Zimbabwe has recently enacted the Carbon Trading (General) Regulations, 2025, published as Statutory Instrument 48 of 2025. This landmark legislation, promulgated under the authority of section 140(2)(c) of the Environmental Management Act [Chapter 20:27], establishes a robust and comprehensive framework for regulating carbon trading within the nation. It underscores Zimbabwe’s steadfast commitment to global climate change mitigation efforts, particularly within the ambit of the Paris Agreement. This article provides an in-depth legal and market analysis of these pivotal Regulations, examining their key components, mechanisms for market enhancement, economic implications for local communities, sectoral impacts, compliance procedures, and meticulous alignment with international standards, whilst also addressing potential implementation challenges.
1. Key Components of the Regulatory Framework
The bedrock of the Regulations is the establishment of the Zimbabwe Carbon Markets Authority (ZiCMA). ZiCMA is statutorily mandated to supervise, accredit, and meticulously monitor all participants and activities within the burgeoning carbon market. Its expansive powers, meticulously articulated in Section 5 of the Carbon Trading (General) Regulations, 2025, encompass, inter alia, the approval of carbon projects, authorisation for the issuance of mitigation outcomes, ensuring environmental integrity, and continuous monitoring of compliance with Zimbabwe’s Nationally Determined Contributions (NDCs) under the Paris Agreement. NDCs represent each country’s pledged efforts to reduce national emissions and adapt to the impacts of climate change, forming the core of the Paris Agreement.
A fundamental tenet of this regulatory framework is the compulsory registration of all actors engaged in the carbon value chain. Section 8 of the Regulations unequivocally prohibits any person from engaging in carbon credit trading or project development without prior and proper registration with ZiCMA. Of particular note, foreign participants are subject to an additional prerequisite under Section 8(1)(c), which stipulates the imperative establishment of a legal presence in Zimbabwe before any registration can be granted.
The issuance of carbon credits is meticulously governed by Section 12 of the Regulations. Verified mitigation outcomes can only attain recognition and subsequent monetisation if the underlying project is duly registered with ZiCMA and the resultant credits are issued through the Zimbabwe Carbon Registry (ZCR). The ZCR, established under Section 7 of the Regulations, is engineered to ensure immutable traceability, scrupulous prevention of double-counting of credits, and robust support for the transparency framework enshrined in Article 6 of the Paris Agreement. A “carbon credit” is defined as a tradable certificate representing one metric tonne of carbon dioxide equivalent (CO2e) that is either prevented from being emitted into the atmosphere or removed from it as a result of climate change mitigation actions.
Reinforcing these core provisions are various schedules appended to the Regulations. The First, Second, Fifth, and Sixth Schedules contain binding environmental and social safeguards. These provisions include, but are not limited to, stringent requirements for community consultation, robust biodiversity protection measures, diligent monitoring of sustainable development impacts, and the mandatory establishment of effective local grievance mechanisms. These protections find their constitutional imprimatur in Section 73 of the Constitution of Zimbabwe, 2013, which unequivocally guarantees the right to an environment that is not harmful to health or well-being and its protection for present and future generations. Non-compliance with registration mandates attracts severe legal consequences; Section 9(2) criminalises participation in carbon trading without requisite registration, rendering such conduct an offence liable to a fine not exceeding level 14 or imprisonment for a term not exceeding twelve months, or both such fine and imprisonment.
2. Enhancing Zimbabwe’s Carbon Credit Market
The Regulations are strategically poised to significantly enhance the integrity and operational efficacy of Zimbabwe’s carbon credit market. This enhancement is to be achieved through the introduction of a uniform registry system, verifiable emissions reduction protocols, and prudent fiscal measures expressly designed to secure national benefit. The Zimbabwe Carbon Registry (ZCR), a centralised digital platform established under Section 7, meticulously records the issuance, transfer, and retirement of carbon credits. This centralisation ensures that each credit is unique, unequivocally traceable, and compliant with both domestic legal standards and international best practices, thereby immeasurably bolstering market credibility. Furthermore, Section 7(3)(j) mandates the ZCR to be interoperable with international carbon market registries, thereby facilitating seamless access to broader global trading platforms. The goal is to ensure Zimbabwe’s carbon credits are credible and reliable within the global market.
