Carbon Revenue Distribution

... Biocarbon Partners Shares K53 Million with Zambian Communities

By Francis Maingaila

Lusaka, Zambia24 – (31-10-2024) – Biocarbon Partners Limited (BCP) has distributed over K53 million to Zambian communities engaged in its REDD+ projects, notably the Luangwa Community Forest Project (LCFP) and the Lower Zambezi REDD+ project.

The distribution ceremony, attended by Dr. Douty Chibamba, Permanent Secretary of the Ministry of Green Economy and Environment, represented Vice President Mrs. W. K. Mutale Nalumango, marking a significant milestone in carbon revenue sharing for community-driven development.

The funds are set to create impactful changes across 17 partner chiefdoms associated with the LCFP.

An additional K6.5 million has also been allocated to support the Forestry Department and the Department of National Parks and Wildlife, underscoring BCP’s commitment to Zambia’s environmental goals.

Since its inception, BCP has provided over $15 million to local communities, reflecting a steadfast investment in community well-being and conservation efforts.

BCP’s CEO, Nic Mudaly, emphasized the project's extensive reach, noting that it positively impacts over 300,000 people and protects 1.7 million hectares of forest, achievements that have garnered prestigious awards, including "World's Best Individual Carbon Project."

Mudaly outlined that 70% of the revenue generated stays within the local communities, with at least 30% allocated for cash and livelihood payments. 

He announced that five new chiefdoms—Mpuka, Mburuma, Chiawa, Mwape, and Kazembe—will soon receive their first carbon payments, signifying the program’s expansion.

Mudaly also advocated for greater government support and policy reforms, including revisiting Statutory Instrument 166 of 2021, to streamline revenue benefits. 

“With policy adjustments, we can ensure quicker, more efficient benefits for communities,” he said.

In a strategic response, Zambia’s Ministry of Green Economy has established a framework to boost carbon trading, focusing on uplifting rural communities. 

Dr. Chibamba introduced guidelines that reinforce the Ministry's commitment to reducing greenhouse emissions and promoting resilience in local communities.

Dr. Chibamba noted, “Carbon projects must define trading terms for communities, sell credits at a fair price, and ensure communities benefit adequately.” 

Under the Forests Act No. 4 of 2015, regulations to manage forest-related carbon projects are now in place. 

Partnering with the SPARK 6 program, Zambia plans to launch new carbon trading guidelines in 2024, laying out private-sector criteria for involvement in international carbon markets.

The Italian Embassy also voiced strong support for the LCFP. 

Speaking at the event, Elisa Brandi, Deputy Head of the Italian Embassy’s Economic and Commercial Office, praised the project’s impact on environmental and socio-economic fronts, citing it as a model for climate finance benefits. 

Since 2019, LCFP has been in a 20-year partnership with Italian energy company ENI, which has committed to purchasing its carbon credits, supporting approximately 200,000 individuals across 17 communities.

Senior Chief Sandwe, representing the local chiefdoms involved, expressed gratitude, emphasizing the project’s benefits for conservation, wildlife protection, and community livelihoods. 

He acknowledged the collective contributions of government officials, project partners, and community members in advancing environmental sustainability and poverty reduction.

Through BCP’s carbon trading initiatives, Zambia aspires to lead Africa in climate-smart practices, combining rural economic development with environmental preservation. 

This collaborative approach holds promise for long-term community upliftment and positions Zambia as a pioneer in sustainable development.