Green Economy and Climate Change (Carbon Market) Regulations, 2026

1. Title

2. Interpretation

3. Application

4. Fundamental principles for participation in carbon markets PART II CARBON STOCK MANAGEMENT

5. Non-eligible carbon credit generation projects

6. Concept note

7. Validation of the project proposal

8. Project proposal

9. Duties to inform on start date for carbon credit generation activity with corresponding adjustment

10. Monitoring and verification of carbon credit generation activity requesting for correspondence adjustment

11. Monitoring, verification and validation of carbon credit generation activity not requesting for corresponding adjustment PART III APPLICATION TO TRADE IN CARBON CREDITS

12. Modes of participation in carbon markets

13. Application to trade in carbon credits for projects

14. Duplicate certificate Single copies of this Statutory Instrument can be obtained from the Government Printer, P.O. Box 30136, 10101 Lusaka, Price K104.00 each. 312 Statutory Instruments 9th January, 2026 PART IV ISSUANCE AND TRANSFER OF MITIGATION OUTCOMES

15. Request for issuance of carbon credits as mitigation outcomes with corresponding adjustment

16. Issuance of carbon credits as mitigation outcomes with corresponding adjustment

17. Issuance of carbon credits as emission reduction certificates without corresponding adjustment

18. First transfer of carbon credits as mitigation outcomes or emission reduction credits requesting for corresponding adjustment

19. Transfer of emission reduction credits not requesting for corresponding adjustments PART V SHARE OF PROCEEDS AND COMMUNITY DEVELOPMENT AND BENEFIT SHARING

20. Non application of part

21. Payment of Share of Proceeds

22. Benefit sharing of profits from carbon credit trading with local communities PART VI General Provisions

23. Application to register as verifier

24. Migration of carbon credit generation activity from activity without adjustment to activity with corresponding adjustment

25. Engagement of local expert in verification and validation process

26. Restrictions on verification

27. National Carbon Registry

28. Compliance order

29. General penalty

30. Fees

31. Transitional Provisions SCHEDULES 9th January, 2026 Statutory Instruments 313 IN EXERCISE of the powers contained in section 46 of the Green Economy and Climate Change Act, 2024, the following Regulations are made: PART I PRELIMINARY PROVISIONS

