Kenya’s president rallies for carbon trading that will unlock $15bn for Africa

Kenya's President, William Ruto, made a compelling case for carbon credit trading as a pivotal strategy to propel the country's green energy investments forward during a recent address to the Pan-African Parliament. President Ruto revealed that within a month, Kenya aims to finalize the necessary legislation to unlock the potential of engaging in carbon trading on a global scale, aiming to position carbon credits as one of the country's key export commodities. The move comes as Kenya embarks on a journey towards green industrialization, signaling a shift towards environmentally sustainable practices. President Ruto emphasized the importance of developing industrial anchor demand and aligning strategic plans to prioritize green industrialization, which he believes will pave the way for Kenya's carbon trading success. As of now, a significant portion, approximately 25%, of all carbon trading in Africa is happening in Kenya, highlighting the country's leadership in this space. President Ruto urged fellow African nations to recognize the immense potential of carbon trading and embrace it as a critical avenue for economic growth. He stressed the need for comprehensive institutional frameworks to regulate the carbon market effectively, align fiscal incentives, and create a conducive environment for green investments. By focusing on green initiatives, President Ruto emphasized the importance of reimagining agricultural practices to align with global trends such as regenerative agriculture, which aims at bolstering sustainability and securing additional carbon revenues. Furthermore, President Ruto outlined the economic benefits of relocating industrial production to Africa, citing enhanced trade balances, reduced currency pressure, and decreased vulnerability to supply chain disruptions as notable advantages. By transforming Africa into a hub for clean and sustainable industries, President Ruto envisions a prosperous future for the continent as a global leader in green manufacturing. One of the key highlights from President Ruto's address was the potential for Africa to capitalize on carbon removal initiatives through innovative solutions like Nejapest and technological interventions. By leveraging strategies such as landscape restoration, reforestation, and mangrove forest protection, Africa could potentially remove over 300 million tons of CO2 annually, generating significant revenues and creating millions of jobs in the process. President Ruto called for a reevaluation of carbon prices, citing the disparity between current prices in Africa (averaging at US$5 per ton) and global rates (ranging from US$100 to US$200 per ton). He emphasized the need for a fair and integrity-driven carbon market that would enable African nations to contribute positively to climate action while reaping the financial benefits of their natural assets. President Ruto also highlighted Kenya's exploration of innovative solutions, including leveraging geological formations in the Rift Valley for carbon credit generation, showcasing the country's commitment to pioneering sustainable practices. In conclusion, President Ruto underlined the critical importance of establishing robust policies and regulations to incentivize low-emission production in Africa. By aligning with global climate goals and fostering a conducive environment for green investments, Africa can emerge as a leading destination for sustainable industrial development and attract increased global capital seeking climate-friendly opportunities. The President's impassioned call for unity and concerted action towards green growth sets a hopeful tone for Africa's journey towards a sustainable and prosperous future.