Malawi’s exploration for opportunities on the carbon market space seems to have taken off on a positive note.
With the Cop 27 still in progress at Sharm El-Shelkh, Egypt; Malawi has landed herself some life-line by signing a bilateral agreement with Switzerland on transaction of Internationally Transferable Mitigation Outcomes.
Under the agreement; it is hoped the outcomes will ensure these transactions promote sustainable development and ensure environmental integrity and transparency.
An excited minister of natural resources; Eisenhower Mkaka described the agreement as an ambitious investment and huge opportunity towards joint efforts to reduce the impact of global emissions.
He said: ”The compact means a lot considering future decisions of the Conference of the Parties as we aim to win the global battle of reducing carbon emissions to 1.5 Degrees”.
Being the first of such an agreement for Malawi, this seems an important step towards addressing climate emergencies affecting the country and making communities vulnerable.
Thus; Mkaka said Malawi was expecting a lot out of this compact, which also directly speaks the country’s long term national development agenda, the Malawi 2063 along with the Nationally Determined Contributions – Malawi’s long-term policy frameworks for climate change management and sustainable development.
”Carbon trading is among those opportunities that are providing mechanism for unlocking development and resilience building for our vulnerable communities that have been adversely affected by climate change,” he said.
Meanwhile, climate change advocates at community level are receptive of this development.
Mwai Somanje, Coordinator for Leading Community Action against Climate Change says this deal if properly policed can help Malawi fight the reduction of carbon emissions, which will be an important step towards addressing climate emergencies.
Somanje also expects that under such frameworks the country should have impactful benefits that should trickle down to ordinary masses who are often and adversely affected by effects of climate change.
However, for that to happen, she says. ”It’s important to put in place mechanisms for monitoring transactions so that they are in line with guidelines of climate change mitigations”.
On the other hand; an environmental conservationist, Stellia Bonongwe, says such an opening of carbon trading like this should be an opportunity for the nation to invest in large scale projects which should make some difference.
On his side; Franz Xaver Perrez, Ambassor for environment with the Swiss Confederation said the carbon market deal was a breakthrough towards the reduction of carbon emission.
”This agreement means Swiss investors can invest in activities of emission in Malawi … these are large scale investments, which Malawi cannot do by its own,” said Perrez.
Once the deal comes into practice he said this will be an investment that will help Malawi migrate into a sustainable future.
Equally excited at this deal is Malawi Parliament.
Welani Chilenga, chairperson of the Parliamentary Committee of Natural Resources has described this deal as a progressive development.
He said: ”I am very excited at the signing of this deal. It means a lot. This should be the real revolution for climate smart interventions. This carbon trade agreement is an important component in fighting climate change”.
According to Chilenga, the deal should help facilitate climate smart innovations for modern cooking technologies at cheaper and affordable prices through highly advanced projects.
For the Swiss; the deal with Malawi is the third in Africa after earlier signing similar deals with Senegal and Ghana.
Earlier, Malawi President, Lazarus Chakwera told delegates at the summit that that the nation has potential to produce five million carbon credits which could rake in 100 million US dollars and support close to 250,000 jobs.
Chakwera also said that the funds to be realized through generation of carbon credits would be used to improve lives of vulnerable Malawians through social protection programs.
A carbon market is a trading system through which countries may buy or sell units of greenhouse-gas emissions through carbon credits to meet national limits on emissions.
Meanwhile – several African nations have committed to boost production of carbon credits following the launch of the Africa Carbon Markets Initiative (ACMI) at Cop 27 with aim of encouraging production of 300 million carbon credits annually across the continent by 2030, to unlock billions of climate finance.
Malawi, Nigeria, Kenya, Gabon, and Togo have shared their commitment to collaborating with ACMI to scale carbon credit production via voluntary carbon market activation plans.
*This article has been published with support from MESHA/IDRC grant for coverage of COP-27 by African science journalists.