Why Carbon Markets Must Put Communities First

In a recent chat with a friend, I was teased for being so fixated on “demystifying” carbon markets and carbon credits for our community. It made me pause and wonder: Am I really doing enough? And what do carbon markets actually mean for Africa’s smallholder farmers?

Carbon offsetting projects are often promoted as crucial solutions to climate change by reducing greenhouse gas emissions. Framed under the United Nations Framework Convention on Climate Change (UNFCCC), they aim to limit rising global temperatures.

Yet, while they carry promise, these projects remain complex, contentious, and often misunderstood by the most essential lot who are on the frontline of climate shocks, that is, the local communities.

Carbon markets are a system that facilitates the buying and selling of carbon credits, which represent the right to emit a specific amount of greenhouse gases. It’s a mechanism to reduce overall emissions by creating a financial incentive for businesses and individuals to lower their carbon footprint.

Notably, these markets can be either compliance markets, where entities must meet mandatory emission reduction targets, or voluntary markets, where participants choose to reduce emissions for various reasons, such as corporate social responsibility or to meet their own sustainability goals.

Carbon credits, on the other hand, are issued for activities that reduce, avoid, or remove greenhouse gas emissions. For example, a project that plants trees (which absorb carbon dioxide) or installs a renewable energy source (reducing reliance on fossil fuels) could generate carbon credits. 

In recent years, evidence has emerged showing that carbon credit schemes can disadvantage local communities. Indigenous and rural populations, despite being custodians of the land, are rarely at the center of these conversations.

Indigenous and local communities are the heart of the land; they cannot just be observers in carbon narratives but must be guardians of land and culture,” notes former community leader Frank Sotek from Enkiloriti in Narok County.

carbon markets
former community leader Frank Sotek from Enkiloriti in Narok County… Image Courtesy NAMATI

The Kenyan judiciary has begun acknowledging these concerns. Chief Justice Martha Koome, in a recent briefing, emphasized the courts’ role in ensuring inclusivity and justice in carbon offsetting projects.

“The Court must remain vigilant on land and carbon rights, fair benefit-sharing, impact monitoring, and protection of communities,” she said.

Koome also warned that courts must remain alert to the unequal power dynamics between multinational corporations and indigenous populations.

Her remarks come as marginalized communities continue to raise concerns about being excluded from the benefits of offset projects near forests and conservation sites. Many of these communities lack the necessary resources, legal expertise, and institutional support to effectively defend their rights.

Workshops like NAMATI’s Land Rights session, which united community leaders with environmental journalists, are helping to demystify carbon markets for those impacted. Yet gaps persist, from sparse legal guidance to the lack of clear channels for resolving the growing number of environmental disputes.

Sotek, who has both witnessed the potential of carbon schemes and lived through their shortcomings in Naibunga, Laikipia, stressed the urgency of centering communities. He emphasized that Free, Prior, and Informed Consent (FPIC) must be treated as a right, not a formality.

He further called on the media to amplify the lived experiences of communities struggling with land and carbon rights, similarly with successes attained through the schemes, with an equal measure of clarity.

“As someone who has lived through exclusion and led community land struggles from within, her words deeply resonated. We may not all have media platforms, but we hold lived truths. I hope to support you, our storytellers, to reach those silenced voices and make justice visible.”

For Sotek, carbon conversations must go beyond credits to focus on dignity, ownership, and justice. “That’s how we build power from the ground up,” he says.

Ultimately, carbon market schemes can succeed only if local communities are not merely included but empowered as equal partners. Anything less risks perpetuating cycles of injustice, even in the name of climate action.

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