Tanzania is seeking to attract more Japanese investment into its carbon market after the National Carbon Monitoring Centre (NCMC) signed a cooperation agreement with Japanese companies under the Joint Crediting Mechanism (JCM).
The agreement, signed by NCMC on behalf of Tanzania and Japanese companies Bricklayers and Amamo, is expected to facilitate investment in carbon-credit projects, particularly those promoting improved cooking stoves.
Speaking in Dar es Salaam over the weekend after witnessing the signing ceremony on behalf of the Permanent Secretary in the Vice President’s Office, Director of Environment Kemilembe Mutasa said the JCM would strengthen Tanzania’s efforts to address climate change and support implementation of the National Development Vision
She said the partnership could expand private-sector participation in the carbon market while supporting projects with environmental, health and economic benefits.
Mutasa said improved cooking-stove projects could help conserve the environment, protect public health, reduce energy costs and create opportunities for private-sector investment in the carbon market.
JCM Project Liaison Officer in Tanzania Risper Koyi said the agreement would strengthen Tanzania’s contribution to the objectives of the Paris Agreement.
She said the cooperation would also provide access to modern greenhouse-gas emissions-reduction technologies while strengthening NCMC’s capacity in Measurement, Reporting and Verification (MRV).
Representatives of the Japanese companies said they were interested in investing in Tanzania’s carbon market through the JCM.
Amamo Chief Executive Officer Natsuka Kusumoto and Bricklayers Chief Executive Officer for Investment Akhito Kusumoto said Tanzania had attracted their interest because NCMC had established a system for coordinating carbon-market activities and the country offered a favourable investment environment.
They said the agreement provides a framework for linking climate-change mitigation projects in Tanzania with Japanese investment and technology under the JCM.
The mechanism is a bilateral cooperation framework established between Tanzania and Japan under Article 6 of the Paris Agreement.
Furthermore, it facilitates cooperation in developing climate-change mitigation measures while contributing to the two countries’ efforts to meet their Paris Agreement commitments.
The JCM also supports the Paris Agreement’s goal of keeping the rise in global average temperatures well below 2°C above pre-industrial levels while pursuing efforts to limit the increase to 1.5°C.