Zimbabwe's carbon exchange kicks off with Belarusian gift

Zimbabwe's carbon exchange kicks off with Belarusian gift
by AFP Staff Writers
Johannesburg (AFP) July 7, 2023

A carbon credit initiative in Zimbabwe got off to a surprising start on Friday with a large donation from a Belarusian group announced by South Africa's graft-stained former president.

Jacob Zuma told a climate conference in the holiday resort of Victoria Falls that trade in the green financial tools there would benefit from an endowment of two million credits from a Belarus-African trade association.

"This is our pledge to kick-start the process," Zuma said in a speech, adding he was a board member of the little-known group known as the Belarus African Foreign Trade Association (BAFTA).

The announcement will arguably do little to reassure investors in an industry tainted by scandals and left jittery by Zimbabwe's recent shock move to reform the sector by claiming half of all revenues from carbon offset projects in the country.

Zimbabwe this week unveiled a new carbon credits exchange, a financial tool aimed at tackling climate change.

Companies or individuals buy credits from entities that remove or reduce greenhouse gas emissions, such as investing in renewable energy, planting trees or nurturing old forests.

Each credit is worth the equivalent of one tonne of carbon dioxide -- a useful badge of honour for those keen on proving their green credentials.

The global carbon credit market is forecast to grow at least five-fold to $10 billion by 2030, according to a 2023 estimate by oil giant Shell and the Boston Consulting Group (BCG).

"This is our opportunity to dictate the African approach to what we believe will take us out of living on donations and aid," Zuma said.

Belarus, a Russian ally often described as Europe's last dictatorship, has been fostering closer links with Zimbabwe, with President Alexander Lukashenko marking his first visit to the mineral-rich country earlier this year.

The leaderships of both nations are targeted by Western actions.

In his speech on Friday, Zuma, who when in power stifled South Africa's green energy transition and sought closer relations with Moscow, praised the launch of Zimbabwe's carbon credit exchange, known as the Africa Voluntary Carbon Credits Market Forum (AVCCMF).

"Through structures such as the AVCCMF, Africa will stand as a giant amongst nations in the righteous fight against climate change," said the 81-year-old, who is facing corruption charges back home.