‘We can reduce loans’ through carbon credits

[Courtesy]

Scientists have cited a need to tap on carbon credits to mitigate the growth in concentrations of greenhouse gases and make money out of the crisis.

The sale of carbon credits is done under the Kyoto Protocol of 2005, an international agreement with at least 170 countries of the 193 states recognised by the United Nations Framework Convention on Climate Change (UNFCCC).

Conserve Energy Future describes carbon credits, or carbon offset, as credit for greenhouse emissions reduced or removed from the atmosphere from an emission reduction project, which can be used, by governments, industry or private individuals to compensate for the emissions they are generating.”

In 2014, World Bank announced the first group of Kenyans to earn carbon credits from sustainable farming. But since then the country has not utilised the credit.

Nixon Sifuna, an expert in carbon trading, says the concept of carbon credit was established to help sink many tonnes of carbon using forests and trees and earn money from the World Bank.

He says it is unfortunate that Kenya, with chunks of forests, has not seen the need to utilise natural resources to address climate change. “Communities can develop forests and earn from them. It is a good investment that will contribute in the reduction of greenhouse emission,” says Prof Sifuna. 

He says when one has a forest, they negotiate with the World Bank how much carbon the forest can absorb and convert that to dollars per tonne. “This is a way to gain from forests without cutting them, ” says Sifuna, adding that with the current forest cover, Kenya does not need to borrow from World Bank.

Sifuna says carbon credit is a way of borrowing loans and getting money without repaying with many terms and conditions.

According to the Environmental Defence Fund, carbon credits help to reduce greenhouse gas emissions. A carbon credit equals one tonne of hydrocarbon fuel. In terms of carbon dioxide emissions, that is the equivalent of a 2,400-mile trip.

Rosemary Owigar, a climate change expert and lecturer at Maseno University, says carbon trade has proven to be a beneficial venture to countries, organisations and individuals.

The trade has helped environment keep devoid of harmful emissions, which cause climate change,” says Ms Owigar.

The carbon market, estimated to be worth $176 billion, has attracted stakeholders, including farmers. The UNFCCC has registered over 3,927 Clean Development Mechanism projects in the world, with only 84 of such being in Africa. Experts now say Africa needs to tap into the industry for development.

Reports from Kenya Forest Service (KFS) indicate that Kenya has shown interest in the carbon market, with various projects such as the 300MW Lake Turkana Wind Power (LTWP) in Loyangalani, Marsabit West County, being the largest in Africa.

This LTWP initiative had been projected to earn Sh26 billion from the carbon market over its life.

One of these projects is the 80,000-acre Rukinga forest reserve in southeastern Kenya. The KFS is working with San-Francisco-based Wildlife Works Carbon to conserve the endangered forest in addition to generating carbon credits, which will, among other things, fund the project.

However, Owigar says various challenges haunt carbon market projects. They include financing the costly venture and developing the expertise to carry out the technical aspects of the project.