LACK of clear guidelines on financial capacity and methods for measuring carbon offsets has created barriers to effective participation in the carbon market, the government has observed.

Vice President Dr Philip Mpango made this assertion at the opening session of the climate change and carbon trade meeting, organized by the Uongozi Institute in collaboration with the Environment Division of the Vice President’s Office (VPO), where the VP emphasized the urgency of streamlining regulations and raising awareness about carbon trading.

"Lack of transparency in contracts is a major challenge," he stated, pointing at the dominance of brokers as occasioning inaccurate reporting of carbon quantities, while key contractual decisions ought to involve broader consultations and not just municipal authorities.

He tasked the National Carbon Monitoring Centre (NCMC) as well as the Regional Administration and Local Governments wing of the President’s Office to work on these defects, by studying and proposing best practices from other countries.

Better coordination among stakeholders to establish a clear and unified direction and addressing existing regulatory gaps is vital, he said, noting that carbon trading could play a significant role in reducing greenhouse gas emissions while boosting revenues.

Carbon trading companies need to support public education efforts to increase understanding and participation, he asserted at the meeting, bringing together government officials, carbon traders and other stakeholders to discuss strategies to enhance carbon trading.

An online entry says that in carbon trading, MRV (measurement, reporting and verification) is a crucial process that ensures the accuracy and reliability of carbon credits by verifying the reduction or removal of greenhouse gas emissions, enabling their trading and use for climate action, while an official portrait says that NCMC is a vehicle for reporting on carbon stocks and their changes as well as coordinating the national MRV processes for the government.

It also implements education programmes for local governments, municipal councils and security agencies on the carbon trade process, it states, while the portfolio state minister, Hamad Masauni, highlighted the government's commitment to maximizing the benefits of carbon trading through legal reforms, citing the move to set up the centre.

These institutional initiatives enable Tanzania to participate in international carbon markets, which enhances sustainable environmental management through advanced monitoring systems, he stated.

Carbon trading opens new investment opportunities which can further strengthen the national economy if managed effectively, he said, urging stakeholders to work closely with the carbon trade coordination center.

Strong partnerships between key institutions and the centre will advance environmental and economic goals, he said, affirming that so far 71 carbon trading projects had been registered by the end of last month.

Kadari Singo, the Uongozi Institute CEO, described the forum as a crucial platform for idea-sharing and accelerating carbon trading initiatives, since Tanzania’s forests, covering approximately 48.1m hectares, present a significant opportunity for the country to leverage carbon markets.

The institute is committed to promoting carbon trading through tree-planting campaigns along coastal areas and conducting research to guide future policy, he added.