By Business Insider Correspondent, Dodoma
Tanzania has registered a total of 82 carbon trading projects, with four already reaching full implementation, marking a significant step in the country’s efforts to monetise climate action while promoting sustainable development, the government has said.
The Minister of State in the Vice President’s Office (Union and Environment), Engineer Hamad Yussuf Massauni, said the projects are expected to generate new revenue streams, support environmental conservation and improve livelihoods in participating communities.
Mr. Massauni made the remarks in Dodoma on January 19, 2025, while presenting a briefing on the structure and responsibilities of the National Carbon Monitoring Centre (NCMC) to Parliament’s Standing Committee on Water and Environment, chaired by Jackson Kiswaga.
According to the minister, carbon trading projects are currently being implemented across several local government authorities, including Tanganyika, Kiteto, Karagwe, Uvinza and Mbulu districts, signalling growing decentralised participation in climate-linked investments.
Emerging economic opportunity
Carbon trading is a market-based mechanism that allows the buying and selling of carbon credits, each representing a verified reduction or removal of greenhouse gas emissions.
Carbon projects generate these credits by activities such as forest conservation, renewable energy adoption or improved land-use practices, which are then sold to companies or countries seeking to offset their emissions.
Globally, demand for carbon credits has risen sharply as governments and corporations race to meet net-zero commitments under the Paris Agreement, creating new opportunities for carbon-rich developing countries like Tanzania.
With vast forest reserves, agricultural land and renewable energy potential, Tanzania is increasingly viewed as a frontier market for voluntary carbon credits in Africa.
Environmental and socio-economic gains
Mr Massauni said carbon trading has already delivered tangible benefits, including restoration of natural vegetation, construction of social service infrastructure, and reductions in carbon emissions.
Beyond climate mitigation, the initiatives are contributing to broader economic and social objectives such as community development, policy innovation, technology transfer and green entrepreneurship.
“Carbon trading is not only about emissions reduction,” the minister said. “It also strengthens the economy, improves social welfare and promotes innovation across multiple sectors.”
Role of the National Carbon Monitoring Centre
The NCMC plays a central role in regulating and coordinating Tanzania’s carbon market. Its responsibilities include registering carbon projects, verifying and validating carbon credits and other greenhouse gases, and developing scientific guidelines to ensure international compliance.
The Centre also oversees the Measurement, Reporting and Verification (MRV) system, a critical requirement for credibility in international carbon markets, while building technical capacity among stakeholders.
To establish a carbon project in Tanzania, developers must submit a project concept note, prepare an initial project document, and develop a full project proposal aligned with recognised international standards. Approval must be obtained from the relevant authority before project activities commence, typically within two years of authorisation by the Minister responsible for the environment.
Carbon projects may be developed across a wide range of sectors, including energy, transport, forestry, waste management, industry, blue economy activities and agriculture. Common project types include forest conservation, tree planting, clean energy solutions, climate-smart technologies and environmentally friendly transport systems.
Africa currently accounts for a small share of the global carbon market, but analysts say countries with strong regulatory frameworks stand to attract climate finance, ESG-focused investors and development partners.
Tanzania’s expanding registry of carbon projects comes as several African nations move to formalise carbon trading rules to avoid unregulated credit sales and ensure fair benefit-sharing with local communities.
By strengthening oversight through the NCMC, Tanzania is seeking to balance investment attractiveness with environmental integrity, positioning carbon trading as both a climate solution and a long-term economic opportunity. As global demand for carbon offsets continues to grow, Tanzania’s early investments in regulation and project development could place the country among East Africa’s leading players in climate-linked finance.
