Zimbabwe advances carbon market despite sanctions challenges

The Zimbabwe has overcome attempts to derail its carbon market initiatives and is now regarded as one of Africa's leading nations in establishing a national carbon registry and developing land-based carbon offset projects.

This emerged during a parliamentary session on carbon markets held in Bulawayo, where legislators heard that sanctions previously hampered progress in the sector by blocking access to critical funding.

Acting Permanent Secretary for Environment, Climate and Wildlife, Washington Zhakata, told Parliament that the United Kingdom government had instructed Standard Chartered Bank to halt funding for a major emissions reduction project at a crucial stage of its development.

"Zimbabwe's carbon market development suffered significant setbacks after the British Government blocked Standard Chartered Bank from funding a key emissions reduction project," Mr Zhakata said.

He explained that the project, registered under the Kyoto Protocol framework, focused on the abatement of nitrous oxide emissions. It had initially been sponsored during its development phase by Standard Bank United Kingdom. However, funding was reportedly stopped around 2009–2010 following instructions from the British government, leaving the project stalled for years.

The initiative only resumed after the Germany government stepped in to provide the equipment that had originally been expected from the bank, highlighting the influence of geopolitical dynamics on climate finance flows.

Despite these setbacks, Mr Zhakata said Zimbabwe has made substantial progress in developing its carbon market infrastructure. He noted that the country launched its national carbon registry in May last year, placing it ahead of many African peers.

He added that Kenya only launched its national registry on 17 February, underscoring Zimbabwe's early positioning in the emerging carbon market space.

Officials maintain that Zimbabwe's carbon market is steadily maturing, with expanding project sizes and improved regulatory systems positioning the country as a competitive player in continental climate finance initiatives.