Entering the Voluntary Carbon Market: A Tanzanian Private Sector Perspective
February 20, 2008Dar es Salaam
Selemani KinyunyuManaging Director: Offset Africa
Voluntary Carbon Markets
Size US$ 265 mil (2008) growing from US$ 96 mil (2007) and US$ 54 mil (2006) – State and Trends of the Carbon Market, 2008
World Bank
Average Price : US$1 – US$75 – State of
the Voluntary Carbon Market, 2007 New Carbon Finance
East Africa's niche – “Charismatic Carbon”
Tracking the Footprint from Tourism
691,260 tons of Carbon are emitted through travel to Tanzania
Equal to loosing 29,502 acres of Miombo woodland
The Opportunity - potential for offsets US$ 13.8 mil
Stage 1: Discovery
who - producer / retailer / wholesaler/ broker/ support
services/ AOTA
what - carbon offsets strictu sensu / carbon credits / offset PLUS
[charismatic carbon]
how - operational mechanism
Stage 2: Taking Stock – Internal and External Assessments [Pre - Contractual]
Community based forestry
“Private Actor” model
PPP's
- TIC/ KIA/ RIEPA
- REC’s
hybrid models**
Stage 3 : Feasibility Study + Incorporation
Business plan
- feasibility study
- basic technical assessments
Formalization – legal entities mandatory for contracting
Stage 4 : Contracting Stage
Retail as an expansive model vis-à-vis wholesale
Where the ca$h is coming from
- Europe (EU-ETS based schemes/ brokerage)
- USA (CSR)**
- National Grants/ CSO, NGO - TechnoServe/ Schwab/ Google.org
- National + Regional Efforts (COMESA fund/ EAC fund/ Govt. Funds)
Legal Agreements (DD, HoA/ MoU, Terms )
Stage 4 : Contracting Stage (cont)
Regulatory Considerations
- NEMC [in theory this should be the first step] registration of project/ EIA
- Ministry of Lands (village counsel / baraza /land use management plan/ WDC approvals/ DC approvals)
- Funding approvals
- International approvals ** (carbon standards+ certification)
Stage 5 : Closure
Further 3rd Party Consents
Implementation
• Packaging, Marketing and Delivery
• Adaptability
• Exit
Offset Africa – East Africa’s first for profit retail carbon offsetting entity
Vision – Create sustainable social and economic solutions to combat global climate change
What we do – wealth creation in rural communities, biodiversity, environmental conservation & profits and CSR for businesses
Bottlenecks and Recommendations
Bottlenecks- access to finance- niche markets; high barriers (no viable exit
strategy)- technical know-how (EIA/ Certification/ Feasibility
studies)
Recommendations- project bundling or cost sharing- carbon bureau (info/ best practices) kudos TNRF
Asante [email protected]
www.offsetafrica.com http://blog.cleantechies.com/selemani/
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© Selemani Kinyunyu, Offset East Africa, 2009