Gold Standard, a verifier of carbon offsets, has announced that it will temporarily pause the issuance of credits from projects based in Zimbabwe. This decision comes after the country’s announcement earlier this year that it plans to take half the revenue generated from such transactions. Gold Standard has been the verifier for around 20 carbon offset projects in Zimbabwe.
The decision to pause the issuance of credits in Zimbabwe takes effect immediately and is in order to comply with national legislation. Gold Standard has been engaging with the Government of Zimbabwe to clarify the implications of their announcement in May.
This move by Gold Standard may serve as a warning to other African countries, such as Malawi and Zambia, that have indicated they may also take a percentage of revenue generated from carbon offsets. This could further impact the $2 billion carbon credits market.
Zimbabwe is currently the third-largest issuer of carbon offsets in Africa, after Kenya and the Democratic Republic of Congo. It accounts for 13% of the continent’s issuance and 1.7% globally. Michael Usi, Malawi’s environment minister, has stated that his country will also take a portion of revenue, while Zambia’s environment minister, Collins Nzovu, expressed satisfaction with taking 50%.
Gold Standard has suggested that governments seeking stronger oversight should act in a way that enables positive investment into climate action and sustainable development.
The world’s largest verifier of carbon offsets, Verra, had initially halted registration of projects and issuance of credits after the Zimbabwean government’s announcement. However, Verra has since resumed these processes and its projects in the country remain active.
This development highlights the potential impact of government decisions on the carbon credits market and the need for clear regulations and guidelines in order to promote investment and sustainable development.
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