The Kenya Government has published draft Carbon Market Regulations that are now open for public scrutiny to submit any memoranda by the beginning of February 2024.
- In a gazette notice dated 9th January 2024 the public has a window of 28 days to submit views of these carbon credit market rules.
- The objective of these regulations includes providing a framework for the implementation of all carbon market projects in Kenya.
- The rules have already been subjected to virtual meetings and a link shared on the Ministry website and other social media platforms.
The draft regulations also aim to create incentives and implement initiatives to support greenhouse gas emissions reduction and removal targets in line with nationally determined contributions. With them, the government intends to guide the annual social contribution for carbon market projects.
Plans to set up ground rules for the carbon market are happening at a time when the Capital Markets Authority(CMA) is also toying with the idea of engaging sector players in a detailed assessment of Kenya’s carbon market, its ecosystem, do a stakeholder mapping, and determine demand and supply conditions as well as its growth trajectory. This will inform the policy framework for oversight of sound and well-functioning voluntary and compliant carbon markets.
In an earlier interview with Kenyan Wall Street, Luke Ombara, Director, of Regulatory Policy and Strategy at Capital Markets Authority (CMA) said the Nairobi Securities Exchange (NSE) will be supported to establish a carbon credits exchange.
This follows their Memorandum of Understanding (MOU) with the Air Carbon Exchange Group and Nairobi International Financial Centre (NIFCA) in July 2022 as part of spearheading processes to create this marketplace.
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