Carbon credits in Kenya are a hot topic, and many want to understand how carbon credits work.
If you are a farmer, a business owner, or simply an interested party, this blog post will explain carbon credits in Kenya in simple terms.
We will explain what carbon credits in Kenya are, how they work, what kinds of projects they fund, how you can join in, and other questions you might have.
If you’re starting a carbon credit project, you might need help from a Kenyan lawyer or property lawyers in Kenya to handle land agreements or permits.
What Are Carbon Credits?
A carbon credit is a certificate representing reducing or removing one tonne of carbon dioxide (CO2) or other greenhouse gas from the atmosphere.
These certificates are transferable, which means that companies or individuals purchase them to promote projects fighting climate change.
The money made from the sale of carbon credits in Kenya supports projects such as tree planting and wind farm building.
Carbon credits in Kenya and all over the world aims to incentivize projects that reduce emissions and support sustainable development.
For instance, a project may enable a community to access cleaner energy, which is beneficial for its health and is cheaper in the long run, but also makes it “green.”
Carbon credits, explained
Think of them as paying for cleaner air. If a company pollutes, it can purchase carbon credits to offset it. The money finances things that cut emissions.
So, what are carbon credits?
A tradable certificate, representing the right to emit one tonne of CO2, or equivalent greenhouse gas, reduced or removed from the atmosphere, issued by a CDM project.
Kenya’s Carbon Credit Market
Kenya is a leader in carbon credits in Africa. It’s among the biggest issuers of carbon credits, with more than 52.4 million credits issued to date. These are coming from two major systems:
1. Clean Development Mechanism (CDM)
A system that works on a global scale in which unharmful projects (such as projects related to renewable energy, clean water systems, etc.) contribute to the accumulation of credits, known as CERs (certified emissions reductions). Kenya has generated 12.3 million CERs.
2. VCM (Voluntary Carbon Market)
Companies or individuals buy voluntary carbon credits to sponsor eco-projects. Kenya is Africa’s second-highest fossil-fuel purchaser of these credits, buying them primarily for carbon-credits agriculture projects that incentivize forest regeneration.
Many of the projects in Kenya target nature, such as conserving forests or boosting soil so it can store more carbon.
Another example is cookstove carbon credits, which allow clean stoves to reduce the smoke and emissions inside homes.
Since carbon credits are actual reductions in emissions, offsets are more general and often include other environmental benefits.
Rules for Carbon Credits in Kenya
Kenya has robust laws in place to guarantee that there will be fairness and transparency in the Kenya carbon credits. Here are the main ones:
Climate Change Act (Revised 2023)- Enables Kenya to exchange carbon credits with other countries, private firms, or in voluntary markets.
Climate Change (Carbon Markets) Regulations 2024 (Honesty and integrity provisions)- Provides that projects are honest, traceable, and meet rigorous standards.
Carbon Credit Trading and Benefit Sharing Bill, 2023- Establishes a body to administer carbon trading, designs regulations on permits, fees, and benefits to be derived by communities.
These policies make Kenya stand out as a fostered environment for the carbon credit business.
They also protect communities by ensuring they benefit from profit-generating economic activity.
Carbon Credits Taxation in Kenya- Whether or not a project is taxed is project-specific. You might want to consult a carbon credits adviser in Kenya to learn more.
Types of Carbon Credit Projects in Kenya
In Kenya, one can obtain carbon credits in many ways. Here are the key varieties of carbon credits:
Renewable Energy– Investments in geothermal plants, wind farms (such as Turkana Wind), and solar power have reduced the demand for fossil fuels.
Nature-Based Solutions– Like planting trees, protecting forests (Mikoko Pamoja), or managing land to sequester carbon (Northern Kenya Rangeland Carbon Project).
Better Cookstoves and Water Purification- Cleaner stoves and water filters cut emissions and save lives.
Innovative Projects- A Few projects alter the way that animals graze or the management of land to reduce emissions.
Carbon credits example- The Mikoko Pamoja project keeps mangroves, which store carbon, the benefits of which support local communities.
Are carbon credits effective?
Yes, when properly curated, they lower emissions and finance sustainable projects. But they also require careful watch.
How to Apply for Carbon Credits in Kenya
Anyone who wants to launch a carbon credit project, this is what you do:
Check Project Suitability- Your project needs to lead to emission reductions over business-as-usual. For instance, converting to solar power would suffice.
Select a Standard- Select a certification, such as Verified Carbon Standard or Gold Standard, to ensure your credits can be trusted.
Do a Feasibility Study– Evaluate costs, technical needs, and community benefits.
Apply– Send project information to the Kenyan government, pay fees (including per-credit fees), and comply with social contribution regulations (e.g., 40% of profits for community benefits in land-based projects).
Monitor and Verify- Track, report, and audit so that everyone can be sure your project does what it’s supposed to.
How to apply for carbon credits in Kenya
Register as above, using a carbon credits consultant in Kenya to arrange for paperwork.
Carbon credits accounting
To facilitate audits and credit sales, maintain easy-to-extract records of emissions reduced and credits earned.
