GOLD Standard, a verifier of carbon offsets, has announced that it will pause the issuance of credits from projects based in Zimbabwe. This decision comes after Zimbabwe announced earlier this year that it plans to take half the revenue generated from such transactions. The pause takes effect immediately. Gold Standard has been involved in verifying about 20 carbon offset projects in Zimbabwe.
This move by Gold Standard may serve as a warning to other African countries, including Malawi and Zambia, which have indicated that they may follow Zimbabwe’s lead. This potential trend could further disrupt the $2 billion carbon credits market. Zimbabwe is currently Africa’s third-largest issuer of carbon offsets, after Kenya and the Democratic Republic of Congo, accounting for 13% of the continent’s issuance and 1.7% of global issuance.
Malawi’s environment minister, Michael Usi, stated that his country also plans to take a portion of the revenue generated from carbon offset projects, although the exact amount is yet to be determined. Similarly, Zambia’s environment minister, Collins Nzovu, expressed that his country would be happy with receiving 50% of the revenue.
Gold Standard spokesperson has previously mentioned that governments seeking stronger oversight should act in a way that enables positive investment into climate action and sustainable development. However, Verra, the world’s largest verifier of carbon offsets, has announced that it has resumed the registration of projects and issuance of credits in Zimbabwe, after initially halting these processes following the government’s announcement. Verra’s projects in the country remain active.
Ultimately, this development in Zimbabwe could potentially set a precedent for other African countries to demand a larger share of revenue from carbon offset projects. This would have significant implications for the carbon credits market, affecting both the verification process and the investment into climate action and sustainable development projects.
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