CARBON FINANCE READINESS: A REVIEW OF INSTITUTIONAL FRAMEWORKS AND POLICIES IN KENYA
Abstract
Purpose of Study: Carbon finance is vital to global efforts to combat climate change, particularly in developing regions like Africa. It facilitates investments in climate-smart projects that are essential for reducing greenhouse gas emissions and enhancing resilience to climate impacts. As countries and corporations strive to achieve the Paris Agreement’s goal of limiting global warming to well below 2°C, adopting carbon finance mechanisms becomes increasingly critical.
Problem Statement: Africa has encountered significant challenges in accessing and utilizing carbon finance effectively. This study examines the institutional frameworks and policy environments that influence Kenya’s readiness for carbon finance.
Methodology: A comprehensive review of scholarly articles, government reports, and documents from development partners was conducted using keywords such as "Kenya," "carbon finance," "climate change," and "institutional frameworks."
Result: The findings indicate that while Kenya has made considerable progress in establishing carbon-related policies, legislation, and institutions, several gaps remain. These include challenges in data management, policy alignment, and mobilizing private-sector investments.
Recommendation: Addressing these issues is crucial to enhancing Kenya's access to carbon finance and promoting sustainable development. This review is valuable for the Kenyan government, development partners, and the private sector involved in climate finance initiatives.
Keywords: Carbon Finance, Climate Change, Institutional frameworks, Sustainable Development
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