Kenya is on the brink of a revolutionary change in carbon trading as the National Assembly’s Budget and Appropriations Committee (BAC) has given its resounding approval to the Carbon Credit and Benefit Sharing Bill, 2023. Spearheaded by Laisamis MP Joseph Lekuton, this groundbreaking legislation aims to establish a legal framework for carbon markets, ensuring fair and equitable sharing of benefits among stakeholders while promoting the development of the carbon credit trading sector in the country.
Under the proposed bill, the sharing of carbon credit billions is set to benefit various key players. The project owner will claim 40 percent of the proceeds, followed by the community at 33 percent, the county government at 10 percent, the managing authority at 5 percent, and the national research fund at 2 percent. For private lands, the local community will receive 20 percent, with the county government, national government, and the project owner each taking 10 percent. Community forests will see the community obtaining the lion’s share with 55 percent, the national government at 25 percent, the county government at 15 percent, and the national managing authority at 5 percent.
The potential windfall from carbon credits is nothing short of remarkable. According to MP Joseph Lekuton, it is estimated that Kenya stands to earn a staggering Sh100 billion annually from selling carbon credits, with the country currently controlling 20 percent of the carbon credits market. This economic opportunity is attracting interest from international players, as evidenced by Saudi Arabian companies recently purchasing 2.2 million tonnes of carbon credits from Kenya.
With the proposed bill, the establishment of the Carbon Credit Trading and Benefit Sharing Authority is on the horizon. This authoritative body will provide policy direction and guidance to both levels of the government on carbon credit trading business. Additionally, the authority will issue carbon trading permits to individuals and companies intending to venture into carbon trading in Kenya.
This legislative move comes at a crucial time, as Kenya currently lacks a comprehensive regulatory framework for carbon trading, making the process nearly opaque. The Kenya Private Sector Alliance (KEPSA) projects that with proper regulation, Kenya can achieve 30 metric tons of carbon dioxide equivalent (30 MtCO2e) by 2030, resulting in a staggering annual revenue of Sh85 billion.
As Kenya leads the charge in carbon credit generation within Africa, the proposed Carbon Credit and Benefit Sharing Bill, 2023 promises to set the stage for a thriving carbon trading business in the country. The regulatory framework it establishes will bring transparency, accountability, and fairness to the carbon credit market, empowering communities and individuals to actively participate in this emerging sector.
While the Bill is poised to undergo formal introduction to Parliament, its potential implications for environmental conservation, economic growth, and social development have already garnered widespread support and anticipation from various stakeholders.
In the race to harness the immense potential of carbon trading, Kenya is set to secure its position as a global leader in this transformative field, offering hope for a sustainable and prosperous future.
By: Montel Kamau Serrari Financial Analyst 24th July, 2023
photo source Google
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
