The company says the discrepancy cited in the story arises from applying a later exchange rate to an earlier payment
By MakanDay
Community Markets for Conservation (COMACO) has issued a formal clarification following MakanDay’s recent investigation, “We Protect the Forest, Others Sell the Carbon,” which raised concerns about how carbon credit revenues are calculated and distributed within chiefdoms in Eastern Province.
In a press statement released this week, COMACO said recent reporting had misapplied exchange rates when calculating the value of funds disbursed to Chikuwe Chiefdom.
Exchange Rate Discrepancy
The investigation referenced a payment of US$309,468 and suggested that, at exchange rates between K20 and K23 per US dollar, the amount would translate to more than K6 million.
However, according to COMACO, the funds were disbursed at a time when the prevailing exchange rate stood at K15.1 per US dollar. Using that rate, the organisation states that the payment converts to K4,672,966.80, which it says aligns with the amount received by the community.
“The discrepancy cited arises from applying a later exchange rate to an earlier payment,” the statement said.
How the Carbon Revenue Is Shared
COMACO further clarified that carbon revenue is distributed according to a set formula agreed upon with stakeholders:
- 55 percent allocated to communities through Community Forest Management Groups (CFMGs) and chiefdom structures
- 35 percent retained for project implementation and operational costs
- 10 percent allocated to the Forestry Department
The organisation stated that this framework has been applied consistently across participating chiefdoms.
Community Training and Documentation
Responding to concerns about transparency, COMACO said it conducted structured financial literacy training prior to disbursing funds.
According to the statement, Community Forest Management Groups, cooperative leaders and traditional leaders were trained on how carbon credits are generated and verified, how revenue calculations are conducted, how exchange rates are applied, and how the benefit-sharing formula works.
Each chiefdom, COMACO added, was provided with documentation outlining allocations and the basis for calculation.
Role of Traditional Leadership
On questions relating to how funds are shared internally within chiefdoms, COMACO said it does not determine allocations to individual traditional leaders.
“Decisions regarding how the community share is allocated within each chiefdom are made through local governance structures,” the organisation stated, noting that chiefs play a central role in conservation oversight and community mobilisation.
Call for Continued Dialogue
COMACO acknowledged that carbon markets are complex and said it remains committed to transparency and accountability.
“We remain committed to transparency, accountability, and ensuring that conservation delivers meaningful and measurable benefits to rural households who protect Zambia’s forests,” the statement said, adding that the organisation welcomes continued constructive engagement with the media.
The clarification introduces key financial and governance details into an ongoing public conversation about conservation finance, community benefits, and accountability in Zambia’s emerging carbon market sector.
As debate continues, the central question raised in MakanDay’s investigation remains: How can rural forest communities be assured that the environmental assets they protect translate into fair and transparent economic returns?
COMACO’S FULL STATEMENT
FOR IMMEDIATE RELEASE
PRESS RELEASE
COMACO Clarifies Carbon Revenue Distribution in Eastern Province
Community Markets for Conservation (COMACO) wishes to clarify factual information regarding recent public reporting on carbon credit revenue distribution in Eastern Province.
For more than a decade, COMACO has worked in partnership with traditional leaders and Community Forest Management Groups (CFMGs) to protect forests while strengthening rural livelihoods. Carbon credit revenue is generated through verified reductions in deforestation and is shared according to an established benefit-sharing structure agreed upon with participating stakeholders.
Recent reporting referenced a payment of US$309,468 to Chikuwe Chiefdom and suggested that the community should have received more than K6 million based on exchange rates between K20 and K23 per US dollar. However, at the time funds were disbursed, the prevailing exchange rate was K15.1 per US dollar. Using the applicable rate at the time of transaction, US$309,468 converts to K4,672,966.80. The amount received by the community aligns with this calculation. The discrepancy cited arises from applying a later exchange rate to an earlier payment.
Carbon revenue is distributed under a consistent formula in which 55 percent is allocated to communities through their CFMGs and chiefdom structures, 35 percent supports project implementation and operational costs, and 10 percent is allocated to the Forestry Department. This framework has been applied across participating chiefdoms.
Prior to the issuance of funds, all CFMGs, cooperative leaders, and traditional leaders underwent structured financial literacy training. These sessions covered how carbon credits are generated and verified, how revenues are calculated, how exchange rates are applied, and how the benefit-sharing formula functions. Each chiefdom was provided with documentation outlining its allocation and the basis for calculation.
Decisions regarding how the community share is allocated within each chiefdom are made through local governance structures. COMACO does not determine internal allocations to traditional leaders. Chiefs play a central role in conservation oversight and community mobilisation, and any allocations within the community share are determined at chiefdom level.
Carbon markets are complex, and COMACO recognises the importance of continued dialogue and clarity. We remain committed to transparency, accountability, and ensuring that conservation delivers meaningful and measurable benefits to rural households who protect Zambia’s forests.
COMACO values the role of the media in strengthening public understanding and welcomes continued constructive engagement grounded in verified information.
Issued by:
Rebecca Snyder
Communications Manager
Community Markets for Conservation
0975170442
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