CLIMATE CHANGE ACT (NON-MARKET APPROACHES) REGULATIONS, 2026

The Paris Agreement under Article 6.8 provides for the integration of non-market approaches that assists parties to the United Nations Framework Convention on Climate Change (UNFCCC) to implement their Nationally Determined Contributions(NDCs). NDCs are commitments made by countries to reduce greenhouse gas emissions, for instance Kenya’s NDC commitment is to reduce greenhouse gas emissions by 35% by 2035. 

The Paris Agreement outlines the aim of the non-market approaches to include:-

1. Promoting mitigation and adaptation measures
2. Enhancing public and private sector participation in the implementation of NDCs
3. Enabling opportunities for coordination across instruments and relevant institutional arrangements

While the Climate Change (Carbon Markets) Regulations, 2024 provides a legal framework for regulating carbon credits by enabling the creation of incentives to support greenhouse gas emissions, the Climate Change (Non-Market Approaches) Regulations, 2026 focuses on a non-monetary collaborative framework. This means that instead of relying on the buying and selling of carbon credits, the regulations prioritizes other forms of climate action such as technology transfer, capacity building, mitigation, adaptation and finance for example grants.

Key highlights of the Non-Market Approaches Regulations:-

1. Design and Implementation Principles

Any program or project under these regulations must be designed to:

1. Respect human rights and fundamental freedoms and consider gender equity and the rights of marginalized groups, youth, and persons with disabilities

• While the Carbon Market Regulations, 2024 prioritizes result-oriented technical integrity since the focus is on measurable reduction or removal of greenhouse gas emissions, the Non-Market Approaches Regulations, 2026 is centered around social justice. Together, the frameworks intend to promote sustainable development through enhancing sustainable livelihoods, eradicating poverty, protecting marginalized groups and promoting gender equity. This approach ensures a just transition to a green economy while safeguarding communities against potential negative impacts of market-driven climate projects.

2. Ensure public participation and obtain free, prior, and informed consent (FPIC) from communities if project activities involve community land. 

• This mirrors the Carbon Markets Regulations, 2024 thus reinforcing that regardless of whether a project is for commercial purposes or a Non-Market incentivized initiative project proponents are mandated to document FPIC process, ensure community land rights are protected and community members meaningfully participate and that all persons including marginalized groups such as youth, women and persons with disabilities are included in the decision making process.

3. Comply with environmental requirements, such as impact assessments and audits under the Environmental Management and Co-ordination Act

• Environmental Integrity is a key requirement in both the Carbon Market Regulations, 2024 as well as the Non-Market Approaches, 2026. 

2. The National Non-Market Approaches Platform

The Directorate is responsible for establishing a Platform that serves as a central hub for:-

1. Submitting project proposals
2. Recording and exchanging information on cooperation opportunities
3. Maintaining detailed records of project objectives, budgets, beneficiaries, and support requested
4. Providing public access to information regarding non-market approaches
5. Project Submission and Review Process

• Submission: Project proponents must submit proposals using the form in the Second Schedule guided by a list of priority interventions.
• Ad-hoc Committee: The Directorate may form an ad-hoc committee consisting of representatives from the Directorate, county governments, civil society, and research institutions to review proposals.
• Timelines: The committee must provide recommendations within 30 days and the Directorate must inform the proponent of its final decision within 90 days.

4. Criteria For Review

The Directorate must ensure that every submitted project meets the following standards:

• National Alignment: It must align with Kenya’s national priorities on climate action.
• Non-Market Focus: It should prioritize cooperation that explicitly excludes market mechanisms and avoids overlapping with other initiatives.
• Sustainable Development: The project must contribute to sustainable development, specifically aiming to improve livelihoods, foster empowerment, and aid in poverty eradication.
• Public Participation: If a project is proposed for public or community land, it must have undergone public participation during its design phase, in accordance with the Constitution and the Climate Change Act.
• Accountability: The proposal must integrate mechanisms for transparency and accountability.

For International Recordings to be deemed suitable under Article 6.8 of the Paris Agreement, a project must meet additional requirements:

• Exceed NDCs: It must demonstrate the potential to exceed Kenya’s Nationally Determined Contributions (NDCs), such as through scalable interventions.
• Inclusive Engagement: It should enhance the participation of the public sector, private sector and civil society by ensuring the inclusive engagement of marginalized groups in both design and implementation.
• Resource Mobilization: There must be a clear mechanism for mobilizing international finance, technology, or expertise.
• Institutional Coordination: The project must enable coordination across different instruments and institutions by:

i. Aligning with relevant laws and government policies

ii. Facilitating synergies with international mechanisms

iii. Embedding clear institutional frameworks for information sharing, oversight, and coordination

5. Priority Interventions

  The regulations identify specific areas for non-market cooperation, categorized into:

1. Adaptation and Resilience: Including climate-smart agriculture, water resource management, disaster risk reduction and policy advocacy.
2. Mitigation Measures: Such as afforestation, energy efficiency in buildings, circular economy and electric mobility
3. Clean Energy: Focusing on Public Private Partnerships for renewable energy projects, clean cooking solutions and green hydrogen.
4. Reporting and Accountability

Project proponents are required to submit an annual progress report to the Directorate detailing achievements, challenges, and financial status. Additionally, the Cabinet Secretary is mandated to include information from the Platform in an annual report to Parliament. 

Conclusion

The Climate Change Act (Non-Market Approaches) Regulations, 2026 provides a structured framework from establishment of a platform to monitor non-market projects, providing processes for project approval to reporting mechanisms. As the Climate Change legal frameworks in Kenya continue to evolve, the implementation of these laws depend on transparent governance and institutional coordination. This shall ensure sustainable development through reduction of poverty, building capacity and resilience, integration of technology thus ensuring that climate action initiatives benefit communities and safeguard them against risks associated with purely market driven projects.