Summary:
- Malawi is highly vulnerable to climate change, with more than 70% of the population living in extreme poverty.
- Carbon markets, which are formally recognised as a voluntary mechanism under the UNFCCC, offer an opportunity to channel much-needed climate finance to the country.
- There has, however, been considerable scepticism about the integrity of these markets and the impacts on local communities.
- To ensure these markets are responsible and equitable, robust regulatory frameworks, transparency mechanisms and inclusive partnerships in project design and implementation are essential.
- Recently, the Malawian government has taken active steps to regulate its carbon market, for example through the establishment of the Malawi Carbon Markets Initiative and the Carbon Trading Regulatory Framework.
- By ensuring that carbon projects integrate and empower local communities and contribute to climate, biodiversity and socio-economic benefits, there is an opportunity for carbon markets to contribute to the country’s development agenda.
