Unlocking Opportunities: How New Climate Change Regulations Will Energize Uganda’s Carbon Market Participation

Uganda is taking big steps to address climate change with new regulations. These rules focus on developing, approving, and monitoring climate change projects in the country.

These efforts aim to cut greenhouse gas emissions and promote sustainable development, in line with the Paris Agreement. The recently introduced National Climate Change (Climate Change Mechanisms) Regulations, 2025, build on Uganda’s National Climate Change Act and pave the way for a vibrant carbon market.

The regulations detail how carbon projects will be approved, how emissions can be traded, and the registration process for those involved in validating emissions reductions.

How Carbon Projects Get Approved

To start a carbon project, developers must follow a clear approval process. First, they need to submit a request to the Ministry of Water and Environment. This request should explain the project’s purpose, location, and technologies to be used. Along with this, a detailed project idea note is required.

Once the Ministry reviews the request, they may issue a letter of no objection. This permits developers to conduct feasibility studies to assess whether the project is viable. This letter lasts for 24 months, during which developers must submit progress reports every six months. Missing these reports could result in fines or other penalties.

During this validity period, developers need to apply for final project approval. This involves submitting a project design document, feasibility study, and a benefits sharing plan. If the Ministry finds everything in order and meets sustainability criteria, they will grant final approval. It’s important to note that projects must start within one year of approval; otherwise, they risk losing their approval.

Verifying Projects

Once registered, project owners need independent validation to trade carbon credits. A registered verifier will check the project and issue a certificate for certified emissions reductions. This certificate indicates how many carbon credits can be sold or traded through agreements or exchanges.

Existing Approvals