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Climate Financing

Calls Grow for Methane Regulations Ahead of Nairobi Climate Summit

Lwoyelo said Kenya has an opportunity to position itself as a leader in carbon markets and circular economy investments, but requires clearer government-backed systems to regulate and approve carbon credit projects.

NAIROBI, Kenya, May 7 — Climate stakeholders have urged the government to fast-track regulations governing carbon credit trading and methane financing, warning that delays in approvals and policy frameworks are slowing investments in waste recycling, clean energy, and climate mitigation projects.

The calls were led by Regen Organics Managing Director Michael Lwoyelo during a Parliament-Media Breakfast Dialogue on Methane Emissions held at Parliament Buildings on Thursday, ahead of next week’s Inter-Parliamentary Union (IPU) Regional Seminar on Methane and Climate Action in Nairobi.

Lwoyelo said Kenya has an opportunity to position itself as a leader in carbon markets and circular economy investments, but requires clearer government-backed systems to regulate and approve carbon credit projects.

“Our ask is that government quickly starts recognizing and approving carbon credits from companies like ourselves,” Lwoyelo said.

He explained that companies involved in methane reduction projects are already demonstrating workable solutions through waste recycling, fertilizer production, biogas generation, and sustainable agriculture, but scaling up remains difficult without structured policy support.

Lwoyelo said Kenya generates about 22,000 tonnes of waste daily, nearly 60 percent of it organic, much of which decomposes in dumpsites and releases methane into the atmosphere.

“When you walk around Nairobi and see waste dumped on streets and in dumpsites, it is not just a cleanliness problem. It is actually a climate problem,” he said.

He noted that his company processes nearly 50,000 tonnes of organic waste annually, converting it into animal feed proteins, organic fertilizer, and biochar while reducing methane emissions.

According to Lwoyelo, carbon credits remain one of the most viable financing tools for climate mitigation projects, particularly in developing countries.

“So while voluntary carbon markets are working, what we need now are recognition and approval structures from government that allow companies to scale and participate in intergovernmental carbon trading,” he said.

He said carbon financing could unlock investments in waste management, food production, and renewable energy while helping Kenya meet its climate commitments.

International Livestock Research Institute Senior Scientist Dr. Claudia Arndt also stressed the need for stronger systems to support climate financing and carbon markets.

“We do have solutions. We do know what works and we do have an idea of what works in which systems, but we need to really scale,” Arndt said.

She noted that methane mitigation projects must be measurable to support Kenya’s climate reporting obligations and enable farmers and businesses to access carbon financing opportunities.

“We need to do measurements to actually report on it in our nationally determined contributions and also to leverage carbon credits,” she said.

Arndt cautioned, however, that carbon markets should supplement, not replace, profitable agricultural interventions.

“Mitigation strategies need to be profitable by themselves because we do not have carbon markets under control, but they can provide additional income for farmers to improve their production systems,” she said.

She said livestock remains Kenya’s largest source of methane emissions, followed by waste and rice farming, but practical interventions already exist.

According to Arndt, improving livestock feed quality could increase milk production by about 30 percent while reducing methane emissions by 15 percent.

She added that Kenya’s beef sector could reduce methane emissions by up to 50 percent by 2050 through improved feeding, breeding, animal health, and management systems.

United Nations Environment Programme Director of the Industry and Economy Division Dr. Sheila Aggarwal-Khan said methane reduction presents not only environmental benefits but also major economic opportunities.

“We are seeing methane emissions growing globally and affecting agricultural productivity,” she said.

Aggarwal-Khan highlighted opportunities in organic waste recycling, renewable energy, fertilizer production, and livestock feed innovations as emerging investment areas linked to methane reduction.

She added that methane reduction efforts could help Kenya address rising climate shocks, declining agricultural productivity, and growing public health concerns linked to pollution.

The discussions came as Parliament intensified calls for methane-specific laws and regulations ahead of the regional climate seminar expected to bring together lawmakers from across Africa.

Chairperson of the Departmental Committee on Livestock and Agriculture Dr. John Mutunga said Parliament must urgently develop policies targeting methane emissions from agriculture and livestock production.

“There is need for appropriate regulations, legislation, and policies,” Mutunga said.

“These legislations should focus on the breed of animals we have, the quality of feeds, and waste management systems so that we reduce methane emissions.”

He said Kenya had only four years left to meet the Global Methane Pledge target of reducing methane emissions by 30 percent by 2030.

Chairperson of the Parliamentary Pastoralist Group Abdullahi Bashir said Kenya currently lacks methane-specific legislation despite the climate vulnerabilities facing pastoralist regions.

“There are a number of regulations or Acts that we have, but nothing specific on methane. It is upon Parliament now to structure specific methane regulations,” Bashir said.

He also called for climate policies and public participation models tailored to nomadic pastoralist communities, arguing that many are excluded from mainstream climate discussions.

Senate Standing Committee on Lands, Environment and Natural Resources Chairperson Senator Mohamed Faki said methane mitigation should be treated as both an environmental and economic priority.

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