The government of Zimbabwe will take control of the production of the country’s CO2 credits, saying that it will be entitled to half of the securities revenue, Bloomberg reported.
According to Monica Mutsvangwa, the country’s information minister, past deals signed with international agencies and organizations are now “null and void.” She added that local authorities are now prohibited from entering into CO2 credits agreements.
Other African governments, such as Gabon, also try to benefit directly from the CO2 credit trade. The country wants to be paid for preserving its tropical forests, which cover nine-tenths of its territory.
“The growth of the carbon market requires the establishment of institutions to facilitate Zimbabwe’s participation, regulate players and ensure commensurate benefits accrue to the nation,” Mutsvangwa said during a media briefing in the capital of Harare.
As part of the new framework, established by Finance Minister Mthuli Ncube, Zimbabwe’s treasury will be entitled to 50% of the credits revenue, foreign investors can earn as much as 30%, and local investors can earn at least 20%.
Other companies have also applied to establish CO2 credit-generating forestry programs, said Stephene Zingwena, acting director general at the state-owned Forestry Commission.
The new government policy is a step in the right direction, he also said, adding that it will provide the country with direction on CO2 credit management.
Zimbabwe’s finance minister Mthuli Ncube said there are many different activities that can potentially earn carbon credits, including more popular ones such as reforestation, as well as less readily-recognized ones such as green metals like lithium.
Zimbabwe intends to monitor all movement and sale of CO2 credits within the country, Mutsvangwa said. The country’s Ministry of Environment, Climate, Tourism and Hospitality through the climate change department will oversee the CO2 trading and set up a CO2 trade committee.