Africa stands at a pivotal moment in its development trajectory. With over 600 million people lacking access to electricity and energy demand projected to double by 2040, the continent faces an urgent need to expand energy access while leading the global transition toward climate resilience. Renewable energy is not just an environmental imperative—it is an economic and social one, offering a pathway to dignity, equity, and sustainable growth. 

The Dual Power of Renewable Energy 

From my experience working across climate and carbon markets in East Africa, I’ve seen firsthand that energy is more than electricity—it is the foundation of opportunity. Renewable energy powers homes, schools, businesses, and farms while preserving the ecosystems communities depend on. When structured effectively, it also becomes a catalyst for finance, innovation, and resilience. o dignity, equity, and sustainable growth. 

Consider this: Kenya already generates over 90% of its electricity from renewables, proving that clean energy can drive national grids. Yet, 70% of the rural population still relies on biomass for cooking, underscoring the need for decentralised solutions.

Carbon Finance: An Untapped Opportunity One of the most promising—yet underutilised—tools to scale renewable energy is carbon finance. Through carbon markets, projects like clean cookstoves, solar mini-grids, and biogas systems can monetise emission reductions, reducing reliance on grants and subsidies. 

Real-world impact in Kenya: 

Clean cooking projects have cut household emissions by 50-70% while improving health outcomes.  Youth-led solar startups are leveraging carbon revenue to lower upfront costs and expand access to off-grid energy. 

Policy and Coordination: Keys to Unlocking Scale 

For carbon finance to reach its full potential, clear policy frameworks are essential. Kenya’s recently gazetted Carbon Markets Regulations provide a blueprint for structured participation, but broader alignment is needed: 

Energy, environment, finance, and trade ministries must integrate carbon finance into national development strategies.  Safeguards and benefit-sharing mechanisms must ensure projects deliver equitable and lasting value to communities. 

A Call for Integrated Action
The future of Africa’s sustainable development hinges on merging energy access and carbon finance into a single, cohesive strategy. Renewable energy must be viewed not just as an environmental solution, but as a financial instrument—one that attracts investment, fosters innovation, and uplifts underserved regions.
The opportunity is clear. By aligning policy, finance, and community needs, we can transform renewable energy into shared value—for the planet, investors, and most importantly, for people.

| Article by: Mahlon Walo, Chairman, Carbon Market Association of Kenya (CAMAK)