Govt launches carbon market regulations to align with global commitments

The government, through the ministry of Water and Environment, has launched Uganda’s National Climate Change Mechanisms Regulation.

These regulations mark a critical step forward in the implementation of the Paris Agreement, particularly Article 6, which enables countries to cooperate on emissions reductions through international carbon markets.

The high-level event was graced by development partners, including the UNDP, United Nations Framework Convention on Climate Change (UNFCCC), Global Green Growth Institute, Environment and CC Development Partners Group, East African Development Bank, Worldwide Fund, ACODE, MDA officials, among others.

Speaking at the event held on May 29 at the ministry headquarters in Luzira, Aisha Sekindi, the minister of state for Water, reaffirmed government’s commitment towards accelerated climate action and sustainable development.

“Government has committed to deal with the effects of climate variability and change. The Regulations are anchored in the principles of environmental integrity and sustainable development, ensuring that all carbon credit activities are aligned with Uganda’s climate commitments and international best practices,” the minister said.

“Participation in carbon markets presents a valuable opportunity for Uganda to mobilise climate finance through the sale of carbon credits.”

Uganda, a signatory to the United Nations Framework Convention on Climate Change (UNFCCC) since 1993, continues to position itself as a regional leader in climate action. David Okurut, who represented the ministry permanent secretary, also reiterated how this milestone enhances mitigation outcomes and promotes environmental stewardship and resilience.

“For the country to effectively participate in carbon markets, the Paris Agreement highlights key requirements to be put in place, including, among others, the national greenhouse gas inventory, an updated Nationally Determined Contribution (NDC) and the carbon regulatory framework and institutional arrangements,” he said.

“I am privileged to highlight that Uganda has in place an updated NDC, a functional national greenhouse gas inventory, a national designated authority (ministry of Water and Environment), the National Climate Change Act (2021) and the carbon regulations we are launching.”

Speaking about the ministry’s optimism to further expand the country’s carbon project portfolio, Margaret Athieno Mwebesa, the commissioner Climate Change, highlighted the processes being undertaken “We aim to ensure that all relevant actors both state and non-state are well informed, and equipped to engage with the Climate Change Mechanisms in a transparent, inclusive, and accountable manner,” she said.

BACKGROUND

Uganda’s experience in carbon markets dates back to the Kyoto Protocol regime, where Uganda emerged as one of the carbon market frontrunners in Africa with an estimated greenhouse gas emissions reduction of 8.9 million tons of carbon dioxide equivalent from clean development mechanism projects implemented in the country from sectors such as energy, forestry and waste management.

The Paris Agreement of 2015 expanded the global ambition on climate action and introduced Article 6, which facilitates international cooperation among countries through market and non-market approaches.

For the country to effectively participate in carbon markets, the Paris Agreement highlights key requirements to be put in place, including, among others, the national greenhouse gas inventory, an updated nationally determined contribution and the carbon regulatory framework and institutional arrangements.

The Water ministry is in the process of developing a national digital carbon registry to support effective tracking, reporting, and oversight of carbon transactions. For now, the ministry has requested the UNFCCC to accommodate the country in the International Carbon Registry.