KENYA'S CHALLENGES TO A GREEN ECONOMYby | 21-08-2016 23:21 |
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In addition to providing a package of initiatives and actions that are designed to spur green transition, the GESIP also provides the overall policy framework to facilitate a transition to green economy and outlines the need to mainstream and align green economy initiatives across the economic, social and environmental spheres of society towards a globally competitive low carbon growth path. This is the Vision for Green Economy in Kenya. 8 Although there is growing national support for a green economy through the ?Environment and Sustainable Development? paradigm shift, Kenya is faced with five key challenges in effectively implementing a green economy strategy. First, although several laws and regulations have been developed to encourage sustainability across sectors, compliance and enforcement remains problematic. Second, there currently exist few standards for green technologies, goods or services. This is evidenced by an inadequacy of information about green technologies, thus stifling technology transfer and adoption and adaptation. Nevertheless, progress is underway as evidenced by current efforts to set minimum energy efficiency standards for certain appliances. What will also be needed are environmental standards for green technologies (such as solar panels), food safety, and animal and crop products. An approach that organizes and addresses opportunities to strengthen environmental standards by sector will benefit the environment as well as Kenya?s ability to trade internationally. Various regulations and standards are increasingly being applied in international trade. There is thus need to create an enabling environment where small and medium sized enterprises are both able to meet them and also enhance profitability. Third, the current economic policy framework in Kenya needs to account for the intrinsic value of its natural capital and support sustainable development. Like most countries, Kenyan prices and policy regime do not fully account for the external costs associated with technologies, products and practices that are environmentally friendly. This also tends to diminish any nascent demand for green alternatives. What Kenya requires is the incorporation of natural resources in the System of National Accounts i.e. the derivation of indicators and statistics to monitor the interaction between Kenya?s economy and key, if not all natural resources and use the results thereof for decision making e.g. design of fiscal policy instruments to achieve desired outcomes on the stocks of NRs and/or environmental quality. There is potential to use fiscal policy instruments such as environmental taxes, subsidies, pollution charges, public expenditure on green infrastructure, public procurement, feed-in-tariffs and grants. Kenya already has a feed-in tariff to promote green energy but it excludes some resources such as wave, tidal and ocean thermal energy conversion. These tariffs help to level the playing field with fossil fuel energy sources. Fourth, increased funding will be needed to effect a transition to a green economy due to challenges in up front capital costs, particularly in areas like energy where up-front costs for clean technologies can be high. These funds will need to originate from both the private and public sector. At the international level, Kenya may be underutilizing international donor funds available for low-carbon development. At the domestic level, enhancing its ability to mobilize domestic funds for investment in new renewable technologies will and products will require addressing current disincentives. |
