Ministry of Natural Resources has dismissed reports that government has mismanaged $100 million (about K180 billion) from carbon credit trading.
In a statement released on Saturday, the ministry said the figure being circulated refers to private investment commitments by project developers and not revenue remitted to the country.
Reads the statement signed by the ministry’s Principal Secretary Mischeck Munthali: “Such resources, where they exist, are intended for project implementation and do not pass through government accounts.”
The ministry said carbon market projects require significant investment in activities such as community engagement, forest conservation, monitoring, verification and certification before the carbon credits can be generated and sold on the international market.
It further said government only receives its share of proceeds after carbon credits are generated, verified and sold and revenue has been realised.
According to the ministry, only one authorised project has started carbon credit transactions and has remitted approximately $77 000 (about K138.6 million) to government.
“These funds have been received and accounted for in accordance with established government financial management procedures,” the statement adds.
The clarification comes amid growing pressure from Parliament for full disclosure on carbon credit deals, revenues and the overall benefits accruing to Malawi as it expands its participation in the global carbon market.
Last week, the Parliamentary Committee on Natural Resources, Energy and Climate Change summoned the ministry’s officials following reports that Malawi had received an upfront payment of $100 million linked to a carbon credit agreement and that the funds could not be accounted for.
Speaking in an interview, the committee’s chairperson Tiaone Hendry said lawmakers acted after receiving reports suggesting possible misuse or unclear handling of funds within a carbon market deal involving Mamaland and the management of 14 forest reserves.
Carbon credits are tradable certificates earned by reducing or removing greenhouse gas emissions, often through activities such as afforestation, forest conservation, and clean energy projects.
Reacting to the issue, Civil Society Network on Climate Change national coordinator Julius Ng’oma said the ministry’s explanation aligns with how carbon markets operate globally, where most funds remain with project developers and implementers rather than governments.
