Entering the Voluntary Carbon Market: A Tanzanian Private Sector Perspective February 20, 2008 Dar es Salaam Selemani Kinyunyu Managing Director: Offset Africa

Voluntary Carbon Markets Size US$ 265 mil (2008) growing from US$ 96 mil (2007) and US$ 54 mil (2006) – State and Trends of the Carbon Market, 2008 World Bank Average Price : US$1 – US$75 – State of the Voluntary Carbon Market, 2007 New Carbon Finance East Africa's niche – “Charismatic Carbon”

Tracking the Footprint from Tourism 691,260 tons of Carbon are emitted through travel to Tanzania Equal to loosing 29,502 acres of Miombo woodland The Opportunity - potential for offsets US$ 13.8 mil

Stage 1: Discovery who - producer / retailer / wholesaler/ broker/ support services/ AOTA what - carbon offsets strictu sensu / carbon credits / offset PLUS [charismatic carbon] how - operational mechanism

Stage 2: Taking Stock – Internal and External Assessments [Pre - Contractual] Community based forestry “Private Actor” model PPP's - TIC/ KIA/ RIEPA - REC’s hybrid models**

Stage 3 : Feasibility Study + Incorporation Business plan - feasibility study - basic technical assessments Formalization – legal entities mandatory for contracting

Stage 4 : Contracting Stage Retail as an expansive model vis-à-vis wholesale Where the ca$h is coming from - Europe (EU-ETS based schemes/ brokerage) - USA (CSR)** - National Grants/ CSO, NGO - TechnoServe/ Schwab/ Google.org -National + Regional Efforts (COMESA fund/ EAC fund/ Govt. Funds) Legal Agreements (DD, HoA/ MoU, Terms )

Stage 4 : Contracting Stage (cont) Regulatory Considerations -NEMC [in theory this should be the first step] registration of project/ EIA -Ministry of Lands (village counsel / baraza /land use management plan/ WDC approvals/ DC approvals) -Funding approvals - International approvals ** (carbon standards+ certification)

Stage 5 : Closure Further 3 rd Party Consents

Implementation Packaging, Marketing and Delivery Adaptability Exit

Offset Africa – East Africa’s first for profit retail carbon offsetting entity Vision – Create sustainable social and economic solutions to combat global climate change What we do – wealth creation in rural communities, biodiversity, environmental conservation & profits and CSR for businesses

Bottlenecks and Recommendations Bottlenecks - access to finance -niche markets; high barriers (no viable exit strategy) - technical know-how (EIA/ Certification/ Feasibility studies) Recommendations - project bundling or cost sharing - carbon bureau (info/ best practices) kudos TNRF

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