Home ECONOMY KenGen to earn KSh 119 million from carbon credits

KenGen to earn KSh 119 million from carbon credits

by biasharadigest

Kenya Electricity Generating Company (KenGen) is to benefit from its Clean Development Mechanism (CDM) Projects, earning an estimated KSh 119 Million.

This follows the issuance of additional 309,495 Certified Emission Reductions (CERs) for KenGen’s Olkaria II CDM Project by the United Nations Framework Convention on Climate Change (UNFCCC), bringing the total amount of issued carbon credits to 550,981.

According to Rebecca Miano, KenGen Managing Director and CEO, climate change has become one of the biggest global environmental challenges and has created an urgent need for mitigating its effects.

She said KenGen has a dedicated team to spearhead environmental sustainability and reduce the effects of climate change.

KenGen has developed six CDM projects

“So far, we have developed and registered six CDM projects comprising of Olkaria II Geothermal Expansion Project, Redevelopment of Tana Hydro Power Station Project, Optimisation of Kiambere Hydro Power Project, Olkaria IV Geothermal Project, Olkaria I Units 4&5 Geothermal Project and Ngong Wind,” she said.

These projects, she added, contribute to off-setting on an annual basis 1.5 million tonnes of Carbon Dioxide (C02) equivalent annually.

Out of this, 550,981 Tonnes of CO2e has already been issued by the UNFCCC and are now available for sale.

The sale process has been initiated as guided by the applicable disposal laws and regulations for the public sector organizations.

The CDM projects contribute to national sustainable development by providing clean energy, ensuring improved environmental quality, positive health impacts and increased productivity.

CDM is designed as part of global concern to contribute to climate change mitigation and to foster sustainable development for non-industrialized countries.

KenGen has purposed to produce green energy, and currently, more than 86% of its power is from wind, hydro and geothermal.

As a way of enhancing its portfolio of climate change mitigation projects, KenGen intends to incorporate additional geothermal, wind and solar projects that will reduce between 100,000 to 600,000 carbon emissions every year, reducing the impact of climate change on the environment.

ALSO READ: KenGen Seeks Transaction Advisor on Sale of Carbon Credits

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