President William Ruto has said communities involved in fighting the adverse effects of climate change should benefit from carbon credits.
He emphasized the need for the establishment of carbon markets that work for Kenyan and African communities noting that currently, about 80 per cent of the value of some carbon credits is captured by intermediaries.
"These resources would accelerate landscape restoration, expansion of forest cover, a tree growing, clean cooking and agroforestry," Ruto said.
He was speaking on Tuesday during the launch of the African Carbon Markets Initiative (ACMI) at the COP27 summit in Sharm El-Sheikh, Egypt.
A carbon credit is a permit that grants businesses, utility companies or industries the right to emit a set amount of carbon dioxide or the equivalent amount of different greenhouse gas.
One carbon credit is equal to one tonne of carbon dioxide or carbon dioxide equivalent gases.
Each time an entity verifies that they have reduced, avoided or destroyed one metric tonne of greenhouse gases, they earn one carbon credit.
These credits can then be sold or traded to other companies at carbon markets for a profit.
This mitigates the environmental crisis while also creating new market opportunities.
Ruto said Kenya is already a leader in the generation of carbon credits in Africa, accounting for over 20 per cent of the continent’s volume over the past five years.
He said a portion of proceeds have been invested towards funding clean cooking and solar home systems.
"Although we are just getting started, the beneficial impact of the nascent carbon credit regime holds tremendous promise," the President explained.
He said Kenya is committed to working with initiatives such as ACMI in expanding carbon markets and carbon credit opportunities in the country.
Ruto revealed that the country will be generating more than 30 million tonnes of carbon credits annually, earning incomes and creating green jobs for the youth.
