- Mudavadi said carbon markets have emerged as a pivotal financial instrument that can catalyse climate action.
- The Prime Cabinet Secretary regretted that carbon markets have faced scandals and called for strong government and industry action.
Image: PCSP
Prime Cabinet Secretary Musalia Mudavadi has said Kenya is making remarkable strides in fostering an enabling environment for investment in carbon markets.
He said the efforts are in line with the seriousness that Kenya attaches to climate change.
Mudavadi said there is an urgent need for Kenya to join other leading countries in addressing the climate crisis by finding lasting solutions to the problem.
“Africa’s contribution to global emission is minimal but the continent suffers disproportionately from climate change vulnerability. Yet, this is not a story of despair but one of untapped potential and opportunity," he said.
"With its rich renewable energy resources, vast expanses of arable land and diverse terrestrial and marine ecosystems, Africa stands at the cusp of sustainable economic growth and green industrialisation.”
The Prime Cabinet Secretary made the remarks during the Carbon Markets Conference 2024 that is underway in Nairobi. The theme of the meeting is “Delivering on Carbon Finance”.
Carbon markets are trading systems in which carbon credits are sold and bought.
Companies or individuals can use carbon markets to compensate for their greenhouse gas emissions by purchasing carbon credits from entities that remove or reduce greenhouse gas emissions.
Mudavadi said the conference being held in the Kenyan capital, demonstrates Nairobi’s commitment to build momentum created by the first-ever Africa Climate Summit that Kenya hosted in September 2023 under the leadership of President William Ruto.
Ruto who is the Chair of the Committee of the African Heads of State and Government on Climate Change, has been emphasising the crucial role of reforming the multilateral financial system to ensure efficient funding for Africa’s climate actions.
“With this in mind, we must leverage 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.
“Carbon markets have emerged as a pivotal financial instrument that can catalyse climate action by providing a flow of carbon finance to stimulate green growth.”
Mudavadi said carbon markets incentivise the reduction and removal of emissions, thus encouraging countries and corporations across the globe to invest in cleaner, more sustainable technologies.
He regretted that carbon markets have faced scandals and called for strong government and industry action.
“This is the approach that Kenya has taken. The amendment of our Climate Change Act is a testament to these efforts, as it lays the legal groundwork for carbon market activities in law, protects community benefits and promotes investor confidence,” said Mudavadi.
“From the Act, we are now at the finish line with developing regulations. So, today, we are signalling to the world that Kenya is ready to turn opportunity into real carbon finance flow.”