The government has called upon the private sector to come up with innovative ways that will support the development of carbon markets to achieve the desired carbon finance.
Speaking during the Kenya Carbon Markets Conference 2024 hosted in Nairobi, Prime Cabinet Secretary Musalia Mudavadi said Kenya is making strides in fostering and enabling environment for investment in carbon markets in order to promote prosperity for all Kenyans.
He said the efforts are in line with the importance and seriousness that Kenya attaches to climate positive growth and sustainable development.
According to Mudavadi there is an urgent need for Kenya to join other leading countries in addressing the climate crisis and find lasting solutions to the impact of climate change on the economies of the people.
“We must leverage on innovative financial instruments and adopt a comprehensive approach to increase Africa’s participation in the carbon markets and ensure the continent benefits from them,” said Mudavadi.
Cabinet Secretary for Environment, Climate Change and Forestry, Soipan Tuya said there needs to be the right pricing of carbon as the markets play a pivotal role in the mobilizing of resources for low carbon investments both in Africa and beyond.
“Despite the rise in emission trading schemes and carbon taxes, the price of one ton of carbon varies between less than $10 to over $100, “said Soipan.
Additionally, Soipan said the Climate Change Directorate is working closely with relevant sectors to update the Green House Gas (GHG) Inventory which will guide on the carbon budget on what can be traded.
“The updated GHG Inventory will be critical in guiding the ministry in authorizing corresponding adjustments and transfers of mitigation outcomes,” she added.
According to CS National Treasury and Economic Planning Prof. Njuguna Ndung’u, carbon markets provide a mechanism for the efficient allocation of resources to emission reduction projects and they are achieved at a low cost.
“Carbon markets deserve a whole ecosystem to achieve the desired results that being net zero emissions,” he stated.
