News / National
Zimbabwe sets up carbon credit market regulatory framework
07 May 2025 at 09:26hrs | Views
Zimbabwe has taken a significant step toward formalising its participation in global carbon markets by gazetting regulations to establish the Zimbabwe Carbon Market Authority (ZiCMA), a statutory body mandated to regulate, facilitate, and oversee all carbon trading activities in the country.
The Carbon Trading (General) Regulations, 2025 - published under Statutory Instrument 48 of 2025 - set out a comprehensive legal framework aimed at aligning Zimbabwe with the Paris Agreement and unlocking opportunities in the growing international carbon credit market.
ZiCMA will serve as the national authority under Article 6 of the Paris Agreement and is tasked with ensuring the environmental integrity, transparency, and accountability of carbon trading projects in Zimbabwe. Its creation is expected to attract both domestic and international investment into projects that reduce greenhouse gas emissions and promote sustainable development.
"Carbon credits generated from emission-reducing initiatives - such as tree planting or renewable energy installations - offer developing countries like Zimbabwe a chance to benefit financially while contributing to global climate change mitigation," the gazetted regulations state.
ZiCMA will be the sole issuer of authorisations, approvals, and registrations for carbon trading entities operating within Zimbabwe. It will also maintain a national registry - the Zimbabwe Carbon Registry (ZCR) - to record all carbon credit transactions, including ownership, transfers, and usage.
To uphold international standards, ZiCMA is mandated to monitor projects and enforce compliance with sustainability, social safeguarding, and environmental integrity requirements. It will also apply "corresponding adjustments" to prevent the double counting of emissions reductions - a key requirement under international carbon accounting rules.
The authority will maintain a buffer account in the ZCR to manage risks associated with project failures and a National Transaction Account for commercialising government-held carbon credits.
ZiCMA's wide-ranging powers include the ability to classify certain geographical areas as ineligible for carbon projects if such initiatives threaten to undermine Zimbabwe's Nationally Determined Contribution (NDC) or broader national priorities. It will also categorise carbon projects based on type, impact, and risk.
Carbon market participants - both local and international - must register with ZiCMA and demonstrate financial and technical capacity, alignment with a recognised carbon crediting standard, and a clean record of compliance. Foreign developers are required to establish a local presence in Zimbabwe.
Carbon projects must be aligned with the country's NDC and contribute meaningfully to sustainable development without causing social or environmental harm.
The new regulations also require that all Designated Operational Entities (DOEs) - independent auditors who verify carbon projects - be registered through the ZCR and licensed by ZiCMA.
To enhance accessibility and transparency, ZiCMA will develop a digital platform to streamline applications, transactions, and project monitoring. It will also submit regular reports to the responsible Minister, ensuring national oversight and alignment with global reporting frameworks.
ZiCMA will oversee the transfer of carbon trading revenues previously managed under Statutory Instrument 150 of 2023 and manage newly established administrative and sales accounts in accordance with the Public Finance Management Act.
The establishment of ZiCMA comes as Zimbabwe cements its position as one of Africa's key players in the voluntary carbon market. In 2024, the country was the world's 12th largest producer of carbon offsets, generating 4.2 million credits from 30 registered projects. The most notable is a 785,000-hectare forest conservation initiative in northern Kariba, partly managed by South Pole, a global leader in carbon offsetting.
Despite its success, the Kariba project has attracted scrutiny over alleged profiteering and concerns about community marginalisation. Investigations previously raised red flags about inflated credit figures and the equitable distribution of benefits among the participating Rural District Councils - Binga, Nyaminyami, Hurungwe, and Mbire.
With ZiCMA now in place, Zimbabwe aims to strengthen regulatory oversight, ensure fair benefit-sharing, and reinforce its commitment to sustainable and equitable climate action.
The Carbon Trading (General) Regulations, 2025 - published under Statutory Instrument 48 of 2025 - set out a comprehensive legal framework aimed at aligning Zimbabwe with the Paris Agreement and unlocking opportunities in the growing international carbon credit market.
ZiCMA will serve as the national authority under Article 6 of the Paris Agreement and is tasked with ensuring the environmental integrity, transparency, and accountability of carbon trading projects in Zimbabwe. Its creation is expected to attract both domestic and international investment into projects that reduce greenhouse gas emissions and promote sustainable development.
"Carbon credits generated from emission-reducing initiatives - such as tree planting or renewable energy installations - offer developing countries like Zimbabwe a chance to benefit financially while contributing to global climate change mitigation," the gazetted regulations state.
ZiCMA will be the sole issuer of authorisations, approvals, and registrations for carbon trading entities operating within Zimbabwe. It will also maintain a national registry - the Zimbabwe Carbon Registry (ZCR) - to record all carbon credit transactions, including ownership, transfers, and usage.
To uphold international standards, ZiCMA is mandated to monitor projects and enforce compliance with sustainability, social safeguarding, and environmental integrity requirements. It will also apply "corresponding adjustments" to prevent the double counting of emissions reductions - a key requirement under international carbon accounting rules.
The authority will maintain a buffer account in the ZCR to manage risks associated with project failures and a National Transaction Account for commercialising government-held carbon credits.
ZiCMA's wide-ranging powers include the ability to classify certain geographical areas as ineligible for carbon projects if such initiatives threaten to undermine Zimbabwe's Nationally Determined Contribution (NDC) or broader national priorities. It will also categorise carbon projects based on type, impact, and risk.
Carbon projects must be aligned with the country's NDC and contribute meaningfully to sustainable development without causing social or environmental harm.
The new regulations also require that all Designated Operational Entities (DOEs) - independent auditors who verify carbon projects - be registered through the ZCR and licensed by ZiCMA.
To enhance accessibility and transparency, ZiCMA will develop a digital platform to streamline applications, transactions, and project monitoring. It will also submit regular reports to the responsible Minister, ensuring national oversight and alignment with global reporting frameworks.
ZiCMA will oversee the transfer of carbon trading revenues previously managed under Statutory Instrument 150 of 2023 and manage newly established administrative and sales accounts in accordance with the Public Finance Management Act.
The establishment of ZiCMA comes as Zimbabwe cements its position as one of Africa's key players in the voluntary carbon market. In 2024, the country was the world's 12th largest producer of carbon offsets, generating 4.2 million credits from 30 registered projects. The most notable is a 785,000-hectare forest conservation initiative in northern Kariba, partly managed by South Pole, a global leader in carbon offsetting.
Despite its success, the Kariba project has attracted scrutiny over alleged profiteering and concerns about community marginalisation. Investigations previously raised red flags about inflated credit figures and the equitable distribution of benefits among the participating Rural District Councils - Binga, Nyaminyami, Hurungwe, and Mbire.
With ZiCMA now in place, Zimbabwe aims to strengthen regulatory oversight, ensure fair benefit-sharing, and reinforce its commitment to sustainable and equitable climate action.
Source - the herald
