National Carbon Trading Guidelines 2022

The National Carbon Trading Guidelines October 2022 provide as follows:

• National procedures and requirements for undertaking carbon trading projects in Tanzania.
• Addressing challenges of climate changes by implementing mitigation measures for emission reduction and removal in energy, transport, waste management, forestry, agriculture, industrial processes and product use and other land uses.
• Its goal is to enhance Tanzania’s contribution toward greenhouse gases emission reduction efforts to minimise climate vulnerability while ensuring environmental conservation and sustainable socio-economic development.
• The key principles are based on ensuring sustainable development, environmental integrity and sustainability, local participation, transparency, efficiency, inclusion of socio-economic and environmental co-benefits and compliance with international standards. 

Requirements for carbon trading

1. Project Proponent requirements
   • Project proponent should be individual or legal person (firm, company, civil society organization or public institution under laws of Tanzania mainland or Zanzibar).
   • Project proponent to comply with the following requirements:
     • Relevant expertise on carbon trading.
     • Registered by relevant authorities.
     • Financial capacity to invest in carbon trading projects.
     • Compliance with all applicable legal requirements.
2. Project requirements
   • In line with national policies, laws and strategies.
   • Indicate how the project contributes to the nationally determined contributions.
   • Comply to national priorities sectors regarding carbon trading.
   • Consent of partners to engage in the project.
   • Clearance of ownership of the property for the project.
   • Involvement of local communities in the project implementation.
   • Transparency and fairness in business.
   • Ecological, social, cultural and economic safeguards.
   • Disclose relevant project information e.g. costs incurred, verified emission reductions and estimated revenues.
   • Expected employment creation of national experts and local communities.
   • Commitment to corporate social responsibility.

Carbon trading project must undergo Environment and Social Impact Assessments.

• Procedures for Operating Carbon Trading Projects
  • Submit application for approval of project idea to Appropriate Authority.
  • Develop and submit Project Concept Note accompanied by consent in a form of extract minutes from the Managing Authority within 90 days from the date of registration of project idea and payment of registration fees.
  • Develop Project Document in line with selected international standards within 12 months upon receipt a Letter of No-objection.
  • Submit the Project Document to the Appropriate Authority for approval.
  • Commence project activities within 2 years after receiving Letter of Endorsement.

Elements of Project Concept Note and Project Document

1. Content of project Concept Note must include:
   • Title of the project
   • Name and contacts of the Proponent(s)
   • Brief Project description
   • Proposed activities
   • Stakeholders involved
   • Proposed project location, site and size
   • Potential project benefits (economic, social and environmental)
   • Sources of finance and estimated investment cost
   • Mode of financing and or crediting mechanism
   • Adherence to environmental and socio-economic safeguards
2. Content of Project Document must include:
   • General description of the project activity
   • Detailed description of the baseline and monitoring methodology
   • Duration of the project activity
   • Crediting period.
3. Content of contract for carbon trading between partners
   • Name of the partners
   • Legal capacity of the partners
   • Name, brief description and scope of the project
   • Scope of the agreement
   • Terms and obligations of partners
   • Project costs and benefits sharing arrangement
   • Mode of payment of revenues and or benefits accrued
   • Operation and duration of the project
   • Non-compliance
   • Dispute settlement
   • Modification and amendments
   • Suspension and termination of the project
   • Signature and legal capacity of signatories and their witness.
4. Project may be revoked if:
   • Failure to submit the Project Concept Note within the prescribed time.
   • Failure to commence the project activities within the prescribed time.
   • Non-compliance of the project requirements prescribed in the regulations.
   • Project Proponent voluntarily cancels the project through official notification.
   • Where the approval was obtained through forgery.
   • The continued operation of the activity is or is likely to be detrimental to the   environment and human health.
   • The project activities are overridden by other public interest.
   • Concealing of information in the application process.

NOTE: This has been prepared for general information purposes for any interested persons, it is not comprehensive information on the subject matter and it should not be regarded as legal advice.

Please contact us if you have any comments or questions.