KenGen to earn Ksh.119 million from carbon credits

Electricity generating company KenGen is set to earn an estimated Ksh.119 million from carbon credits this year as the firm continues profit off climate change reversal actions.

On Tuesday, the NSE listed firm reported it has received an additional 309,405 certified emission reductions (CERs) for the company’s Olkaria II clean development mechanism (CDM) project.

The project supported by the United Nations Framework Convention on Climate Change (UNFCCC) brings KENGEN’s issued carbon credits to 550,981.

The carbon credits which represent an equivalent count of carbon in tons are available for sale with the process being guided by applicable disposal laws and regulations.

The CDM allows emission-reduction projects in developing countries to earn CER credits, each equivalent to one tonne of carbon-dioxide.

The CERs are can be traded and sold, and used by industrialized countries to meet part of their emission targets under the Kyoto Protocol.

The CDM makes up the main source of income for the UNFCCC adaptation fund which was established to finance adaptation projects and programs in developing countries that are parties to the Kyoto Protocol.

KenGen has been focusing on the production of green energy and currently more than 86 per cent of energy produced by the firm is harnessed from clean energy sources.

The company intends to incorporate additional geothermal, wind and solar projects which will reduce between 100,000 to 600,000 carbon emissions every year.