1. These Regulations may be cited as the Green Economy and Title Climate Change (Carbon Market) Regulations, 2026.

2. In these Regulations, unless the context otherwise requires— Interpretation “acquiring party” means a country or entity receiving internationally transferred carbon credits as mitigation outcomes or emission reduction certificates requesting for corresponding adjustments and uses those mitigation outcomes or emission reduction certificates for purposes of complying with that country’s or entity’s Nationally Determined Contributions or other international climate change mitigation purposes; “ambition raising” means the comparative cost advantages from emission trading is used to stimulate an increase of mitigation and adaptation actions to further reduce greenhouse gas emissions and promote sustainable development; “bilateral agreement” has the meaning assigned to the words in the Ratification of International Agreements Act; Cap. 18 “baseline” means a reference point or scenario used to measure the impact of a carbon project on greenhouse gas emission reductions; “carbon” has the meaning assigned to the word in the Act; “carbon credit generation activity” means a project, programme or other action described in the concept note or project proposal which is likely to generate carbon credits as mitigation outcomes or emission reduction certificates for which a project developer may, or may not, request a corresponding adjustment; “carbon market” has meaning assigned to the words in the Act; 314 Statutory Instruments 9th January, 2026 “certificate of authorisation” has the meaning assigned to the words in the Act; “climate change mitigation” has the meaning assigned to the words in the Act; “community development and benefit sharing agreement” has the meaning assigned to the words in the Act; “Convention” has the meaning assigned to the word in the Act; “corresponding adjustment” means the adjustment of reported emissions by an acquiring party and host party resulting from a transfer of carbon credits as mitigation outcomes or emission reduction certificates for purposes of both parties complying with their Nationally Determined Contributions, where— (a) the acquiring party subtracts the amount of the transfer of carbon credits as mitigation outcomes or emission reduction certificates from the reported emissions; and (b) the host party adds the amount of the transfer of carbon credits as mitigation outcomes or emission reduction certificates to the reported emissions; “Director” has the meaning assigned to the word in the Act; “emission” has the meaning assigned to the word in the Act; “emission reduction certificate” means a tradeable unit representing one tonne of verified greenhouse gas emissions avoided or reduced by a project developer who is participating in a carbon credit generation activity under the voluntary carbon market and the words “emission reduction certificates” shall be construed accordingly; “environmental integrity” means the basing of emission reductions on a robust accounting that is additional, measurable, verifiable and reproducible; “ex-ante” means the estimation of carbon credits before the actual reduction or removal of greenhouse gases; “ex-post” means the calculation and verification of carbon credits after the occurrence of emission reductions or removals; 9th January, 2026 Statutory Instruments 315 “first transfer” means (a) the first international transfer of carbon credits as mitigation outcomes or emission reduction certificates authorised by the host party for use towards the achievement of a Nationally Determined Contributions; or (b) the use or cancellation of carbon credits as mitigation outcomes or emission reduction certificates authorised by the host party for other international climate change mitigation purposes; “greenhouse gases” has the meaning assigned to the words in the Act; “holder of certificate of authorisation” means a project developer who has been issued with a certificate of authorisation under regulation 13; “host party” means a country or entity where the generation of carbon credits as mitigation outcomes or emission reduction certificates for international transfers occurs; “Integrated Measuring Reporting and Verification System” has the meaning assigned to the words in the Act; “Inter-governmental Panel on Climate Change” means the United Nation’s body which provides governments with objective scientific assessments on climate change, its impacts and response options; “internationally transferred mitigation outcomes” means carbon credits as mitigation outcomes that are authorised and transferred out of the host party for use by another party towards their Nationally Determined Contributions or other international climate change mitigation purposes as defined under the Paris Agreement; “issuance” means the process through which carbon credits as mitigation outcomes or emission reduction certificates are generated and exist in the National Carbon Registry or a voluntary carbon market registry after validation and verification by a verifier; “leakage” means the shift of production of greenhouse gas emissions from an area or country of strict controls or regulations to an area or country with weaker controls or regulations; 316 Statutory Instruments 9th January, 2026 “mitigation outcome” means an emission reduction or emission removal measured in tonnes of carbon dioxide equivalent resulting from a carbon credit generation activity falling under cooperative approaches of the Paris Agreement; “monitoring report” means a report generated by a project developer that records and tracks the performance of the carbon credit generation activity against its monitoring parameters as stipulated in the measuring, reporting and verification of the carbon credit generation activity specified in the project proposal; “National Carbon Registry” means a registry established under the Integrated Measuring Reporting and Verification System that is used to manage the accounts of project developers and the issuance, transfer and cancellation of carbon credits as mitigation outcomes or emission reduction certificates; “National Development Plan” has the meaning assigned to Act No. 1 the words in the National Planning and Budgeting Act, 2020; of 2020 “Nationally Determined Contributions” has the meaning assigned to the words in the Act; “negative validation report” means a report issued by a verifier to a project developer participating in a carbon credit generation activity under regulation 7(3) whose project proposal has not complied with the requirements under regulation 8; “Paris Agreement” has the meaning assigned to the words in the Act; “party” means a country that has signed and ratified the Paris Agreement; “permanence” means the assurance by a project developer that the carbon emission reductions or removals shall remain out of the atmosphere for a specified period, usually one hundred years or more; “positive validation report” means a report issued by a verifier to a project developer participating in a carbon credit generation activity under regulation 7(2) whose project proposal has complied with the requirements for a project proposal under regulation 8; “project developer” has the meaning assigned to the words in the Act; 9th January, 2026 Statutory Instruments 317 “regulatory surplus” means a requirement for a carbon credit generation activity’s emission reductions to exceed that which is prescribed under national laws; “sustainable development” has the meaning assigned to the words in the Environmental Management Act; Cap. 204 “Technical Committee” has the meaning assigned to the words in the Act; “transfer” means the change of legal ownership of carbon credits as mitigation outcomes or emission reduction certificates from a host party to an acquiring party; “transformational change” means a fundamental sustained change of a system that transitions from high carbon practices and contributes to a low carbon economy; “unconditional Nationally Determined Contributions” means climate pledges under the Paris Agreement that countries commit to achieving using only domestic resources without relying on international financial or technical support; “validation” means a verifier’s systematic, independent and documented process . for the ex ante evaluation of the contents of a project proposal, and the word “validate” shall be construed accordingly; “validation report” means a report issued by a verifier to a project developer participating in a carbon credit generation activity not requesting for corresponding adjustment under regulation 11; “verification” means a process of systematic ex-post evaluation of emission reductions by a verifier in accordance with the monitoring report, and the words “verify” and “verified” shall be construed accordingly; “verifier” has the meaning assigned to the word in the Act; “voluntary carbon market” means a decentralised marketplace where entities voluntarily buy and sell emission reduction certificates issued under a voluntary carbon market standard; “voluntary carbon market standard” means a set of rules, criteria, procedures and methodologies that a projector developer participating in a voluntary carbon market shall comply with to generate and issue carbon credits as emission reduction certificates; 318 Statutory Instruments 9th January, 2026 “voluntary carbon market registry” means a registry operated by a voluntary carbon market for the issuance of carbon credits as emission reduction certificates generated by a project developer participating in a voluntary carbon market; and “Zambia Environmental Management Agency” means the Zambia Environmental Management Agency established Cap. 204 under the Environmental Management Act. Application 3. These Regulations shall apply to all carbon market activities in the Republic. Fundamental 4. Participation in the carbon market shall be guided by the principles for following principles: participation in carbon (a) environmental integrity; markets (b) ambition raising and transformational change; and (c) sustainable development. PART II CARBON STOCK MANAGEMENT Non-eligible 5. The following projects shall not be eligible for purposes of carbon carbon credit generation: credit generation (a) a project that leads to a lock in of fossil fuel technologies; activities (b) a project reducing hydro fluorocarbon 23 or adipic nitrous oxide; (c) a nuclear power project; and (d) a large-scale grid-connected dam hydro power project that is greater than twenty megawatts. Concept 6. (1) A project developer who intends to engage in a carbon note credit generation activity shall submit a concept note to the Director in Form I set out in the First Schedule on payment of a fee set out in the Second Schedule. (2) A concept note submitted in accordance with subregulation (1) shall— (a) indicate that the carbon credit generation activity does not fall under the ineligible projects as specified under regulation 5; (b) demonstrate through investment analysis the carbon project’s ability to reduce emission reductions below the 9th January, 2026 Statutory Instruments 319 level that would have occurred anthropogenically and which would not have occurred without the revenue from carbon market participation; (c) demonstrate regulatory surplus; (d) provide an estimation of the required carbon price to achieve financial viability; (e) demonstrate how the carbon credit generation activity shall contribute towards— (i) the attainment of sustainable development goals and the National Development Plan; and (ii) transformational change; and (f) where applicable, provide a community development and benefit sharing agreement in Form II set out in the First Schedule. (3) The Director shall, within five days of receipt of the concept note under subregulation (1), notify the project developer, in writing, whether the concept is duly completed. (4) A concept note is duly completed where the required fields in Form I set out in the First Schedule are correctly filled, the required documents are attached and the fee set out under subregulation (1) is paid. (5) The Director shall, where the concept note is duly completed as specified under subregulation (4), within five days of receipt of the concept note, refer the concept note to the Technical Committee. (6) The Technical Committee shall in assessing a concept note submitted under subregulation (5) take into account— (a) the requirements for a concept note set out under subregulation (2); and (b) the list of indicators set out in the Fourth Schedule. (7) The Technical Committee shall, where the Technical Committee determines that a concept note submitted under subregulation (5) meets the requirements set out under subregulation (6), approve the concept note. (8) The Technical Committee shall, where the Technical committee approves a concept note under subregulation (7)— 320 Statutory Instruments 8th January, 2026 (a) inform the project developer in writing and issue the project developer with— (i) a letter of no objection in Form III set out in the First Schedule, in the case of a concept note relating to a carbon credit generation activity requesting for a corresponding adjustment; or (ii) a letter of endorsement in Form IV set out in the First Schedule, in the case of a concept note relating to a project developer participating in a carbon credit generation activity not requesting for a corresponding adjustment; and (b) request the project developer that has been issued with a letter of no objection under paragraph (a)(i) to submit a project proposal to the Director in Form V set out in the First Schedule, within ninety days of receipt of the decision, on payment of a fee set out in the Second Schedule. Validation 7. (1) A project developer who is issued with a letter of no of project objection under regulation 6 (8) (a) (i) shall, prior to submission of a proposal project proposal in accordance with regulation 6(8)(b), ensure that the project proposal is validated by a verifier against the criteria set out under regulation 8(1). (2) A verifier shall, in validating a project proposal in accordance with subregulation(1), issue the project developer with a positive validation report where the project proposal meets the criteria under regulation 8(1). (3) A verifier shall, where the verifier determines that a project proposal does not meet the criteria under regulation 8(1), issue the project developer with a negative validation report and request that project developer to address the concerns identified in the report and resubmit an amended project proposal. Project 8. (1) A project proposal submitted by a project developer under proposal regulation 6(8(b) shall be accompanied by a positive validation report and— (a) demonstrate— (i) through investment analysis, the project’s ability to reduce emission reductions below the level that would have occurred anthropogenically and which would not have occurred without the revenue from carbon market participation; 9th January, 2026 Statutory Instruments 321 (ii) regulatory surplus; (iii) blending of financing sources; (iv) minimisation of uncertainties of greenhouse gas estimations; (v) minimisation of leakage risks; (vi) that the carbon credit generation activity does not overlap with any other carbon credit generation activity; and (vii) contribution to transformational change; (b) provide— (i) the carbon credit generation activity baseline that is below the Republic’s unconditional Nationally Determined Contributions target; (ii) an estimation of the required carbon price to achieve financial viability; (iii) an assessment of ex-ante sustainable development impacts; and (iv) parameters for monitoring sustainable development impacts; (c) where applicable— (i) detail and account for risks associated with non permanence; (ii) obtain approval from the Zambia Environmental Management Agency and other relevant Government agencies; and (iii) provide a community development and benefit sharing agreement; (d) align with the Inter-governmental Panel on Climate Change methodologies for best practices for greenhouse gas emissions; and (e) conduct comprehensive stakeholder consultations. (2) The Director shall, within five days of receipt of the project proposal submitted under regulation 6(8)(b), notify the project developer, in writing, whether the project proposal is duly completed. 322 Statutory Instruments 9th January, 2026 (3) A project proposal is duly completed where the required fields in Form V set out in the First Schedule are correctly filled, the required documents are attached and the fee set out under subregulation (1) is paid. (4) The Director shall, where the project proposal is duly completed as specified under subregulation (3), within ten days of receipt of the project proposal, submit the project proposal to the Technical Committee for evaluation. (5) The Technical Committee shall, in evaluating a project proposal submitted under subregulation (4) take into account— (a) the requirements for a project proposal set out under subregulation (1); and (b) the list of indicators set out in the Fourth Schedule. (6) The Technical Committee shall, where the Technical Committee determines that a project proposal submitted under subregulation(4) meets the requirements set out under subregulation (5), approve the project proposal and issue an approval to the project developer in Form VI set out in the First Schedule. Duty to 9. A project developer whose project has been approved under inform on regulation 8(6) shall, within ten days of commencement of the carbon start date of carbon credit generation activity, inform the Zambia Environmental credit Management Agency, in writing of— generation activity (a) the start date of the project; and (b) the intended verification process. Monitoring 10. (1) A project developer whose project has been approved and verification under regulation 8(6) shall monitor that project and ensure that the of carbon project is verified by a verifier. credit generation (2) A project developer shall, for purposes of the monitoring activity requesting referred to under subregulation (1), develop a monitoring report. for corresponding (3) A verifier shall, in verifying a project in accordance with adjustment subregulation (1), issue the project developer with a verification statement. (4) The verification statement referred to under subregulation (3) shall— (a) confirm that the project has reduced greenhouse gas emissions; and (b) indicate— 9th January, 2026 Statutory Instruments 323 (i) the amount of emission reductions achieved; (ii) the measures being taken towards the achievement of the sustainable development goals impacts as stipulated in the project proposal; (iii) the amount of carbon credits as mitigation outcomes to be issued for the monitoring period; and (iv) where applicable, how the community development and benefit sharing agreement is being implemented. (5) A project developer shall, on receipt of the verification statement under subregulation (3), submit that verification statement and the monitoring report to the Zambia Environmental Management Agency. (6) The Zambia Environmental Management Agency shall, within thirty days of receipt of the verification statement and monitoring report under subregulation (5), conduct an assessment for quality assurance, quality control and completeness check of the data received in the verification statement and monitoring report. (7) The Zambia Environmental Management Agency shall, where the Zambia Environmental Agency is satisfied with the assessment conducted under subregulation (6), inform the Director to affirm the issuance of carbon credits as mitigation outcomes; (8) The Zambia Environmental Management Agency shall, where the Zambia Environmental Management Agency is dissatisfied with the assessment conducted under subregulation(6), conduct a ground project inspection to assess the project and— (a) produce a report of its findings; and (b) submit the report of its findings to the Director within ten working days of the ground inspection. (9) The Director shall, within five days of receipt of the report referred to under subregulation (8), notify, in writing, a project developer of the contents of the report and direct that project developer to resubmit an amended verification statement and monitoring report to the Zambia Environmental Management Agency. (10) A project developer shall, on receipt of the notification under subregulation (9), submit the amended verification statement and monitoring report to the Zambia Environmental Management Agency. 324 Statutory Instruments 9th January, 2026 Monitoring, 11. (1) A project developer issued with a letter of endorsement verification and under regulation 6(8)(a)(ii) shall submit to the Zambia Environmental validation of Management Agency the following information: carbon credit generation (a) start date of the project activity; activity not requesting (b) project design documents; for corresponding (c) validation report; adjustment (d) confirmation of registration on the voluntary carbon market; (e) monitoring report; and (f) verification statement which should indicate, where applicable, how the community development and benefit sharing agreement is being implemented. (2) The monitoring report and verification statement referred to under subregulation (1)(e) and (f) shall be submitted once available and thereafter within three months of each verification event. PART III APPLICATION TO TRADE IN CARBON CREDITS Modes of 12. A person who intends to trade in carbon credits may trade participation in the following manner: in carbon markets (a) cooperative approaches under the Paris Agreement and the voluntary carbon market, issuing carbon credits as mitigation outcomes or emission reduction certificates requesting a corresponding adjustment; or (b) cooperative approaches under the Paris Agreement and the voluntary carbon market, issuing carbon credits as mitigation outcomes or emission reduction certificates not requesting a corresponding adjustment. Application 13. (1) A person who intends to trade in carbon credits shall to trade in apply to the Director for a certificate of authorisation in Form VII carbon credits set out in the First Schedule on payment of a fee set out in the Second Schedule. (2) The application referred to under subsection(1) shall be made— (a) at the time of submitting the project proposal under regulation 6(8)(b), in the case of a carbon credit generation activity requesting for corresponding adjustment; and 9th January, 2026 Statutory Instruments 325 (b) the time of submitting the concept note under regulation 6(8)(a)(ii), in the case of a carbon credit generation activity not requesting for corresponding adjustment. (3) The Director shall, where an applicant referred to under subregulation (1) meets the requirements under the Act, issue the applicant with a certificate of authorisation in Form VIII set out in the First Schedule. (4) A certification of authorisation referred to under subregulation (3) shall only be issued to a project developer.

