National Environment Management Authority's Experience in Climate Finance

National Environment Management Authority's Experience in Climate Finance

1. NEMA’S EXPERIENCE IN CLIMATE FINANCE
Anne Nyatichi OMAMBIA, Ph.D.
Deputy Director Programmes and Partnerships
National Environment Management Authority
(NEMA Kenya)
19
th
February 2025

2. NEMA at a glance
•NEMAisastatecorporationestablishedbyanActofParliament,the
EnvironmentalManagementandCoordinationAct(CAP387)
•Mandate:Toexercisegeneralsupervisionandcoordinationofall
mattersrelatedtotheenvironmentandtobetheprincipalarmof
governmentintheimplementationofpoliciesrelatedtothe
environment
•Vision:Aclean,healthyandsustainableenvironment
•Mission:Tocoordinate,superviseandmanageallmattersrelating
totheenvironmentinKenya
2

3. NEMA AS THE DESIGNATED NATIONAL
AUTHORITY ON CARBON MARKETS

4. CARBON MARKETS IN KENYA
•KenyasubmittedinitialNDCin2015andhasupdateditin2020in
accordancetotheParisAgreement
•Kenya’sNDCtobeimplementedthroughdomesticandinternational
supportincludingparticipationinthemarketandnonmarketmechanisms
establishedbyArt.6oftheParisAgreement
•KenyahasCDMpipelineof250projects+invariousglobalstandards
•Sustainabledevelopmentco-benefits(economic,social,environmental)
andgreentechnologytransfergainedfrommarketsandNMAtosupport

5. KENYA COUNTRY PROFILE
*Statistics shown are as of September 2022. The Standards databases are live and frequently updated -slide by climate Innovators
Kenya hosts more than 250 carbon
market activities
CDM:
20 projects + 190 CPAs (in 21 PoAs)
•Issued over 11.4 million CERs
•Additional pre-and post-2020 potential
VOLUNTARY PROJECTS:
Gold Standard
•55 registered activities (22 VPA, 29 single projects)
•Issuance 12 million VERs issued (mainly cook
stoves)
Verra -Verified Carbon Standard (VCS)
19 registered VCS+ activities, >30 million issued;
Plan Vivo 2:projects, total issuance 25k credits (tree
planting, forest management)
Art.6 piloting: JCM, WB SCF, ABM, CDM
transition
CORSIA eligible activities:
•145 CDM and 4 VERRA activities are eligible

6. KEY MILESTONES IN CARBON MARKET READINESS
DevelopmentofKenya’s3
rd
NationalCommunications,BiennialUpdateReportand
1
st
BiennialTransparencyReport.Resultsoftheprocesstoguidedevelopmentofthe
CarbonBudgetanddeterminationofthewhitelistforcarbonprojects.
CARBON
MARKETS
IN KENYA
Appointment of
the Designated
National Authority
for Carbon
Markets (NEMA)
Support
received for the
Carbon Registry
(Infrastructure +
Regulations)
process
Climate Change
Act 2016
amended &
assented to on
1st Sept 2023
Finalization &
gazzettementof
the Climate
Change (Carbon
Markets)
Regulations 2024
Support received for
the development of
the Carbon Trading
& Non Market
Approaches
regulations

7. INSTITUTIONS IN CARBON MARKETS
ClimateChangeCouncil
Provideguidanceandpolicydirectiononcarbonmarketstothenationaland
countygovernments,thepublicandotherstakeholders.
ClimateChangeDirectorate
(a)Advisethegovernmentonmeasuresandthecontrolofcarbonmarketactivities
beingcarriedoutbystakeholdersinordertoensurecompliancetothese
Regulations
(b)Coordinateandmobilizesectoralstakeholdersfortheeffectivecontroland
managementofcarbonmarkets.
(c)Coordinatepublicparticipationandawarenessoncarbonmarkets,and
(d)Facilitateresearchoncarbonmarkets

8. DNA FUNCTIONS
•Providekeyinformationtoprojectproponentsincarbonprojects
•Considerandmakedeterminationsoncarbonprojectconceptnotesandissuance
oflettersofnoobjection
•Issuelettersofapprovaltoprojectproponents
•Monitorregisteredcarbonprojectsandprojectproponents’compliancewiththe
Regulations
•Provideguidanceonarticle6oftheParisAgreementcooperativeapproaches
•Provideguidanceontheapplicationofcorrespondingadjustmentsandproject
eligibility
•Keepandupdatealistofrecognisedcarbonstandards
•Keep,maintainandupdatetheNationalCarbonRegistry
•DevelopmentofCarbonmethodologiesandbaselines
•AnnuallyreporttotheUNFCCC

9. READINESS REQUIREMENTS FOR CARBON MARKETS
(a)Buildinginstitutionalcapacityoncarbonmarkets,theDNA&Registrar’s
mandate
(b)BuildingcapacityofmembersoftheMulti-SectoralTechnicalCommittee
(c)Developmentofinitialchecklistforcarbonprojects
(d)Developmentofthescreeningcriteria/toolfortheMulti-SectoralTechnical
Committee
(e)Developmentofmanualsandguidelines
(f)Developmentofmethodologiesforestimatingmitigationoutcomesfromeligible
Article6projects
(g)Developmentofbaselines
(h)Developmentofacriteriaforreviewingexistingcarbonstandardswithaview
ofkeepingandupdatingalistofrecognizedcarbonstandards

