Assessing the structural capacity requirements that would allow developing countries to participate in evolving carbon markets. Case study: Uganda

Abstract

This case study addresses the current capacity in Uganda and the capacity necessary to participate in an evolving carbon market by focusing on four fundamental areas:
1) Institutional capacity: Are the right entities in place and empowered to act? Are the appropriate institutional frameworks in place? Political leadership is included in this section.
2) Policy level capacity: How can cross governmental policy measures be utilised to support carbon market participation?
3) Capacity for data management (MRV and technical capacity): How will Uganda accumulate and manage the data necessary for greater carbon market participation? This section contains a subsection dedicated to Programmes of Activities (PoAs) due to the fact that there is interesting and relevant financing and project development capacity emerging in this area
4) Financial capacity: Is there adequate opportunity and capacity in the market to attract public/private sector capital to support the development of the carbon market?

Uganda, in contrast to Ghana, has been able to successfully register two projects. This is due to two primary factors:

  • Uganda has effectively engaged the private sector (primarily via the World Bank’s early efforts and now with the Uganda Carbon Bureau) albeit on a very small scale
  • The government has not acted as a bottleneck in project implementation.

However, a great deal more capacity will be needed in order for Uganda to maximise its carbon market potential and develop the capacity necessary to participate in the new market mechanisms.

This case study concludes by making recommendations for actions that can be taken to increase Uganda’s participation in the current CDM, particularly through the Programme of Activities (PoAs), greater use of standardised approaches in the CDM and, over time, participation in new market mechanisms.

Citation

Marmanie Consulting Ltd, London, UK,18 pp.

Assessing the structural capacity requirements that would allow developing countries to participate in evolving carbon markets. Case study: Uganda

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