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Director in the Ministry of Natural Resources and Climate Change, Evans Njewa, makes a presentation.
Stakeholders from various sectors convened in Lilongwe for a high-level validation workshop on the Article 6 Framework for Engagement in the International Carbon Market.
The workshop marked a significant step in finalising Malawi’s regulatory framework for carbon trading, a move poised to unlock substantial climate finance opportunities for the country.
Representatives from government ministries, departments, and agencies, as well as the United Nations Development Programme (UNDP), attended the event.
The discussions centred on refining the framework to facilitate Malawi’s effective participation in carbon markets.
Principal Secretary in the Ministry of Natural Resources and Climate Change, Dr Yusuf Mkungula.
Dr Yusuf Mkungula, Principal Secretary in the Ministry of Natural Resources and Climate Change, emphasised the framework's importance in guiding stakeholders through developing, implementing, monitoring, and reporting carbon trading projects in Malawi.
“The framework provides institutional arrangements, an approval process, proposed fees, and methodologies for regulating the share of proceeds while ensuring compliance with international standards,” Dr. Mkungula stated.
He highlighted Malawi’s involvement in carbon markets under the Kyoto Protocol since 2007 but acknowledged the need for a more robust digital system to track progress and maximise benefits.
He further stressed the importance of utilising South-to-South cooperation to learn from other countries in developing a competitive and efficient carbon trading structure.
“We must harness best practices from the region to ensure that our framework creates a conscious and inclusive environment for Malawi’s participation in the carbon market, benefiting sustainability, food security, and economic development.”
UNDP Malawi Deputy Representative Challa Getachew.
UNDP’s Support for Carbon Market Readiness
UNDP Deputy Resident Representative Challa Getachew underscored the carbon market's economic potential, valued at hundreds of billions of dollars globally.
“Demand for high-quality carbon credits is projected to rise significantly in the coming years. Malawi must act now to secure its share of this market,” Mr. Getachew urged.
He highlighted Malawi’s potential in forestry, renewable energy, and agriculture, which can generate high-quality carbon credits and attract investment.
Mr. Getachew reaffirmed UNDP’s commitment to supporting Malawi in finalising the framework and strengthening key components such as legal structures, verification mechanisms, regulatory oversight, and private sector engagement.
He also emphasised the need to establish a carbon credit registry to ensure transaction transparency and credibility.
Expanding Capacity and Climate Finance Initiatives
Beyond the Article 6 framework, Malawi has made strides in climate finance and policy development.
According to a recent briefing from the UNDP, finalising the framework is a critical step in ensuring transparency and boosting investor confidence. The government has been working to develop the document and strengthen institutional capacity in carbon market mechanisms.
UNDP, alongside the other UN agencies, has also assisted the Malawian government in broader climate initiatives, including the development of Nationally Determined Contributions (NDCs) under the Paris Agreement. In collaboration with the NDC Partnership, UNDP has supported Malawi’s NDC stock-taking process and the transition to NDC 3.0, ensuring alignment with international climate goals while unlocking financial opportunities from global climate funds such as the Green Climate Fund (GCF) and Global Environment Facility (GEF).
Additionally, UNDP has played a key role in operationalising Malawi’s Climate Change Fund (CCF), a national mechanism designed to mobilise international and domestic resources for climate adaptation and mitigation. This initiative positions Malawi as a leader among the Least Developed Countries (LDCs) in leveraging domestic and global financial resources for climate resilience.
A Call for Urgent Action
Dr Mkungula and Mr Getachew called for swift action to finalise the framework and capitalise on the opportunities in carbon trading.
“The decisions we make today will shape the country’s ability to mobilise climate finance, attract investors, and build a more resilient future,” Mr Getachew stated, urging stakeholders to actively contribute to refining the framework.