Tax Justice Network Africa has urged African countries, including Malawi to prioritise transparency in commitments and agreements on carbon offset projects and climate-related issues.
The network, comprising think tanks, trade unions, feminist groups, youth-led and faith-based organisations, says this would enable African countries to achieve financing and tax justice in line with global climate goals.
In a statement on Wednesday on sustainable climate finance and taxation in Africa, the network’s executive director Chenai Mukumba has encouraged the countries to unite in reforming areas that can unlock revenue for climate finance.
This comes a month after Malawi earned K150 million from carbon credit trading through projects under the Green Development Mechanism and Reducing Emissions from Deforestation and Degradation programme.
Data from Ministry of Natural Resources and Climate Change shows that the funds were realised from the sale of about 75 000 carbon credits.
Mukumba said to achieve tax, climate and natural resource justice, there is need to create a platform for collective advocacy for sustainable climate finance reform in the region.
She said: “African countries must work together to fully maximise the potential of the resources within their borders.
“With the urgent need to tackle the threats posed by the climate crisis to the continent, governments need to step up to ensure transparency and accountability in carbon offset projects and mineral extraction.”
Mukumba urged governments to adopt rigorous qualitative and quantitative reviews of carbon offset projects to ensure that they not only meet environmental goals, but are also free from corruption and manipulation.
The calls also come at a time experts are calling for action on several fronts, including climate finance, carbon credit, critical mineral management and international trade agreements.
In an interview yesterday to comment on the opportunities to raise funds for climate financing, Economics Association of Malawi president Bertha Bangara-Chikadza said carbon credit trading is one option that could be tapped.
She said there is need for the Malawi Government to play a role on carbon credits awareness, adding that most people do not understand what it means to claim for carbon or to gain from them.
“These are issues we need the government to take an initiative to make people understand how they can save the environment and at the same time get credits from that because that could be an alternative financing,” said Bangara-Chikadza.
Parliamentary Committee on Natural Resources and Climate Change chairperson Werani Chilenga in an interview yesterday said the country’s carbon credit earnings are below its economic potential due to lack of a regulatory framework.
“As we speak, we don’t have the Carbon Credit Act to regulate the sector and if we have any policy I have not seen it,” he said.
In a separate interview, environmental and climate change activist Matthews Malata said there is need to move fast in enacting the Climate Change Act.
“The piece of legislation presents an opportunity to safeguard the interests of our nation, investors and communities to maintain the integrity of our market,” he said.
Last year, President Lazarus Chakwera said Malawi can leverage its forest reserves and other land resources to generate an estimated 19.9 metric tonnes of carbon dioxide valued at over $600 million (about K1.05 trillion), which it can then sell in international carbon markets through carbon offset programmes.
Carbon offset programmes are financial mechanisms and incentives designed to support projects that reduce greenhouse gases or remove carbon dioxide from the atmosphere.
Source: The nation-George Lumwira-Staff Reporter-22 November 2024