Tanzania attracts Asian and European carbon investors

Tanzania is emerging as a prime destination for carbon investors, with 46 Asian and European companies expressing interest in partnering with the government on climate projects. The investors are targeting forested areas and water sources managed by the Tanzania Forest Services (TFS), which have historically absorbed carbon without generating direct financial returns. This development is part of Tanzania's efforts to tap into global carbon markets and leverage its vast forest reserves to support conservation and community development.

The Tanzania Forest Services (TFS) has confirmed that applications from international and joint-venture investors are currently at various stages of processing. Senior Assistant Conservation Commissioner at TFS, Hansen Mashimba, disclosed that the investors are from Europe and Asia and are teaming up with local investors to seize carbon credit opportunities in Tanzania's forests. These forests have not been utilised effectively despite their pivotal role in absorbing large amounts of carbon amid the ongoing global fight against climate change.

To foster carbon projects, TFS Conservation Commissioner Prof Dos Santos Silayo has formed a special task force to deal with the matter. The committee meets to receive views and ideas from stakeholders who want to establish carbon projects and discuss strategies for securing capital and protecting forests. Additionally, TFS has established a special desk to ensure that all carbon trading activities and projects received by the agency are processed promptly and that all office-related procedures are completed as quickly as possible.

The TFS has taken steps to reduce bureaucracy for investors, ensuring that any investor who comes to the agency is received and served promptly and efficiently. When carbon-related project dossiers are received at the registry, they are channelled to a team chaired by a designated official, which scrutinises and discusses the applications before providing feedback to the applicants. This streamlined process aims to encourage more investors to participate in Tanzania's carbon market.

The TFS is closely collaborating with the National Carbon Monitoring Centre (NCMC), the Ministry of Natural Resources and Tourism, the Vice-President's Office – Environment, and other institutions dealing with conservation to ensure that all activities related to carbon trading are not stalled. This multi-agency approach will help to create a conducive environment for carbon investors and ensure that Tanzania's forests are protected and conserved.

Tanzania's forests and water sources managed by TFS cover a significant area, with 465 forest reserves covering 14,256,133.03 hectares, 26 natural forest reserves covering 996,217.58 hectares, mangrove forests covering 158,100 hectares, and 26 tree plantations covering 599,564 hectares. These areas require strong protection and management systems to ensure their sustainability and effectiveness in absorbing carbon.

The carbon initiative is part of the Paris Agreement, which Tanzania ratified and subsequently submitted its Nationally Determined Contribution (NDC), committing to reduce greenhouse gas emissions by 30-35 per cent by 2030. By seizing this opportunity, Tanzania can increase funding for conservation, community development, and implementation of national climate goals, while also generating revenues and investments from its forest resources.

Key points

• 46 Asian and European investors are lining up to partner with the Tanzanian government on climate projects.
• The Tanzania Forest Services has established a special task force and desk to facilitate carbon projects and reduce bureaucracy for investors.
• Tanzania aims to reduce greenhouse gas emissions by 30-35 per cent by 2030 under its Nationally Determined Contribution (NDC) to the Paris Agreement.