The credibility of the market is further meticulously safeguarded by Section 13(2) of the Regulations, which mandates that credits must be predicated upon mitigation outcomes that are demonstrably real, additional, measurable, and verifiable. These principles are critical: “real” means the emission reductions actually happened; “additional” means they would not have occurred without the carbon project; “measurable” means they can be quantified; and “verifiable” means they can be independently checked. The Fifth Schedule to the Regulations meticulously outlines the technical criteria for baseline setting, permanence (the duration for which emission reductions or removals must be kept out of the atmosphere, typically 30 years), leakage prevention, and robust third-party verification, ensuring stringent alignment with methodologies approved under the United Nations Framework Convention on Climate Change (UNFCCC). Transparency, a cornerstone of market integrity, is robustly reinforced by Section 13(8), which obligates ZiCMA to maintain and publish a public record of all authorised mitigation outcomes.
From a fiscal perspective, Section 12(16)(c) of the Regulations directs that thirty percent (30%) of the proceeds derived from the issuance of carbon credits shall be deposited into the National Transaction Account, administered by the Ministry responsible for finance. This crucial provision ensures that a substantial portion of the financial value generated from the carbon market contributes directly to national development priorities, potentially funding climate adaptation projects, renewable energy investments, and capacity building for carbon markets. Additionally, 2% of the total credit volume will be allocated to a national buffer account to mitigate risks, and 1% of all carbon credits issued will be automatically retired, further enhancing market integrity.
3. Economic Benefits for Local Communities
A significant emphasis within the Carbon Trading (General) Regulations, 2025, is placed on social inclusion and equitable benefit-sharing, particularly for local communities. The First Schedule mandates that all registered carbon projects allocate a minimum of twenty percent (20%) of project revenue to community development. Crucially, at least fifty percent (50%) of this allocation must be directed towards essential services such as clean energy, water infrastructure, health, and education within the host communities. These requirements resonate profoundly with Section 13 of the Constitution of Zimbabwe, 2013, which obliges the State to ensure that local communities derive a tangible benefit from the exploitation of natural resources within their localities.
Beyond direct revenue sharing, project developers are also jurisprudentially obliged to utilise local labour and actively contribute to infrastructure development, thereby promoting rural development and job creation. To meticulously address potential grievances, the Second Schedule mandates the establishment of project-level grievance mechanisms to resolve community concerns in a timely and equitable manner. Furthermore, Section 6 of the Regulations establishes a National Grievance and Redress Mechanism (NGRM), providing an impartial forum for the adjudication of disputes that cannot be resolved at the project level, potentially through mediation or arbitration.
4. Impact on Existing Industries: Agriculture and Mining
The Regulations are poised to exert a multi-dimensional impact on existing economic sectors, particularly agriculture and mining, and also introduce specific requirements for other industries. The agricultural sector stands to benefit significantly through the proliferation of carbon projects involving afforestation, reforestation, agroforestry, and sophisticated soil carbon sequestration methodologies. However, Section 8(2)(a) stipulates that such projects must strictly comply with national land use laws and, crucially, secure the Free, Prior, and Informed Consent (FPIC) of communities, as meticulously elaborated in the Fourth Schedule. This ensures community rights are upheld in land-use decisions.
In contrast, the mining sector may anticipate stricter oversight. Section 8(2)(d) of the Regulations expressly prohibits the approval of carbon projects that are inconsistent with Zimbabwe’s Nationally Determined Contributions or that materially contribute to greenhouse gas emissions. This may necessitate existing mining operations undertaking independent environmental audits and emissions reduction assessments as an integral part of their corporate social responsibility obligations. A notable regulatory shift directly impacting the clean cookstove industry is the mandated phasing out of Tier 3 cookstoves by 2026, as per paragraph 10(a) of the First Schedule. This measure, designed to proactively promote cleaner energy technologies, will necessitate strategic investment in improved production methods and the adoption of higher-tier cookstoves, with concomitant implications for cost structures and accessibility.
5. Mechanisms for Compliance and Enforcement
Compliance with the Regulations is rigorously enforced through a layered system encompassing meticulous registration, continuous monitoring, robust reporting, and stringent penal sanctions. Section 10 outlines the comprehensive project registration process, which includes the submission of a Project Idea Note (PIN), a detailed Project Design Document (PDD), and the mandatory appointment of an accredited Designated Operational Entity (DOE) for independent verification. To ensure unwavering adherence, Section 11(3) empowers ZiCMA to conduct periodic and unannounced inspections of project sites, thereby guaranteeing compliance with verification protocols and safeguard policies throughout the project’s operational lifespan.
