INTRODUCTION
Carbon markets have become increasingly popular globally. The aim of carbon markets to reduce carbon emission while trading attracting huge returns.
Delta Airlines,Netflix,Nespresso, Air France-KLM,Apple and Kering are top companies buying carbon credits in Kenya.
The Climate Change (Carbon Markets) Regulations,2024 have introduced provisions for one to qualify for implementation of carbon projects in Kenya. Lets take a look.
CARBON PROJECT REQUIREMENTS
Carbon projects must:-
✓ Adhere to sector specific standards and safeguards.
✓ Be subject to certification and validation by an independent auditor before the project starts.
✓ Be subject to verification of each project result by an independent auditor
✓ Be in line with national policies, laws and strategies.
✓ Indicate the ownership of the property involved in the project and where the property is owned by a third party, provide agreements demonstrating the property owner’s consent for use of the property in the carbon project.
✓ Provide community development agreements where the carbon project is undertaken on public or community land.
✓ Involve local communities in the project conceptualization and development in public and community land-based carbon projects.
✓ Adhere to national priorities, ecological, social, cultural and economic safeguards
✓ Indicate expected employment creation by the project.
✓ Provide documentation of free, prior and informed consent for all community land-based carbon projects.
✓ Provide a letter of support from the respective county where the carbon project shall be undertaken.
✓ Describe how the project ensures environmental integrity.
✓ Indicate how the project will contribute to sustainable development and alleviation of poverty.
ELIGIBILITY OF A PROJECT PROPONENT
A project proponent must posses the following qualities:-
a) Be a legal entity.
b) Possess the financial capacity to undertake a carbon project.
c) Demonstrate relevant knowledge and expertise in undertaking carbon projects.
d) Adhere to all applicable legal requirements necessary for the operation of carbon projects.
A project proponent shall disclose to the Designated National Authority the relevant carbon project information including:-
✓ Obligations of a project proponent.
✓ The project costs.
✓ Expected emission reductions or removals at the carbon project application stage.
✓ Verified emission reductions and removal and estimated revenues at issuance.
✓ Adherence to all applicable legal requirements in operating carbon projects.
Each carbon project shall be required to undergo an environmental and social impact assessment.
Such projects also have to undergo environmental audit and adhere to specific standards and safeguards.
PROCEDURES FOR DEVELOPING CARBON PROJECTS
A project proponent who wishes to engage in a carbon project shall apply to the Designated National Authority for approval of the carbon project.
The application shall contain the following:-
✓ Be in the prescribed form.
✓ Accompanied by minutes of the proponent’s meeting approving the project accompanied by the prescribed fees.
PROJECT DESIGN DOCUMENT
The project design document shall provide:-
1. A detailed description of the project activity.
2. A detailed description of the baseline and monitoringmethodology.
3. The carbon credit period.
The project design document submitted shall comply with the project design document requirements of the applied accepted carbon standards.
CONCLUSION
Its about time that we all be part of the climate change revolution. Carbon markets are the future.
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