Application Form for Carbon Trading - Tanzania National Carbon Monitoring Centre (NCMC) | Carbon Tanzania

Are the environmental Management (Control and Management of Carbon Trading) Regulations 2022 applicable to small scale renewable energy projects?

Yes, the Regulation covers all types of carbon trading projects.

Is it possible that the project entity may become both the Managing Authority as well as the Project Proponent?

Yes you can be both Managing Authority and Project Proponent depending on the nature of your projects and the ownership of the property.

We currently expect to have VERRA carbon credits, which are not listed within the Regulations. Is it true that the Regulations already encompass VERRA carbon credits?

Different carbon standards have different names for their carbon credits. For example, VERRA, being a carbon standard, uses the term Verified Carbon Units (VCUs) for their credits, while the CDM carbon standard uses Carbon Emissions Reductions (CERs), and so on. Although the Regulations may not explicitly mention every carbon standard, they encompass VERRA carbon credits as well.

The Regulations refer to a project Registration Fees of 1% of the expected carbon credits from the project. As we do not know what price the carbon credits will ultimately fetch on the market, how is the Registration Fee calculated and paid? Is it paid in cash, or in the form of transferred carbon credit issurance? And is the 1% project Registration Fees calculated on the estimated annual carbon credit generated amount.

The registration fees is calculated as = 1% of Expected Annual Credits x Average price determined by the government for that particular year. This registration fee is paid in cash during the registration process as once –off payment over the life of the project.

We note that the schedule 2 of the legislation refers to a combination of annual administrative charge (of 3% of the expected annual carbon credits from the project) and a project charge (of 5% of the expected annual carbon credits from the project) - which total to 8%. However, Clause 34.3.e of the Regulations refers to 9% of the expected gross revenues from the annual CER’s from the project. Which one is it?

If carbon credits will be generated in the same year when the registration fee is paid Clause 34.3 e applies. However in the subsequent years the project will pay the 8%.

Our Project was UNFCCC (CDM) registered back in 2013. A letter of no objection was obtained in June 2010, and subsequent Letter of Approval obtained in November 2011 from the DNA as part of this process. Are we now required to register this project with the Government Authorities again?

Regulation No. 48.(1) of the Regulations states that “Any person engaged in carbon trading project before coming into operation of these Regulations shall be required to comply with the provisions of these Regulations after coming into operation of the regulations”. You are therefore required to register your projects and pay all the fees as per the Regulations.

Assuming that a project gets successfully registered with the Authorities as per the prescribed Regulations on a particular Registration Data, how are the annual fees then calculated, knowing that any CDM or VERRA registration process has its own Registration Anniversary – and that trying to pro-rata anu portions of these carbon credit earnings to suit a different Tz Project Registration Date will not be a transparent process.

The Fiscal Year used by the Government of the United Republic is that of July – June. All Government operations including those specified in the Environmental Management (Control and Management of Carbon Trading) Regulations 2022 should abide to this system.

Do credit earned (but not warded) prior to this legislation being gazette fall outside of the Regulations?

No. All the carbon credits that will be sold after the environmental Management (Control and Management of Carbon Trading) Regulations 2022 became into force will be treated as prescribed in the Regulations.

A. Project Details (Project description, type, location, site, size and schedule)

General description

Project proponent registering the PCN

Project Managing Authority

Project sponsor(s) or upfront buyer financing the project (List and provide the following information for all project sponsors)

Type of project (List and provide the following information for all project sponsors)

Location of the project

For Forest Carbon Trade projects, state Management and Governance

Management Plan

Expected schedule

B. Expected Environmental and Social Benefits

Environmental Benefits

Socio-economic Benefits

C. Finance

Project costs

Declaration