Government Proposes Legislation to Regulate Online Market

President William Ruto has outlined the government’s plans to pass legislation in parliament to regulate the carbon credit market in Kenya and address fraud issues in the booming global trade.

Speaking at the United Nations Climate Change Conference (COP28) in Dubai, President Ruto revealed that comprehensive plans are underway to present a bill in parliament that will be passed into law to regulate the carbon credit trade.

“I am confident that Kenya is leading other African nations in crafting laws that will be pillars in controlling the carbon credit market,” President Ruto stated, as reported by Taifa Jumapili.

The government is in the final stages of drafting the bill, which will be presented to parliament in the near future. President Ruto added that he has already signed some changes to the legal provisions accompanying the trade.

Concerns about regulating the price of this product in markets across the country have arisen, with President Ruto affirming Kenya’s support for the World Bank’s plan to regulate the global carbon credit market to ensure fairness, justice, and transparency in the multimillion-dollar trade.

Ruto emphasized the need for Kenya to diversify its revenue sources, especially in businesses related to combating carbon emissions. However, he stressed that there must be robust policies, laws, and criteria governing this market in Kenya.

He clarified that there is a crucial need for legislation in the carbon credit market to ensure that prices, the entire market, and ethical standards in the trade are grounded on a solid foundation.

Regarding claims that some forests, such as Mau, have been sold to carbon credit investors, President Ruto denied any such transactions, asserting that not a single inch of forest land has been sold to investors in Kenya.

It’s worth noting that in March 2023, Kenya made headlines due to the revocation of certificates for a major player in the carbon credit trade within the country.

A US-based company involved in the business faced cancellations following allegations of not adhering to profit-sharing regulations with local communities, as required by the law.

President Ruto also commended the progress made and ongoing discussions at the COP28 conference. He expressed hope for developing nations in dealing with climate change, revived by several agreements endorsed by the respective countries.

As of now, the compensation agreements for nations affected by climate change, known as the ‘Loss and Damage Fund,’ have been welcomed with enthusiasm by poorer nations, with wealthy nations pledging USD 430 million for the victims.

The COP28 conference is expected to assess the progress made by nations globally since the approval of the Paris Agreement in 2015, where all nations committed to reducing carbon emissions to limit global warming to 1.5 degrees Celsius.