Trade in certified emission reduction credits under the clean development mechanism: the case of Tanzania

Human being activities are the most responsible causes of climate changes and related perils experienced in the world today. Gravity of the matter prompted the international effort to forge an agreement in 1977 in Kyoto Japan seeking to limit world greenhouse gas emissions and subsequently reducing global warming. These agreements, called Kyoto Protocol came out with three flexible mechanisms of which, the Clean Development Mechanism is the only one that involves and meant to benefit developing countries. This study investigated reasons for the paradox that, having ratified the UNFCC and a signatory of the Protocol and considering the 2012 deadline, Tanzania has not attracted CDM investments. The study used qualitative methods to analyse the reasons for that. Findings were that, a segment of people had some knowledge about CDM. However there were reservations on the part of DNA for not promoting it in Tanzania probably because of lack of staff and other resources. On the overall, combining all of the observed factors, it sounded that Tanzania was probably not attractive enough for the CDM investments – at least by the time of the study. However, other factors needed to be considered by further studies before a firm conclusion could be made. Assuming that the above conclusion is true, the implication is that Tanzania and similar countries were drawn into CDM without enough preparations. Also, given the inherent weaknesses of the poor countries, particularly the least developed ones and threats they face in the competing markets, these countries were probably not ready to embrace the Clean Development Mechanism even if it had sustainable development promise.