Need To Speed Up Regulations To Catalyse Kenya’s Carbon Markets
Need To Speed Up Regulations To Catalyse Kenya’s Carbon Markets
Kenya could earn billions of dollars from the global market in carbon credits but needs to finalize the regulations needed to achieve that potential, according to speakers at Diamond Trust Bank’s Sustainability and Economic Forum.
Despite being the first country in Africa to enact Kenya Climate Change Act in 2016 to help tackle climate change, it amended the law in 2023 to include carbon markets and published the first set of regulations in May 2024.
Speakers at the 4th DTB Economic and Sustainability Forum in Nairobi said there is still some work to be done to realize the opportunities in the carbon market for Kenyans.
Need To Speed Up Regulations To Catalyse Kenya’s Carbon Markets
Paul Muthaura, the CEO of the Africa Carbon Markets Initiative, said “We now have a fairly solid legal framework. The law is only the first step and with robust public participation, we can truly live up to our potential,” said Mr Muthaura.
Dr Jackson Koimburi, head of the Circular Economy and Climate Change at the Kenya Private Sector Alliance, added “Carbon markets are a low-hanging fruit compared to traditional investment routes but there is still more that needs to be done,” said Dr Koimburi.
With the amendment to the law, Kenya’s National Designated Authority for the carbon market is the National Environment Management Authority (NEMA), but the Act needs four other regulations to become fully effective. Among these are: technical infrastructure committees, regulations to establish the national carbon registry and carbon trading regulations.
Clarice Wambua, an Environmental Lawyer and Consultant at Cliff Decker Hofmeyer, said much of the work that needs to be done to get the carbon market going is within the government.
Kenya’s carbon markets have been active since 2005, she said, but without regulations, and complaints emerged about the sharing of revenues with communities where the projects are located.
The region however faces challenges such as complex regulatory environment, verification and reporting, market volatility, initial costs and investment, project selection and visibility, reputation and credibility risks, integration with business strategy and, limited awareness and knowledge.
