VELMA LawVelma Law, Dar es Salaam Tanzanian Law Firm 310 310
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The objective of these Regulations is to provide for the control and management of carbon trading projects in Tanzania, providing the legal framework necessary for ensuring sustainable environmental development by enhancing environmental conservation and Tanzania’s contribution towards global efforts on greenhouse gases emissions reduction.
The Minister responsible for the Environment shall have the overall responsibility for matters relating to climate change and shall prepare policy guidelines necessary for climate change including carbon trading and the Ministry shall be the Designated National Authority or the National Focal Point, which shall, amongst other things:
- link Tanzania with international processes for climate change;
- register carbon trading projects under compliance and voluntary mechanisms;
- constitute a National Carbon Assessment Technical Committee to review and scrutinise each Project Concept Note and Project Document;
- issue a letter of no objection for a Project qualifying for registration;
- advise the Project Proponent to have/adhere to insurance policies on carbon trading projects; and
- keep a register of all carbon trading projects in Tanzania.
A Project Proponent shall apply for approval of carbon trading project idea to Designated National Authority or National Focal Point by filing an application form with non-refundable application fees (USD 500 for non citizen application).
The Project Proponent shall, within 90 days from the date of registration of the project idea, develop a Project Concept Note.
Within 30 days from the date of receiving the Project Concept Note, the Designated National Authority or National Focal Point shall issue a Letter of No Objection for a qualified Project Concept Note, or a letter of recommendation for improvement of the Project Concept Note.
The Project Proponent shall develop a Project Document within 12 months after obtaining the Letter of No Objection.
Within 30 days from the date of receipt of the Project Document, the Designated National Authority or National Focal Point shall, upon satisfaction that the Project Document has met the requirements, submit to the Minister responsible for the Environment the project proposal for Endorsement of Implementation.
The Project Proponent shall, within 2 years after receiving the Endorsement of Implementation start implementation of the project activities.
Costs and benefits sharing arrangements in carbon trading shall take into consideration capital invested, roles and responsibilities of project stakeholders.
For all land based projects:
- The “Managing Authority” (i.e. the owner of the property involved in the carbon trading project) shall be entitled to 61% of the gross revenues accrued from the sale of Certified Emission Reductions.
- Out of the remaining 39%, the Project Proponent shall pay 9% to the Designated National Authority or National Focal Point.
However, in respect of projects whereby the level of initial investment costs is high, the costs and benefits sharing arrangements shall be determined and negotiated between the Managing Authority and the Project Proponent.
The Designated National Authority or National Focal Point shall provide guidance in facilitating fair and equitable costs and benefits sharing arrangements for carbon trading projects.
Breach of the Regulations is an offence and shall on conviction be liable to a fine between TZS 10,000,000 to TZS 10,000,000,000 (abut USD 4,000,000) or to imprisonment for a term not exceeding 12 years, or to both.
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