KEPSA participated in the Kenya Carbon Market Roundtable held on the 23^rd and 24^th of January 2023 at the Windsor Golf and Country Club Hotel. The meeting's main objective was to create a shared understanding of Kenya's carbon market: experiences to date, opportunities, challenges, and its potential to contribute to the government's economic and development ambitions.

The forum also facilitated dialogue between Kenyan decision-makers and representatives from the international community on areas of international cooperation and development policies related to climate and carbon finance.

Kenya has the potential to sequester, reduce, or avoid ~30 Mt CO2e/yr (metric tons of carbon dioxide equivalent per year); mobilize up to $600 million annually from regulatory compliance and voluntary carbon market (VCM) projects by 2030 using an average price of $20 per ton. From 2016 to 2021, Kenya issued ~26 MtCO2e of carbon offsets, more than any other African country and approximately 20 per cent of total African credits.

In her remarks, the USAID Acting Mission Director, Ms Sheila Roquitte, said that the USA was committed to supporting developing countries to implement their commitments in line with the Paris Agreement and would by the year 2024 quadruple climate finance. She noted that it was essential to develop an effective and efficient carbon market to tap into the opportunity for market growth, development of new jobs in project development, and project monitoring, among others. In the context of East Africa's historic droughts and the lasting and severe effects Kenyans have felt the need for diversification as a result of climate change, alternative or diversified sources of income from carbon credits can be life-saving and can significantly contribute to building long-term resilience.

Senior Policy Advisor in the Office of the President, Mr Mohammed Ali Daud, reiterated Kenya's commitment to climate action and that the country was seeking creative and innovative approaches to scale up climate action as an economic opportunity with a specific focus on growing it as an export product. During the 27^th Session of the Conference of Parties (COP27) held in Egypt Sharm El Sheikh, H.E. President Dr William Ruto described carbon credits as Kenya's "next significant export" and called for simplified and more transparent carbon market systems that directly benefit communities. Expanding the country's carbon market ecosystem could result in 600,000 new jobs in project development, monitoring carbon generation, and overall economic growth.

KEPSA, represented by Ms Faith Ngige, moderated a session on Opportunities and Gaps in Kenya's regulatory frameworks for Emissions Trading. It emerged from the session that a regulatory framework is necessary for the creation of a level playing field, a conducive environment for stakeholders, and the potential to increase revenue for the government, enhance the resilience of communities as well as support the realization of Kenya's Nationally Determined Contribution – (NDC) targets.

KEPSA members Sanergy and Koko Networks presented their carbon initiatives in wastewater management and clean cooking. Other areas where carbon projects have been implemented in Kenya under the Voluntary Markets include Carbon Offsets in E-mobility – Basi Go; Soil Carbon by Boomitra; Conservation financing by Northern Rangeland Trusts; Tea Drying and Biomass Briquettes by Tamuwa, Carbon Trading platform by 4R Digital.

During the closing session, the Deputy British High Commissioner and Development Director, Mr Julius Court, reflected on the roundtable outcomes that had demonstrated the great potential of carbon markets for export and revenue. It was important to build demand and supply to scale, create a credible regulatory framework, build the carbon market infrastructure and ensure inclusive community engagement in the ecosystem.

In her closing remarks, the U.S. Ambassador to Kenya, H.E Margaret Whitman, reiterated that the carbon market was an opportunity to scale up climate action initiatives' value to society, the economy, and the environment. The stakeholders needed to engage continuously and share success stories on carbon trading frequently. Kenya needed to take the early lead in building the carbon market to scale.  The roundtable brought together development partners, the private sector, government officials, project developers and buyers.