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Tanzania sets carbon revenue split to benefit communities

Tanzania has established a framework under which resource owners receive the majority of earnings from forest carbon projects.

Tanzania has set up a revenue-sharing arrangement for forest carbon projects designed to ensure communities and the environment benefit from carbon trading. Under the framework announced by the Minister of State in the Vice-President's Office, resource owners receive 61 per cent of earnings, project proponents get 31 per cent and the government takes eight per cent. The minister said the structure promotes transparency and helps reduce disputes between investors, the government and participating communities.

The framework is part of Tanzania's broader effort to meet its commitments under the Paris Agreement, including reducing greenhouse gas emissions by 30 to 35 per cent by 2030. Strong legislation, accountable institutions, digital systems and fair benefit-sharing mechanisms are essential for carbon trading to deliver results for citizens, the minister said. Tanzania is working with investors and African and international partners to develop high-integrity carbon projects that support environmental conservation and climate change mitigation.

Tanzania's carbon market is gaining momentum, with six projects reaching the carbon credit generation stage. Four mature projects involving clean cooking energy and social benefits have been approved at the latest meeting of the National Carbon Projects Assessment Committee. Tanzania signed four letters of authorisation in August 2026 for carbon credits eligible for use outside the country. The National Carbon Monitoring Centre oversees project registration, monitoring and verification of results.