14. (1) A holder of a certificate of authorisation whose Application certificate of authorisation is lost or destroyed may apply to the for duplicate Director for a duplicate certificate in Form VII set out in the First certificate Schedule on payment of a fee set out in the Second Schedule. (2) The Director shall, after being satisfied with the proof of loss or destruction of a certificate of authorisation, issue a duplicate certificate of authorisation to the holder of that certificate. (3) A duplicate certificate of authorisation issued under subregulation (2) shall have effect as the original certificate of authorisation. PART IV ISSUANCE AND TRANSFER OF CARBON CREDITS

15. (1) A holder of a certificate of authorisation relating to a Request for carbon credit generation activity requesting for a corresponding issuance of carbon adjustment issued under regulation 13 may request the Zambia credits as Environmental Management Agency to issue carbon credits as mitigation mitigation outcomes. outcomes requesting (2) The request referred to under subregulation(1) shall be corresponding made through the National Carbon Registry in Form IX set out in adjustment the First Schedule. (3) A holder of a certificate of authorisation shall, at the time of making the request referred to under subregulation(1)— (a) inform the Zambia Environmental Management Agency, in writing, on the intended verification process; and (b) submit a monitoring report to the Zambia Environmental Management Agency. 326 Statutory Instruments 9th January, 2026 Issuance of 16. (1) The Zambia Environmental Management Agency shall, carbon credits as within five days of receipt of the request referred to under regulation mitigation 15, conduct an assessment of the request to confirm that the carbon outcomes credits as mitigation outcomes indicated in the request are consistent requesting corresponding with the carbon credits as mitigation outcomes that are indicated in adjustment the verification statement and monitoring report. (2) The Zambia Environmental Management Agency shall, within one day of confirmation of the carbon credits as mitigation outcomes under subregulation (2), inform the Director. (3) The Director shall, within three days of receipt of the confirmation under subregulation (2), request the Zambia Environmental Management Agency to issue the carbon credits as mitigation outcomes to the holder of a certificate of authorisation. (4) The Zambia Environmental Management Agency shall, within five days of receipt of the request under subregulation (3), issue the carbon credits as mitigation outcomes to the holder of a certificate of authorisation. (5) The Zambia Environmental Management Agency shall, where the carbon credits as mitigation outcomes indicated in the request submitted under regulation 15 are inconsistent with the carbon credits as mitigation outcomes indicated in the verification statement and monitoring report, reject the request to issue carbon credits as mitigation outcomes and notify the— (a) Director; and (b) holder of a certificate of authorisation, in writing, stating the reasons for the rejection. Issuance of carbon 17. A holder of a certificate of authorisation relating to a carbon credits as credit generation activity not requesting for corresponding emission adjustment may request for issuance of carbon credits as emission reduction certificates reduction certificates from the voluntary carbon market registry on not which that holder of a certificate of authorisation is registered. requesting for corresponding adjustment First 18. (1) A holder of a certificate of authorisation who intends to transfer of carbon first transfer carbon credits as mitigation outcomes or emission credits as reduction certificates requesting for a corresponding adjustment shall mitigation outcomes or submit a request to first transfer the mitigation outcomes or emission emission reduction certificates to the Zambia Environmental Management reduction certificates Agency through the National Carbon Registry. requesting for (2) The Zambia Environmental Management Agency shall, on corresponding adjustment receipt of the request under subregulation (1), effect the transfer of 9th January, 2026 Statutory Instruments 327 the carbon credits as mitigation outcomes or emission reduction certificates subject to the holder of a certificate of authorisation providing proof of payment of share of proceeds as set out in the Third Schedule. (3) Despite subregulation (2), where a holder of a certificate of authorisation is participating under the framework of a bilateral agreement for cooperative approaches, the proof of payment of share of proceeds shall only be provided to the Zambia Environmental Agency after the Zambia Environmental Management Agency has effected the first transfer. (4) The carbon credits as mitigation outcomes or emission reduction certificates that are first transferred in accordance with subregulation (2) shall, on transfer, become internationally transferred mitigation outcomes or emission reduction certificates with a corresponding adjustment and comply with the relevant applicable international rules. (5) The Zambia Environmental Management Agency shall, in consultation with the Director, once a first transfer of a carbon credit as an internationally transferred mitigation outcome or emission reduction certificate with a corresponding adjustment has been effected, register the corresponding adjustments on the National Carbon Registry corresponding to the first transfer effected.

19. A holder of a certificate of authorisation relating to a carbon Transfer of credit generation activity who is not requesting for a corresponding emission reduction adjustment, may request for transfer of carbon credits as emission certificates reduction certificates from the voluntary carbon market registry on not which that holder of a certificate of authorisation is registered. requesting for PART V corresponding adjustment SHARE OF PROCEEDS AND COMMUNITY DEVELOPMENT AND BENEFIT SHARING

20. This part shall not apply to trading of carbon credits generated Non- by a carbon credit generation activity— application of part (a) implemented under the supervision of a mechanism established under the Paris Agreement; and (b) not requesting for a corresponding adjustment.

21. A holder of a certificate of authorisation, or an acquiring Payment of party, relating to a carbon generation activity requesting for a share of corresponding adjustment shall pay a share of proceeds as set out proceeds in the Third Schedule. 328 Statutory Instruments 9th January, 2026 Benefit 22. (1) A carbon credit generation activity in which an individual sharing of or a community directly participate in the facilitation of the generation profits from of emissions shall be subject to benefit sharing in accordance with carbon the community development and benefit sharing agreement. credit trading with (2) The community development and benefit sharing agreement local referred to under subregulation (1) shall be agreed and signed by communities an individual or community directly participating in the facilitation of the generation of emissions, the project developer and the Government. PART VI GENERAL PROVISIONS Application 23. (1) A person who intends to verify carbon credits in the for Republic shall apply to the Director for registration as a verifier in registration Form X set in the First Schedule on payment of a fee set out in the as verifier Second Schedule—. (2) An application referred to under subregulation (1) shall be accompanied by— (a) a declaration in Form XI set out in the First Schedule; and (b) proof of active accreditation under the Convention. (3) The Director shall, where an applicant meets the requirements under the Act and these Regulations, issue the applicant with a certificate of registration in Form XII set out in the First Schedule. (4) The Director shall, where the Director rejects an application under subregulation (1), inform the applicant, in writing, stating the reasons for the rejection. (5) The Director shall publish a list of all verifiers registered in accordance with these Regulations on the Ministry’s official website. Migration of 24. (1) A project developer participating in a carbon credit carbon credit generation activity who is not requesting for a corresponding generation adjustment and who intends to migrate to an activity requesting for activity a corresponding adjustment shall— (a) de-register the activity from the voluntary carbon market registry; and (b) provide a written confirmation of the de-registration to the Zambia Environmental Management Agency for approval to migrate that activity. (2) The Zambia Environmental Management Agency shall, on satisfaction that a project developer has complied with the requirements under subregulation (1), approve the migration and register the carbon credit generation activity in the National Carbon Registry. 9th January, 2026 Statutory Instruments 329 (3) A project developer whose carbon credit generation activity has migrated in accordance with subregulation (2) shall— (a) not claim the carbon credits generated prior to the migration as mitigation outcomes or emission reduction certificates requesting for a corresponding adjustment; and (b) comply with the provisions relating to a carbon credit generation activity requesting for corresponding adjustment specified under regulation 8(1).

