One of the key issues that is likely to be on the agenda for the next fortnight at the COP29 in Baku is carbon trading. Carbon trading allows companies and countries to trade carbon credits, which are earned by reducing greenhouse gas emissions.
The idea is simple: those who can reduce emissions below a certain threshold can sell their carbon credits to others who struggle to meet their targets (the polluter pays principle).
However, while this concept has been widely discussed, it remains complicated for one crucial group — farmers. In Kenya, farmers stand at the heart of climate solutions, yet they are largely excluded from the benefits of carbon trading. This is largely due to the complex regulatory frameworks and lack of clear guidance for their participation.
Kenya has made strides in developing its carbon trading mechanisms, with various legal frameworks and policies aimed at addressing climate change.
The Climate Change Act (2016) remains the primary legislative framework for carbon trading in the country, establishing the Climate Change Council to oversee carbon trading activities.
This Act lays the foundation for carbon offset programs and projects that contribute to greenhouse gas reduction. Similarly, the National Climate Change Action Plan outlines strategies for clean energy projects and carbon trading. It’s encouraging to see Kenya having made early strides towards policy in this direction.
Other important frameworks, like the Environmental Management and Coordination Act (EMCA) and the Forest Conservation and Management Act (2016), facilitate carbon projects related to emissions reductions, reforestation, and forest conservation.
Furthermore, the National Policy on Climate Finance supports access to climate finance, promoting private and public investments in carbon markets. Despite these comprehensive frameworks, farmers — the primary custodians of the land — are left largely out of the equation.
While there are numerous initiatives to promote carbon offset programs, the reality is that these frameworks have not been translated into actionable, farmer-friendly policies that allow them to tap into the global carbon market.
The complexity of the regulations and the absence of simplified, localised processes have made it difficult for smallholder farmers to participate.
Farmers, especially smallholders, face several challenges when it comes to engaging with carbon markets. Firstly, the lack of awareness and education about carbon trading and how they can participate is a significant barrier.
Many farmers remain unaware that their activities — from reforestation and agroforestry to sustainable agricultural practices — could be generating carbon credits.
The technicalities involved in carbon certification, project validation, and monitoring can also be daunting for those without the necessary resources or training.
Secondly, there is a lack of access to carbon trading platforms. Carbon markets are predominantly dominated by large corporations and international players, with limited involvement from the agricultural sector. As a result, farmers are excluded from participating in the voluntary or compliance carbon markets.
Another key challenge is the complexity of the regulatory environment. Kenya’s various climate-related policies and acts are not always synchronized, creating confusion and obstacles for farmers seeking to participate in carbon trading.
The paperwork, approvals, and certification processes required for carbon offset projects can overwhelm farmers, who may not have the capacity or knowledge to navigate them.
Carbon trading holds enormous potential to combat climate change while providing an economic boost to farmers in Kenya. However, to realize this potential, the regulatory frameworks must be simplified and harmonized to ensure that farmers are not left behind.
By creating accessible platforms, offering training and incentives, and integrating carbon trading into broader agricultural policies, Kenya can unlock a new source of income for farmers, contributing to both the fight against climate change and the country’s economic growth.
It’s time for Kenya to ensure that the farmers — the stewards of the land — can play a central role in the global carbon market and share in its benefits.
JudyAnne Wanjiku is the MD, EFKen
