Zambia Advances Towards Green Economy with Carbon Market Framework
Zambia is making significant strides in establishing a robust carbon market framework. Dr. Douty Chibamba, Permanent Secretary of the Ministry of Green Economy and Environment, emphasized the pivotal role of the financial sector in fostering an environment conducive to investments aligned with green initiatives during the Finance Sector workshop on Carbon and Climate Finance in Zambia.
Dr. Chibamba underscored the importance of leveraging carbon finance, particularly in light of Article 6 of the Paris Agreement, which introduces a new revenue stream for climate change mitigation. This initiative not only facilitates environmental sustainability but also opens doors for international investment, thus supporting projects previously deemed financially unfeasible.
Highlighting the ministry’s commitment to progress, Dr. Chibamba announced the imminent completion of Zambia’s carbon market framework by the second quarter of 2024. This framework aims to catalyze both public and private sector participation in carbon markets, thereby enhancing access to international finance for projects across various scales.
Acknowledging the challenges ahead, Dr. Chibamba emphasized the need for innovative financing solutions tailored to individual projects and sectors. Collaborative efforts between key stakeholders such as the Ministry of Finance and National Planning, the National Treasury, and financial regulators are deemed essential to overcoming these hurdles.
Furthermore, the development of financing mechanisms aligned with international carbon market mechanisms, along with capacity building within the financial sector, remains a priority for Zambia.
Through engagements with various financial institutions and cooperating partners, the country seeks to deepen its understanding of carbon finance’s potential and its role in fostering a green economy.
Dr. Chibamba concluded by highlighting the potential benefits of a conducive carbon market for both public and private sector project developers, particularly in key sectors such as energy, industry, mining, forestry, and agriculture.
With concerted efforts and strategic partnerships, Zambia is set to harness the opportunities presented by carbon finance to propel its journey towards a sustainable future.