25. A verifier shall, when conducting a validation or verification Engagement of local process, engage at least one Zambian expert who is listed as an expert in expert in Form XIII set out in the First Schedule. verification and validation process

26. A verifier who has conducted a validation of a carbon credit Restrictions generation activity shall not be involved in the verification process on verification of that activity.

27. (1) The Zambia Environmental Management Agency shall National Carbon keep and maintain the National Carbon Registry under the Integrated Registry Measuring Reporting and Verification System in accordance with the requirements set out in the Convention and its guidelines. (2) The National Carbon Registry referred to under subregulation (1) shall contain data on all carbon credit generation activities in the Republic.

28. The Director may, where the Director has reasonable Compliance grounds to believe that any condition of an authorisation or certificate order issued under this Act has been breached, serve a compliance order in Form XIV set out in the First Schedule.

29. A person who contravenes a provision of these Regulations General commits an offence and is liable on conviction to a fine not exceeding penalty five hundred thousand penalty units, or imprisonment for a term not exceeding five years, or to both.

30. The fees set out in the Second Schedule are payable in Fees respect to the matters specified in that Schedule.

31. A person engaged in a carbon credit generation activity Transitional prior to the coming into operation of these Regulations shall comply Provisions with the provisions of these Regulations within one year of commencement of these Regulations. 330 Statutory Instruments 9th January, 2026

