Source: Zim sets up carbon credit market regulatory framework – herald
Martin Kadzere
Zimbabwe has gazetted regulations to establish the Zimbabwe Carbon Market Authority (ZiCMA), a body mandated to regulate, facilitate and oversee all carbon trading activities in the country.
The regulations, outlined in Statutory Instrument 48 of 2025, known as the Carbon Trading (General) Regulations, 2025, signify Zimbabwe’s serious intent to align with the Paris Agreement and capitalise on opportunities presented by global carbon credit markets.
The authority is expected to play a crucial role in attracting domestic and international investment into projects focused on reducing greenhouse gas emissions and promoting sustainable development.
Carbon credits are generated when projects in less wealthy countries, like planting trees or building wind farms, reduce or remove one tonne of atmospheric emissions. These credits can then be purchased by countries and companies to contribute to their climate change mitigation targets.
As the designated national authority under Article 6 of the Paris Agreement, ZiCMA will be responsible for a wide range of functions critical to the integrity and functionality of the carbon market.
These include a thorough consideration and determination of carbon project approvals and their subsequent registration.
The authority will be the sole issuer of letters of approval, authorisation, and registration for entities actively involved in carbon trading within Zimbabwe.
To ensure transparency and accountability, ZiCMA will maintain a comprehensive registry of all carbon projects and participating entities, adhering to mandatory application procedures.
A key responsibility will be the authorisation of carbon credits and carbon projects, aligning with its role as the national authority. Furthermore, ZiCMA will actively monitor and enforce the implementation of regulations concerning carbon projects, cooperative approaches, and the eligibility and compliance of project proponents, as outlined under Article 6 of the Paris Agreement.
The authority will serve as a vital link between the carbon market and the Government, keeping the minister responsible for climate informed on technical aspects and market developments.
Crucially, it will apply corresponding adjustments to prevent the double counting of emission reductions, a fundamental aspect of ensuring the environmental integrity of carbon credits.
In a move to safeguard national interests, ZiCMA has been empowered to classify certain areas as ineligible for carbon project development if such activities could negatively impact Zimbabwe’s Nationally Determined Contribution (NDC) or broader national priorities, as determined by the relevant Minister.
The authority is empowered to categorise carbon projects and market activities based on various factors, including their type, impact, risk, and scope, according to the regulations.
To ensure effective oversight and reporting, ZiCMA will prepare regular reports on carbon trading and markets for the Minister, in line with the national and international reporting requirements. The authority is also tasked with guiding cooperative approaches and the rules and procedures of mechanisms established under Article 6 of the Paris Agreement.
Beyond regulation, ZiCMA will actively promote awareness and participation in carbon trading among government ministries, agencies, Zimbabwean institutions, communities, and experts.
A central function will be the establishment and management of the Zimbabwe Carbon Registry (ZCR), ensuring its interoperability with other national and international registries. The ZCR will serve as the record-keeping hub for all carbon credit transactions, including their issuance, ownership, use, and transfers.
To further ensure the environmental integrity of carbon credits, ZiCMA will establish and manage a buffer account within the ZCR.
A National Transaction Account will be maintained to commercialise any carbon credits held by the Government.
The authority will establish and manage necessary bank accounts to ensure the responsible use of funds, adhering to the Public Finance Management Act, and oversee the transfer of funds accrued under previous regulations (Statutory Instrument 150 of 2023) into its newly established administrative and sales accounts.
To streamline operations and enhance accessibility, an online portal will be created to digitise all transactions.
The authority will also be responsible for ensuring that all qualified independent auditors and verifiers of carbon projects, known as Designated Operational Entities (DOEs), are registered through the ZCR and licensed by ZiCMA.
It will also be charged to monitor and enforce compliance by project developers with a range of crucial requirements related to sustainable development, social safeguarding, environmental integrity, and environmental safeguarding, as detailed in the regulations’ schedules.
The eligibility criteria for participating in carbon market activities require project developers to be registered with ZiCMA, which can be natural or legal persons, either domiciled in Zimbabwe or abroad (with foreign entities required to establish a local presence).
Developers must demonstrate financial and technical capacity, disclose all relevant project information, be certified by a recognised carbon crediting standard, and have a clean record regarding serious offenses.
Carbon projects themselves must be approved and registered by ZiCMA, not be located in ineligible areas, align with Zimbabwe’s NDC, contribute to sustainable development, demonstrate environmental integrity and avoid social or environmental harm.
Zimbabwe is reportedly the world’s 12th largest producer of carbon offsets, generating 4,2 million credits from 30 registered projects last year. The largest of these is a 785 000-hectare forestry project in northern Kariba, partly managed by South Pole, a leading global seller of offsets, according to reports.
However, this prominent project, which spans four Zimbabwean provinces (Matabeleland North, Midlands, Mashonaland West, and Central) and involves local communities and four Rural District Councils (Binga, Nyaminyami, Hurungwe, and Mbire), once came under scrutiny.
Project promoters were investigated for allegedly generating excessive profits by inflating the number of carbon credits and for potentially marginalising local communities involved in the initiative.
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