Online Reporter
Business Reporter
Zimbabwe plans to establish a National Climate Fund as part of a comprehensive Climate Bill. The proposed law—gazetted last week—aims to combat climate change and strengthen the country’s response by providing a dedicated source of funding for climate-related projects and programmes.
The Bill has been in the works for months and aligns national policy with Zimbabwe’s international obligations under the Paris Agreement. It seeks to create a robust and transparent framework for managing climate action, moving beyond fragmented policies to a unified, legal structure.
The fund’s financial model is designed to be self-sustaining, drawing from a variety of domestic sources. According to the bill, its revenue will be composed of a mix of taxes and levies, including 15 percent of all climate change levies, 25 percent of the carbon tax, and 25 percent from the tobacco levy. A significant portion, 85 percent, will also come from the country’s carbon trading proceeds, establishing a direct link between emissions reduction efforts and project funding.
The creation of the National Climate Fund is a direct response to the escalating climate risks facing Zimbabwe, which is highly vulnerable to extreme weather events like droughts, floods, and cyclones.
To ensure public trust and accountability, the bill mandates strict financial oversight. The Department of Climate Change Management will be tasked with publishing a list of all funded projects, along with their income and expenditure. Additionally, the Auditor-General will conduct an annual audit of the fund’s accounts, with the results being presented to Parliament. This mechanism is intended to provide a high level of transparency and ensure the funds are used effectively and responsibly.
Online Reporter