FIRST SCHEDULE (Regulations 6,8,13,14,15,23, 25 and 28) Form I (Regulations 6(1) and 6(4) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ________________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE CONCEPT NOTE (To be completed in duplicate) Project Status and Intent Is this a new or existing carbon generation activity/project (New/Existing) If an existing carbon generation activity/ project: - Are you submitting the Concept Note (MAIN) seeking to migrate from a carbon credit generation activity under a voluntary carbon market to a carbon credit generation activity under a cooperative approach requesting for a corresponding Adjustment? (Yes/No) - Are you submitting the Concept Note (MAIN) to seek a letter of no objection and continue as a carbon credit generation activity under voluntary carbon market requesting for corresponding adjustment? (Yes/No) - Are you submitting the Concept Note (MAIN) to seek a letter of endorsement and continue as a carbon credit generation activity under a voluntary carbon market not requesting for a corresponding adjustment? (Yes/No) 9th January, 2026 Statutory Instruments 331 ACTIVITY INDICATOR Name of submitting entity/person Organisational category Core business Role in the activity Contact person Street/P.O. Box Postal Code, City Telephone Email ACTIVITY PARTNERS (If applicable; for all activity partners) Name of the activity partner Organisational category Core business Role in the activity Address GENERAL DESCRIPTION Activity name Objective of the activity Activity description Project location Technology ACTIVITY DETAILS Sector Greenhouse gases targeted Estimated required financing volume Expected GHG abatement potential Additionality and Required Carbon Price Is Community Development and Benefit Sharing foreseen (if yes, please provide a brief description of designated recipients and their participation in the activity) SDG contribution Transformational Change Contribution Regulatory Surplus 332 Statutory Instruments 9th January, 2026 Negotiations with host country EXPECTED SCHEDULE Activity lead time Activity lifetime Current status The activity is in its preparation stage following key processes as highlighted below (please select): ☐ Identification and pre-selection phase ☐ Opportunity study finished ☐ Pre-feasibility study finished ☐ Feasibility study finished ☐ Negotiation phase ☐ Contracting phase ☐ Carbon asset development ☐ Validation & verification ☐ Issuance of carbon credits LIST OF ELIGIBLE SECTOR SCOPES FOR PARTICIPATION IN CARBON MARKETS 1. Energy industries (renewable / non-renewable sources) 2. Energy distribution 3. Energy demand 4. Manufacturing industries 5. Chemical industry 6. Construction 7. Transport 8. Mining/Mineral production 9. Metal production 10. Fugitive emissions from fuels (solid, oil and gas) 11. Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride 12. Solvents use 13. Waste handling and disposal 14. Afforestation and reforestation 15. Reducing Emissions from Deforestation and Forest Degradation (REDD+) 16. Agriculture 17. Carbon capture and storage of CO2 in geological formation 18. Other activities involving removals 9th January, 2026 Statutory Instruments 333 Form II (Regulation 6(2) and 8(1) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ________________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE COMMUNITY DEVELOPEMENT AND BENEFIT SHARING AGREEMENT CARBON CREDIT GENERATION ACTIVITY (GENERAL INFORMATION) Name of submitting entity/person Organisational category Core business Role in the activity Contact person Street/P.O. Box Postal Code, City Telephone Email Letter of endorsement/Approval reference No. BENEFIT SHARING AND DISTRIBUTION PLAN Chapter 1: Project Description - Overview of the carbon credit generation activity, objectives and context. Chapter 2: Identification of Stakeholders and Beneficiaries - Clear identification of all project actors (e.g., smallholder farmers, managers, local authorities, investors) and their roles and responsibilities in the project. Chapter 3: Types of Benefits - Financial benefits: Details on how carbon revenues (e.g., from credit sales) are allocated among beneficiaries, including the share, amount, and timing of payments. - Non-financial benefits: Description of non-monetary benefits such as training, capacity building, infrastructure, technology access, or in-kind support. Chapter 4: Benefit Allocation Criteria - The criteria, conditions, percentages, and calculations for distributing benefits among stakeholders. - Explanation of eligibility and rationale for benefit shares. - Proposed Benefit Sharing Factor Chapter 5: Distribution Mechanisms - Detailed description of how benefits will be delivered (e.g., payment modalities, in-kind transfers, service provision). - Channels and timing for benefit distribution. 334 Statutory Instruments 9th January, 2026 Chapter 6: Governance and Decision-Making - Outline of decision-making processes, roles of local authorities, and conflict resolution mechanisms. - Legal and policy framework underpinning the plan. Chapter 7: Transparency, Monitoring, and Reporting - Provisions for transparency, regular reporting, and monitoring of benefit distribution. - Mechanisms for stakeholder feedback and grievance redress. Chapter 8: Stakeholder Consultation - Documentation of how stakeholders were consulted in developing the plan and how their input was incorporated. Chapter 9: Agreement and Sign-Off - The plan should be agreed upon and signed by all relevant actors to ensure legitimacy and buy-in. 9th January, 2026 Statutory Instruments 335 Form III (Regulation 6(8)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ____________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE LETTER OF NO OBJECTION [Ref.] [Date] Re.: Letter of No Objection: Concept Note Reference is made to the subject matter above. I write to acknowledge with thanks, receipt of your concept note dated [date], regarding the implementation of [title of the carbon credit generation activity]. I wish to inform you that the Ministry, serving as Secretariat for the Green Economy and Climate Change Technical Committee (“Technical Committee”) acknowledges the interest of the project developer [name] in using carbon finance for the co-financing of the carbon credit generation activity [name]. The project developer [name] has submitted preliminary information on the carbon credit generation activity, which was assessed for completeness and submitted to the Technical Committee. After careful evaluation of the preliminary information, the Technical Committee during the meeting held on [date] does not have any objections against the proposed carbon credit generation activity. The Technical Committee recommends that the carbon credit generation activity in general is aligned with the requirements of the Carbon Market Regulations and guidelines. Hence, the activity may be considered for authorisation for Corresponding Adjustment at a future developmental stage. It is against this background that I wish to issue you this Letter of No Objection to enable you proceed with the development of a full proposal, the project proposal. The Technical Committee will take a decision on the authorisation or rejection of the proposed carbon credit generation activity upon the provision of a completed project proposal document, a positive validation statement by a registered verifier and other supporting documentation specified in the Carbon Market Regulations. I look forward to your submission of the project proposal. [Name] Director Green Economy and Climate Change Ministry of Green Economy and Environment 336 Statutory Instruments 9th January, 2026 Form IV (Regulation 6(8)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE LETTER OF ENDORSEMENT [Ref.] [Date] Re.: Letter of Endorsement: Concept Note Reference is made to the subject matter above. I write to acknowledge with thanks, receipt of your concept note dated [date], regarding the implementation of [title of the carbon credit generation activity] as well as application to trade carbon credits in accordance with section 24 of the Green Economy and Climate Change Act, No. 18 of 2024. I wish to inform you that the Ministry, serving as Secretariat for the Green Economy and Climate Change Technical Committee (“Technical Committee”) acknowledges the interest of the project developer [name] in using carbon finance for the co-financing of the carbon credit generation activity [name]. The project developer [name] has submitted preliminary information on the carbon credit generation activity, which was assessed for completeness and submitted to the Technical Committee. After careful evaluation of the preliminary information, the Technical Committee during the meeting held on [date] does not have any objections against the proposed carbon credit generation activity. The Technical Committee recommends that the carbon credit generation activity in general is aligned with the requirements of Zambia’s Carbon Market Guidelines. Hence, the activity may be endorsed for implementation under the Voluntary Carbon Market, i.e., Corresponding Adjustment will not be applied. It is against this background that I wish to issue you this Letter of Endorsement to enable you proceed with the implementation of the project. In addition, please also find attached your Certificate of Authorisation to Trade Carbon Credits without Corresponding Adjustment. This Letter of Endorsement and Certificate of Authorisation may be suspended or revoked on the conditions of fraud, non-compliance of the carbon credit generation activity, contravention of the provisions of the Act, Regulations and Guidelines of Zambia or in the interest of the public. This Letter of Endorsement and the attached certificate of authorisation are governed by the laws of the Republic of Zambia and constitutes legal, valid and binding obligations of the Government of Zambia, enforceable in accordance with its terms. [Name] Director Green Economy and Climate Change Ministry of Green Economy and Environment 9th January, 2026 Statutory Instruments 337 Form V (Regulation 6(8)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) __________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE PROJECT PROPOSAL (To be completed in duplicate) ACTIVITY INDICATOR Name of submitting entity/person Organisational category Core business Role in the activity Contact person Street/P.O. Box Postal Code, City Telephone Email Letter of No Objection Reference No. ACTIVITY DETAILS Chapter 1: Activity Overview Chapter 2: Baseline Development Chapter 2.1: Methodological Approaches - References to CDM A6.4 methodologies and tools, IPCC approaches used for baseline development Chapter 2.2: Crediting Period Chapter 2.3: Project Start Chapter 2.4: Baseline Development - BAU Scenario, well below BAU / BAT / performance penetration approach Chapter 2.5: Financial additionality proof Chapter 2.6 Project / Activity scenario Chapter 2.7: Avoiding Double Counting 338 Statutory Instruments 9th January, 2026 Chapter 3: Sustainable Development Impacts - Discussion of sustainable development indicators of the Zambian Carbon Marekt Framework - Discussion of the ambition raising indicators of the Zambian Carbon Market Framework Chapter 4: Monitoring Plan Chapter 4.1. Monitoring Plan Chapter 4.2 Parameters fixed ex ante Chapter 4.3. Parameters to be monitored Chapter 4.4: Uncertainties - Approach to minimize uncertainties - Leakage assessment, if applicable - Non-permanence risk assessment, if applicable Note: Where applicable, please submit the agreed and signed Community Development and Benefit Sharing Agreement as per Form IX, alongside the project proposal 9th January, 2026 Statutory Instruments 339 Form VI (Regulation 8(6)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) The Green Economy and Climate Change (Carbon Market) Regulations, 2025 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE A PPROVAL APPROVAL [Ref.] [Date] Re.: Approval: Project Proposal I write to acknowledge with thanks, receipt of your project proposal dated [date], regarding the implementation of [title of the carbon credit generation activity] as well as application to trade carbon credits in accordance with section 24 of the Green Economy and Climate Change Act, No. 18 of 2024. I wish to inform you that the Ministry, serving as Secretariat for the Green Economy and Climate Change Technical Committee (“Technical Committee”), and which is the duly authorised representative empowered by the Government of Zambia to provide all cooperative approaches related authorisations and adjustments, acknowledges the interest of the project developer [name] in using carbon finance for the co-financing of the mitigation activity [name]. The project developer [name] has submitted detailed information on the carbon generation activity, which was assessed for completeness and submitted to the Technical Committee. After careful evaluation of the information provided by the project developer [name], the Technical Committee during the meeting held on [date] does not have any objections to the proposed carbon generation activity as the carbon generation activity has been deemed to contribute positively to the sustainable development of the Republic of Zambia, in line with national policies and the Sustainable Development Goals. The Government of the Republic of Zambia hereby approves the Project in accordance with the provisions of the Green Economy and Climate Change Act, No. 18 of 2024, SI No. [xx] of 2025, and the Carbon Market Guidelines of Zambia. The Government of the Republic of Zambia further confirms its voluntary participation in the International Carbon Market mechanism under the Paris Agreement. It is against this background that I wish to issue you this Letter of Approval to enable you to undertake the carbon generation activity. I hereby declare that the Republic of Zambia will not use the project’s emission reductions authorised as ITMOs to implement and achieve its NDC and that the Republic of Zambia will 340 Statutory Instruments 9th January, 2026 account for the project’s emission reductions and removals by applying corresponding adjustment in accordance with relevant decisions made under the Paris Agreement. I hereby also declare that the Republic of Zambia will not use the project’s emission reductions to implement or achieve any domestic climate change mitigation target(s). In addition to this Approval, please find attached the Certificate of Authorisation to Trade in Carbon Credits requesting a corresponding adjustment. This Approval and Certificate of Authorisation may be suspended or revoked on the conditions of fraud, non-compliance of the mitigation activity, contravention of the provisions of the Act, Regulations and Framework of Zambia or in the interest of the public. This Approval and the attached Certificate of Authorisation are governed by the laws of the Republic of Zambia and constitutes legal, valid and binding obligations of the Government of Zambia, enforceable in accordance with its terms. [Name] Director Green Economy and Climate Change Ministry of Green Economy and Environment 9th January, 2026 Statutory Instruments 341 Form VII (Regulation 13(1)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) _________________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE Application to Trade in Carbon Credits (To be completed in duplicate) 1 DETAILS OF APPLICANT 1.1 Applicant name (company) 1.2 Certificate of incorporation number 1.3 Taxpayer Identification Number (TPIN) 1.4 Physical address (including GPS coordinates) 1.5 Postal address 1.6 Phone number 1.7 E-mail address 1.8 Web site (if any) 1.9 Contact person (name) 1.10 Contact person’s phone number 1.11 Contact person’s e-mail address 2 DETAILS OF AUTHORISED LOCAL REPRESENTATIVE OF THE APPLICANT 2.1 Local representative name (if different from applicant) 2.2 Certificate of incorporation number 2.3 Taxpayer Identification Number (TPIN) 2.4 Physical address (including GPS coordinates) 2.5 Postal address 2.6 Phone number 2.7 E-mail address 2.8 Web site (if any) 2.9 Contact person (name) 2.10 Contact person’s phone number 2.11 Contact person’s e-mail address 3 REQUEST FOR CERTIFICATE OF AUTHORISATION TO TRADE 3.1 Initial Request for Certificate ☐ Request for Duplicate Certificate ☐ 4. DETAILS OF CARBON CREDITS TO BE TRADED 4.1 With Corresponding Adjustment ☐ Yes ☐ No 4.2 Amount of carbon to be traded 5 TYPE OF CARBON CREDIT GENERATION ACTIVITY 5.1 ☐ Cooperative Approaches of the Paris Agreement – Bilateral Agreement (Article 6.2, Article 6.4) ☐ Voluntary Carbon Market Project (without Corresponding Adjustment) ☐ Voluntary Carbon Market Project (Migration to Article 6) ☐ Voluntary Carbon Market Project (with Corresponding Adjustment) 342 Statutory Instruments 9th Januaray, 2026 6.1 General Information Attached 6.1.1 Mitigation Outcome Purchase Agreement ☐ Yes ☐ No 6.1.2 Letter of No Objection/Letter of Endorsement ☐ Yes ☐ No 6.1.3 Validation Statement/Report by registered verifier ☐ Yes ☐ No 6.1.4 Proof or Application/Registration on VCM Standard ☐ Yes ☐ No 7 DECLARATION For and on behalf of ………………….…. I hereby certify that the above-mentioned information, as well as the data provided in the appendices in support of this application are true and correct. ……………………………….. ……………………………….. Name in full (print) Signature ……………………………….. ……………………………….. Official title Date 9th January, 2026 Statutory Instruments 343 Form VIII (Regulation 13(3)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE CERTIFICATE OF AUTHORISATION TO TRADEIIN CARBON CREDITS ertificate Serial No.: ………………. .(Insert name of applicant)………………………………………………………….of………………(insert physical address)……….…….……………….for Activity Title:…………..….(insert Activity Title)…………..………., Activity Number:……………………(insert activity number)…….has hereby been issued with a certificate of authorisation to trade in carbon credits. ☐ with Corresponding Adjustment ☐ without Corresponding Adjustment This Certificate of Authorisation is valid from the............day of ..............................20 .......... to the ……………….. day of ……………………… 20…………………… (5 Years). .................................................................. ................................................ Date and Official seal Director, GECC, MGEE 344 Statutory Instruments 9th January, 2026 Form IX (Regulation 15(2)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE REQUEST FOR ISSUANCE OF CARBON CREDITS AS MITIGATION OUTCOMES (To be completed in duplicate) CARBON CREDIT GENERATION ACTIVITY INFORMATION Title of the Registered Carbon Credit Generation Activity Registration Serial Number: Certificate of Authorisation Serial: Project Verifier’s Name and Registration Number Monitoring Period DD/MM/YYYY to DD/MM/YYYY Quantity of Mitigation Outcomes requested for Issuance: 9th January, 2026 Statutory Instruments 345 LIST OF DOCUMENTS, SUBMITTED BY THE AUTHORISED CARBON CREDIT GENERATION ACTIVITY (Tick as applicable) Documents required to facilitate Issuance Version No. Date of the Documen t Verified Project Monitoring Report for the achieved emission reductions and measures undertaken towards the achievement of the SDG impacts as project proposal. Verified Project Monitoring Report for the achievement of the implementation of the Benefit Sharing and Distribution Plan as per the Community development and Benefit Sharing Agreement (where applicable). Emission Reduction Calculation spreadsheet containing calculations of actual emission reductions achieved, measured and monitored parameters and the monitored data for the achieved emission reductions for the verified monitoring period. Declaration by the Authorised Carbon Credit The Authorised Carbon Credit Generation Activity generation Activity Representative declares the following: I ………………...………… (representative of the Authorised Carbon Credit Generation Activity), confirm that this registered carbon credit generation activity meets all relevant requirements according to Statutory Instrument No. [xx], The Carbon Market Regulations, 2025 and hereby request the Zambia Environmental Management Agency to issue the quantity of Mitigation Outcomes with Corresponding Adjustment as approved in the Verification Report by the Verifier, for the verified monitoring period; I confirm that the Carbon Credits issued to the Authorised Carbon Credit Generation Activity as Mitigation Outcomes for this verified monitoring period will not be issued more than once as carbon credits by any other GHG program anywhere in the world. I confirm that all the information provided in all the documents submitted as part of this ‘Request for Issuance’, and submitted to the Government of Zambia through the Zambia Environmental Management Agency, is true and correct; I understand that a failure to provide accurate information or data, or concealing facts or information, can be considered as negligence, fraud or willful misconduct. Therefore, I and all the Project Owners are aware that they are fully responsible for any liability that may arise as a result of such actions. 346 Statutory Instruments 9th January, 2026 Name, date and signature of the Authorised Carbon Name of the Authorised Carbon Credit Generation Credit Generation Activity and Representative Activity: (as per the Letter of Authorisation) Name of its authorised representative: Email and Phone Number of its authorised representative: Signature and Date: 9th January, 2026 Statutory Instruments 347 Form X (Regulation 23(1)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ____________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE Application for Registration as a Verifier (To be completed in duplicate) Date of submission of registration form Name of Verifier Standard, under which the verifier holds an active accreditation (e.g. Verra Carbon Standard etc.) Expiry date of accreditation Name, email address and telephone number of focal point for validations and verifications in Zambia Sectoral scope(s) for which the Verifier holds active accreditation, as defined in Appendix below On behalf of the Verifier [Name of officer] of Duly authorised signatory 348 Statutory Instruments 9th January, 2026 Form XI (Regulation 23(2)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ____________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE DECLARATION FOR REGISTRATION AS A VERIFIER (To be completed in duplicate) Declaration Statement: [VERIFIER COMPANY NAME], hereby declare that the following statements are true and correct. 1. The verifier acknowledges the rules and requirements of Zambia’s Carbon Market Guideline and as set out under the Act and the Carbon Market Regulations. The Verifier will issue positive validation and verification statements, if the carbon credit generation activity meets all relevant (i.e. eligibility criteria to be assessed on the submission of the project proposal shall be considered for validation processes) criteria. 2. The verifier is aware of the requirements to include a national expert into the team during the validation or verification. The verifier will engage at least one expert, included in the list of Zambia’s validation and verification experts, as maintained by the Department. 3. The financial compensation for the implication of Zambian experts shall be negotiated between the verifier and the expert. 4. The verifier shall ensure that the national expert/s involved in the validation and verification processes have no conflict of interest. The verifier is responsible for identifying and addressing any potential conflicts, maintaining transparency and objectivity as required by the Act and Carbon Market Guidelines. On behalf of the Verifier [Name of officer] of Duly authorised signatory 9th January, 2026 Statutory Instruments 349 Form XII (Regulation 23(3)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) ______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE CERTIFICATE OF REGISTRATION AS A VERIFIER Certificate Serial No.: ………………. …….(Insert name of applicant)………………………………………………………………………. of ………….…… (insert physical address)……………………………………………………………………………………………….…. has hereby been issued with a certificate of registration as a Verifier. This Certificate of Registration is from the............day of ..............................20 .......... to the ……………….. day of ……………………… 20…………………… (3 Years). ................................................................. ............................................................. Date and Official seal Director, GECC, MGEE 350 Statutory Instruments 9th January, 2026 Form XIII (Regulation 25) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) _______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE LIST OF NATIONAL EXPERTS National Work Sectoral IPCC GHG Experience ID First Name Last Name Email Phone No. Expertise Training Inventory with Verifiers (1) (2) Works (3) (4) 1 2 3 4 5 6 7 8 9 Notes: (1) Identify relevant IPCC sectors: Energy, Industrial Production and Product Use (IPPU), Land Use, Land Use Change and Forestry (LULUCF) and/or Waste (multiple sectors eligible) (2) Has the expert successfully completed an IPCC training for the specific sector: Yes /No (3) Has the expert contributed to the national GHG inventory of the specific sector: Yes / No (4) Has the expert worked with a designated operational entity, or validation and verification body in the past: Yes / No 9th January, 2026 Statutory Instruments 351 Form XIV (Regulation 28) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) _______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE COMPLIANCE ORDER (Section 33 of the Green Economy and Climate Change Act, 2024) ORDER NO.:……………….. (1) Here insert the This Order is served on (1) ……………………………………………… of full names of the (2)………………………………………………………………………..District in the person/ entity on whom the Order (3) ……………………………………………..….. Province of the Republic of Zambia. is to be served. (2) Here insert the name of the You are ODERED to (4) …………………………………………..……….…………… district in which the person/ entity is located. The Certificate of Authorisation No………..……….……. (5) is immediately suspended. (3) Here insert the name of the Province and Country in which You are REQUIRED to (6)………………………………..……...……………..……….. the person/ You MUST comply with the requirements of this Order by the ………………….....…. entity is located. (4) Here insert the action to be taken to remedy Dated this …………………,,,,….……day of ……,,,…..………., 20……….,,,……….. the breach of a legal provision. (5) Here insert the certificate number. (6) Here insert the measures to be taken by the holder of the ……………………………………………. certificate to Director, GECC, MGEE prevent or abate any adverse effect 352 Statutory Instruments 9th January, 2026

