Key points:
- Zimbabwe will use a blockchain-powered carbon credit registry to enhance transparency and restore investor trust. Developed by Dubai-based A6 Labs, it is the first of its kind globally
- The new registry is designed to strengthen the country’s carbon credit market
- The system will offer full traceability for carbon credit transactions, ensuring data transparency and credibility with an immutable record for issuance, trading and cancellation
- By eliminating intermediaries, blockchain technology reduces costs and enhances security, making the system more efficient than traditional methods
- Industry experts believe the new registry will allow Zimbabwe’s carbon mitigation projects to achieve proper market value.
In a move to tap into the rapidly growing carbon credit market, the government of Zimbabwe has unveiled a pioneering carbon credit registry built on blockchain technology. Developed by Dubai-based A6 Labs, this innovative system is the first of its kind globally. It aims to increase transparency and restore investor trust by ensuring full traceability in the issuance, trading, and cancellation of carbon credits.
The new registry marks a significant milestone, particularly given that Zimbabwe ranks as the third-largest carbon credit producer in Africa, according to 2023 statistics from California-based RippleNami.
A Turnaround After Market Setbacks
The announcement comes after a turbulent period for Zimbabwe’s carbon credit industry. In 2023, the country sparked concern among global market participants by suddenly canceling several major carbon offset projects. This move hurt investor sentiment and raised questions about the country’s commitment to its carbon credit commitments.
The government is now focused on re-establishing credibility within the market. Along with the blockchain registry, Zimbabwe has created the Zimbabwe Carbon Markets Authority to regulate and oversee carbon credit project registrations. The government is also keen to reassure international investors by emphasizing the integrity of its new system.
Blockchain Technology Ensures Full Transparency
Every transaction within the registry will be fully traceable, providing an immutable record of carbon credit issuance, trading, and retirement,” said Zimbabwe’s Environment Minister, Evelyn Ndlovu. “This technology ensures the integrity of our carbon market and provides the global community with confidence that the credits we trade are genuine, measurable, and impactful.”
The blockchain-based registry will offer a secure, cost-effective alternative to traditional systems, as it removes the need for intermediaries, lowering costs while enhancing security. Since the country aims to regulate the industry more effectively, developers will be required to apply and meet specific criteria to participate in the new registry. The developers interested in getting involved will have to apply through the system and only if they meet the requirements, they can proceed.
A Positive Outlook for Zimbabwe’s Carbon Market
Industry experts are optimistic about the potential impact of this new system, believing it will restore faith in Zimbabwe’s carbon credit market and allow the country’s emission reduction projects to receive their rightful market value.
