By Natasha Kabanda and Luckson Mwale

As climate change increasingly affects communities worldwide, countries like Zambia are exploring carbon markets as a climate solution and a pathway for development. But what exactly are carbon credits, and how can they positively impact everyday Zambians?

On April 16, 2025, WCP Zambia hosted an informative session on Carbon Markets in Zambia through its Environmental Crime Journalism (ECJ) fellowship. The ECJ fellowship aimed at equipping and capacitating local journalists with skills to report on and disseminate information related to environmental crimes effectively. Climate finance expert Dr. David Gwenzi guided the second cohort of WCP’s Environmental Crimes Journalism fellowship in grasping the basics of carbon credits, the potential role Zambia could occupy within the global carbon trading framework, and what the public ought to know.

Carbon credits are a financial tool used to fight climate change. The basic idea is simple: polluters must pay.  Every time a company emits carbon dioxide, through manufacturing, energy production, or flying planes, it contributes to the planet’s warming. To take responsibility, the company can buy carbon credits from someone else who is reducing or eliminating carbon emissions.

That “someone else” could be a community in Zambia protecting their forest. Trees absorb carbon from the atmosphere. So, by preserving forests or switching to cleaner cooking technologies, Zambian communities can generate carbon credits, which are sold internationally. One carbon credit equals one tonne of carbon dioxide prevented or removed from the atmosphere. These credits are traded globally, with companies and countries buying them to offset their emissions.

For many Zambians, especially those in rural areas, forests are more than just carbon sinks; they are sources of firewood, farming land, and spiritual heritage. However, due to poverty and population pressures, deforestation has been rampant. Now, carbon markets are offering a new incentive to conserve. Rural communities are getting paid not to cut down trees. Instead, they’re engaging in conservation agriculture, beekeeping, and eco-tourism, alternative livelihoods that bring income and protect the environment. More importantly, this money is performance-based. No trees? No payment. That means everyone has a stake in keeping the project and the trees alive.

Here’s the twist. Carbon markets are not just about planting trees or keeping forests standing. They come with rules, requirements, and risks. To sell carbon credits, a project must undergo a rigorous process: design, registration, third-party audits, and monitoring over time. It must prove that it is doing something extra (additionality) and that the impact will last decades (permanence).

Not all projects succeed. Some struggle to get funding up front. Others get caught up in market volatility, and prices for carbon credits can swing wildly, making it hard to predict income. Worse, there have been cases of exploitation, where communities are promised benefits but receive only a small share of the earnings.  Sometimes, they aren’t even aware that a project is operating on their land. Without proper knowledge, communities can be left behind or exploited. 

The concept of Free, Prior, and Informed Consent (FPIC) is vital.  Communities must be informed before a project starts, agree freely, and understand precisely what they’re signing up for. Every Zambian has a right to know how much their land and trees are worth and who is profiting from them.

Understanding the intricacies of carbon markets helps ensure fair participation, especially as Zambia moves to regulate the industry through its upcoming national carbon registry and legal frameworks. 

Zambia is among the ten African countries with a robust and comprehensive carbon credit framework, positioning it as a leader in the development and implementation of carbon credit projects. Central to this is the Green Economy and Climate Change Act, which outlines clear regulations and enforcement mechanisms to ensure effective governance and project success.

Complementing this Act is a suite of legal and policy instruments that together form a solid regulatory foundation for carbon initiatives. These include the Environmental Management Act No. 12 of 2011, the Forest Act No. 4 of 2015, the Forest (Carbon Stock Management) Regulations under Statutory Instrument No. 66 of 2021, the Interim Guidelines for Carbon Markets and Trading (2022), Part 1 of the Carbon Market Framework (2023), and the Eighth National Development Plan (8NDP).

This well-structured legal landscape is further strengthened by the presence of a dedicated ministry overseeing the green economy and climate change sector. The combination of specialised oversight and clear legislation creates a stable and enabling environment for carbon credit initiatives. It offers legal clarity, minimises the risk of contract disputes or cancellations, and promotes long-term project sustainability.

Dr. Gwenzi urged the ECJ fellows to intensify reporting on carbon trading to enable broader citizen engagement in the initiative, which is rapidly gaining ground in Zambia. He stressed that the media has a critical role in sensitising communities. If citizens do not know that reducing deforestation can earn them income through carbon credits, they cannot participate or prioritise these matters.

The fellows were encouraged to be more inquisitive. Journalists are responsible for educating, investigating, and reporting on how carbon markets are unfolding in Zambia.

Mirriam Nasilele, Communications Manager at WCP Zambia, emphasised that the journalism fellowship equips reporters with knowledge and access to experts to enhance their reporting on environmental crimes. The media is a powerful tool in protecting our environment. Ms Nasilele said the fellowship builds journalists’ capacity to tell stories of public concern and inform the public.

She highlighted the urgent need for inclusive communication and public education on carbon markets, especially in rural areas where environmental actions have the potential to unlock economic benefits.

Globally, demand for carbon credits is rising. Countries and companies are scrambling to meet climate goals and are willing to pay for high-quality credits. Zambia stands at a pivotal moment in developing its carbon credit market, with significant opportunities for growth and investment.

However, some questions remain unclear: Do communities fully understand carbon credits? Do they know natural resource management policies that protect their interests and human rights? The media must tell balanced stories, including shining a light on successes. Carbon trading benefits can be actualised when well researched, inclusive, and made easy to understand.