Integrity risks in carbon markets in Mozambique

This Anti-Corruption Helpdesk brief was produced in response to a query from a U4 Partner Agency. The U4 Helpdesk is operated by Transparency International in collaboration with the U4 Anti-Corruption Resource Centre based at the Chr. Michelsen Institute.

Query

Please provide an overview of the issues related to integrity, transparency and accountability in carbon market regulation. What risks should be considered in the case of Mozambique, particularly regarding the environmental sector?

Carbon markets are new mechanisms to regulate and reduce greenhouse gases; however, these are not fully yet fully transparent and some lack robust oversight. As such, these entail different integrity risks, particularly in countries with weak institutions and difficulties in enforcing sanctions. The challenges carbon markets posit should lead to more cooperation between countries and within them, especially as the issues require the coordination of several different sectors. Carbon markets might imply actors at very different levels, ranging from the local communities where some of the projects take place to the final company buying the carbon credit in a different country. Therefore, collaboration between levels of government, sectors and international actors might help identify and address the integrity issues.

Contents

1. Introduction to carbon markets
   1. Key concepts
   2. Policies and mechanisms
2. Integrity risks in carbon markets
   1. Project design and implementation risks
   2. The market and its intermediaries
   3. Market oversight and project approval
   4. Estimation and monitoring issues
   5. Double counting
   6. Lobbying and greenwashing
3. Carbon market integrity risks in sub-Saharan Africa
4. Carbon market integrity risks in Mozambique
   1. General risks
   2. The carbon market and integrity risks
5. Governance in Mozambican carbon markets
   1. The international level
   2. The national level
      1. Local communities
      2. Collaboration
      3. Transparency
      4. Land administration
6. Conclusion
7. References

Authors

Gabriela Camacho (TI)

[email protected]

Reviewers

Carmeliza Soares da Costa Rosário (U4)

Caitlin Maslen and Gvantsa Gverdtsiteli (TI)

Mery Rodrigues (CIP)

Date

30/04/2024

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