Norway injects 1.8bn/- to boost Tanzania's carbon market readiness

By The Respondents Reporter

Tanzania has secured 1.8 bn/- in funding from the Government of Norway to strengthen its climate transparency systems and prepare the country to participate more effectively in international carbon markets.

The funding agreement, signed between the National Carbon Monitoring Centre (NCMC) and the Royal Norwegian Embassy in Tanzania, will support a one-year inception phase aimed at strengthening the country's capacity to monitor, report and verify (MRV) greenhouse gas emissions in line with international climate commitments.

Speaking after the signing ceremony, NCMC Chief Executive Officer Kathryn Kigaraba described the agreement as a major milestone in Tanzania's efforts to address climate change and develop a credible carbon market.

She said the project seeks to strengthen the institutional, technical and financial systems of the NCMC while laying the foundation for establishing a National Carbon Registry, a key requirement for ensuring transparency and credibility in carbon trading.

The CEO said the project will enable the centre to establish robust governance, financial management and institutional systems while improving the country's national Measurement, Reporting and Verification (MRV) framework.

"The project will strengthen governance structures, institutional partnerships, technological readiness and operational systems needed for the Centre to effectively discharge its mandate and meet international standards," she said.

She noted that reliable and transparent carbon data is critical for Tanzania to attract climate finance and participate competitively in global carbon markets.

"Our vision is to build a carbon market institution that is recognised for integrity, transparency, professionalism and credibility. This support gives us an important opportunity to establish the systems needed to achieve that goal," she said.

Kigaraba thanked the Government of Norway for its continued confidence in Tanzania's climate agenda and commended the United Nations Development Programme (UNDP) for overseeing implementation of the project's initial phase.

NCMC Board of director Vice Chairman Khamis Hamza Khamis said the agreement comes at a critical time following the establishment of the Centre as a statutory institution mandated to coordinate greenhouse gas management, climate transparency, carbon market development, carbon project registration, research and technical advisory services.

He said the Board remains committed to ensuring good governance, accountability and transparency throughout implementation of the project while strengthening Tanzania's climate governance systems.

Norwegian Ambassador to Tanzania Tone Tinnes said strong climate governance begins with strong institutions, adding that the partnership reflects the shared commitment of Norway and Tanzania to advancing sustainable development and tackling climate change.

"Through this partnership, Norway is supporting Tanzania in building the systems needed to strengthen climate transparency, unlock climate finance and participate in high-integrity carbon markets," she said.

UNDP Resident Representative Shigeki Komatsubara said the initiative will strengthen Tanzania's institutional capacity to fulfil its international climate obligations while positioning the country to benefit from emerging climate finance and carbon market opportunities.

The one-year inception phase will establish governance and procurement systems, assess national gaps in greenhouse gas monitoring, identify priority sectors, strengthen collaboration among public institutions and develop a digital national carbon registry.

The initiative forms part of the renewed bilateral climate partnership between Tanzania and Norway signed in 2023, which prioritises climate transparency, climate finance and strengthened climate governance as key areas of cooperation.

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