Mozambique is gearing up to implement regulations governing carbon-credit projects in the country, joining other African nations like Zimbabwe, Malawi, and Kenya in this endeavor. The government aims to finalize draft rules by the end of this year, with presentation to the Council of Ministers for approval expected in Q1 2024. This move seeks to maximize the value potential of the emerging carbon-credit market while providing attractive incentives for investors. However, specifics about the revenue split between investors and the state remain undecided and will be addressed in the forthcoming regulations.
Mozambique’s technical capacity to generate between 80 to 90 million carbon credits annually underscores its significant potential in this market. Even producing 25 million credits could lead to earnings of up to $500 million. Carbon credits, which represent the removal or prevention of a ton of carbon dioxide emissions, are purchased by greenhouse gas emitters to offset their environmental impact. The global carbon-credit market, currently valued at $2 billion, is expected to potentially grow to $1 trillion within 15 years, as forecast by Bloomberg BNEF.
Furthermore, Mozambique is in discussions with Belgium regarding a debt-for-nature swap. The country is also establishing a climate unit within its finance ministry, emphasizing its commitment to addressing environmental concerns.
Source: Compiled from Various Reports