Kenya broadens its scope in international carbon market by accepting new Climate Change Act

Kenya has recently given the green light to a novel Climate Change Act, steering the nation towards a more active role in international carbon markets. Recognized by Zurich-based consultant, Mischa Classen, this enhanced legislation is pivotal for Kenya to actively partake under Article 6 of the Paris climate agreement. This particular article allows for either bilateral carbon credit trade or a more global mechanism, akin to what was previously set up under the Kyoto Protocol.

Within the boundaries of this act, the environment ministry's cabinet secretary now possesses the authority to forge bilateral or multilateral carbon trading agreements. Furthermore, this figure can also liaise with private entities on offsetting carbon emissions, though this would necessitate the nod of the cabinet. This position is also laden with fresh responsibilities, from shaping the carbon budget in alignment with Kenya's global commitments to supervising the accurate measurement, reporting, and verification of greenhouse gas emissions. Moreover, the act fortifies the role of Kenya's climate change directorate in pivotal decision-making processes.

An innovative element of the law is the introduction of a "community development agreement". This ensures land-centric projects like forestry allocate at least 40% of their earnings to the local communities. For projects not rooted in land, this figure stands at 25%.

Nevertheless, Classen underscores that the act leaves room for ambiguity on certain matters. He emphasizes the urgency of enacting related regulations to dispel these clouds of uncertainty. For instance, the act's vague stance on the precise roles regarding Article 6 or the authorization criteria for specific mitigation outcomes needs addressing.

On a concluding note, Classen foresees potential bureaucratic hurdles. The act’s propensity to centralize decision-making power with the cabinet secretary might not sit well with other government arms. He cites the example of the transport ministry, which could face project authorization dilemmas directly impacting its sector.

According to the article by Procurement Resource, Kenya corroborates the new Climate Change Act, thereby leading the country to position itself significantly in the global carbon market. The act shall now proffer rights to the environment ministry's cabinet secretary to establish bilateral or multilateral carbon trading agreements.