10. NEMA AS THE DIRECT ACCESS ENTITY
TO THE GREEN CLIMATE FUND
(AE TO AF)

11. NEMA AND GCF
•NEMAwasaccreditedasaDirectAccessEntitybythe
GCFon9thMarch2016
NEMAAccreditationCredentials
•Basicfiduciaryfunctions
•Micro-scale,projectsizeofUS$10millionirrespective
ofthesizeoftheGCFcontribution.Cansubmitas
manyproposalsbutwitha10USDcapping
•Environmentalandsocialriskcategory:CategoryB
•Fullgrants;Noconditionalneedforco-financeor
leveragedfinance

12. (FUNDED ACTIVITY)
ENHANCING COMMUNITY RESILIENCE
AND WATER SECURITY IN THE UPPER ATHI
RIVER CATCHMENT AREA, KENYA

13. ProjectTitle:‘EnhancingCommunityResilience
andWaterSecurityintheUpperAthiRiver
CatchmentArea,Kenya’’
Funding:Theprojectisfundedbyagrantfromthe
GreenClimateFund(GCF)
Approval:TheprojecthasbeenapprovedbytheGCF
BoardNo.30on6thOctober2021andtheFunded
ActivityAgreementwassignedbetweenNEMAandGCF
onthe8thofOctober2021.
Effectiveness:January2024
Amountsecured:USD.9.9Million
Projectstartdate:1
st
quarter2025

14. PROJECT LOCATION
1.Nyandarua
2.Kiambu
3.Nairobi
4.Machakos

15. Project Objective
Project Cost
Beneficiaries
ABOUT THE PROJECT
To strengthen the resilience to climate change of communities,
and increase water security in the Upper Athi River Catchment
ThetotalprojectcostisUSD9,999,983.26outofwhichUSD
9,526,603.26isinformofagrantfromtheGCF,andUSD
473,380inco-financingfromtheExecutingEntitiesinformof
stafftimeandofficespace
The project is projected to benefit directly 1,156,620
people with 4,850,000 indirect beneficiaries in the
Athi River Catchment
4 Years. Expected commencement-March
2025
Duration

16. Component 1:
Enhance
hydrological and
meteorological
monitoring system to
support decision
making, planning and
policy development
in water and climate
change sector
Component 2:
Improve climate water
resilience by building,
enhancing and
rehabilitating
prioritized water
infrastructure and
implementing
conservation activities
in the catchment
Component 3:
Strengthen water and
adaptation planning,
institutional and
regulatory framework
to respond to
changing climatic
conditions
PROJECT COMPONENTS

17. 1 NEMA
•Accredited Entity in charge of
Grant Management
•Executing Entity: Pollution
management, Adaptation
Planning, water infrastructure
•Capacity building
2 WRA
•Hydrological monitoring
•Water Quality
•Catchment protection
•Water infrastructure
3 KMD
•Meteorological monitoring
•Climate services
1
2
3
EXECUTING ENTITIES

18. NEMA AS A NATIONAL
IMPLEMENTING ENTITY TO THE
ADAPTATION FUND (NIE TO AF)

19. No prescribed sectors and approaches
Financed from 2% of CER from CDM
projects + Voluntary contributions
Governed by majority developing
countries
Direct Access alongside other
organizations (RIE, MIE) Full adaptation cost basis -no
requirement for co -financing
Concrete Adaptation Projects
Country Cap of 20M USD/10M single
project
Proposals endorsed by DA
Introduction
The Adaptation Fund
was established under
the Kyoto Protocol of
the UNFCCC
Goal
Increase resilience
through concrete
adaptationprojects &
programmes
Focus
Focus on most
vulnerable countries
and communities
Unique features
Financing Criteria
ADAPTATION FUND
Project/program formulation grants for
approved concepts

20. As an Accredited
Entity, NEMA
Coordinates
Programmedesign
for submission to
AF, and manages
the programmes
once approved
Meet the fiduciary standards:
financial management and
integrity, institutional capacity,
Transparency, self-investigative
powers and anti-corruption
measures
Bear full responsibility for the
overall management of the projects
and programmes
Carry out financial, monitoring and
reporting responsibilities.