Non-compliance is met with significant penalties. As previously articulated, Section 9(2) stipulates that any person engaging in carbon trading activities without valid registration commits an offence, liable to a fine not exceeding level 14, imprisonment for a period not exceeding 12 months, or both. Maintaining impeccable professional standards is also paramount; Sections 17 and 18 empower ZiCMA to licence, suspend, or revoke the accreditation of verifiers and auditors who engage in misconduct, misrepresentation, or demonstrate a patent lack of technical competence. This rigorous oversight mechanism is meticulously designed to enhance the overall integrity of the carbon market by ensuring that only eminently qualified professionals are permitted to verify emissions reductions.
6. Alignment with International Carbon Trading Standards
The Carbon Trading (General) Regulations, 2025, are explicitly and demonstrably aligned with Zimbabwe’s international obligations under the Paris Agreement. Section 13(2) mandates that all credits intended for international transfer must be subject to corresponding adjustments, a critical requirement under Article 6(2) of the Paris Agreement to prevent the double-counting of mitigation outcomes by more than one country. Furthermore, section 13(10) requires ZiCMA to notify the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat of all Authorised Mitigation Outcomes (AMOs), thereby fulfilling Zimbabwe’s reporting duties under the Enhanced Transparency Framework (ETF) of the Paris Agreement.
Section 7(1)(a) mandates that the ZCR comply with relevant decisions adopted by the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA), ensuring that Zimbabwe’s domestic registry evolves in perfect tandem with global standards. While the Kyoto Protocol has largely been superseded by the Paris Agreement, the Regulations strategically retain references to Designated Operational Entities (DOEs), drawing upon established international practice under the Clean Development Mechanism (CDM). This continuity fosters compatibility with past projects and methodologies, facilitating a seamless transition to the Article 6.4 mechanism under the Paris Agreement.
7. Potential Implementation Challenges
Notwithstanding their ambition and sophistication, the effective implementation of the Carbon Trading (General) Regulations, 2025, may encounter several practical and legal impediments. The regulatory process itself is administratively intensive, entailing a multi-stage approval procedure involving the submission of a PIN, PDD, and extensive verification documentation. This inherent rigor may contribute to procedural delays, particularly for foreign entities jurisprudentially mandated to first incorporate a local entity under Section 8(1)(c) of the Regulations.
Capacity constraints remain a significant concern, especially for local developers and nascent community-based organisations. The technical requirements meticulously outlined in the Fifth and Eleventh Schedules, particularly concerning Monitoring, Reporting, and Verification (MRV), may exceed the immediate capabilities of smaller actors, potentially limiting equitable participation in the carbon market. The requirement for Free, Prior, and Informed Consent (FPIC), whilst commendable in principle, may present intricate legal complexities in communal land areas where tenure is governed by both customary and statutory law. The Fourth Schedule requires that consent be obtained from all affected landholders, a potentially challenging operationalisation in areas where traditional leadership structures regrettably coexist with individualised rights. Finally, financial constraints pose a notable barrier. The registration and renewal fees prescribed in the Seventh Schedule, coupled with the mandatory 30% revenue remittance to the State under Section 12(16)(c), may potentially discourage investment in marginal or lower-yield projects.
CONCLUSION
The Carbon Trading (General) Regulations, 2025, represent a commendable and decisive legislative stride in Zimbabwe’s climate governance architecture. They establish a legally binding, environmentally robust, and internationally harmonised framework for the regulation of carbon markets. If effectively implemented, these Regulations possess the profound potential to unlock substantial climate finance, actively promote sustainable development, and significantly enhance Zimbabwe’s environmental stewardship, positioning the nation as a potential leader in carbon markets within Africa. Nevertheless, the full realisation of these manifold benefits will hinge critically on sustained institutional capacity building, unwavering legal clarity, robust and inclusive stakeholder engagement, and consistent enforcement. The legal and practical challenges highlighted herein underscore the imperative for a pragmatic and adaptive approach to ensure these Regulations achieve their transformative potential.