In it Together as One

The fight against climate change that will be discussed at COP28 is not only the governments’ responsibility; everyone including businesses and lawyers must help shoulder this vital load, say corporate and finance experts Lusungu Gondwe and Nobert Phiri.

The 28th Conference of the Parties (COP28) to the UN Framework Convention on Climate Change is being held in Dubai from 30 November to 12 December 2023. It brings together leaders from government, businesses, NGOs and civil society to “find concrete solutions to the defining issue of our time”, and “chart a course of action to dramatically reduce emissions and protect lives and livelihoods”. For Gondwe and Phiri, the issues are acute for African nations.

“Zimbabwe as a country is generally extremely vulnerable to climate change, as our economy is largely agricultural with approximately 80% of our production being rainfed,” explained Phiri, a partner at Muvingi & Mugadza Legal Practitioners in Harare. “So when you look at the importance of carbon credit trading for business and investors, the first thing is to appreciate that they play an important role in the fight against climate change, so we really need these mechanisms to work.”

Farming is also the major contributor to the GDP of nearby Malawi which, like its neighbours in Southern Africa, has recently been impacted by severe cyclones due to climate change, shared Gondwe, founding partner of Malawi’s largest law firm, Ritz Attorneys at Law.

“There are indispensable needs for Malawi to be forthcoming on climate change interventions, and regulating carbon emissions seems to be top of the agenda for the Malawi government,” noted Gondwe. “Malawi’s approach is to level up as quickly as possible to international standards of regulation and to create a regime to regulate carbon credits trading.”

While Zimbabwe’s government published the new Carbon Credits Trading (General) Regulations this year to manage carbon credit projects and trade, Malawi’s approach has, thus far, been driven more by its president, Gondwe explained. Following the African Carbon Market Initiative (ACMI) launched at COP27, in June Malawi launched its own initiative to create an agency where carbon credit trading will be championed and coordinated. “Malawi has taken progressive steps; we don’t have legislation yet but there are policy directions,” he emphasised.

Carbon credit regimes can assist businesses and investors by building international confidence, while opening economic opportunities, noted Gondwe and Phiri, whose firms are both part of Alliott Global Alliance, elite local legal and accounting experts in 95 countries.

“Our carbon credits mechanism has opened up an opportunity for clients moving towards ESG because carbon credits are an avenue for playing your part in reducing or neutralising global climate change effects,” Phiri explained, “and an opportunity to perhaps realise economic opportunities, with more than half a billion US dollars invested in this area.”

They both point out that it’s important that African nations recognise the opportunity to put in place carbon credit regimes which learn from established regimes like the EU, while adapting such models to their own situation. Carbon credits are becoming a global phenomenon, added Gondwe, but every part of the world has its own unique circumstances, and African nations should establish carbon regimes that suit the circumstances prevalent in African economies and life.

“My sincere hope is to see how this African initiative on carbon credits moves forward from its initial setup last year, and I certainly hope there is more that will come out of COP28 regarding this issue,” Phiri said. “We remain available to assist our clients with navigating this new terrain and any challenges that develop along the way.”

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Further reading:

• Perpetual students making waves globally
• The benefits of good neighbours
• Local expertise, global reach
• Gearing up for the renewable energy push

 

About Alliott Global Alliance:

Founded in 1979, and with 220 member firms operating out of 300 offices in 95 countries Alliott Global Alliance is an international alliance of independent, law, accounting, and specialist advisory firms, working across the world Together as One.

Each of our members share a common goal: to learn and share knowledge, resources, and opportunities to make the world smaller and their businesses stronger. We work with a spirit of generosity and openness — so that together, we can continue to fulfil our ambitions, gain greater experience, and drive mutual success.

Alliott Global Alliance is expanding fast, and the alliance has its sights set firmly on growing its legal and accounting membership to 100 countries. Opportunities are available to independent professional firms in specific countries in Africa, Europe, China, the ASEAN region, Australasia, the Gulf Cooperation Council region, Central and South America and in North America. For information about membership email membership@alliottglobal.com.