Kenya's carbon market plan gets Sh200m boost

Delegates follow proceedings at KICC in Nairobi on September 5, 2023 during the Africa Climate Summit. PHOTO | EVANS HABIL | NMG

The US Agency for International Development, USAID, will invest over Sh200m ($1.4m) to support Kenya’s carbon market activation plan and regulatory and legal framework efforts to ensure integrity, transparency and equity.

Additionally, through Development Innovation Ventures, USAID will use almost Sh220m ($1.5 million) to scale up access to clean, green, public transport by supporting Kenya’s BasiGo electric bus transport company to expand to Rwanda.

Read: Kenya's plan to unlock carbon credit market

While addressing journalists at a press conference on Tuesday, USAID Chief Climate Officer and Deputy Assistant Administrator Gillian Caldwell said the carbon market funding is will come from the over Sh5bn ($35 million) outlay that is part of a suite of investments and initiatives to support climate action in Africa.

“These activities will support communities across Africa to build their resilience to climate impacts and sustainably grow their economies.”

At the same time, USAID has expanded its Clean Air Catalyst initiative to Nairobi. The Catalyst is USAID’s flagship effort to reduce air pollution. It under implementation in Jakarta in Indonesia, and Indore in India.

“The USAID will invest over Sh400m ($2.9m) to support local government leaders across the three cities to reduce air pollution from leading sources such as transportation and waste burning.”

The agency will also support the implementation of the President’s Emergency Plan for Adaptation and Resilience (PREPARE), the Just Energy Transition Partnerships, and global efforts to conserve critical carbon sinks.

Part of the investment will also include expanding Power Africa Support and the Just Energy Transition Partnership, where over Sh700m ($4.8 million) will be channeled to advance activities that respond to South Africa’s Just Energy Partnership investment plan, in partnership with the US African Development Foundation and Departments of Energy, Commerce, and State.

“Also, Power Africa will invest over Sh900m ($6.3m) in the African Development Bank’s Sustainable Energy Fund for Africa to strengthen access to electricity and almost Sh400m ($2.7m) in the African Legal Support Facility to provide counsel to clean energy transactions, building on more than a decade of support for each fund,” she added.

Mobilising Investment in African Climate Solutions, USAID, through its Enterprises for Development, Growth, and Empowerment Fund, will invest in unlocking access to the voluntary carbon market for smallholder farmers and climate-smart and resilient agriculture, ecosystem restoration and strengthen the enabling environment for equitable carbon markets in Mozambique.

Read: Carbon markets incentives will define Kenya's e-mobility race

While in Tanzania, Deputy Administrator Isobel Coleman announced USAID will invest in strengthening government, village, and stakeholder management of natural resources, as well as improvement of climate resilience of coasts and fisheries in the country.

On Monday, USAID launched work to support the C40 Cities Finance Facility, funding which was announced in June.

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