GOVERNMENT has introduced mandatory deductions on all carbon credits issued or transferred within the Zimbabwe Carbon Registry to keep some of the generated funds from these instruments in the country.
Zimbabwe generated 31 293 689 carbon credits from 26 projects as of October 2024, according to the American-based Voluntary Registry Offsets Database.
Based on this and the average price per instrument, Zimbabwe has generated US$204,34 million in carbon credits, which the country is yet to reap any returns from in taxes, fees, or licences.
In the new regulations issued in Statutory Instrument (SI) 48 of 2025 gazetted on Friday last week, 2% of the total credit volume will be allocated directly to the national buffer account to mitigate risks associated with reversals and over-crediting.
Thirty percent of the total credit volume will be directed to the national transaction account as payment for the share of proceeds, contributing to national climate finance.
Furthermore, 1% of all carbon credits issued will be automatically retired, directly contributing to Zimbabwe’s Nationally Determined Contributions (NDC).
“The following mandatory deductions, reservations and retirements shall be applied at the time of issuance to all mitigation outcomes issued on the Zimbabwe Carbon Registry or transferred to the Zimbabwe Carbon Registry before receiving authorisation,” part of the SI read.
“…2% of the total credit volume shall be issued directly to the national buffer account to safeguard against reversals and over crediting; 30% of the total credit volume shall be issued directly to the national transaction account as payment for the share of proceeds; and 1% of the total credit issuance shall be automatically retired and counted towards Zimbabwe’s NDC.”
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Those credits issued to the national buffer account shall not be transferred to any other account, sold, or retired for any reason other than to cover instances where overcrediting or reversals have been confirmed.
The regulations also mandate that all the carbon credits be registered under the Zimbabwe Carbon Credit Markets Authority.
“Carbon credits generated in Zimbabwe shall be certified as representing real, verifiable, additional emissions reductions and or removals through an analytical science-based model by a recognised certification standard,” part of the SI read.
“Carbon market activities, including the international transfer of mitigation outcomes, shall not harm Zimbabwe’s ability to achieve its NDC or to set more ambitious emissions reduction targets.”
It also noted that the authority shall apply a corresponding adjustment to all authorised mitigation outcomes at the time of first transfer as defined by the applicable Carbon Credit Market Authority.
“At least 1% of the total volume of authorised mitigation outcomes generated in Zimbabwe shall be subject to mandatory retirement and counted towards Zimbabwe’s NDC. All retirements executed on the Zimbabwe Carbon Registry shall be irreversible,” part of the SI read.
“The authority shall declare specific areas as ineligible for the development of carbon projects if the development of carbon projects in these areas may negatively impact Zimbabwe’s ability to achieve its NDC.”
The SI also requires all project developers to obtain consent from all communities whose land or resources may be affected by proposed developments.
“The Government of Zimbabwe recognises that local communities have the right to grant or withhold consent for activities that will affect them and their resources,” part of the SI read.
“For this policy no distinction shall be made based on the identity of those who hold recognised rights to communal land and proponents shall be required to obtain free, prior and informed consent from all communities whose lands or resources may be impacted by a proposed project, regardless of their ethnic or tribal identity.”
This will be through a preliminary free, prior and informed consent before the submission of a project idea note and full free, prior and informed consent before the submission of the project design document.
