July 30, 2025—The Republic of Kenya has unveiled its first draft of the Climate Change (Carbon Registry) Regulations, marking a significant milestone in its efforts to establish a high-integrity, transparent national carbon market. 

The regulation introduces a digital National Carbon Registry designed to align with Article 6 of the Paris Agreement and position Kenya as a pioneering force in Africa’s carbon trading landscape.

The envisioned international-standard trading system is capable of unlocking tens of billions of shillings in climate financing. All carbon credit-generating projects under a bilateral or multilateral agreement will be required to formally register in the proposed electronic platform, giving the government oversight of its carbon market trade landscape. This opens market participation even to small-scale stakeholders across the agriculture, energy, forestry and land use, industrial processes, transport, and waste sectors. 

The volume of carbon credits Kenya can trade will be governed by its Nationally Determined Contribution (NDC) targets, ensuring only emissions beyond existing commitments are eligible in the market. Additional constitutional, social, and environmental compliance requirements and monitoring will be in place to promote transparency and resolve double-counting issues. 

The registry will be jointly managed by the Climate Change Directorate and the National Environment Management Authority and will provide publicly accessible information on its relevant legislation, carbon market projects, and administrative templates.

Boosting global climate action with carbon markets 

Kenya is also leading global efforts to promote carbon markets as vital instruments for climate and economic progress in developing nations. The country, led by its Special Climate Envoy Ali Mohamed, joined Singapore and the United Kingdom in launching the Coalition to Grow Carbon Markets at the 2025 London Climate Action Week.

The Coalition seeks to boost demand of industries for a high-integrity carbon market, establishing the credibility and significance of carbon credits in corporate decarbonization plans and business revenues. At the 30th United Nations Climate Change Conference of the Parties (COP30), the coalition will release a clear set of shared principles for carbon credit use among companies, outlining the policies and incentives needed to restore business confidence on market participation.

Kenya, Singapore, and the United Kingdom aim to expand global engagement in its bold ambition of unlocking USD250 billion by 2050, helping bridge the USD1.3 trillion climate finance gap. Scaling carbon markets with efforts such as Kenya’s will create robust conditions to mobilize and deploy climate finance at the scale and speed required for climate-vulnerable countries.