Kariba carbon credits dispute escalates

A major dispute has erupted between global carbon credit regulator Verra and Zimbabwe's Kariba REDD+ project over allegations of an "oversupply" of carbon credits, raising questions about oversight in the voluntary carbon market.

The Kariba REDD+ project, a forest conservation initiative in Northern Zimbabwe, aims to protect forests while providing sustainable livelihood opportunities for local communities. Internal documents reveal that Verra is demanding a "payback" of over 15 million credits, claiming these were erroneously issued due to flaws in its VM0009 methodology.

The conflict centers on a letter dated September 23, 2025, from Verra's chief programme management officer, Justin Wheler, to Carbon Green Investment, the project developer. The letter noted that following a review triggered by a 2023 New Yorker article, Verra found that the actual deforestation rate in the project's reference area was significantly lower than the original baseline projection. As a result, a substantial number of credits were issued against an inflated threat.

"Credits were issued beyond the updated baseline bodies (VVBs) for response," Wheler stated, adding that normally such discrepancies would be corrected in future monitoring periods. However, because the Kariba project withdrew from Verra's registry, no corrective opportunity exists, prompting the regulator's demand for compensation.

Carbon Green Investment responded on September 25, challenging Verra's findings. The company emphasized that it does not issue credits itself - Verra handles all audits, verifications, and issuance. "The Kariba REDD+ credits have all been issued after five separate audits over the period, and we are not sure why Verra did not pick up any anomaly on the project then," the company said, calling for supporting documentation within seven days and requesting a "constructive and transparent engagement."

Meanwhile, the Zimbabwean government has suspended all new carbon credit registrations due to concerns over oversight, aiming to strengthen environmental protection and forest conservation efforts.

The standoff highlights the challenges of regulating voluntary carbon markets, particularly in ensuring accountability while balancing the needs of conservation projects and local communities that rely on them for sustainable livelihoods.