DGB Group Nears Key Approval in Kenya’s Thriving Carbon Market

Kenya has solidified its carbon market framework, allowing developers to apply for Letters of Authorization (LoAs) under Article 6 of the Paris Agreement. These approvals are critical for ensuring transparency and accountability in carbon projects, preventing the double-counting of emissions reductions through corresponding adjustments (CAs).

A member of the DGB team and a local woman during the distribution of cookstoves. Hongera Energy Efficient Cookstoves Project in Kenya, DGB.

The country’s Ministry of Environment recently unveiled members of the Multi-Sectoral Technical Committee (MSTC), a body tasked with reviewing carbon projects. Operating under the National Environment Management Authority, the MSTC will form ad hoc committees to assess proposals using sector-specific expertise.

A $4 per tonne CO₂ fee has been introduced for projects seeking CAs, creating additional costs for investors. However, optimism remains high as Kenya continues to lead Africa with its extensive carbon project pipeline and active developer community.

DGB Group is preparing to secure a LoA for its Hongera Energy Efficient Cookstoves Project. Verified by Gold Standard, this initiative has already begun issuing carbon credits for the 2023-2024 period. By distributing 150,000 cookstoves, the project enhances energy efficiency and reduces emissions, targeting 145,000 carbon credits in 2025 and expanding to 220,000 credits by 2026.

Cookstoves factory in Kenya. Hongera Energy Efficient Cookstoves Project in Kenya, DGB.

Securing a LoA will further strengthen the project’s appeal, enabling higher carbon unit prices and maximizing its positive impact.

Kenya’s forward-thinking approach to carbon development highlights its growing role in global sustainability efforts. As developers anticipate the first LoA approvals, the nation is poised to reinforce its position as a leader in climate solutions across Africa and beyond.