Green Economy and Climate Change Act, 2024 (No. 18 of 2024).

This Act consisting of 47 articles organized into X Parts aims to (i) address climate change adaptation and disaster risk reduction, while promoting climate change mitigation, low-emission development, and a green economy; (ii) regulate carbon markets; (iii) ensure environmental and social safeguards in climate actions; (iv) establish the Climate Change Fund; (v) implement the United Nations Framework Convention on Climate Change and the Paris Agreement. The aims will be achieved under the following principles: environmental sustainability, resilience building, integrated actions, gender inclusivity, ecosystem importance, complementarity of adaptation and mitigation, public participation, technology transfer, international obligations, and the precautionary principle. Article 4 provides for establishing the Department of Green Economy and Climate Change in the ministry responsible for climate change to undertake all necessary actions to achieve low carbon, climate resilience, and a green economy. The main functions of the Department concerning implementation of green economy and climate change shall be (i) facilitate and monitor the implementation of projects and programs in all sectors in collaboration with relevant stakeholders; (ii) regulate the carbon market; (iii) facilitate capacity building in institutions and agencies; (iv) provide technical support; (v) support the strengthening information and early warning systems; (vi) promote research; (vii) conduct education and public awareness; (viii) facilitate the implementation of international obligations on climate change; (ix) establish sector emission targets; (x) support the mobilization of resources to promote green investments; (x) oversee the revision and updating of the Nationally Determined Contributions; (xi) guide and oversee the implementation of the Republic’s Integrated Measuring Reporting and Verification System; (xii) provide technical guidance on the means and implementation of adaptation and mitigation to various sectors. Article 6 establishes the Green Economy and Climate Change Council, with the participation of ministers responsible for finance and national planning, agriculture, energy, lands, water development and sanitation, justice, mines, wildlife, fisheries and livestock, technology and science, and local government and rural development, undertaking the following functions (i) provide policy guidance and oversee the implementation of interventions; (ii) provide policy guidance on carbon markets to the public, private sector and other stakeholders; (iii) set targets for the regulation of greenhouse emission; (iv) provide policy guidance on research, training, and awareness on climate change. Under Article 8, the Green Economy and Climate Change Technical Committee is established, with the part-time participation of representatives of the same ministries as the Council, plus the Ministry of Meteorology and the Ministry of Commerce, Trade and Industry. The Technical Committee shall advise the Council on matters relating to the green economy and climate change, together with overseeing and approving policies, projects, and proposals related to the green economy and climate change, as well as reviewing work plans, budgets, and reports. The Act mandates the development of a National Adaptation Plan and a National Mitigation Plan, both to be reviewed every five years. Additionally, appropriate authorities are required to develop sector emission reduction plans and report on greenhouse gas emissions. The document also specifies the approval process for carbon project concept notes and project proposals, emphasizing compliance with prescribed procedures.
Part VI outlines regulations for carbon markets, including the President's ownership of carbon, the requirement for a certificate of authorization to trade in carbon, application processes, conditions for approval, and procedures for suspension, revocation, or reissuance of certificates. It also covers dispute resolution procedures. Article 29 prohibits verifying carbon credits without registration, and the following articles deal with the related procedural matters. For the enforcement, it is provided that an authorized officer has the power to inspect premises, search individuals, request information, examine records, seize items, and use computer systems for data retrieval. Under Part IX is established the Green Economy and Climate Change Fund to finance climate change projects, research, capacity development, and innovation, with funding from government appropriations, grants, donations, and carbon credit levies; it is managed by the relevant ministry, subject to financial controls, annual audits, and reporting to Parliament. Finally, the Minister of Finance may prescribe incentives for individuals and entities implementing adaptation and mitigation measures under this Act.