The United Republic of Tanzania submitted its Intended Nationally Determined Contributions (INDC) plan in late September 2015. In the INDC, Tanzania sets out its plan to cut emissions by 10%-20% by 2030. The total amount of financial resources needed for implementation of the identified adaptation contributions is approximately between 500 million and one billion United States dollars per annum, and a total of 60 billion United States dollars for mitigation contributions.
The implementation of the INDC will be guided by the Principles of the United Nations Framework Convention on Climate Change, particularly the Principle of Equity and that of common but differentiated responsibilities and respective capabilities. The INDC was also prepared in a consultative and inclusive manner through technical and policy dialogue. The INDC is in line with Tanzania Development Vision (2025), Zanzibar Vision (2020), Tanzania’s Five Year Development Plan (2011/12-2015/16), and is also anchored in the National Climate Change Strategy (2012) and the Zanzibar Climate Change Strategy (2014).
The intended contributions are categorized into two groups, namely adaptation contributions and mitigation contributions. Under adaptation contributions, Tanzania will embark on a climate resilient development pathway. In it various adverse impacts of climate change will be reduced. The sectors involved under these intended contributions are: agriculture, livestock, forestry, energy, coastal, marine environment and fisheries, water resources, tourism, human settlements and health.
Tanzania will therefore undertake to implement its objectives by enhancing capacity in early-warning systems across sectors, improved research and systematic observations, improved climate change institutional capacity and coordination as well as awareness.
Tanzania has had a feed-in tariff scheme in place since 2008 for small power producers (100 kW to 10 MW). There are no feed-in tariffs or other clear incentives for renewable energy larger than 10 MW. However, developers of larger projects may approach the Government of Tanzania for bilateral negotiations outside the feed-in tariff scheme. In February 2014, EWURA commissioned a report on their proposed renewable energy feed-in tariff programme. The report proposes a methodology for achieving cost-reflective tariffs for microhydro, wind, solar and biomass projects up to 10MW. In solar and wind, the tariffs go up to 30MW and 20MW respectively for reference; however, it is recommended that all projects over 10MW are subject to competitive tendering.
Continuing with it initiative to reach a middle-income status by 2025, Tanzania announced its “Big Results Now” strategy in July 2014. Tanzania aims to phase out high cost emergency power plants, increase generation capacity to 2,780 MW, reform the public utility TANESCO’s operations, and meet new demand through low-cost solutions, such as developing new gas resources and mini and off-grid renewable opportunities, all in the near term.
Tanzania has 1,226 MW of grid installed generation capacity to serve its population of over 47 million, and an additional 82 MW in isolated mini-grids. High reliance on expensive thermal and emergency generation sources that utilise diesel, heavy fuel oil or jet fuel have made the sector financially unviable. Tanzania has no grid scale installed wind or solar photovoltaic capacity despite its great potential for both and, although several projects are in the pipeline, none have yet started construction.
In respect of the mini-grid, off-grid and rooftop solar market segment, there are various donor funded PV cluster projects and rural electrification projects which are been implemented by entities such as Camco Clean Energy and subsidised by the Rural Energy Agency (REA). This sector is therefore gathering momentum. Companies such as Off-Grid: Electric and M-KOPA Solar are rapidly expanding in Tanzania with the roll out of their solar home system lease programmes.
Tanzania’s national framework to guide the development of a REDD+ Strategy has been initiated through the assistance of the UN-REDD Programme and the Royal Norwegian Government. The UN-REDD Programme is a collaborative partnership between the United Nations Food and Agriculture Organisation (FAO), the UN Development Programme (UNDP) and the UN Environment Programme (UNEP), and seeks to assist Tanzania to prepare and implement a national REDD+ strategy. The first REDD+ pilot project in Tanzania (2009-2014) is considered to be a success having achieved better forest conservation efforts and an increase in agricultural production and sustainable income generating activities. The country is now looking at ways to implement the programme in various parts of the country.
Global: What’s on the horizon for insurance companies in 2020?
The following guide brings together summaries of the top legal concerns for the remainder of 2020 for insurers from a number of different regions.