Tanzania Unlocks $463 Million in Climate Funding from COP29: Transforming Environmental Initiatives

Tanzania Secures $463 Million for Climate Initiatives

Tanzania has officially received $463.31 million (roughly Sh1.1 trillion) from the total $782.2 million pledged at COP29 to combat climate change and promote environmental conservation. The government plans to kick off various projects this March.

At the COP29 summit, Tanzania made significant commitments, leading to a $782.2 million pledge for numerous initiatives aimed at protecting the environment. This was revealed in Parliament by the Minister of State in the Vice President’s Office (Union and Environment), Mr. Hamad Masauni, who also presented the ministry’s budget proposal for 2025/26, asking for Sh81.86 billion, up from Sh62.68 billion last year.

One of the key agreements from COP29 involves the Loss and Damage Fund, designed to help address climate change impacts. The minister highlighted that some regions are already benefiting from carbon trading, which has paid out Sh45 billion to citizens in ten districts from the sale of carbon credits. “Both public institutions and private sectors need to incorporate carbon trading into their development strategies,” he emphasized.

Still, a recent audit revealed that Tanzania has lost Sh1.26 trillion in potential revenue from carbon trading. Poor coordination, lack of guidance, and limited public awareness are the major hurdles. Despite being active in global climate initiatives, the report noted that Tanzania is not taking full advantage of the opportunities in carbon trading — a lucrative market where countries and companies sell credits for reducing emissions.

From January 2023 to July 2024, Tanzania earned only Sh36 billion from carbon credit sales, a mere 3 percent of the potential earnings. Delays in project implementation and insufficient engagement in the sector are primarily to blame. An alarming finding from the audit indicated that of the 56 registered carbon trading projects, only four had moved forward, while the others remained stuck in planning due to inadequate follow-ups from relevant authorities.

Minister Masauni acknowledged that many Tanzanians are still unfamiliar with carbon trading. He encourages citizens to use the national carbon coordination center for guidance on how to engage effectively in this trade, which holds great promise for economic growth and environmental preservation.

As part of its 2025/26 fiscal strategy, the government is preparing several environmental resilience projects, including restoring ecosystems and conserving biodiversity. The focus is on improving integrated management of the environment while rehabilitating degraded land to enhance resilience for both ecosystems and communities.

Moreover, the government reported that by March 2025, Sh49.2 billion had been transferred to Zanzibar as part of ongoing Union matters, which encompass economic and social coordination, alongside dividend allocation. There are also ongoing projects financed by the State Development Fund across Zanzibar, targeting sectors like education, health, and infrastructure.

Dr. Joseph Mhagama, who chairs the Parliamentary Committee on Governance, emphasized the necessity for punctual disbursement of funds to ensure ministries and agencies can fulfill their responsibilities effectively. He stressed the importance of regular monitoring and assessment of development projects for sustained progress.

Staying informed about Tanzania’s climate strategies and their implications for future development is crucial as the country aims to tap into the vast potential of carbon trading and climate resilience initiatives.

For further insights into carbon trading and environmental initiatives, visit UNFCCC’s official site.

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