Kenya Sets 10 Million Ton Cap on Carbon Credits

The Government of Kenya released a new regulatory guide on Monday to establish a formal framework for international carbon trading under Article 6 of the Paris Agreement. The framework introduces a national carbon budget that caps the overseas sale of carbon emission credits at 10 million metric tons of carbon dioxide equivalent through 2030, with annual allocations limited to 1.67 million metric tons.

This limit is designed to prevent the country from selling credits required to meet its own Nationally Determined Contribution climate targets. The new regulations apply to the waste, industrial processes, transportation, and energy sectors, though land-use and forestry projects are excluded from the current rules.

Government officials stated that the guide replaces previous uncertainties in the approval process with published criteria to attract quality investment and ensure local communities benefit from carbon market projects. The national carbon budget serves as a binding safeguard to maintain institutional coherence and transparency.