Kenya Lawmakers Grant Locals 40% of Profits From Carbon-Credit Projects

Kenyan lawmakers passed legislation that host communities receive 40% of profit generated from land-based emissions offset projects.

(Bloomberg) — Kenyan lawmakers passed legislation that host communities receive 40% of profit generated from land-based emissions offset projects.

Initiatives in water bodies, such as mangrove forests, will cede 25% to local communities, according to the National Assembly’s Environment, Forestry and Mining committee chairman, David Gikaria.

The proposal still needs approval from the Senate and President William Ruto, Gikaria said by phone on Thursday.

Regulating the carbon credits industry is key to ensuring both governments and host communities benefit from the emerging trade that’s often concluded with foreign parties.

A carbon credit represents a ton of carbon dioxide equivalent removed from the atmosphere or prevented from entering it in the first place that producers of the climate-warming gases can buy to offset their emissions.

Zimbabwe announced last week that it will take 30% of revenue from such initiatives through an environment levy for the first 10 years of operations. Developers, while retaining 70% of proceeds, are required to invest a quarter of earnings in community projects.

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