The carbon market emerged following the establishment of the United Nations Framework Convention on Climate Change (UNFCCC) at the ECO-92 in Rio de Janeiro. Carbon credits are permits allowing companies or countries to release greenhouse gases up to a specific limit.
These carbon credits are endowed with an economic value: those who exceed their limit must purchase additional credits, while those who release less can sell their excess credits. Mozambique has been a pioneer in generating carbon credits by protecting its forests. In 2021, it became the first country to receive payments from the World Bank’s Forest Carbon Partnership Facility (FCPF) for reducing 1.28 million tonnes of CO₂ emissions from a REDD+ project in the Zambezia province.
