What Ugandans Need to Know About Carbon Credits

In a world racing to combat climate change, carbon credits have emerged as a tool that could put money in Ugandans’ pockets while helping to save the planet. But what exactly are they, how do they work in Uganda, and what should everyday Ugandans understand about this growing system? Here’s the breakdown.

A carbon credit is like a certificate that proves one metric ton of carbon dioxide (CO₂),or its equivalent in other greenhouse gases has been either prevented from entering the atmosphere or removed from it. Think of it as a trade: companies or countries that pollute can buy these credits to “offset” their emissions, while places like Uganda, with forests and green projects, can sell them to fund development and conservation. It’s a global market worth $909 billion in 2023, and Uganda has a slice of the action.

Uganda entered this arena through the Kyoto Protocol’s Clean Development Mechanism (CDM) in 2005, an international agreement established in 1997 that allows poorer countries to earn credits by cutting emissions. One of the first successes was the Nile Basin Reforestation Project in Rwoho Central Forest Reserve, initiated in 2006. By planting pine and native trees across 2,015 hectares, it became one of Africa’s earliest CDM forestry projects, selling credits to global buyers via the World Bank. Another notable example is Uganda’s municipal waste composting program, which in 2012 earned $215,135 by turning trash into compost in towns like Mukono and Jinja, thereby reducing 16,549 tons of CO₂.

Beyond the CDM, voluntary projects have gained momentum. The Trees for Global Benefit program, run by ECOTRUST since 2003, has involved 15,000 farmers planting 2.3 million trees across 14 districts, absorbing over 2 million tons of CO₂ by 2022. Farmers receive payments for growing trees, combining climate action with income. Uganda’s forests covering 14% of the land and wetlands make it a natural fit for projects like REDD+ (Reducing Emissions from Deforestation and Forest Degradation), which could protect areas like Mabira while generating credits.

For Ugandans, carbon credits can translate into real financial benefits. Projects like these have funded tree planting, renewable energy, and improved waste management, while helping Uganda meet its pledge to cut emissions by 24.7% by 2030, as outlined in its 2023 climate plan. Globally, the voluntary market alone reached $2 billion in 2022. Uganda could tap into this resource to boost rural livelihoods and infrastructure.

However, this system is not without its flaws. Some projects have encountered challenges. The Kachung plantation, backed by Norway, Sweden, and Finland, promised carbon credits through pine and eucalyptus planting but ended up displacing locals, causing a food security crisis, as reported by the Oakland Institute in 2019. Critics argue that such initiatives can prioritize profits over people. Land gets designated for trees, leaving less available for crops, and payments don’t always reach those who need them most, especially women. A 2022 Global Forest Coalition study found similar risks in voluntary projects.

Moreover, there’s the “additionality” problem: Are these projects truly cutting emissions, or would they have happened anyway? Globally, up to 85% of certain offset projects have been deemed ineffective. In Uganda, sluggish government action and vague regulations mean the country risks missing out on the $104 billion carbon market, as noted on social media in March 2025. Weak oversight and capacity could allow unscrupulous deals to slip through, shortchanging communities.

So, what should you know and advocate for? First, transparency. Inquire about who’s behind these projects, how credits are sold, and where the money goes. Are farmers and locals receiving a fair share, or are foreign companies reaping the profits? Second, fairness. Projects should enhance livelihoods without displacing individuals or harming food production. Third, results. Demand evidence that these efforts genuinely reduce emissions. Uganda’s forests and wetlands are too valuable to waste on greenwashing.

The government is making progress and its 2023 climate plan focuses on carbon financing but it is moving too slowly. Ugandans can urge leaders to expedite policies, train officials, and establish clear regulations so the country doesn’t lose out. Communities should also have a say in what projects happen on their land. After all, Uganda has lost 10% of its forest cover since 1990. Carbon credits could help reverse that, but only if managed responsibly.

Carbon credits offer Uganda an opportunity to combat climate change and fund development, from tree-planting income for farmers to cleaner towns. However, they are not a panacea. The system can yield either benefits or burdens, depending on how it is managed. Stay informed, ask questions, and hold leaders accountable because this is about much more than CO₂. It’s about Uganda’s future.