ZIMBABWE has given business a two-month grace period to comply with new rules on carbon credits as the southern African nation joins the growing list of regional peers stepping up efforts to fight climate change.
Carbon credits are paid to communities for forest conservation since forests absorb carbon emissions which, in turn, help in mitigating the effects of climate change.
Last week, cabinet announced a new carbon credit framework for business which would include a tradable certificate representing one metric tonne of carbon dioxide equivalent which is prevented from being emitted into the atmosphere.
He said it took three years to develop the new regulations. Zimbabwe has committed to reduce carbon emissions by 40%.
This week, Tourism and Environment minister Mangaliso Ndlovu (pictured) told delegates attending a stakeholders’ meeting held in Harare that all agreements in Zimbabwe will now have to pass through the Attorney-General’s office.
Traditional chiefs and municipalities have no legal standing to sign agreements.
“We are not at this point going to welcome those who then come and tell us how to engage in the exploitation of those resources at their terms,” Ndlovu said.
“We desire to see you regularise…I hope that those with existing contracts will utilise a month to two-month window that we will give to make sure that we give those contracts priority.”
The rules include a mandatory level of at least 20% of revenue for local investors and a maximum of 30% for foreign investors.
They are meant to enhance benefits for the state and the communities that host the projects Zimbabwe, which roiled the global carbon credits industry by canceling offset programmes last week, will now give producers of the securities two months to comply with new rules, including handing the state half of their revenue.
The rules include a mandatory level of at least 20% of revenue for local investors and a maximum of 30% for foreign investors. They are meant to enhance benefits for the state and the communities that host the projects.