Tanzania Developing Africa’s Largest Carbon Offset Project

The Memorandum of Understanding (MOU) entered between the Tanzania Wildlife Management Authority (TAWA) and GreenCop Development PTE, Ltd., a Singapore-registered company, will develop the carbon-offset project as they seek to hook a share of the carbon credit billions to bankroll conservation of a territory covering 2.4 million hectares in Southern Tanzania.

The voluntary carbon offset project that promises substantial new green jobs and multi-million-dollar in revenue will implement measures to avoid greenhouse gas emissions and sequester carbon from the atmosphere on the globally renowned ecosystem comprising Selous, Msanjeni, and Kilombero game reserves.

“The partners in this MOU are joined by a shared vision to secure the long-term financial viability of the Selous, Msanjesi, and Kilombero game reserves by protecting nature and addressing climate change, whilst generating financial and economic benefits for local community by selling carbon credits on the international voluntary carbon market,” said TAWA Conservation Commissioner, Mr. Mabula Nyanda, who signed on behalf of the government, while the GreenCop CEO, Mr. Jean-Jacques Coppee, signed for the investors.

High-quality carbon credits are generated through conservation, restoration, and improved management of Tanzania’s forests and other natural resources.

The sale of such credits will generate additional funds to support sustainable development locally.

The project’s responsiveness to the needs and concerns of members of local communities, who will participate in its design and implementation, is critical to its success, reads part of the MOU document seen by eTurboNews.

The communities will directly benefit from the distribution of revenues generated by the sale of carbon credits in line with the applicable Tanzanian laws, regulations, and guidelines.

The project is also expected to stimulate the local economy by providing employment opportunities, funding educational and health initiatives, and developing the use of renewable energies as well as other social-economic programs.

This voluntary carbon offset project will contribute to achieving Tanzania’s international commitments under the Paris Agreement (Nationally Determined Contributions, NDC), and under the High Ambition Coalition’s 30×30 target (30% of land and sea protected areas by 2030).

The project also directly conforms to Tanzania’s National Environmental Master Plan for Strategic Interventions 2022-2032.

GreenCop Development aims to become a leader in the voluntary carbon credit market

The main purpose is to accelerate global transition to a de-carbonized economy by developing environmental assets, nature-based solutions, and register carbon removal projects using latest methodologies. It acts as a proponent for developments and funding opportunities promoting conservation of wildlife while generating economic opportunities for the local population.

The Selous Voluntary Carbon Offset Project has a symbolic significance since GreenCop Development’s management has worked to conserve the Selous game reserve alongside TAWA since 2004. GreenCop Development possesses a long-standing knowledge of the Selous and high expertise of wildlife conservation in the Selous and broader Tanzania.

To successfully design, finance, and develop the project, GreenCop Development has appointed Posaidon Capital AG, a leading global advisory firm on green finance, as its advisor in implementing the project and Tanzania Victory Attorneys and Consultants as a key local advisor. Posaidon Capital AG, a leading capital markets and asset management firm exclusively focused on advising and investing in natural capital is the technical advisor for the project’s development and implementation.

This MOU and the development of the Selous Voluntary Carbon Project (SVCP) to follow marks a significant development in Tanzania’s opportunity for responding in a holistic and strategic manner to challenges posed by climate change through nature conservation and sustainable development.

Dr. Hassan Abbas, the Permanent Secretary in the Ministry of Natural Resources and Tourism, witnessed the ceremony held on May 18, 2023, at the National College of Tourism in Dar es Salaam on behalf of the Minister, Mr. Mohamed Mchengerwa.

Also, in attendance at the ceremony from the government were the Chairman of TAWA Board of Directors, Major General (retired) Hamis Semfuko; Professor Eliakim Zahabu, Coordinator for National Carbon Monitoring Centre; and Professor Suzana Augustino, member of the TAWA Board of Directors.

Mr. Mchengerwa said in a speech read on his behalf by the Permanent Secretary:

“Tanzania stands a great opportunity for benefiting from the emerging carbon market.”

About 307,800 square kilometers – the equivalent of 32.5% – of  the land area with wildlife, forests, and wetland resources the ministry mandated to protect, forms strata for carbon sequestration to reduced carbon from the atmosphere as well as global warming, he said.

“The resources attract investment in carbon trading as an international initiative to mitigate the impact of climate change,” the Minister explained.

“We must tap the opportunity for enhancing environmental protection, economic development, and community livelihood,” stressed the Minister, as he called on all institutions engaged in conservation to embrace the opportunity, provided they consulted and adhered to national and international legal frameworks to achieve the intended outcomes.

Maj. Gen. Semfuko said the carbon offset project was part of the efforts TAWA had been making since its inception to diversify its revenue stream in a bid to enhance conservation and increase its contribution to the national coffers.

“We believe the carbon trading opportunity is a new venture to further unlock economic values in the conservation arena,” he said.

The TAWA Conservation Commissioner said the voluntary carbon project aimed at avoiding unplanned deforestation and degradation or ecosystem conversion and at managing wildfires.

“The project is specific for carbon, but [a] feasibility study will involve all types of carbons – forest, soil, and water,” said Mr. Nyanda, explaining that separate projects would be developed, pending establishment of the potential of soil and water carbons.

Mr. Coppee said the MOU culminated a lifetime dedication of the Pasanisi family and himself to wildlife and nature conservation in Selous which led them to create the Wildlife Conservation Foundation of Tanzania.

Late former Presidents – Benjamin Mkapa of Tanzania, George H. W. Bush of the US, and Valéry Giscard d’Estaing of France – were patrons of the foundation which has been active for over 3 decades.

“With the downfall of the hunting industry, we believe it is essential to continue protecting the Selous Game Reserve, which is today exposed to deforestation, poaching, uncontrolled fires, and loss in biodiversity.”

Mr. Coppee added that he believed the voluntary carbon offset project was a unique opportunity for Tanzania to preserve its rich biodiversity and acquire large financial and economic benefits from protecting the Selous.

The size and importance of the project would amplify Tanzania’s position as an African leader in nature and wildlife conservation, as well as in carbon dioxide absorption. It will position Tanzania as a leading advocate for sustainability and climate change mitigation, enhancing its global reputation as a responsible and forward-thinking nation.

“By demonstrating its dedication to Paris Agreements on Climate Change, Tanzania will be a valuable partner in international climate negotiations, allowing it to actively contribute to shaping global climate policies and strategies,” the GreeCop CEO said.