CLIMATE change expert, Washington Zhakata, says the recently promulgated carbon credit trading regulations will ensure that the government takes on the central role in climate financing, ensuring transparency and fairness.
The government recently legislated Statutory Instrument (SI) 48 of 2025, which introduced holistic regulations to govern how carbon credit trading is conducted.
These regulations centre around mandatory deductions on all carbon credits issued or transferred within the Zimbabwe Carbon Registry to keep some of the generated funds from these instruments in the country.
Zimbabwe generated 31 293 689 carbon credits from 26 projects as of October 2024, according to the American-based Voluntary Registry Offsets Database.
Based on the average price per carbon credit, Zimbabwe generated at least US$204,34 million worth of these instruments, yet the government hardly made anything from this amount.
Zhakata, the Ministry of Environment, Climate and Wildlife’s climate change management director, told NewsDay Business that the government was going to be more diligent in the carbon credit trading space.
“We will go and do a due diligence exercise directly with the community to check whether they have been consulted and they are happy with the project, which is coming into their communities,” he said.
“So, government processes will take control and once government processes take control, I think we will just be implementing it and dealing with the programme, working on the transactions as per government laws.”
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According to the statutory instrument, 2% of the total credit volume will be allocated directly to the national buffer account to mitigate risks associated with reversals and over-crediting.
Thirty percent of the total credit volume will be directed to the national transaction account as payment for the share of proceeds, contributing to national climate finance.
Furthermore, 1% of all carbon credits issued will be automatically retired.
Zhakata said the ministry, the auditor general, the Reserve Bank of Zimbabwe and the accountant general would all be in the know as to what was happening with this carbon credit revenue as per the SI.
“These are the authorities that will be guiding and ensuring that there’s transparency in the implementation or usage of the funds that will be realised,” he said.
Carbon credit trading affords the government another opportunity to make cash, as it is currently “strapped for cash”.
Zhakata said that once the funds were within the government, to take them out, they would be very transparent and that it would not be easy for anyone to get their hands on this funding.
Once the funds are realised, they will be channelled to where they are supposed to go.
The push for transparency in carbon credit comes at a time when there is rampant corruption, which, according to official estimates, costs the nation nearly US$2 billion annually.
Africa Institute for Carbon Trading and Sustainability chief executive officer Kudakwashe Manyanga said that despite this great initiative, he was worried about exorbitant prices concerning fees.
“To ensure the success of this initiative, it’s crucial for the government to consider the impact of these fees and make necessary adjustments. The regulations alone may not combat climate change; a holistic legislative effort is needed to chart Zimbabwe’s climate change objectives,” Manyanga said.
“The tone of the legislation seems to be an emotional reaction focused on revenue collection more than the primary goal of addressing climate change impacts, especially to the most vulnerable groups. Hopefully, nationwide programmes will be done to unlock the legislation to communities from which most carbon credits are generated.”
