LILONGWE-(MaraviPost)-The Malawi government has taken a significant step towards regulating the carbon credit market in the country.

Minister of Natural Resources and Climate Change, Owen Chomanika, has given unregistered carbon credit traders a 90-day ultimatum to register or face operational bans.

This move is part of the government’s efforts to ensure that the country benefits from the growing carbon credit market.

According to Chomanika, approximately 144 carbon credit projects are currently operating without registration in Malawi.

The launch of the Malawi Carbon Market Framework is expected to compel these projects to register and adhere to the set regulations.

The framework outlines minimum requirements for project developers, investors, reviewers, and validators, as well as participants in the development, implementation, monitoring, and reporting of carbon trading projects.

The Malawi Carbon Market Framework is designed to provide guidance and regulations to ensure that both players and the local economy benefit from the carbon credit market.

Chomanika emphasized that the framework is not intended to scare investors but rather to solidify collaboration and regularize the carbon trading process in the country.

United Nations Development Programme (UNDP) Deputy Resident Representative, Challa Getachew, highlighted the need for continuous monitoring and reviews in the carbon credit market, considering its novelty in Malawi and other countries.

“Demand for high-quality carbon credits is projected to rise significantly in the coming years. Malawi must act now to secure its share of this market,” Getachew urged.

Malawi’s potential value of carbon credits is estimated at 19,882,395 metric tons per annum, translating to over $600 million per year.

This could significantly contribute to the country’s economic growth and development.

The government has already generated K300 million ($150,000) through carbon trading, with earnings realized from the sale of approximately 75,000 carbon credits.

The Environmental Affairs Department (EAD) will act as the designated national authority, authorizing and overseeing carbon trading projects in Malawi.

With this new framework, Malawi aims to create one of the most credible carbon markets in the region, attracting high-level investments that support national development and emission reduction efforts.