By Benadetta Chiwanda Mia:
The government has announced that it has registered 47 carbon developers to establish projects aimed at selling carbon credits across sectors.
The sectors include agriculture, energy, transport, waste management, manufacturing, construction and sustainable forestry management.
Announcing the development in the 2025-26 national budget statement, Finance Minister Simplex Chithyola Banda said six of these projects have already been authorised, allowing investors to move forward with implementation.
“It is projected that these projects will generate 5.9 million carbon credits after successful implementation and verification, translating to [an] estimated revenue of $60 million,” Banda said.
Banda said to support such initiatives, the government had drafted a Carbon Trading Framework—Article 6 Framework, which will regulate and guide carbon trading in line with the country’s Nationally Determined Contributions (NDCs) under the Paris Agreement.
“This framework will ensure that Malawi achieves its ambitious climate targets and facilitates the development of projects in various sectors,” Banda said.
He further announced that in the 2024-25 financial year, Malawi generated over $9.5 million from carbon credits sold from projects implemented in the previous fiscal year.
Malawi Stock Exchange Chief Executive Officer John Kamanga emphasised the importance of a strong regulatory environment and capacity building to facilitate trading.
“Carbon credits are a growing global initiative and some African stock exchanges, like Egypt’s, have already taken the lead. If Malawi sets up the right regulations, the stock market can become a key platform for trading these credits,” Kamanga said.
He highlighted that leveraging the stock market would create a more competitive environment for carbon credit buyers, leading to better price discovery and higher revenues for Malawi.
Economics Association of Malawi President Bertha Chikadza said carbon trading presented stakeholders with an opportunity to integrate environmental considerations into economic policies and strategies.
Chikadza noted that directly collecting revenue from carbon trading could assist Malawi in funding some projects as well as unlocking affordable financing and attracting foreign investment needed for economic growth.
However, she warned that Malawi must be proactive in adapting to the global shift towards low-carbon economies as international trade and financial institutions increasingly prioritise Environmental, Social, and Governance (ESG) standards.
“Countries that fail to adapt risk being marginalised in financial markets and losing out on foreign investment,” Chikadza said.
During the 2024-25 financial year, the country received funds in excess of $9.5 million realised from carbon trading on credits that were generated from projects that were implemented in the previous financial year.
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