Tanzania has approved four carbon trading projects expected to generate 4.2 million verified carbon credits valued at more than $52.1 million, strengthening the country’s position in the global carbon market. The projects, which focus on clean cooking, clean water and energy access, are expected to generate government revenue exceeding TSh10 billion while supporting job creation, reducing greenhouse gas emissions and expanding climate finance opportunities.
Key Overview
- Tanzania approved four carbon trading projects.
- The projects are expected to generate 4.2 million verified carbon credits.
- The carbon credits are valued at more than $52.1 million.
- The government expects to earn over TSh10 billion from carbon credit sales.
- The projects support clean cooking, clean water, energy access and job creation.
- National Carbon Monitoring Centre (NCMC) has registered 117 carbon trading projects.
Tanzania is set to earn more than TSh10 billion from carbon trading after approving four projects expected to generate 4.2 million tonnes of verified carbon credits for sale on the international market, highlighting the country’s growing use of climate finance to support economic development.
Announcing the decision in Dar es Salaam, Minister of State in the Vice President’s Office (Union and Environment), Engineer Hamad Yussuf Masauni, said the projects would reduce greenhouse gas emissions while creating jobs, expanding access to clean energy and improving water services.
Together, the projects are expected to generate verified carbon credits valued at more than $52.1 million, equivalent to approximately TSh135.5 billion.
Under Tanzania’s carbon trading regulations, the government receives 8% of carbon credit sales, giving it an expected revenue share of more than US$2 million, or over TSh10 billion.
“These revenues are the result of the government’s efforts to build a strong carbon trading system that protects national interests and increases the contribution of this sector to the economy,” Engineer Hamad Yussuf Masauni said.
Four Carbon Projects Approved
The approved projects include a clean cooking energy programme implemented by Burn Manufacturing, a social impact programme managed by AP Energy Group in partnership with Sayari SA Limited, a clean water project by Water Mission International Tanzania, and an improved cookstove initiative implemented by Bridge Carbon Tanzania Limited.
According to the minister, the projects are expected to reduce greenhouse gas emissions through the adoption of clean cooking technologies, improved energy efficiency and expanded access to safe drinking water while reducing dependence on traditional biomass fuels.
The initiatives also support the government’s objective of ensuring that 85% of Tanzanians use clean cooking energy by 2034.
Climate Finance Supports Economic Development
The government said the projects demonstrate how carbon trading can contribute to both environmental protection and economic development.
The initiatives focus on clean cooking, safe water and energy access, sectors that provide immediate environmental and social benefits while creating new economic opportunities.
The clean water project, which will be implemented across all 26 regions of mainland Tanzania, is expected to create about 1,000 direct jobs and provide opportunities for more than 100 distributors.
Additional water-related activities in Kigoma and Dodoma are expected to benefit more than one million households with improved access to safe water while creating more than 350 jobs.
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Strengthening Tanzania’s Carbon Market
According to Engineer Hamad Yussuf Masauni, the government has continued strengthening the country’s legal, policy and institutional frameworks to ensure carbon trading is conducted transparently and efficiently while delivering benefits to Tanzanians.
Amendments to the Environmental Management Act established the National Carbon Monitoring Centre (NCMC), which coordinates carbon trading activities, including project registration, monitoring, verification, reporting and revenue management.
By July 2026, the NCMC had registered 117 carbon trading projects, while the National Project Assessment Committee continued conducting technical assessments before recommending projects for government approval.
The minister said the government will continue evaluating additional carbon trading proposals covering biodiversity conservation, sustainable water management, environmentally friendly transport systems and electric mobility as Tanzania expands its participation in the global carbon market.
Carbon Trading Expands Climate Finance Opportunities
The government said the expanding carbon trading sector represents an important opportunity to attract climate finance while supporting environmental conservation and generating additional revenue for the country.
Engineer Hamad Yussuf Masauni said the initiatives illustrate how carbon trading can support Tanzania’s broader economic and environmental goals by creating employment, improving livelihoods and strengthening the country’s position in international carbon markets.
“The government will continue ensuring that carbon trading contributes not only to environmental protection but also to improving livelihoods, creating jobs and strengthening Tanzania’s participation in the global carbon market,” he said.
Outlook
The approval of four new carbon trading projects marks another step in Tanzania’s efforts to position carbon markets as a source of long-term climate finance and economic development. With 4.2 million verified carbon credits expected to generate more than $52.1 million in market value and government revenues exceeding TSh10 billion, the projects demonstrate how carbon trading can support both emissions reduction and socio-economic development. As the National Carbon Monitoring Centre (NCMC) continues registering and evaluating new projects, Tanzania is expected to expand opportunities in clean cooking, clean water, biodiversity conservation, sustainable water management, environmentally friendly transport systems and electric mobility, further strengthening its participation in the global carbon market.
FAQs
1. How many carbon trading projects has Tanzania approved?
Tanzania approved four carbon trading projects expected to generate verified carbon credits for international markets.
2. How much are the carbon credits worth?
The projects are expected to generate 4.2 million verified carbon credits valued at more than $52.1 million.
3. How much revenue will the government receive?
Under Tanzania’s carbon trading regulations, the government expects to receive more than $2 million, or over TSh10 billion, from carbon credit sales.
4. How many carbon trading projects has the NCMC registered?
By July 2026, the National Carbon Monitoring Centre (NCMC) had registered 117 carbon trading projects.
Sources: Business Insider, IPP Media, allAfrica
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