SECOND SCHEDULE (Regulations 6(1), 6(8), 13(1), 14(1), 23(1) and 30) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) _______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE PRESCRIBED FEES Category Fee Unit Concept Note (One-time fee upon submission) Local Developer $500 International Developer $1,000 Project Proposal (One-time fee upon submission) Local Developer $2,000 International Developer $4,000 Application for Certificate of Authorisation to Local Developer $2,000 Trade in Carbon Credits (for Voluntary Carbon Projects without Corresponding Adjustment) International Developer $4,000 Application for a Duplicate Certificate of Local Developer $2,000 Authorisation to Trade in Carbon Credits (for International Developer $4,000 Voluntary Carbon Projects without Corresponding Adjustment) Local Verifier $500 Application for registration as a verifier International Verifier $1,000 Note: The fee for the Certificate of Authorisation for voluntary carbon projects requesting for a Corresponding Adjustments is included in the fee for submission of the project proposal. 9th January, 2026 Statutory Instruments 353

THIRD SCHEDULE (Regulations 18(2) and 21) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) _______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE SHARE OF PROCEEDS Share of Proceeds applicable to the transfer of carbon credits as Mitigation Outcomes based on issuance during the entire crediting period Amount of Mitigation Outcomes for a single project or mitigation Payment per Mitigation Outcome activity For the first, 1 - 50,000 ($1.00) For the next, 50,001- 100,000 ($1.50) For the next 100,001 and above ($2.00) NOTE: For further details on the application of the Share of Proceeds, please refer to the Carbon Market Guidelines 354 Statutory Instruments 9th January, 2026

