Carbon trading has emerged as a critical mechanism for mitigating climate change by incentivizing the reduction of greenhouse gas emissions and promoting sustainable land use. In Zambia, a country endowed with vast forest resources, the legal framework governing carbon trading is shaped by several key pieces of legislation, notably the Climate Change Act No. 18 of 2024, the Forest Act No. 4 of 2015, and the Forest (Carbon Stock Management) Regulations, Statutory Instrument No. 66 of 2021. Let us explore the interplay between these laws and their collective role in facilitating carbon trading in Zambia, with a focus on forest-related carbon projects.
The Climate Change Act No. 18 of 2024: A Broader Framework for Carbon Markets
The Climate Change Act No. 18 of 2024 represents Zambia’s first comprehensive legislation dedicated to addressing climate change and regulating carbon markets. Building on the interim guidelines issued in 2022 by the Ministry of Green Economy and Environment, the Act establishes a robust regulatory framework for carbon trading, covering both forest and non-forest carbon projects. It aligns with international agreements, such as the Paris Agreement, and incorporates provisions for corresponding adjustments under Article 6 to ensure the credibility of carbon offsets.
The Act introduces administrative measures for project approval, including the submission of concept notes or expressions of interest (EoI) to the Permanent Secretary at the Ministry of Green Economy. It mandates the use of approved methodologies (e.g., UNFCCC, Gold Standard, or Verra’s Verified Carbon Standard) for calculating emission reductions and requires a measurement, reporting, and verification (MRV) system to ensure transparency and integrity. This broad scope contrasts with earlier regulations, which were more narrowly focused on forest carbon projects, and sets the stage for a unified carbon market in Zambia.
The Forest Act No. 4 of 2015: Foundation for Forest Management
The Forest Act No. 4 of 2015 is a cornerstone of Zambia’s efforts to manage and conserve forest resources while addressing environmental challenges like deforestation and biodiversity loss. The Act provides for the establishment of various forest categories (e.g., National Forests, Local Forests, and community forests) and promotes sustainable forest management through community participation, licensing, and the creation of the Forest Development Fund. It also supports Zambia’s commitments under international agreements, such as the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, by emphasizing the role of forests as carbon sinks.
The Act regulates activities such as charcoal burning and timber harvesting, which contribute to deforestation—a significant issue in Zambia, where the country ranks among the highest in Africa for deforestation rates. By requiring permits for forest produce and enforcing sustainable practices, the Act indirectly supports carbon sequestration and the reduction of emissions from deforestation and forest degradation (REDD+). These provisions create a legal foundation for forest-based carbon projects, which are further detailed in subsequent regulations.
Forest (Carbon Stock Management) Regulations, 2021: Specific Guidance for Forest Carbon Projects
The Forest (Carbon Stock Management) Regulations, Statutory Instrument No. 66 of 2021, provide targeted guidance for forest carbon projects, addressing a gap in the Forest Act’s broader framework. These regulations encourage community forest management groups to participate in carbon trading through activities such as reducing deforestation, conserving forests, and sustainably managing forest resources. They outline a specific approval process for forest carbon projects, requiring an EoI to be submitted to the Director of Forestry, which differs from the Climate Change Act’s requirement to submit to the Permanent Secretary.
The regulations focus exclusively on forest-related carbon, limiting their scope compared to the Climate Change Act. They emphasize community benefits, ensuring that local communities, as custodians of natural resources, receive equitable shares of carbon trading revenues. However, inconsistencies between these regulations and the broader guidelines (now formalized in the Climate Change Act) have raised concerns about overlapping approval processes and potential regulatory conflicts.
Interplay and Challenges in Carbon Trading
The relationship between the Climate Change Act No. 18 of 2024, the Forest Act No. 4 of 2015, and the Forest Carbon Stock Management Regulations is both complementary and complex. The Forest Act provides the foundational legal structure for forest management, emphasizing sustainability and conservation, which are critical for carbon sequestration. The Forest Carbon Stock Management Regulations build on this by offering specific mechanisms for forest carbon projects, particularly for community-driven initiatives. The Climate Change Act, meanwhile, integrates these efforts into a broader carbon market framework, extending beyond forests to include other carbon project types and aligning with global standards.
However, challenges arise from inconsistencies in administrative processes. For instance, the differing requirements for submitting project proposals (to the Director of Forestry under the Regulations versus the Permanent Secretary under the Climate Change Act) create uncertainty for project developers. Additionally, the transition from interim guidelines to the Climate Change Act has introduced risks related to changes in law, requiring project developers to ensure flexibility in project agreements to accommodate evolving regulations.
Role in Facilitating Carbon Trading
Together, these laws create a multi-layered framework for carbon trading in Zambia:
Forest Act No. 4 of 2015: By regulating forest use and promoting sustainable practices, it ensures that forests remain viable carbon sinks, supporting REDD+ projects and other forest-based carbon initiatives. Its emphasis on community involvement aligns with the equitable benefit-sharing principles of carbon trading.
Forest Carbon Stock Management Regulations: These provide a clear pathway for forest carbon projects, particularly for communities, by outlining approval processes and encouraging participation in carbon markets. They ensure that forest carbon projects contribute to Zambia’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
Climate Change Act No. 18 of 2024: This Act unifies and expands the carbon market, providing a comprehensive regulatory framework that ensures credibility, transparency, and alignment with international standards. It addresses gaps in the earlier regulations by covering non-forest carbon projects and introducing robust MRV systems.
The Climate Change Act No. 18 of 2024, the Forest Act No. 4 of 2015, and the Forest (Carbon Stock Management) Regulations collectively form a robust yet evolving framework for carbon trading in Zambia. While the Forest Act and its regulations focus on forest-specific carbon projects, the Climate Change Act broadens the scope to create a cohesive national carbon market. Addressing administrative inconsistencies and ensuring clarity in approval processes will be critical to maximizing the potential of carbon trading in Zambia. By leveraging its rich forest resources and aligning with global climate goals, Zambia is well-positioned to become a leader in carbon markets, delivering both environmental and socio-economic benefits.
Chaliafya katungula
Forestry Advocacy for Conservation, Communities, Communication, Transparency, Accountability and Research – F(A+C+T+A+R)
