50% of the gains from decarbonization deals made within the country.
When disclosing his idea, Minister Usi avoided stating a specific percentage to be allocated to the government, adding on the matter: “I do not want to commit to any percentage at this time, but we will go for the highest possible.”
The demand for CO2 offset services is on the rise as governments around the globe impose requirements on industries for preventing or removing harmful emissions generated by business operations.
As a result, more and more carbon-cutting solutions emerge, and the global trade in carbon offsets is projected to grow to as much as $1 trillion within the following decades.
Read more: First Africa Carbon Credits Forum Held This Week In Zimbabwe