FOURTH SCHEDULE (Regulations 6(6) and 8(5)) REPUBLIC OF ZAMBIA The Green Economy and Climate Change Act, 2024 (Act No. 18 of 2024) _______________ The Green Economy and Climate Change (Carbon Market) Regulations, 2026 THE DEPARTMENT OF GREEN ECONOMY AND CLIMATE CHANGE LIST OF INDICATORS ID Stage Description and Rationale for the Indicator Means of Verification Criterion 1: Environmental Integrity 1- Eligible carbon Concept The carbon credit generation activity is based on an Activity description credit generation Note eligible activity type. The following mitigation in Concept Note activity type i.e., activity types are excluded: alignment of (f) carbon credit generation activities which carbon credit lead to a lock-in of fossil fuel technologies generation such as e.g., refurbishment of an oil boiler; activities with the (g) carbon credit generation activities NDC. reducing HFC-23 or adipic N2O, (h) Nuclear power and (i) Large scale (i.e., > 20 MW) grid- connected dam hydro power. The lock-in of fossil fuels refers to the continued presence of residual emissions by 2050, which aligns with the projected timeline for reaching global net neutrality. Rationale: Even when reducing GHG emissions, carbon credit generation activities that extend the lifetime of fossil fuel technologies are not in line with the Paris Agreement objective. While being financially additional, HFC-23 and adipic N2O activities are excluded, as these activities may lead to perverse incentives (cp. Commission Regulation (EU) no 55/2011, §7). Large scale dam hydro power plants are excluded from carbon finance because such activities may have severe negative environmental impacts and as hydropower, due to an increase of the variation of precipitation (cf. ERB, 2022, Spalding-Fecher, 2018), and because the Government of Zambia aims to diversify power sources. 9th January, 2026 Statutory Instruments 355 Means of ID Stage Description and Rationable for the Indicator Verification 2 - Additionality Concept The carbon credit generation activity used financial Concept Note Phase: demonstrated Note & analysis to demonstrate additionality1 reflecting - Investment through investment current and planned future policies (e.g., the analysis in Excel Project analysis and introduction of a carbon tax etc.). file exhibits Proposal regulatory surplus (f) Investment Analysis: carbon credit negative NPV generation activities can help provide and IRR below accessible finance for climate mitigation commercial activities that might not otherwise meet lending rate for the risk and return expectations of activity without investors, but are critical to achieve the carbon revenue. emissions reductions and removals necessary to help stabilise the global Project Proposal temperature at 1.5°C. This could include Phase: nature-based solutions that are difficult to - Investment commercialise, for example. analysis in Excel The investment analysis shall exhibit i) a file exhibits 2 negative net present value (NPV) and ii) negative NPV an internal rate of return3 (IRR), which is and IRR below below the commercial bank lending rate, as published by Bank of Zambia4. And commercial (g) Regulatory Surplus: This implies proving lending rates; that activities are additional to, and not - Analysis of required or enabled by, policies and existing and measures that the host government has planned future introduced. regulation in Project Rationale: The application of “barrier analysis”, Proposal. “first of its kind” or similar is inadequate for the demonstration of additionality under the Paris Agreement. A negative NPV implies that the investor will lose money (w/o carbon finance e) over the lifetime of the investment. An IRR below a commercial lending rate (w/o carbon finance) indicates that the investor will lose money over the lifetime of the investment, if he has to finance the activity with a loan. Both indicators must be met to clearly demonstrate additionality. To reflect the uNDC efforts, the activity must consider planned future policies. 1 Additionality: Some countries and project developers may prioritize low-cost mitigation opportunities that would have happened regardless of the existence of a carbon market. In these cases, the credit claimed for emissions reductions may not reflect the true impact of the activity. Additionality principle implies that the mitigation outcomes would not have occurred in the absence of the incentives created by the carbon credit revenues. This helps to ensure that the emissions reductions are real and not simply a result of business-as- usual activities. 2 The NPV estimates the current value of an investment considering investment costs and discounted, future revenues and costs. A negative NPV implies that the investor would lose money over the lifetime of the investment. 3 The IRR estimates the internal return a project generates for the investor. If the IRR is below the lending rate, the investor would lose money, if he has to take a loan for financing the project. 4 Bank of Zambia publishes commercial bank lending rates here: https://boz.zm 356 Statutory Instruments 9th January, 2026 Means of ID Stage Description and Rationable for the Indicator Verification 3 - Activity Project The carbon credit generation activity employs a - Baseline based baselines in Proposal baseline that considers Zambia’s unconditional on i) projected compliance with NDC target (if applicable). In this case, the baseline below BAU, or NDC target of the proposed activity shall be below business-as- ii) best available usual (BAU) emission levels, e.g., best available technology, or technology, ambitious benchmark approach, iii) performance historical emissions adjusted downward). penetration approach To assess the relationship with the unconditional included in NDC, the project developer may use a linear MADD; interpolation from current emissions (i.e., at the time - Description on of the activity start) to the emissions at the end of the baseline NDC period (e.g., 2030). alignment with uNDC target Rationale: Simple BAU scenarios assuming included in constant baseline GHG emission intensity may be Project inconsistent with an uNDC committing to a decrease Proposal. of total and/or specific emissions. A single-year target value of the uNDC needs to be interpolated between activity start (e.g., 2023) and the end of the crediting period (e.g., 2030). 4- Estimation of Concept The project developer shall provide an estimate of Concept Note Phase: the required carbon Note & the required carbon price to achieve financial - Investment price to achieve Project viability. The required carbon price shall be analysis in financial viability. Proposal calculated following the guidance provided by Excel file;

