Carbon Markets Series | Commentary Of The Climate Change (Amendment) Act, 2023

In our previous alert in the Carbon Market Series, The Climate Change (Amendment) Act, we provided high level insights into the Climate Change (Amendment) Act, 2023 (the Amendment Act) which introduces and regulates the carbon markets in Kenya to stimulate the reduction of carbon emissions through voluntary contributions.

While the Amendment Act represents a significant stride in Kenya's efforts to mitigate climate change impacts and develop a robust carbon market, there are certain gaps and shortcomings within the Amendment Act that may require further refinement or clarification.

Compliance Markets

The Amendment Act primarily focuses on carbon trading, as outlined in section 23 C, which results from; (i) bilateral or multilateral trading agreements, (ii) public-private agreements, or (iii) the voluntary market. The Amendment Act does not, however, provide a framework for other forms of carbon markets such as compliance markets. Compliance markets play a