NewZimbabwe.com has invited Mr. Vengai Madzima, the Senior Partner at Madzima Chidyausiku Museta Legal Practitioners (MCM Legal) to discuss with us legal issues that affect Zimbabweans. The discussions are of a general nature and those seeking specific legal advice should contact their lawyer.
Reporter: Welcome back Mr. Madzima, this week we want to discuss the new law on carbon trading in Zimbabwe. What is carbon trading and may you give us background on this new law?
VM: Thank you
Carbon trading or emissions trading is a US$866 billion dollar global industry which involves the trading in credits or permits that represent the right to emit a certain amount of carbon dioxide or other greenhouse gases by companies or countries.
The government introduced on 2 May, 2025 the Carbon Trading (General) Regulations 2025 published as Statutory Instrument 48 of 2025 effectively replacing the 2023 instrument that regulated carbon trading. The regulations establish a legal framework for carbon trading in Zimbabwe.
In terms of background, our constitution guarantees every Zimbabwean to have an environment that is not harmful to health or well–being and a protected environment for present and future generations.
Zimbabwe as a signatory to the Paris Agreement and to an extent, the Kyoto Protocol, has an obligation to contribute to global climate change mitigation initiatives. That being said, our laws including the new statutory instrument introduced in accordance with the Environmental Management Act are structured to align to the global and local imperatives.
Reporter: What are the key issues brought in by these Carbon Trading Regulations?
VM: I think of critical note is the coming in or creation of Zimbabwe Carbon Markets Authority (ZIMCA) whose mandate is to regulate, supervise and accredit participants in the carbon market and the Zimbabwe Carbon Registry for the issuance of carbon credits.
It therefore follows that the regulations have introduced mandatory registration of players involved in the carbon value chain. ZIMCA will therefore be responsible for the approval of carbon projects, monitoring compliance and authorizing the issuance of mitigation outcomes.
The regulations have maintained and introduced environmental and social safeguards through provisions for community consultation, monitoring of sustainable development, protection of biodiversity and local grievance mechanisms as a part of the consideration process.
Reporter: How will these regulations enhance the carbon credit market in Zimbabwe?
VM: As a start, they introduce a uniform registry system and fiscal measures that will benefit the nation as a whole. The regulations require that credits be based on mitigation outcomes that are measurable and verifiable. The Zimbabwe Carbon Registry which I mentioned earlier will then operate a centralized digital platform recording the issuance, transfer and retirement of carbon credits.
Reporter: You mention national benefit, what benefits are likely to accrue to the nation?
VM: There is a serious potential for financial inflows, if you take Gabon for instance, it signed a 10-year agreement valued at US$150 million in 2019 and received US$17 million the same year. Nigeria has the potential to make US$500 million per year from carbon trading. It is important to highlight that the two examples referred to have rainforests, however, there is significant upside of possibilities for our country, including the attended afforestation.
The regulations promote the use of local labour and infrastructural development creating jobs and decentralising economic development at the same time. Project promoters are tasked to commit 20% of revenue to community development which will likely benefit rural communities and of that 20% committed, half of is required to address essential services issues like water infrastructure, clean energy, health et cettera.
In terms of the fiscus, 30% of all proceeds from the issuance of carbon credits will be directed towards support of national development priorities through the Ministry of Finance. So the anticipated national benefit is huge.
Reporter: What measures are prescribed to ensure compliance?
VM: Well, firstly, trading in carbon credits without a licence is an offence that may make one liable to a fine or prison for a period not exceeding 1 year. ZIMCA is empowered to make periodic unannounced inspections on project sites to confirm compliance with verification protocols and safeguard policies. It is further empowered to suspend or revoke licences for entities or persons that engage in misconduct
Reporter: Thank you, Mr. Madzima, we have to end here, because of our time.
VM: Thank you.
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You can contact Vengai Madzima on vengai@mcmlegal.co.zw or at www.mcmlegal.co.zw
