A financial expert Partha Dutta has said Malawi could benefit immensely from carbon credit due to its extensive forest reserves and conservation parks.
Carbon credit is a trading mechanism that allows entities to compensate for their greenhouse emission by supporting projects that reduce, avoid, or remove emissions elsewhere.
Dutta said with a total area of 45,745 miles, Malawi boasts more than one million hectares of designated forest reserves, including one million hectares of land from wildlife conservation parks and reserves.
He said the potential value of Malawi’s carbon credit is estimated at 19. 88 metric tonnes of carbon per annum, valued at over K600 billion.
Speaking during the budget presentation last week, Finance Minister Simplex Chithyola Banda said this fiscal year, the government will finalise documents for the carbon trading development projects, operationalise Article 6 carbon trading regulatory framework and operationalize the Carbon Trust Fund among others.
