In Kenya, the development and regulation of carbon projects are governed by a comprehensive legal and institutional framework established through the Climate Change Act, 2016, as amended by the Climate Change (Amendment) Act, 2023, and operationalized by the Climate Change (Carbon Markets) Regulations, 2024.

Legal Framework for Carbon Projects

1. Climate Change Act, 2016: This foundational legislation established Kenya's commitment to climate change mitigation and adaptation, setting out the roles of various institutions and mechanisms for climate governance.
2. Climate Change (Amendment) Act, 2023: This amendment introduced specific provisions for carbon markets, including the recognition of carbon trading as a climate change response measure, the establishment of a Designated National Authority (DNA), and the creation of a National Carbon Registry.
3. Climate Change (Carbon Markets) Regulations, 2024: Gazetted on May 17, 2024, these regulations provide detailed procedures for the approval, implementation, and monitoring of carbon projects, ensuring alignment with international standards such as Article 6 of the Paris Agreement.

Regulatory Bodies Overseeing Carbon Projects

• Designated National Authority (DNA): Appointed by the Cabinet Secretary for Environment, Climate Change and Forestry, the DNA is responsible for authorizing participation in carbon market mechanisms, evaluating project proposals, issuing letters of approval, and maintaining the National Carbon Registry. As of June 12, 2024, the National Environment Management Authority (NEMA) serves as the DNA.
• Climate Change Directorate: Operating under the Ministry of Environment, Climate Change and Forestry, the Directorate coordinates national climate change actions, advises the government on carbon market activities, and facilitates stakeholder engagement.
• National Climate Change Council: This high-level body provides strategic direction on climate change policies and ensures that carbon market activities align with Kenya's national climate goals.

Key Requirements for Carbon Projects

• Project Approval: Proponents must submit a concept note to the DNA for evaluation. Upon receiving a letter of no objection, they can develop a Project Design Document (PDD) for further approval.
• Environmental and Social Impact Assessment (ESIA): All carbon projects must undergo an ESIA in accordance with the Environmental Management and Coordination Act (Cap. 387).
• Community Development Agreements: Projects on public or community land are required to enter into agreements with local communities, ensuring that at least 40% of the project's aggregate earnings benefit the community.
• Monitoring, Reporting, and Verification (MRV): Projects must regularly report on emission reductions and undergo third-party verification to ensure transparency and accountability.

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Alignment with International Standards

Kenya's carbon market framework is designed to align with Article 6 of the Paris Agreement, facilitating international cooperation through mechanisms like Internationally Transferred Mitigation Outcomes (ITMOs). This alignment ensures that Kenyan carbon credits are recognized and tradable in global markets.

This legal and institutional framework positions Kenya as a leader in carbon market development in Africa, promoting sustainable development while contributing to global climate change mitigation efforts.