Representatives of the Maasai community in Longido receive a mock check from the Soil for the Future company as a payout to limit their grazing land in September 2024. Credit: Kizito Makoye/IPS
By Kizito Makoye
DAR ES SALAAM, May 19 2025 – As global demand for carbon credits rises, Tanzania has become a magnet for carbon offset projects. From Loliondo in Arusha to Kiteto in Manyara, foreign firms and conservation groups are looking for land to capture carbon and sell credits to polluting industries in the Global North. The growing interest in carbon trading has sparked hope, confusion, and concern— putting millions of hectares of village land and the livelihoods of people who depend on it at risk.
What is carbon and carbon trading?
Carbon is commonly referred to as pollution from oil, gas, and coal, whereas carbon trading is a global tool to fight climate change. It allows companies or countries that emit a lot of carbon to “offset” their emissions by paying for projects that reduce carbon elsewhere, like protecting forests or improving land use through sustainable grazing. So, big polluters sell their pollution to areas where there is low pollution and balance their books through it. Everybody has to decrease their carbon limit global warming to 1.5°C, global emissions need to be reduced by 45 percent by 2030 and reach net zero by 2050, according to the Paris Agreement.
Who are the main players?
Tanzania has become a key player in the carbon market, thanks to its vast forests and efforts to conserve them. Foreign investors and carbon credit firms from Europe and North America partner with local NGOs to manage swathes of village land often used by Maasai communities for grazing. Major players include Soils for the Future Tanzania Ltd, backed by Volkswagen Climate Partners and The Nature Conservancy, active in Longido, Monduli, and Simanjiro districts.
How are carbon credit schemes regulated?
Tanzania’s carbon market is growing fast but lacks regulation. Backed by the government, foreign firms and conservation groups are luring local communities to use their land for carbon credit projects. In the Arusha and Manyara regions, such schemes increase, promising income, better infrastructure, and environmental benefits. But while investors call it a win-win, the reality on the ground is complicated.
What are communities agreeing to?
Most villagers don’t understand how carbon markets work. Many sign 30–40-year contracts without knowing what rights they’re giving up or what they’ll get in return. Villages usually get a one-time “signing fee”—sometimes called dowry money—that critics say leads to rushed, secretive agreements.
The contracts are in English— not Swahili— and often exclude women and youth from decision-making. In Loliondo, pastoralist leaders say they were asked to agree to carbon credit deals without clear information on how long the land would be locked and what would happen if terms changed.
What exactly does the deal entail?
Under the Longido Monduli rangelands carbon project, a conservation group called Soil for the Future Tanzania—which works to restore degraded rangelands and savannah ecosystems—is managing a deal on behalf of Volkswagen Climate Partners. The project spans 970,000 hectares and pays 59 villages between 40 and 130 million Tanzanian shillings (about USD 15,000–50,000) over a 40-year period, from January 2024 to December 2063, in exchange for carbon credits. In return, communities must limit activities such as grazing and burning grasslands, raising concerns among some residents about losing access to land they have used for generations.
Whom does the law protect?
Tanzania’s land laws recognize both statutory and customary ownership, but there are no clear rules for carbon trading—leaving rural communities exposed to exploitation.
Although the Village Land Act of 1999 protects customary tenure, problems arise when carbon offset contracts are signed without the free, prior, and informed consent (FPIC) of everyone affected.
Often, traditional grazing land is reclassified for conservation without compensation.
In Loliondo and Ngorongoro, where land disputes and evictions are rife, residents fear more land loss.
The contracts are often difficult to cancel and unclear about how benefits will be shared. With no national guidelines on transparency or accountability, communities are left in the dark.
Is carbon trading undermining Maasai traditions?
Traditional Maasai pastoralism depends on mobility—moving herds across vast rangelands for water and pasture. But carbon projects often enforce rotational grazing and land-use rules aimed at storing carbon, which can clash with pastoral survival strategies, especially during droughts.
Are villagers stakeholders or just bystanders?
Though marketed as “community-based,” many carbon projects sideline rural Tanzanians in decisions that affect their land for decades. The government backs carbon trading to boost revenue and conserve nature, but without clear policies, critics warn it could repeat old patterns of exploitation—this time under a green label.
What is the situation elsewhere?
Tanzania’s experience reflects a broader trend across Africa, where Indigenous communities are being drawn into carbon deals that may offer quick cash but raise lasting concerns about land rights, sovereignty, and justice.
Note: This feature is published with the support of Open Society Foundations.
IPS UN Bureau Report
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