Experts from various sectors met in Lilongwe to discuss Malawi’s blueprint that could unlock climate financing from initiatives aimed at offsetting carbon emissions in the atmosphere to reduce global warming.
The high-level refinement of Article 6 framework exemplifies the country’s race to perfect its engagement in the international carbon market.
Yusuf Mkungula, Principal Secretary for the Ministry of Natural Resources and Climate Change, says the regulatory tool is pivotal for effective participation in carbon trading.
“The framework provides institutional arrangements, an approval process, proposed fees and methodologies for regulating the share of proceeds while ensuring compliance with international standards,” he said.
Malawi’s involvement in carbon trading under the Kyoto Protocol dates back to 2007, but Mkungula said the country requires a more robust digital system to track progress and maximise benefits.
He asked countries in the global South to cooperate and share best practices to ensure carbon trading benefits sustainability, food security and economic development.”
The United Nations Development Programme (UNDP) deputy resident representative Challa Getachew said the carbon market’s economic potential is worth hundreds of billions of dollars globally.
He said UNDP remains committed to support Malawi in finalising the regulatory framework, including legal structures, verification mechanisms, regulatory oversight and private sector engagement.
“Demand for high-quality carbon credits is projected to rise significantly in the coming years. Malawi must act now to secure its share of this market,” he said.
Getachew said Malawi’s potential in forestry, renewable energy and agriculture can generate lucrative carbon credits and attract investment.
However, he said the country needs to establish a carbon credit registry to make its transactions transparent, credible and accountable.
Malawi has made strides in climate finance and policy development, but activating the Article Six framework is precondition for boosting transparency and investor confidence.
UNDP and its sister UN agencies support the Government of Malawi to tackle climate change in line with its Nationally Determined Contributions to the global push to reduce carbon emissions fuelling global warming.
This is in line with the Paris Agreement..
Getachew called for swift finalisation of the framework to capitalise on the opportunities in carbon trading.
“The decisions we make today will shape the country’s ability to mobilise climate finance, attract investors and build a more resilient future,” he said.
