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Transforming Tanzania's Charcoal Sector Feasibility Study

Tanzania is 90% reliant on woodfuels, in particular charcoal in urban areas, and this is contributing to significant forest loss which is pushing the country to the brink of a charcoal crisis. Annually the charcoal sector contributes about US$ 650 million to the economy and employs tens of thousands of rural people who supply an essential energy product to nearly a million urban households and institutions. While charcoal is indispensable to the Tanzanian economy, it is also devastating to the environment. Deforestation results in annual emission of about 9 million tonnes of carbon dioxide and consumption are rising by nearly 9% annually. LTS undertook a feasibility study for the “Transforming Tanzania’s Charcoal Sector Project” which aimed to investigate and support developments in the production and the use of sustainable charcoal and utilisation of biomass briquettes as a true alternative to charcoal. The innovative project explored links to the voluntary carbon market to make sustainable forestry more economically attractive across the supply chain. LTS developed a feasibility study which required the consultants to:
  • Analyse, expand on and validate the main features of the project concept note;
  • Identify and specify Switzerland’s comparative advantage over other Development Partners active in the sector;
  • Assess the capacities of suggested implementing partners for successful project implementation;
  • Assess the possibility of using the Voluntary Carbon Credit Market to incentivize a switch to sustainable charcoal production, including the relevant Ministries’ stances on the issue;
  • Assess systematic constraints and risks in the market systems of sustainable charcoal and biomass briquettes, and generate feasible solutions and mitigation measures for these;
  • Make recommendations for the inclusion of a Making Markets Work for the Poor approach in both components of the project;
  • Complement missing data in the project concept note, with special focus on the baselines and targets for the proposed outcome indicators;
  • Conduct a gender analysis of the charcoal sector; and
  • Make research recommendations in relation to verifying the baselines and documenting project impact.


Clients:
Swiss Agency for Development and Cooperation

Services:
REDD+, Forest Governance

Geography:
Tanzania

Date:
2011

Keywords:
forests, gender, livelihoods, governance, Tanzania, East Africa, charcoal, REDD+, SADC, Swiss Agency for Development and Cooperation