Many companies especially from Saudi Arabia have submitted bids to buy Kenya's Sh2 million tonnes of carbon credits.
During the auction event for the Voluntary Carbon Market in Nairobi, demand for Kenya's carbon credit offsets generated through projects like tree planting is expected to grow.
Carbon credits are acquired a lot more like loyalty points when customers shop.
The more a country cuts greenhouse gas emissions by adopting clean energy, the more it earns carbon credits which it can later sell carbon markets for monetary gain.
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.
The auction in Nairobi conducted by the Regional Voluntary Carbon Market Company( RVCMC) was touted as the world's largest sale of its kind.
RVCMC Chief Executive Officer Riham Elgizy said the carbon credits sold will be used to fund projects that avoid carbon emissions.
"Carbon credits sold during the sale will be used to fund projects that avoid carbon emissions using sustainable technologies or that remove carbon from the atmosphere," Elgizy said.
She added that some of the bidders present during the auction include Saudi Airlines since the certification of the credits includes offsetting airline emissions.
They noted that their main reason for holding the sale in Kenya was to highlight the need for investments in climate projects.
RVCMC said 70 per cent of the credits at Wednesday's auction were generated by projects that are mainly in Africa.
Last week, the World Bank said Kenya could turn climate change threats into an opportunity by courting green investments from international investors.