Annex VII. Project Proposal (Not a go/no go Phase requirement) Rationale: The government of Zambia has - Investment committed to an unconditional NDC target and may analysis in decide against giving away “low hanging fruits”, Excel file. i.e., authorizing activities with low abatement costs (cf. Annex VI). 5-Addressing non- Project In case of a Land Use, Land Use Change, and - Implementation permanence risks Proposal Forestry (LULUCF) activity, the activity needs to contracts take the risk of non-permanence into account by document (f) activity ( l) Assuring a minimum activity longevity of 40 years (according to the most recent longevity; version of the Verified Carbon Standard - Long term (VCS); and average is (m) Applying a non-permanence risk tool (g) considered in either from the Forest Carbon Partnership Project Facility, VCS or Gold Standard; and Proposal; (n) Applying a cap corresponding to the long- (h) - Non term average of carbon sequestration, as permanence risk prescribed by the Gold Standard; and (o) Monitoring of- and fully account for (i) tool is applied; reversals. - Monitoring plan includes the Rationale: The issuance of permanent mitigation monitoring for outcomes/carbon removal certificates for reversible loss events. forest carbon sinks is partially assured through the uNDC achievement1 , At the same time, A6 opportunity shall assure against-, and monitor loss event 9th January, 2026 Statutory Instruments 357 Means of ID Stage Description and Rationable for the Indicator Verification 6- Alignment with Project The activity features GHG estimates that are - Choice of an IPCC Proposal consistent with IPCC GPG 2006 methodologies and appropriate methodologies and the 2019 update. methodology, best practices for documented in GHG estimations This shall be achieved by: Project ((f) p) Using methodologies and tools from A6.4 Proposal; works streams, where applicable; or (q) (g) Using CDM methodologies and tools; - In case of no (h) Using VCS and GS methodologies and (r) approved tools; methodology: (s) Developing GHG emission estimates in (i) Approval of alignment with IPCC good practice GHG emission guidance, approved by the transferring- estimation and the acquiring parties. approach from transferring and Rationale: The activity needs to estimate GHG parties. emissions and related emission reductions in line with the IPCC good practice for national GHG inventories, which will assure consistency with the national GHG inventory and all related communications with UNFCC including the NDC. 7- Blending of Project In the case of blending of financing sources: The - Statement from financing sources Proposal relationship between the grant-equivalent financing equity, already provided/pledged and the funding mobilized mezzanine through ITMO transaction shall be clearly and/or loan explained. providers, wherever the Where activities use a combination of climate provided finance and carbon finance, the mitigations funding outcomes shall be attributed to climate and carbon qualifies as finance based on the proportion of grant equivalent climate finance. financing provided to cover the abatement cost of - If yes: the activity. Attribution is of MOs is done. Rationale: The blending of climate finance with carbon finance may lead to a reduction of carbon price. This may reduce the volume of climate finance, which is then not available to fund other mitigation measures. Hence, blending climate finance and carbon finance has a negative effect on the reduction of emissions, which may compensate or overcompensate the ITMO volume. To avoid such setups, mitigation outcomes shall be attributed accordingly, if applicable. 1 Similar to Joint Implementation, the risk of reversal is assured by national efforts to achieve the uNDC target for the LULUCF- and other sectors covered under the NDC. If a loss event occurs within the mitigation activity area, and if the transferring party has issued ITMOs for the carbon sinks in that area, than it must overcompensate the loss through other removals and/ or reduction of emissions. Otherwise, it will fail to deliver on its uNDC target. 358 Statutory Instruments 9th January, 2026 Means of ID Stage Description and Rationable for the Indicator Verification 8- Minimization of Project Uncertainties in GHG estimations and calculations - Identification of uncertainties of Proposal shall be identified and minimized. key GHG estimations uncertainties included in Rationale: Uncertainties associated with GHG Project estimations arise due to scientific uncertainty (e.g., Proposal; the actual emission and/or removal process is not - Strategy of sufficiently understood), and estimation uncertainty minimizing key (associated with quantification of GHG emissions). uncertainties In the activity context, the systematic identification included in and minimization of GHG estimation uncertainties, Project Proposal as required by the IPCC GPG, increase accuracy, and assures transparency. The uncertainty assessment can also support a project developer to better understand the causes and thereby ways of improving the GHG inventory quality. 9- Leakage risks Project Significant leakage risks shall be identified, - Identification of shall be minimized Proposal monitored, and minimized and/or discount factors significant for crediting approach should be introduced. leakage risks included in As a general provision, market leakage risk may be Project ignored. Proposal; - If relevant: Rationale: The systematic identification and Strategy for minimization of leakage risks in the GHG emission leakage estimates increase accuracy and assures minimization transparency. and accounting Significance shall be assessed following the tool for is included in testing the significance of GHG emissions in A/R Project CDM project activities, CDM EB 31. Proposal. Non-Nature Based Solutions shall apply another suitable approach to test for the significance. Criterion 2: Sustainable Development 10- Contribution to Concept The carbon credit generation activity shall Description of key SDGs Note document its contributions to the SDGs SDG targets related prioritized by the host country beyond SDG 13 and to the activity for considering the host country’s strategies for SDGs MAIN and checking (including for SDG5 – Gender equality). Yes/No for contribution towards Rationale: Taking SD seriously, sustainable them by the activity development must not be constrained to impacts to SDG13 (e.g., adipic N2O or HFC-23 project-like impacts do not suffice). The documentation of SD impacts e.g., on SDGs, including possible negative impacts is required. 9th January, 2026 Statutory Instruments 359 Means of ID Stage Description and Rationable for the Indicator Verification 11- Obtain an EIA Project The carbon credit generation activity shall obtain an A decision letter or a or Strategic EIA Proposal Environmental Impact Assessment / Strategic letter of no objection Environmental Assessment: All carbon credit - depending on the generation project developers are required by law to activity type - undertake an environmental impact assessment or obtained by Zambia strategic environmental assessment. Environmental Management As a result of the identification of various Agency (ZEMA). environmental and social impacts in the EIA, the project developers are required to have safeguards in place to reduce/mitigate the impacts and provide monitoring reports to follow-up on the same during the project lifecycle. Rationale: It is a legal requirement in Zambia (EMA Act No. 12 of 2011) that all activity developers of the industrial facility or plant, agricultural scheme, business or undertaking to carry out an environmental impact assessment and submit report to ZEMA for approval. In addition, the mitigation activity that could have an adverse effect on environmental management or on the sustainable management and utilisation of natural resources shall conduct a strategic environmental assessment of the draft policy, programme or plan and present a strategic environmental assessment report to the Agency, for approval. 12- Asses ex-ante Project The carbon credit generation activity shall include SD impacts are SD impacts Proposal the expected quantitative and qualitative SD impacts assessed using an using an internally acknowledged tool from below internationally list: acknowledged tool 1. Sustainable Development tool for the and documented in mechanism established by Article 6.4; the Project Proposal 2. Gold Standard SDG Impact Assessment Tool 3. VERRA Sustainable Development Verified Impact Standard 4. Verra Climate, Community & Biodiversity Standards Rationale: Considering that mitigation measures generate mitigation outcomes, but these are then transferred to outside of Zambia, the true benefits are the mitigation activity’s contribution to sustainable development. Consequently, mitigation measures are required to document their expected impacts and developmental co-benefits. 360 Statutory Instruments 9th January, 2026 Means of ID Stage Description and Rationable for the Indicator Verification 13- SD as a Project The carbon credit generation activity shall monitor SD impacts are monitoring Proposal its SD impacts. These include the economic defined as parameter impacts (such as the creation of jobs, poverty monitoring alleviation and enhancement of income and financial parameter in the inclusion, especially among women), social Project Proposal. impacts (such as improvements in gender equality, health and safety, access to education, cultural preservation, improved access to energy, social inclusion, improved sanitation facilities and improved quality of and access to other public utilities such as water supply), and environmental impacts (including increased air, water and soils quality, conservation, and biodiversity). Rationale: Mitigation measures have positive as well as negative impacts on social, ecological and/or biodiversity spheres. Some of these impacts may be strictly linked with the performance of the mitigation measure (which may be fixed ex-ante). 14-Agreed Concept The carbon credit generation activity for which a Benefit sharing plan Community Note Community Development and Benefit Sharing signed by development and & Mechanism is applicable, shall have agreed on a communities, and Benefit Sharing community development and benefit-sharing plan other parties is Project Plan with local communities respecting the Free, Prior provided. Proposal and Informed Consent (FPIC) principles. Applicable carbon credit generation activities include i) Reducing Emissions from Deforestation and Forest Degradation (REDD+) and ii) Non Industrial- afforestation reforestation, or restoration involving local communities. Rationale: FPIC processes assure that local communities are well informed before giving their possible consent to participating in REDD+-like activities. An approved community development and benefit sharing plan, after through FPIC processes, documents that all parties are in agreement on how possible revenues shall allocated amongst parties. 15- Comprehensive Project The carbon credit generation activity shall conduct Stakeholder stakeholder Proposal comprehensive stakeholder consultations, consultation conducted in consultations especially with local and otherwise affected consistency with stakeholders, prior to the start of the activity international best implementation, in line with international best practice and is practices. Where relevant, a grievance process may documented in the be established for stakeholders. Project Proposal. The project developer shall use of one or more of the following tools/options pertaining to stakeholder engagement and consultations: 1. IFC Stakeholder Consultations or Stakeholder Engagement Guidebook 2. Gold Standard’s ‘Stakeholder Consultation and Engagement Requirements’ Rationale: The conduction of appropriate consultations increases the assurance that stakeholders’ views and needs are considered in the overall activity design. 9th January, 2026 Statutory Instruments 361 Means of ID Stage Description and Rationable for the Indicator Verification Criterion 3: Transformational Change 16- Contribution to Concept The carbon credit generation activity shall document Concept Note Phase: transformational Note how it contributes to transformational change. the activity should change & The carbon credit generation activity should be able indicate one or more to contribute to transformational change for NDC of the following Project ambition raising that aligns mitigation activities with options: Proposal pathways to achieve the long-term goal of the Paris - activity includes Agreement and the 2030 Agenda SDGs by e.g., an element of promoting transformational characteristics of the technology activity that lead to processes and outcomes for innovation (to transformational impact, such as: technology change be defined by (e.g., R&D/local manufacturing, innovation), the AP) introduction of new incentives and regulations (e.g., - activity includes carbon pricing, subsidies); change in norms (e.g., an element of awareness, behaviour, and social values for local sustainability). manufacturing, assembly, R&D. - activity could Rationale: The mere generation of mitigation lead to outcomes will entitle other entities (exhibiting significantly higher marginal abatement cost) to emit more GHG high SD co- emissions. The procedures stipulated by 12a/CMA3 benefits. require activities to report on OMGE, however, this may be equally set to zero. Hence activities are required to document how they intend to contribute Project Proposal to transformational change. Phase: the project developer should On an activity level, it is suggested to consider demonstrate one or transformational change, instead of increase of more of the ambition (cp. Olsen et al., 2021). Increase of following options: ambition is defined as the submission and - How the activity implementation of a more ambitious uNDC, which could lead to seems a big ask for a single mitigation activity. substantial co- Contribution to transformational change is however benefits. a reasonable request for carbon credit generation - Scale-up or activities activities. replicability - potential of actions - either through a need for such interventions and/or through business viability proposition. - How the activity can catalyse impact beyond a one-off investment. - How the activity can potentially trigger sector- wide changes or behavioural changes. M. MPOSHA, LUSAKA Minister of Green Economic and Environment 9th January, 2026 [OO./00/00] 362 Statutory Instruments 9th January, 2026