Kenya requires Ksh.6.8 trillion to realise green economy in 10 years
With the persistent calls for all nations to go green to mitigate climate change, the Kenyan government now says it requires at least Ksh.6.8 trillion for the change mitigation and adaptation for the next ten years.
Speaking during the official launch of the inaugural East Africa Breweries Limited (EABL) sustainable report, Environment Principal Secretary (PS) Dr. Chris Kiptoo said the government is working on a long-term strategy through its Climate Change Action Plan in an effort to attain net-zero emissions.
Similar targets are emphasized on the Kenya Green Economy Strategy and Implementation plan (GESI) 2016-2030.
According to Dr. Kiptoo, the government will require close to Ksh.1.97 trillion for mitigation and Ksh.4.83 trillion for adaptation towards the full realisation of the green economy.
“We expect all sectors to cartelize growth and development of sustainable products and services and promote a green economy. The ability to operate and produce sustainably will be attributed to a successful enterprise.” Dr. Chris Kiptoo.
Dr. Kiptoo called on collective efforts especially in the private sector in the promotion of green economy through the development of sustainable products and services.
According to the United Nations Environment Program, Kenya’s real Gross Domestic Product (GDP) in a green economy has the potential to exceed a business-as-usual scenario by 12 percent, pull 3.1 million people out of poverty and boost agricultural yields up 15 percent by 2030.
- CBK Governor Njoroge challenges banks to embrace Paris Climate Agreement
- KFS leverage on adopting a forest program to expand forest cover
- Kenya closes its first green bond
On his part, Energy PS Dr. Joseph Njoroge stressed the importance of Private Public Partnership (PPP) in improving sustainability and clean energy before assuring the private sector players that the government will play its part to provide an enabling environment to support companies to become more sustainable.
“There’s very good consensus of the need to mitigate climate change by both the government and the private sector. We do have very good incentives particularly on those who use green energy resources. Solar, wind, geothermal, even biomass. These energy sources attract tax exceptions when they’re developed,” said Njoroge.
Incentives provided by the government in the energy sector currently include a zero rate of import duty and Value Added Tax (VAT) exemption for equipment for generation of solar and wind energy, VAT exemption for companies that had already signed power purchase agreements with the government before April 2020 and exemption from payment of stamp duty in respect of goods used in the projects.
EABL, which heavily relies on natural ingredients, has urged other businesses to get involved in environmental conservation through shared value or risk witnessing the collapse of systems that will affect the profitability of their businesses.
“We live in a world where about environment is deteriorating faster than previously believed possible. This means that we have to act fast to reverse the worst trends. We have integrated social and environmental standards into our supply chain ensuring that our entire business strategy is sustainable,” said EABL Group Chairman Dr. Martin Oduor Otieno.
EABL is currently saving 40 percent of water in their factories and targets to reduce carbon emissions by 95 percent, invest in solar energy that will see 10 percent of energy in their factories come from solar, sourcing 100 percent renewable electricity by 2030 in all its facilities and achieve 100 percent recycled content in their plastics by the year 2030.