Kenya began exploring the potentials of carbon trading and carbon credits in the early 2000s. The country was an early participant in the Clean Development Mechanism established under the Kyoto Protocol. Kenya developed its first CDM projects in 2007 which included methane capture from landfill sites and a modern biodigester system. Since then, Kenya has continued to develop various projects across sectors like renewable energy, energy efficiency, waste management that generate carbon credits.
Regulatory Framework For Kenya Carbon Credit
In 2013, Kenya released its National Climate Change Action Plan which provided the overarching policy framework for low carbon development and carbon s. Subsequently, the Kenyan government established the National Environmental Management Authority which acts as the Designated National Authority for CDM. NEMA is responsible for approving Kenyan CDM projects and issuing recommendations to the UNFCCC. In 2016, Kenya also launched the National Climate Change Response Strategy that mainstream climate actions across all sectors of the economy.
Project Types And Methodologies
Some of the most common project types in Kenya that generate carbon credits include:
– Renewable Energy Projects: This includes projects involving installation of solar panels, mini-hydro facilities, biomass plants. These displace fossil fuel based power generation.
– Improved Cookstoves: Distributed combustion cookstoves that use less firewood compared to traditional stoves. This helps reduce deforestation.
– Reforestation and Afforestation: Plantation projects involve growing trees that absorb and store carbon from the atmosphere.
– Waste Management Projects: These include projects to capture methane from landfill sites, waste water treatment, composting of organic waste etc.
– Energy Efficiency Projects: Upgrading to more efficient equipment and appliances helps lower greenhouse gas emissions. Project activities include efficient lighting retrofits, efficient boilers etc.
Emergence Of Domestic Carbon
With successful CDM projects over the years, Kenya is working towards developing its domestic carbon . In 2018, the Nairobi International Financial Center launched an infrastructure known as the Kenya Climate Exchange to facilitate domestic trading of carbon credits. The KCX enables trading between private sector players and provides a platform for pricing carbon credits generated from both CDM and future Nationally Determined Contributions projects. The exchange also aims to mainstream climate finance and low carbon investments in Kenya. With a conducive regulatory structure now in place, the carbon in Kenya is expected to grow rapidly in the coming years.
The emerging carbon presents significant opportunities for sustainable development in Kenya. Carbon finance can mobilize investments in priority sectors like clean energy, waste management, afforestation. It incentivizes private sector participation in climate actions. However, some challenges still remain – lack of awareness about the carbon among local stakeholders, capacity constraints for developing robust projects, measurements and verification. High transaction costs also limit the participation of smallholder and community projects. But with support from multilateral banks and continued policy reforms, Kenya’s carbon is poised for exponential growth in the decade ahead.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author – Alice Mutum
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice’s dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights. LinkedIn