Minister of Climate Change, Environment and Energy Ali Shareef has confirmed the completion of the first draft of regulations governing carbon trading in the Maldives, with the Government aiming to gazette the regulations by the end of 2026.
Speaking on PSM News' Raajje Miadhu programme, Minister Shareef explained that the draft is now under review as the Government works to establish the legal and regulatory framework needed to develop the country's carbon market.
The proposed regulations will define administrative responsibilities, establish methods for managing carbon credits and set out procedures for maintaining records and reports. The Minister noted that the Government aims to publish the regulations in the Gazette before the end of the year.
The regulatory framework forms part of wider efforts to expand carbon trading in the Maldives. Minister Shareef highlighted the importance of completing the necessary legal arrangements while ensuring that carbon credits meet the quality standards required for trading in the market.
Carbon trading, also known as carbon credit trading, is an international mechanism designed to encourage reductions in greenhouse gas emissions, including carbon dioxide, and help limit global warming. Under this system, companies and countries can earn carbon credits by reducing emissions through activities such as tree planting, renewable energy projects, including solar power, and other environmentally friendly initiatives. These credits can subsequently be traded on the carbon market.
While the Government continues its efforts to reduce carbon emissions, Minister Shareef emphasised that developing a viable carbon market also depends on ensuring that the credits generated meet the required quality standards.
He acknowledged, however, that significant challenges remain. Carbon projects require substantial investment, and securing financial returns from such initiatives can prove difficult. The Minister noted that these challenges highlight the need to strengthen several aspects of the carbon trading mechanism.
As work on the regulatory framework continues, the Ministry of Climate Change, Environment and Energy is also looking to expand the carbon market through major projects. The Ministry highlighted that developing the market on a larger scale could create further opportunities for private sector participation.