The way carbon credits are treated by governments is undergoing a significant change. At CCT, we've observed a paradigm shift in the political importance and revenue potential of carbon credits. 📈 Governments worldwide are recognizing their value and setting covenants on revenue flows for carbon credits produced on their lands.
🌍 Africa is at the forefront of this transformation. Bloomberg's recent article highlights how several countries are introducing official legislation to regulate the retailment of carbon credits. This marks a crucial step toward sustainable practices and equitable distribution of benefits. In Zimbabwe, a debate is underway to cement a law that ensures 50% of carbon revenues are retained within the country. Meanwhile, Kenya is considering a cutoff at 25%. These measures are responses to the overexploitation of the market by large companies.
Such regulations are likely to become common practice across countries actively involved in carbon markets over time. With projections from BNEF estimating that carbon markets could reach $1tn by 2037, these measures will help nations generate significant cash flows. At CCT, we are aware that Papua New Guinea and Honduras have halted sales of some carbon credits until the regulation is put in place. Malaysia, China and Tanzania are waiting to release policies governing the market.
Also, we acknowledge the importance of protecting countries' resources and communities. We're proud to be part of the debate and fully support the implementation of regulations. In our project in Sabah, Malaysia, we have committed to allocating a substantial share of profits to local communities and governments. 🤝🌍 By prioritizing sustainability and community benefits, our Malaysia project demonstrates a more resilient and secure long-term investment. We believe that by sharing the rewards of carbon credits with local stakeholders, we create a positive impact and ensure the project's longevity.
