Carbon Financing for Lasting Climate Impact in Zanzibar

“This workshop was important for the Government, as we are responsible for putting in place the policies and regulations that guide carbon financing. It also helped other stakeholders better understand how carbon credits work and we have already received many requests from companies interested in engaging in carbon finance.”

— Mr. Salim Hamad Bakar, Head of Climate Change Unit, Department of Environment, Office of the First Vice President

The Zanzibar Joint Programme (ZJP): Integrated Innovations for Sustainable Development, funded by the Royal Norwegian Embassy through the Tanzania SDG Acceleration Fund, is supporting the Revolutionary Government of Zanzibar to strengthen resilience and inclusive livelihoods in Unguja and Pemba through integrated action across food systems, climate and social services. Within this approach, carbon financing is being introduced as a practical pathway to sustain climate interventions and strengthen local ownership over time.

UNCDF recently convened a two-day stakeholder sensitization and awareness workshop on carbon trading and finance in Zanzibar, bringing together Government counterparts, NGOs, UN agencies and other climate and environment stakeholders. The workshop responded to priorities identified through ZJP coordination mechanisms and was linked to ongoing climate interventions under the programme, including clean cooking solutions that can reduce emissions while improving household wellbeing.

Across the sessions, participants learnt how carbon markets work, both voluntary and compliance mechanisms, alongside the enabling policy and regulatory environment, technical requirements, and the standards and methodologies used to generate credible carbon credits. Discussions also looked at opportunities for partnerships across the public and private sectors, and with communities, including areas such as clean cooking and mangrove restoration, where emissions reductions can align with resilience and livelihood benefits.

“Carbon finance is sustainability of the projects – the sustainability of the grants that we as UN agencies and other partners, including government, have been implementing,” said Peter Malika, Chief Technical Advisor, UNCDF, highlighting the potential for carbon revenues to help climate solutions endure beyond traditional project cycles.

The workshop also emphasised that carbon finance is not a stand-alone solution, but part of a broader package. When combined with inclusive value chain support, community systems strengthening and climate adaptation measures under the ZJP, carbon financing can help create longer-term incentives for climate action so that interventions remain viable, scalable and locally anchored well after initial grant funding ends.