How to Sell Carbon Credits in Kenya
Once your project generates credits, you can sell them. Here’s how:
Discover Buyers
Example of carbon credit buyers in Kenya are corporates, multinational organizations, or marketplaces such as CYNK. Among the most significant global purchasers of carbon credits are airlines and tech companies.
Cost It Out
A carbon credit in Kenya can range from $5 to $20 per tonne, depending on the project.
Leverage Technology
Trading on a secure, transparent blockchain system can be used with specific platforms offering blockchain carbon credits.
Who in Kenya is buying carbon credits?
Local businesses, international corporations, and retail investors all purchase credits to compensate for emissions.
How to secure buyers of carbon credits in Kenya
Establish a well-kept project with high-quality documentation that generates community contributions to attract buyers.
How to Get Cash for Your Carbon Credits in Kenya
The process of being paid for carbon credits goes like this:
Earn Credits– Finish your project and earn credits certified by a standard such as the Verified Carbon Standard.
Locate a Market- Search for a platform such as CYNK or traders of carbon credits in Kenya.
Negotiate Rates– Agree on the rate, the latter varying depending on the type of project and market demand.
Get paid– Payments are generally issued after your credits are checked and sold.
Carbon credit price-They generally trade for $5 to $20 a tonne, but the price fluctuates.
Benefit Sharing and Community Involvement
Kenyan laws ensure that communities get to benefit from carbon credits in Kenya:
Land-based projects– 40% of yearly profits, after certain expenses, are directed toward community benefits, such as schools or clean water.
Non-land-based projects- 25% of capital goes to support local communities.
Communities enter into agreements committing to spend the money on development, such as healthcare or education.
This emphasis on fairness makes Kenya’s carbon market stand out. It does so to ensure projects benefit the environment and local people.
Carbon credits funding in Kenya
Some projects have funding to get started, benefiting local communities quickly.
How to Invest in Carbon Credits
You can buy carbon credits in Kenya if you don’t want to undertake a project. Here’s how:
Direct Purchase- Purchase credits on platforms, such as CYNK, to fund projects.
Investment in Projects– Invest in Certified Projects with Funds for Better ROI and Credibility.
Carbon Funds or E.T.F.s– Put money into funds to spread your investment over many projects.
Adhere to Rules– Make your investment comply with Kenyan laws to be on the safe side.
Carbon credits Kenya calculator- You can use tools on the internet to estimate the returns you could get from projects.
Challenges and Opportunities
Kenya has tremendous potential in its carbon market, but also faces challenges:
Potential Untapped- Kenya can generate more than 111 million additional credits by 2025, including carbon credits in agriculture.
Regulatory Hurdles– New rules add transparency, but can be cumbersome to comply with.
International Partnerships– Kenya collaborates with international systems, including Japan’s Joint Crediting Mechanism and CORSIA for aviation, to expand new markets.
Carbon credits cons- Badly designed projects won’t produce results. This risk can be lessened through audits and strict rules.
Guidance for Carbon Credit Projects
To make it with carbon credits in Kenya, use these tips:
- Comprehensive reporting of emissions, credits, and community benefits.
- Connect communities and involve them in the planning.
- Monitor and report regularly to demonstrate that your project works.
- Opt for projects that deliver significant environmental and social benefits.
Carbon credits conference
Attend conferences to learn more and network with experts.
Conclusion
Kenya is leading in carbon credits in Africa, boasting a burgeoning market that benefits the environment and communities.
Whether you are interested in launching a project, selling credits, or investing, there are plenty of options. With clear rules in place, a raft of different projects, and an emphasis on fairness, carbon credits in Kenya make a great choice.
If you think it might be, you could start by finding out more about what it takes to get paid for carbon credits in Kenya, or perhaps converse with a carbon credits consultant in Kenya.
A lawyer in Kenya practicing environmental protection can also guide you through the legal side of carbon credits in Kenya to ensure compliance with environmental laws.
Using the proper strategies, you can enter this booming market that is helping the planet and people.
FAQs
How do carbon credits function in Kenya?
Efforts like planting trees or generating clean energy lower emissions. These projects generate credits, which are then sold to buyers, typically corporations or individuals. The money goes to finance the project and the community as well.
What is the price of carbon credits?
It varies from project to market. A single credit could sell for $5 –$20 per tonne, and communities benefit from a percentage of each sale (e.g., 40% for land-based projects).
How do you buy the carbon credits?
You can purchase credits for services like CYNK or through certified programs. Partner with a carbon credits consultant in Kenya to determine reputable and viable options.
Can carbon credits be turned into cash?
And, yes, you can sell credits for cash. The quantity depends on the quality of the project and market demand.
Are carbon credits doing anything?
Yes, they finance projects that reduce emissions and benefit communities. However, they must be managed and properly audited to ensure a tangible impact.
Are carbon credits effective?
Done right, carbon credits reduce emissions and promote sustainable development. There are strict rules and audits to ensure they do what they promise.
