Effective capability building in Kenya
Abstract
A strategy is presented for how carbon finance’s potential could be better realized specifically within the African context as demonstrated using Kenya’s experience as a case study. There are clear opportunities for Kenya and Africa beyond what has been achieved so far. Internal issues with regards to the current finance regime, institutional structures and the socio-political situation have hindered (but not stopped) project development so far. The lessons for Kenya, and the region as a whole, are to foster a more accessible and competitive market landscape which places the national interests of sustainable development as the priority.
The paper is focused on improving competitiveness within the CDM market in general and in the carbon finance market in particular. Informing relevant and interested parties on the current state and trend of the market, as well as providing practical application, forecasting and providing insight into the markets future was the purpose of this paper. The strategy tackles and provides solutions at a domestic national scale, looking inwards to respond to a rapidly evolving, international and increasingly fragmented market.
It uses Africa and in particular Kenya as the starting point to flesh-out lessons to be learnt. It emphasizes issues associated with the current finance regime and how this may be enhanced and reformed to foster greater competitiveness, to ultimately deliver a better output for Kenya. It also makes more specific suggestions on the possibility of providing instruments to enhance project development both at the initial idea and later developmental stages; and on reforming the crucial steps which link the carbon reductions with their commercial buying counterparts in the form of ERPA contractual agreements. Finally, the strategy has suggested reforms within the present governance procedures which ultimately can be characterized as quick-wins with the possibility of large gains in the market.