LILONGWE-(MaraviPost)-President Lazarus Chakwera Tonse Alliance government has been advised to properly understand methodologies, pricing on carbon market amid complex redeem proceeds.
Civil Society Network on Climate Change (CISONECC) National Coordinator Julius Ng’oma observes that despite Malawi’s interest in carbon trading the process is complex that the nation might not get anything in the end if not done properly and if we repeat same mistakes made when the country engaged in similar initiatives under the Kyoto protocol.
Ng’oma told The Maravi Post in responding to Chakwera’s launch of Malawi’s Carbon Markets Initiative (CMI) at Botanic Gardens in the capital Lilongwe on Friday, June 23, 2023 that the venture must be assessed in the short and medium term.
Chakwera told the nation that Malawi has potential to generate over US$600 million with close to 20 million metric tons of carbon per year.
The President added that Chakwera the nation has over one million hectares of designated forest reserves saying land under wildlife conservation reserves can be traded for carbon credits making Malawi’s potential for carbon trading so huge.
“Carbon trading is the buying and selling of carbon dioxide and it’s equivalent (Carbon trading is the buying and selling of the right to emit a tonne of CO2 or equivalent (CO2e). Involves planting and management trees and forests for the sake of offsetting carbon dioxide emissions in the atmosphere.
“The challenge with this initiative has also been the pricing of the carbon at international market and ways of determining the emissions offsets. The methodologies have proved to be complicated,” observes Ng’oma.
He added, “Carbon markets are important tools to reach global climate goals in the short and medium term. They are a way of mobilizing resources and help to reduce costs to allow countries transition to a low carbon pathways.
“It’s important to understand that emissions trading arrangements have been there since the Kyoto protocol era and Malawi attempted to be part of the initiative but encountered many challenges in the process”.
N’goma observes further, “Projects under the initiative have failed before and hence we need to trade carefully. The carbon markets recently established under article 6 of the Paris agreement will also need to be well understood by countries before engaging into the processes and more particularly article 6.2. its pleasing to note that steering Committees and secretariat.
“The initiative is good when it is done properly with proper guidelines. Malawi has participated in the carbon trading initiatives before under the Kyoto protocol but the country never benefited much from the initiatives”
Advises Ng’oma, “There were a number of issues that needed to be properly understood regarding the market mechanism including pricing, methodologies for measurement of carbon etc which made it not easy for Malawi to participate.
“Carbon markets under the Paris Agreement requires adequate understanding and proper agreements to be negotiated between the different parties if we are to substantially benefit from the initiative”.
Malawi has the potential to earn carbon credits from the forestry, agriculture, energy, transport and waste management sectors.
However, one of the most pressing challenges currently facing Malawi is how to realise the benefits of carbon markets and climate financing in the country including providing the much-needed policy and regulatory frameworks.
Consequently, Cabinet established the Malawi Carbon Market Initiative (MCMI) to facilitate the change agenda towards optimising the opportunities for sustainable development through carbon markets and financing, for Malawians.
The MCMI is expected to mirror the African Carbon Markets Initiative (ACMI) which was launched at COP27 with the aim of dramatically scaling voluntary carbon markets across Africa.
