1.
Questions on Soil Carbon Markets:
Learning from the Kenyan Experience
Karen Hansen-Kuhn
December 3, 2011

2.
Markets need buyers and sellers
Compliance markets
• Kyoto/JI/CDM
• EU EmissionsTrading
Scheme
• Alberta, Canada
• California Carbon
Exchange
Voluntary Markets
• Chicago Climate Exchange
• Africa Climate Exchange
• OTC Exchanges

3.
Falling Carbon Prices
Source: Environmental Finance, based on ICE data

4.
Transaction Costs
Kenya Agricultural Carbon Project
• $2.48 million in carbon revenues over 20 years
(assuming $4 per ton)
• 60% discount rate
• $1.04 million to establish and market fund
• 60,000 farmers receive $22.83
over 20 years

5.
Alternatives
“the sustainability of finance from carbon trading is …structurally
reliant on the failure to reduce emissions adequately in
industrialized countries”
– FERN et al. 20
• Annex 1 countries should honor commitments
• FinancialTransactionsTax
• IMF Special Drawing Rights