Prime
Sector players root for active participation in carbon markets
State Minister for Environment, Ms Beatrice Anywar before Parliament's committee on the Climate Change Committee on Thursday. Photo | Courtesy
What you need to know:
- Carbon trade is also known as emissions trading, a market-based approach allowing countries or organizations to buy and sell carbon credits.
Stakeholders in the energy sector have made a call for adequate support towards concretising Uganda's place in the global carbon trade.
Carbon trade is also known as emissions trading, a market-based approach allowing countries or organizations to buy and sell carbon credits.
A carbon credit is a unit that represents one ton of greenhouse gas emissions avoided, reduced, or removed from the environment that can be traded to generate revenue.
According to the State Minister for Environment, Hon. Beatrice Anywar, Uganda has collaborated with a number of institutions and actors in carbon markets to achieve this goal.
“Government has ratified the Paris Agreement and developed a climate action plan known as Nationally Determined Contributions (NDC). In 2022, the government committed to reducing emissions by 5.9 per cent below business-as-usual levels in 2030,” said Ms Anywar while meeting with Members of Parliament on the Climate Change Committee on Thursday.
She added that government will explore non-greenhouse gas policy measures to improve support for carbon market participation.
These include the national target to increase renewable energy access from the current 51 per cent to 100 per cent by 2040 for electricity access and 15 per cent to 50 per cent for clean cooking.
“International carbon markets are some of the sources of financing which can also be used for adaptation and mitigation efforts. Government is strengthening the enabling environment by developing regulations and enhancing capacity development to harness available opportunities,” Ms Anywar said.
Ms Irene Bateebe, the Permanent Secretary at the Ministry of Energy and Mineral Development said there is a steady growth in demand for global carbon credits, attributed to a growing number of businesses and corporate net-zero commitments.
“Through the Climate Finance Unit, the ministry will diversify and scale up Uganda's carbon trade project portfolio, develop national policies, regulations and guidelines and build validation and verification capacity,” she said.
The Committee Chairperson, Hon Lawrence Biyika Songa said it is key to know the quantity of what is being sold so that Uganda's carbon credits get good value on regional and international markets.
Hon Enos Asiimwe (NRM, Kabula County) noted the need to move fast on establishing regulations and mechanisms to ensure that Uganda benefits from carbon trade in competition with other markets.
