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Mashudu Netsianda-Bulawayo Bureau

A US$45 million fund has been created through a partnership between Government and the private sector to expedite investment in renewable energy, in a bid to mitigate the impact of climate change.

The partnership will also launch a climate tagging system, known as the development projects management information system, to enhance accountability and transparency for trading in carbon credits.

Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said the country had pledged to reduce greenhouse gas emissions by 33 percent per capita by 2030 and is increasing its use of renewable energy sources.

In his presentation at the Zimbabwe International Trade Fair (ZITF) International Business Conference on Wednesday under the topic, “Climate change financing and its implications on industrialisation and trade”, Prof Ncube said other measures being deployed include climate-smart agriculture practices, construction of resilience infrastructure and research into surveillance of climate change-related diseases.

He said countries across the globe were mobilising resources for the implementation of climate response policies and programmes through the national determined contributions that sought to adapt and mitigate climate change on economies and households.

“It is the Government’s hope that these positive developments will result in more investment opportunities for the private sector to harness as we inclusively and sustainably build the country step by step towards the desired outcome,” said Prof Ncube.

As a party to the UN Framework Convention on Climate Change, Zimbabwe sought to contribute to the ambitious global mitigation goals as agreed under the Paris Agreement.

Zimbabwe developed the low emission development strategy to cover 2020-2050. 

This strategy set the course for reducing emissions while at the same time ensuring sustainable resources and economic development for the country.

Government was spearheading efforts to mobilise climate financing and had since engaged the private sector in climate action.

Some of the climate action programmes and projects being implemented by the Government include the climate-smart agriculture practices Intwasa/Pfumvudza, the construction of climate resilience infrastructure such as dams, investments in renewable energy, and climate change-related disease research and surveillance, among others.

“Furthermore, public investment management guidelines were amended to incorporate climate risk assessment into the infrastructure planning and delivery process. In addition, the disaster risk financing facility has been established with the support of the Africa Risk Capacity to enhance preparedness and responsiveness to climate-related impacts,” said Prof Ncube.

Climate financing had also been mobilised through a four-year partnership between the joint Sustainable Development Goals (SDG) fund and local stakeholders.

“These partners are UNDP, UNESCO, UN Women, United Nations Capital Development Fund (UNCDF) and the Government of Zimbabwe having allocated US$45 million to catalyse investments in renewable energy for the acceleration of the attainment of SDGs. The joint SDG fund is contributing US$10 million while the Infrastructure Development Bank and local public sector partners, which include Old Mutual Investment Group, Zimnat Asset Management and CABS, are contributing US$35 million,” said Prof Ncube.

Government introduced carbon credit trading regulations through Statutory Instrument 150 of 2023.

“The regulations provide for the control of carbon credit trade projects in the country as well as providing for the legal framework necessary for ensuring sustainable development and account for the country’s contribution towards global efforts to reduce greenhouse gas emissions.

“As Government, we had to act fast in introducing these carbon credit trading regulations because there was chaos in the market and one example is some clever individuals who had structured themselves a deal of trading in carbon credits to the value of €100 million and quietly earning €10 million a year from the leafy suburb of Borrowdale in Harare,” said Prof Ncube.

He said sustainable green financing is a critical component of green industrialisation and trade, which presents an opportunity for developing countries to leapfrog to higher levels of development through transitioning to low-carbon and resource-efficient economies.

“By evolving to low-carbon economies, there will be a growing demand for green technologies and services, thus developing countries stand to benefit from this transition by developing new industries and creating new jobs, ultimately reducing poverty and inequality by providing access to clean energy, clean water and other basic services in a way enhancing prospects of shaping a world that is sustainable, inclusive and prosperous for all,” said Prof Ncube.