ITMO Auction – Malawi Government Press Release.

ITMO Auction – Malawi Government Press Release.

AUCTION OF EMISSION REDUCTIONS WITH CORRESPONDING ADJUSTMENT AND 12.5% SHARE OF PROCEEDS

Digital carbon exchange CTX is to auction 1.5 million emission reductions (ERs) or carbon credits for use under Article 6 of the Paris Agreement generated from the promotion, uptake and sustained use of cleaner cooking technologies and practices in Malawi benefiting approximately 550 thousand households in all three Regions of the country.

 

To ensure that these emission reductions are not counted as a mitigation by two different countries, the Government of Malawi, through a Letter of Authorisation, declared that Malawi will not use emission reductions authorised as Internationally Transferred Mitigation Outcomes (ITMOs) to implement and achieve its Nationally Determined Contribution and that Malawi will report on the authorisation in a transparent manner in its Biennial Transparency Report … under the Paris Agreement “

 

To align goals and targets and in the spirit of the Paris Agreement, an agreement forged by multilateral trust and leadership, 12.5% of total proceeds are to be directly paid to the Government of Malawi , to support ongoing Environment, Climate and Carbon initiatives in the nation, coupled with the share of proceeds to the local entrepreneurs, ensures that the vast majority of the funds are reinvested in the host country.

 

Malawi is clearly demonstrating climate leadership, is positioning itself as an attractive country for climate investment and, for the first time, is to have a direct share of the carbon credit proceeds.

 

 By monetising these high integrity Gold Standard verified carbon credits through an auction, transparency of price, volume and proceeds is guaranteed.

 

 The carbon credits have been calculated using the UN’s Clean Development Mechanism methodology AMS-II.G. Energy Efficiency Measures in Thermal Applications of Non-Renewable Biomass.

 

The Auction is to run from 16th to 23rd of July.

 

For more enquiries contact https://ctxglobal.com/auctions

Yusuf Mkungula, PhD

SECRETARY OF NATURAL RESOURCES AND CLIMATE CHANGE

12th of July 2024

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