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 !selemani@offsetafrica.com

www.offsetafrica.com http://blog.cleantechies.com/selemani/

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© Selemani Kinyunyu, Offset East Africa, 2009