An Investigative Valuation Of The Opportunities And Challenges Of Carbon Trading In Tanzania

The study evaluates the opportunities and challenges Tanzania encounters during the practice of carbon trading.Carbon trading is a scheme used to regulate carbon dioxide(CO2)pollution where organizations or government they do buy or sell carbon permits through providing economic incentives for achieving emissions reductions.It can also be referred as cap and trade or carbon emissions trading.The authorities responsible for the running and administering of Carbon trading are the central authorities such as the government or international organization,on which they are responsible on the setting the limit capacity of CO2 that can be emitted,also referred as cap(limit).In this situation Companies or other groups are issued licenses that involve them to hold allowances or credits in order to emit an equivalent sum of CO2.The allowances and credits that are being traded cannot exceed the cap on its total capacity,this helps in controlling total emissions to that level.Companies can decide to increase their level of allowance accordingly they must buy credits from the countries that they do produce less CO2.The act of selling and buying of carbon permits through transfer of allowances is referred to as a trade.The one that buys therefore pays to pollute,while the seller is business-wise rewarded for reducing CO2 releases.The study determined the current situation of Carbon Trading in Tanzania in terms of people's awareness and knowledge of the matter,opportunities brought by the business,the challenges facing the carbon trading business and how to make the carbon trading business in Tanzania of more benefit to the nation.A sample of 80 people in total,of which 30 people where locals who used to work on such firms were questioned to assess the awareness and knowledge of the carbon trading and 50 people from institutions that in one way or another involve themselves in carbon trading business so as to assess the challenges faced in involvement in the business and what to be done to develop the carbon trading business in Tanzania as to conquer the market.Enough Data were collected questionnaires,documentation and interviewsThe study findings exposed that Tanzania does not have enough projects that cover carbon trading therefore limits its development.It further shows that the majority of the carbon trading workforces have poor knowledge on the carbon business and negatively in which it impacts the business from developing.Also the study disclosed that Tanzania's poor regulations and lack of technologies to capture and store carbon successfully blocks the business from growing.The study proposes the following measures in order to improve carbon trading in Tanzania.These include creating a flexible and efficient market for carbon reduction and emphasize on the financial institutions to invest in carbon trading projects.Policies should be made by the government which will help in monitoring carbon emission.The government should invest more in the carbon trading technology so as to increase the carbon harvesting exponentially.Also,carbon trading business should be market driven and the government should let the business be driven by market forces.