Ministry of Natural Resources and Climate Change has given unregistered carbon credit traders 90 days to register or risk being barred from operating.
Minister of Natural Resources and Climate Change Owen Chomanika said this on Friday in Lilongwe during the launch of the Malawi Carbon Market Framework.
He said 144 carbon credit projects are operating without registration, a situation that results in the country and communities where the projects are taking place not benefiting.
He said: “The ministry is inviting all developers currently implementing carbon market-related activities in Malawi to take immediate steps to align with the new framework.
“To support this transition, the government has introduced a 90-day regularisation window, effective from the date of this announcement.”
Chomanika said within this period, all existing projects should register with the Malawi Carbon Registry System, obtain the required permissions, approvals and letters of authorisation, declare relevant project information, including emission reductions, carbon credit sales and community benefit-sharing arrangements.
In his remarks, United Nations Development Programme deputy resident representative Challa Getachew said there is need for continuous monitoring and reviews to make implementation of the framework implementation effective.
He said: “Obviously Malawi has a lot of frameworks, policies and strategies, but the challenge always is implementation.
“Our expectation is that the government will keep attention on the rollout and operationalisation of the policy.”
Getachew said there is huge commitment from government, including at presidential level to make sure the framework is implemented in a manner that benefits the country.
Secretary for Natural Resources and Climate Change Yusuf Nkungula said the framework sets minimum requirements for project developers, investors, reviewers and validators as well as participants in the development, implementation, monitoring and reporting of carbon trading projects.
“The framework is a landmark policy instrument that positions the country as a credible, transparent and structured participant in global carbon markets under the Paris Agreement,” he said.
Malawi committed to leveraging carbon markets as a tool for attracting climate finance, catalysing green investment and supporting sustainable development by implementation of emission mitigation activities in agriculture, forestry, energy, transport, industrial processes and waste management.
It is estimated that if the framework is effectively implemented, Malawi could earn $700 million (K1.2 trillion) annually from carbon credit market.
Carbon credit trading is a market designed to compensate countries and companies for projects or initiatives aimed at reducing carbon emissions.