21. NEMA AF Programmes
1.Adaptation Fund Programme: “Integrated Programmeto Build Resilience to Climate Change &
Adaptive Capacity of Vulnerable Communities in Kenya”
2.Grant: USD 10 M
Sectors: Food and water security, coastal zone management, Disaster Risk Management
AFB Approval: Oct. 2014;
Funds Transfer: Dec. 2014
Approval from the Treasury: Dec. 2015
ProgrammeLaunch: 29th January 2016
Contract Signing: 29th January 2016
First disbursement: 17th Feb 2016
Counties: 16
Executing Entities : 9
Project closure: 31
st
March 2024

22. READINESS GRANTS WITH ADAPTATION FUND
South-South Cooperation Grants
•Grantsaimedatstrengtheningthe
capacityofcountriesseeking
accreditationwiththeFundto
prepareandsubmitrelevant
documentsthatleadtoaccreditation
withtheFund
•NEMAhasmentoredZimbabwe,
Malawi,MozambiqueandBotswana
•USD200,000
LearningGrant
•Learning Grants provide
fundingtoNIEstoencouragea
cultureoflearningacross
institutionsandhelpbuildNIE
capacities.
•NEMAlearninggrantapproved
toshareknowledge with
SenegalandSouthAfricaand
amongEEs
•USD143,545
Adaptation Fund TA on Environment and social policy grant –
USD 25000

23. No prescribed sectors and approaches
Financed from 2% of CER from CDM
projects + Voluntary contributions
Governed by majority developing
countries
Direct Access alongside other
organizations (RIE, MIE) Full adaptation cost basis -no
requirement for co -financing
Concrete Adaptation Projects
Country Cap of 20M USD/10M single
project
Proposals endorsed by DA
Introduction
The Adaptation Fund
was established under
the Kyoto Protocol of
the UNFCCC
Goal
Increase resilience
through concrete
adaptationprojects &
programmes
Focus
Focus on most
vulnerable countries
and communities
Unique features
Financing Criteria
Adaptation Fund
Project/program formulation grants for
approved concepts

24. GEF 7 STRENGTHENING FOREST
MANAGEMENT
Project Brief

25. ABOUT THE GEF 7 SFM PROJECT
•Developingcommunityenterprisesand
livelihoodvaluechainsbasedonsustainable
useofnaturalresourcesinthedrylands
•Improvingeffectivegovernanceofland
resourcesthroughstrengtheningof
community-levelorganizationsandNational
andCountyGovernments
•Implementinglocalresourcemanagement
andrestorationplansbythecommunityunits
andlocalauthorities
•Coordinatingthemanagement ofan
integrateddrylandlandscapesknowledge
exchangeandmanagementplatform.
Project Overall
Goal: seeks to
support a
functioningand
resilientdryland
forest landscape
that supports
sustainable
economic and food
productionthrough
integrated natural
management.
25

26. 26
PROMOTING CIRCULAR MODEL OF ENVIRONMENTALLY
SOUND SOLID WASTE MANAGEMENT IN URBAN AREAS
(TECHNICAL ASSISTANCE)

27. 27
PROJECT DESCRIPTION
Project Title
Project Period
Counterpart organizations
Project sites
“The project for promoting circular model of environmentally
sound solid waste management in urban areas”
2024 –2029 (5 years)
MoECCF(MinistryofEnvironment,ClimateChangeand
Forestry)/NEMA(NationalEnvironmentManagement
Authority)
Nairobi city, KiambuCounty, Mombasa County
Relevant organizations
County governments/ PRO(Producer Responsibility
Organization)/PrivateRecycler/CBO(Community Based
Organization)

28. 28
Indicator of Overall goal and Project Purpose
Material recovery society is established in Kenya
AmaterialrecoverysystemintheurbanareasofKenyais
established
Overall goal
ProjectPurpose
•Themethodtocollectdataandcalculatetherateofmaterialrecoveryis
establishedforcapturingtransitioninselectedareas
•Implementers:NEMAandMinofEnvironment,ClimateChangeandForestry
•Projectareas:SelectedareaswithinNairobiCityCounty,KiambuCountyand
MombasaCounty
Within 5 years
3 to 5 years after
project completion

29. 29
Designing the pilot project
29
a
b-1
b-2
Kang’okidumpsite
Possible Options
a.Reducing Volume of Wasteto be transported
Composting on site or collaboration with private
recycler
b.Improving Transport Efficiency
Transfer station or Optimizing collection routes
schedule
c.Improving Transport Capacity
Improving Maintenance and prolong
life of waste collection vehicles

30. 30
Generation Collectors Transfer and
Aggregation
points
Recyclers
Dumpsite
▲Scope1 ▲Scope2 ▲Scope3 ▲Scope4
Waste composition survey
Types and amount of
materials
Recycle amount
Types and amount of materials
left in dumpsite
Amount of residue
Recycling rate
How many tons per a day in
transfer station?
How many tons per a day in
aggregation point?
How many tons are recycled
per a day?
What materials and how much
are left in dumpsite?
Scope1 (Mombasa) Scope2 (Mombasa)
Scope3 (Nairobi, Kiambu
and Mombasa)
Scope4 (Nairobi, Kiambu
and Mombasa)

31. 31
Level 2Level 1 Level 3 Level 4
Weigh-brideAccess road
Gas venting pipes
Leachate collection
Leachate purification
Operation and
maintenance machinery
Control the coming waste Reduce environmental burden Sanitary landfill
Which level are we aiming?
Make a scenario to achieve the level with financial analysis (Activity 4-5)

32. CHALLENGES
Interpretation of direct access finance
Fulfilling the requirements for Public
Finance Management Act
Long lead times

33. Shukran/ Thank You for your kind attention!
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