Malawi Commits 550,000 Hectares of Forests to 40-Year Carbon Credit Deal with Trafigura
Malawi has committed 550,000 hectares of forest to a 40-year carbon-credit deal with Trafigura, raising concerns among lawmakers and civil society about legal frameworks and benefit-sharing. The deal, which is expected to generate revenue up to $100 million, allows Trafigura exclusive rights to market carbon credits from Malawian reserves. Critics argue that the arrangement lacks necessary legislation and may constrain future governance of land use and climate policy.

Malawi has agreed to a 40-year carbon-credit arrangement covering 550,000 hectares of public forest, amounting to nearly 6% of its land area, with Trafigura, which will pay up to $100 million for exclusive rights to market carbon credits. The project aims to restore forests and generate revenue, but concerns have arisen regarding the absence of legal frameworks, benefit-sharing terms, and potential constraints on future governance.
The deal could produce over 30 million tonnes of carbon removal credits, potentially generating $1.5 billion. Critics emphasize the need for clear regulations and community involvement to avoid conflicts and ensure fairness.




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