Kenya is taking steps to set up a carbon registry, allowing for the trading of carbon credits. President William Ruto signed the Climate Change (Amendment) Bill on September 1, making this initiative a law. The country joins others in setting up domestic carbon trading markets, including South Africa, India, Indonesia, and Vietnam.
According to the National Assembly, a designated national authority will be appointed to maintain the national carbon registry. Globally, carbon credits are issued and regulated by the United Nations Framework Convention on Climate Change, which was established in 1992.
In order to fund its climate initiatives, Kenya is likely to make its first drawdown from the $551.4 million Resilience and Sustainability Facility secured by the International Monetary Fund (IMF) in July. As part of this funding, the country is required to incorporate climate risk consideration into its national planning and investment framework.
The establishment of a carbon registry in Kenya is significant for several reasons. Firstly, it allows for the trading of carbon credits, which can help countries and companies offset their carbon emissions by buying credits from entities that have reduced their emissions. This can be a crucial tool in meeting climate targets and reducing global greenhouse gas emissions.
Secondly, it signals Kenya’s commitment to addressing climate change and implementing sustainable practices. By setting up a domestic carbon trading market, the country is taking a proactive approach to reducing its own carbon footprint and contributing to global efforts to combat climate change.
Lastly, the establishment of a carbon registry can attract investment and create economic opportunities. Carbon trading markets have the potential to generate revenue and incentivize businesses and industries to adopt cleaner and more sustainable practices.
Overall, Kenya’s move to set up a carbon registry highlights its determination to address climate change and embrace sustainable development. It also aligns the country with global efforts to reduce greenhouse gas emissions and transition to a low-carbon economy.
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