By Beatrice Mwape
A report on the carbon levy management assessment in Malawi has shown that between 2020 and 2025, Malawi collected about K15.6 billion in carbon levy, but only K500 million was traceable to the Environmental Fund.
It has further revealed that of the traceable K500 million, only K300 million was distributed in four districts, each getting K75 million to implement environmental projects, with the Malawi Environment Protection Authority (MEPA) retaining K200 million.
Speaking after presenting the report, the consultant, who is also a Lecturer in Economics at Mzuzu University, Christopher Mbukwa, highlighted that the untraceable funds were legally used by the government.
He said there is a need for the country to do legal and institutional reforms to promote transparency and accountability and amend the legal framework in the use of Carbon Levy funds.
On his part, National Coordinator and Executive Director for the National Youth Network on Climate Change,
Dominic Nyasulu, who is implementing the Green Corruption Project in collaboration with Adam Smith International, says there is a need to ensure there is transparency and accountability in the collection and management of the carbon levy.
Nyasulu said Malawi needs approximately K12.36 trillion in climate investments between 2025 and 2035 with an average use of K1.1 trillion annually.
He said there is a need for effective information flow and coordination among key institutions and stakeholders on the collection and utilisation of carbon levy in order to build resilience among communities vulnerable to climatic shocks.
Additionally, the report has indicated that 98.3 percent of environmental projects are funded by donors.
Reports show that Malawi is losing 5.3 percent of the GDP annually due to climatic shocks
