ZIMBABWE’S push to establish itself as a carbon credit trader is yet to generate tangible financial returns for the government or communities, with only four projects officially registered out of 30, underscoring the gap between the sector’s vast potential and market reality.
Carbon credits are tradable permits generated from projects that reduce or remove greenhouse gas emissions. These credits are bought mainly by companies or countries seeking to offset their carbon emissions as global pressure mounts to tackle climate change.
For years, Zimbabwe generated and exported carbon credits without a comprehensive regulatory framework to govern the sector or guarantee meaningful benefits for the State and local communities.
That changed in May 2025 when the government gazetted Statutory Instrument 48 of 2025, introducing broad regulations governing carbon credit trading and establishing mechanisms for the country to retain a share of the value generated. The regulations came after authorities raised concerns that Zimbabwe was not fully benefiting from its carbon resources despite growing international demand.
Despite the introduction of a formal regulatory framework and strong revenue potential, the carbon credit sector remains in its infancy, with only a small fraction of projects fully registered and none of the government’s allocated credits yet monetised — highlighting a significant gap between policy ambition and financial delivery.
By February 2025, the country had issued 22,56 million carbon credits valued at about US$147,3 million. By April this year, total credits generated had risen to 33,79 million, with an estimated value of US$220,62 million from 30 projects.
This underscores both the scale of the opportunity and the urgency of ensuring this revenue remains in the country.
Zimbabwe’s vast forest resources, renewable energy potential, and large rural communities make it attractive for carbon offset projects, particularly under voluntary carbon markets.
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“There are four projects that have completed the registration cycle and are already authorised to operate in Zimbabwe,” Zimbabwe International Carbon Markets Association deputy director Tirivanhu Muhwati told NewsDay Business at the association’s workshop last Friday.
“And then we have 19 projects that are in different stages of registering. Some are doing feasibility studies, some are doing community consultations, and some are still registering with international standards.”
He said project developers were working closely with the government through the Zimbabwe Carbon Association, an industry grouping representing carbon market players.
According to Muhwati, the Zimbabwe Carbon Registry plays a central role in monitoring compliance and ensuring that the government receives its share of carbon credits generated by projects.
“When carbon credits are issued by international standards, they come into our registry. When they come into our registry, the government gets its proportion, 30% of the credit, to go to the national transaction account,” he said.
“All of them have been complying, and the registry has also been assisting in ensuring that everyone complies.”
However, NewsDay Business understands that the government has yet to monetise those registered carbon credits.
“We started last year with only four projects. The credits that the government has, we are yet to monetise them,” he said.
“When they are monetised, the revenue is then going to be sent back for community projects. But for now, nothing is being monetised.”
Muhwati confirmed the sector could potentially generate hundreds of millions of US dollars.
“If we are to have many projects and many investors, it can run into hundreds of millions of dollars,” he said.
“So, it’s high potential. But you cannot say exact figures because it all depends on how you attract investment into the space and also the level of what you can export as carbon credits to other countries.”
He said revenue prospects would also depend on Zimbabwe balancing carbon credit exports with its own climate obligations under nationally determined contributions, which are climate action commitments submitted under the Paris Agreement.
“We need to manage the sector. For your carbon credits to be valuable outside, the government of the day should be in charge, ensuring that no two projects are done in the same area,” Muhwati said.
Zimbabwe is currently refining its legal framework governing carbon trading through the proposed Climate Change Act, which is before Parliament.
