Kenya is poised to establish a carbon market that will enable public and private entities to trade emission reduction units, offsets, and mitigation outcomes, as announced by an industry official on Monday.
This initiative aims to capitalize on the country’s climate actions by monetizing carbon credits, providing a new avenue for sustainable economic growth.
The Kenya Electricity Generating Company (KenGen), a key player in this initiative, is part of a multi-sectoral technical committee (MSTC) tasked with developing a comprehensive framework for the carbon market’s operations.
The technical structure already established will oversee carbon projects and promote participation within the market.
Peter Njenga, the managing director and CEO of KenGen, emphasized the potential of the carbon market in his statement from Nairobi.
“The initiative is expected to catalyze the growth of Kenya’s carbon economy, paving the way for the country to monetize its climate actions through the sale of carbon credits,” he said.
KenGen has already made substantial strides in this area, accumulating a total of 6.9 million carbon credits from six registered Clean Development Mechanism projects under the United Nations Framework Convention on Climate Change. These projects include the Olkaria II Geothermal Expansion, the Redevelopment of Tana Hydro Power Station, and the Ngong Wind Project – all significant contributions to Kenya’s green energy efforts.
With this proactive approach, KenGen aims to solidify Kenya’s position as a leader in climate action and green energy development. Njenga highlighted the MSTC’s critical role in driving investments into climate projects while ensuring adherence to both national and international regulations. As Kenya embarks on this transformative journey, the establishment of a carbon market signals a commitment to sustainable development and an enhanced response to climate change challenges.
