Under Kenya's Climate Change (Carbon Markets) Regulations, 2024, the project approval process for carbon projects is structured to ensure environmental integrity, community involvement, and alignment with national climate objectives.

As part of the carbon project approval process, the project proponent must demonstrate adequate capacity to design, implement, and manage the proposed project. This includes, but is not limited to, technical expertise, financial resources, and understanding of carbon market mechanisms. Where gaps are identified, the proponent is encouraged to engage in recognized capacity-building programs or partnerships to address these deficiencies. It is recommended that evidence of such engagements or partnerships be submitted alongside the project documentation.

The key steps are as follows:

• Overview of Necessary Parties & Roles

1. Application for Letter of No Objection

• The project proponent submits an application to the Designated National Authority (DNA), currently the National Environment Management Authority (NEMA), using the prescribed form.
• The application must include minutes **from the proponent’s meeting approving the project and the requisite application fee.
• The DNA reviews the application and, if satisfied, issues a Letter of No Objection within 14 days.
• If the application is declined, the DNA provides written reasons for the refusal.
  • Letter of No Objection (LNO) – Evaluation Criteria
• If the PCN meets these criteria, NEMA issues an LNO, allowing the proponent to proceed to the PDD stage.

2. Development and Submission of Project Design Document (PDD)

• Within 12 months of receiving the Letter of No Objection, the proponent must develop a PDD.
• The PDD should detail the project activity, baseline and monitoring methodology, and carbon crediting period
  • Do remember:
• It must be accompanied by:
  • National and county government approvals
  • A stakeholder engagement report
  • A Community Development Agreement (CDA) for projects on public or community land
  • A project validation report from an independent auditor
  • The applicable fees

3. Review and Approval

• The DNA forwards the PDD to an ad hoc committee for evaluation.
• The committee reviews the PDD and submits its recommendations to the DNA within 30 days.
• Based on the committee's recommendations and with the Cabinet Secretary's concurrence, the DNA issues a Letter of Approval or provides reasons for rejection within 14 days.
  • Project Design Document (PDD) – Evaluation Criteria

4. Project Implementation

• The project must commence within 12 months of receiving the Letter of Approval.
• If unable to commence within this period, the proponent may request an extension or withdraw the project.