By Business Insider Correspondent, Addis Ababa
Tanzania is set to be among the biggest beneficiaries of a new regional manual designed to unlock carbon market opportunities in Eastern Africa, launched at the Second Africa Climate Summit (ACS2).
The Manual for Developing Nature-Based Carbon Projects in Eastern Africa, developed by Climate Focus in partnership with the Eastern Africa Alliance on Carbon Markets and Climate Finance, provides the first detailed, step-by-step guide for project developers across seven countries – Burundi, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, and Uganda.
For Tanzania, where vast forest reserves, rangelands, wetlands, and coastal ecosystems present enormous untapped potential, the manual could become a game-changer.
It offers technical, legal, and commercial pathways to help developers design credible projects, access international carbon finance, and directly link revenues to community development.
Unlocking Tanzania’s potential
Tanzania’s Environmental Management (Carbon Trading) Regulations, introduced recently, already position the country to play a central role in voluntary carbon markets.
The manual maps out how such frameworks can be harmonised regionally, reducing duplication and increasing the global competitiveness of Tanzanian projects.
Avoided deforestation projects are identified as Tanzania’s strongest comparative advantage.
With the country losing an estimated 469,000 hectares of forest annually, initiatives that protect standing forests while delivering carbon credits could simultaneously slow environmental degradation and generate significant revenue streams.
“This is not just about carbon credits. It is about turning Tanzania’s natural capital into an economic asset that creates jobs, protects biodiversity, and funds rural development,” said one delegate from the Ministry of Environment attending the summit.
Overcoming barriers
Despite its potential, Tanzania has struggled to scale carbon markets due to technical, regulatory, and financing barriers. Developers have faced long approval processes, limited access to accredited auditors, and uncertainty in contract negotiations with international buyers.
The manual directly addresses these hurdles by providing:
- Model agreements to ensure fair benefit-sharing with local communities.
- Project Design Document checklists to standardise feasibility and validation.
- Commercial guidance on diversifying revenues and navigating price volatility in voluntary carbon markets.
By adopting these practices, Tanzanian developers could reduce project development timelines – typically three to five years – and increase investor confidence.
Linking carbon finance to livelihoods
One of the most important elements for Tanzania is the emphasis on community involvement. Developers are urged to secure Free, Prior, and Informed Consent (FPIC) from communities, backed by transparent benefit-sharing agreements.
This aligns closely with Tanzania’s development priorities. If implemented effectively, carbon revenues could support clean cooking initiatives, rural schools, water infrastructure, and conservation programmes – ensuring local buy-in and reducing resistance to projects.
A regional turning point
Africa currently receives just US$47 billion in climate finance annually, against an estimated need of US$190 billion by 2030.
Delegates at ACS2 argued that carbon markets could help close this gap, provided African projects meet the highest integrity standards.
For Tanzania, this could mean attracting millions of dollars in carbon credit revenues annually. By blending carbon finance with public and philanthropic capital, projects in forestry, wetlands, and agriculture could be scaled sustainably.
As one Tanzanian negotiator in Addis put it: “The manual gives us the tools. It is now up to Tanzania to act decisively – to streamline regulations, build technical expertise, and ensure communities benefit. If we do, carbon markets can become a cornerstone of our green economy.”
The launch marks a significant shift: Africa is no longer waiting for external solutions, but actively building its own mechanisms to access climate finance. For Tanzania, the opportunity is clear – transform abundant natural resources into engines of sustainable growth, resilience, and prosperity.
