Uganda has introduced comprehensive regulations aimed at governing the development, approval, implementation and monitoring of climate change mechanisms across the country.
Climate change mechanisms contribute to the mitigation of greenhouse gas emissions and support sustainable development and include cooperative and non-market approaches as defined in the Paris Agreement.
Building upon the provisions of the National Climate Change Act (Cap. 182), the new National Climate Change (Climate Change Mechanisms) Regulations, 2025 (“the Regulations”) establish a framework that promises to enable a growing and thriving carbon market in Uganda.
The Regulations provide for the approval of carbon projects, domestic and international transfer of certified greenhouse gas emissions and registration of persons intending to validate emissions reduction units (verifiers), among other things.
Approval of Carbon Projects
Under the Regulations, carbon project developers are required to follow a step-by-step approval process before the commencement of a project. The process starts with submission of a request to participate in a climate change mechanism to the Ministry of Water and Environment (“the Ministry”).
The submission must outline details such as the purpose of the project, its geographical location and any proposed technology to be used. The request must also be accompanied by a detailed project idea note.
Upon review of the request, the Minister may issue a letter of no objection permitting the project developers to conduct feasibility studies to determine the project’s viability. The letter of no objection shall be valid for 24 months and project developers are required to submit progress reports every 6 months. A project developer who fails to submit progress reports commits an offence and is liable on conviction to a fine or imprisonment.
During the 24-month validity period of the letter of no objection, a project developer must apply for final approval of their project. A developer does this by submitting a project design document, feasibility study, benefits sharing plan and a letter of recommendation to the Ministry. The Ministry shall review the application and if satisfied that the project meets a prescribed set of sustainable development criteria, grant the final approval. A project must commence within 1 year of receiving the Ministry’s approval and failure to do so may result in cancellation of the approval. The Ministry is thereafter tasked with regular monitoring of registered projects.
Project Verification
Once a project is registered, a project owner will seek independent validation and verification to enable the project to issue and trade certified carbon credits. A registered verifier will assess the project and issue a certificate of certified emissions reduction units which highlight the certified units that can be sold or transferred through offtake agreements or carbon credit exchanges.
What Happens to Existing Carbon Project Approvals?
Any existing project approved by the Ministry before the commencement of the Regulations will remain valid until 31 December 2027.
Looking Ahead
The introduction of the Regulations positions Uganda to capitalise on its carbon market potential by fostering a transparent and structured system of approval, registration, implementation and monitoring of carbon projects. Project developers, investors and organisations interested in participating in Uganda’s carbon market are encouraged to engage with the Ministry to ensure their projects qualify and adhere to the law. Our team are on hand to help you navigate this dynamic regulatory space.
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Read the original publication at ENS
