Zimbabwe to host inaugural African Carbon Credits Market Forum

Nqobile Bhebhe, Sunday News Reporter

ZIMBABWE is set host the inaugural Africa Voluntary Carbon Credits Market Forum in Victoria Falls next month whose objectives include the creation of a Pan African-focused Register of Carbon Credits to be traded on the Victoria Falls Stock Exchange (VFEX).

The Forum is expected to be headlined by President Mnangagwa and Kenyan President, Dr William Ruto and will be funded to the tune of US$1.5 million by stakeholders who include African Government officials, private sector organisations, non-governmental organisations, international organisations, and climate change experts.

Running under the theme: “Accelerating Africa into the Climate Economy”, is scheduled to be held from 3 to 9 July.
The conference is a brainchild of Africa Voluntary Carbon Credits Market (AVCCM), a local company.

It is a private sector-led pragmatic, proactive and responsive multi-sectoral and inclusive forum that seeks to facilitate a robust, holistic and inclusive people-centric approach to the climate economy leading to the achievement of Zimbabwe’s National Development Strategy 1, (NDS1) goals, Zimbabwe Vision 2030, Sustainable Development Goals (SDGs) and set the tone for Africa Agenda 2063.

According to a concept paper presented to the Ministry of Environment, Climate, Tourism and Hospitality Industry, the event also seeks to bring together African countries into Victoria Falls to deliberate on how to monetise Voluntary Carbon Credits for the betterment of marginalised communities that bear the adverse impact of climate change.

Some of the objectives according to the paper include, “the promotion of voluntary carbon market in Victoria Falls International Financial Services Centre, to facilitate the exchange of knowledge, experiences, and opportunities related to carbon credits among different stakeholders within the Victoria Falls International Financial Service Centre, which was declared a Special Economic Zone by the Government of Zimbabwe and to create awareness among citizens of Africa about the importance and the benefits of mitigating climate change by reducing their carbon footprint.”

Government recently came up with a carbon credit framework that will see it collecting 50 percent of revenue from the sale of climate mitigation securities. Incomes from the carbon credit will be deposited into the National Climate Fund and channelled towards funding of climate-friendly projects.

Revenue to local investors has been capped at 30 percent, while foreign investors will be entitled to at least 2 percent.

The Government nullified all offset programmes and gave producers of the securities two months to comply with new rules, including handing over half of their revenue.

The global market for carbon offsets is worth roughly US$2 billion and is projected to grow to as much as US$1 trillion in 15 years, according to some estimates.

Benefits of trading voluntary carbon credits on VFEX include increased liquidity, standardisation, access to capital and transparency.

“By trading voluntary carbon credits on a stock exchange, it becomes possible for buyers and sellers to find each other more easily.

This can lead to increased trading volumes, which can in turn make the market more efficient and transparent.

A stock exchange can help to standardize the trading of carbon credits by implementing a set of rules and regulations that govern the market.

This can help to reduce transaction costs and improve market transparency,” the paper stated.

The concept paper added that trading voluntary carbon credits on the stock exchange could help to increase the availability of capital for carbon reduction projects. “This can help to drive the development of new projects and technologies that help to reduce emissions.”

It is also envisaged that the stakeholders will come to a common understanding leading to the forging of strategic collaborations and partnerships that will enhance environmental management and conservation strategies while stimulating the emergence of robust sector from the trade.

The Forum will feature plenary sessions, panel discussions, and presentations from subject matter experts.

“There will be a showcase of successful carbon credit projects, as well as networking sessions for participants to connect and collaborate.

A key highlight of the forum will be signing a memorandum of understanding (MoU) between key stakeholders to establish the Pan-African Voluntary Carbon Credit Register and the Victoria Falls Stock Exchange Carbon Market,” reads part of the concept paper.