Kenya Carbon Trading
Verified Carbon Unit (VCU) certificates from Kasigau corridor in Taita Taveta County.
These facts were discussed during a National Validation Workshop for Financing the Kenya National Climate Change Action Plan. Subcomponent 8 which include financing ,investment and capacity development,.
However, future market conditions are likely to be much tougher. This also means that Kenya should be cautious in investing too many resources. In trying to access a source of climate finance that is likely to diminish in the short to medium term.
The ministry of finance has developed a policy. That is aimed at providing a national policy framework to guide and support carbon inflows and management. Clean technologies, and carbon trading in the country so as to allow Kenya to become a competitive carbon finance destination. The technical Advisory Committee is responsible for implementing this policy so as to realize the objectives.
The future carbon market condition will be difficult. But a primary trading platform would be more appropriate for Kenya’s needs in the current market environment. Therefore, focusing on the three ‘archetype’ models;
Designated National Authority (DNA) more efficient. An ‘export promotion agency’ model where public resources will be used to increase the supply of Kenyan credits. And promote their sale in overseas markets; and the brokerage model where a new body will be created. And will bring together buyers and sellers of credits and works on a commission basis.
Primary trading will increase awareness about the opportunities. Provided by carbon markets but does not directly engage in specific projects or commercial negotiations between parties. It will also facilitate interactions between project developers. And credit purchasers and match project developers with other capital providers. And facilitate voluntary domestic trading within the East Africa community.
Kenya has so far earned Sh534 million in carbon credit trading out of five national projects, Parliament was told yesterday. The system issues carbon credits to the government of the country in which reforestation. Or growing of other plants takes place.
In developing countries, one gets credited to the extent to which one is emitting less carbon. As per the standards fixed by the United Nations Framework Convention on Climate Change.
Finance assistant minister Oburu Odinga told the House that five projects in Kenya have so far benefitted from the project in line with the requirements of the UNFCCC. The minister was answering a question from Emuhaya MP Wilbur Ottichilo who had wanted to know the current development status in Kenya.
Ottichilo had further wanted to whether there are any legal instruments in place to regulate the carbon trading industry and asked the minister to provide a list of high carbon projects that have been registered in the country.
However, MPs were up arms in accusing the government for doing little to educate and sensitize the public on what carbon trading entails. North Horr MP Chachu Ganya urged the government to encourage Kenyans to plant trees because the global carbon credit stands at $144 billion. Oburu admitted that the government has not done enough in developing the carbon trading system and said the policy guidelines are in preparatory stage.
He said the government’s climate finance and carbon trading policy forms a key input into the implementation of the National Climate Change Response Strategy.
He also said the government had issued a circular No 9/2011 which he said is in line with the requirement of the UNFCCC “We apologise for being late in putting in place the necessary policy guidelines and legal instruments. But we’ve started the process,” he said.
The five projects that have benefitted from the project are Bagasse Based Cogeneration project by Mumias Sugar, Olkaria Phase 2 Geothermal Expansion project, Olkaria II Geothermal Expansion project by Kengen, Lake Turkana 310 MW Wind Power project and the Abaredares small scale reforestation initiative.
