The Tanzanian government said it has secured $463.31 million (Sh 1.1 trillion) from the $782.2 million (Sh 1.944 trillion) pledged at COP29 for environmental conservation and climate initiatives.
This was disclosed recently in parliament by minister of State in the Vice President’s Office (Union and Environment), Mr. Hamad Masauni, as he presented the Ministry’s 2025/26 budget proposal, costing Sh81.86billion, an increase from last year’s Sh62.68billion.
Announcing the development in Parliament recently, Minister of State Hamad Masauni highlighted key COP29 outcomes, including the operationalization of the Loss and Damage Fund, approval of tree planting for carbon trading, and the development of a transparent carbon trading framework.
He urged institutions to integrate carbon trading into their development strategies, noting that citizens in ten districts had already received $16.8 million from carbon credit sales.
However, a report by the Controller and Auditor General (CAG) revealed significant setbacks in Tanzania’s carbon trading sector as it stated that the country has lost Sh1.26 trillion in potential revenue from carbon trading.
According to The Citizen, the report cited poor coordination, limited awareness, and inadequate government guidance as key challenges. Of 56 registered carbon projects, only four were implemented.
Between January 2023 and July 2024, Tanzania generated just Sh36 billion from carbon credit sales. Only 3% of the Sh1.26 trillion the company could have earned.
“The government has not fully harnessed its carbon trading potentials due to insufficient guidance and low awareness among key stakeholders”, the CAG report states.
Despite these issues, the government remains committed to strengthening climate resilience.
Parliamentary Committee Chairman Dr Joseph Mhagama urged the government to ensure timely funding and improve monitoring of Union projects.
