Uganda Launches National Carbon Market Rules: A Clearer Path for High-Integrity Projects

Photo credits: https://unsplash.com/@itoterubombora

[Charlottesville, Virginia, USA; 25 June 2025]

In March 2025, Uganda finalized a regulatory framework that brings its carbon market into formal operation. The new rules outline how carbon projects must be designed, approved, and monitored to qualify for emissions crediting, especially under Article 6 of the Paris Agreement. For developers, investors, and host communities, this is a timely step forward that brings structure and transparency to a growing sector.

Climate Investment Partners (CIP) has been active in Uganda since the launch of our Uganda Native Reforestation and Agroforestry Project, which focuses on restoring degraded land while improving local livelihoods. This new regulation provides a clearer foundation for project alignment and long-term value.

A Structured Approach to Carbon Crediting

The regulation, published in the Uganda Gazette as Statutory Instruments Supplement No. 9 of 2025, establishes a national framework to oversee carbon market activities. It outlines:

• The steps required to receive government authorization for emissions reductions
• Monitoring and verification requirements
• The creation of a national carbon registry
• Conditions for the international transfer of carbon credits

The rules also include provisions for benefit-sharing and community engagement, reinforcing the role of carbon finance in supporting equitable and locally grounded development. 

According to the Nile Post, the regulation was unveiled by State Minister Beatrice Anywar Atim Sekindi and establishes a national carbon registry alongside a formal system for monitoring, reporting, and verification (MRV).

This is a notable development for the region. Few African countries have formalized Article 6 governance to this extent. A summary of the legal instrument can be found at Ortus Advocates.

Stronger Market Signals for Investors

Clarity in carbon regulation is not just a bureaucratic necessity, it’s essential for credibility and risk management. The new Ugandan framework gives investors greater confidence that projects developed in the country will meet both national and international expectations.

For buyers focused on quality and permanence, it also provides a more reliable path to internationally recognized credits. Uganda’s alignment with Article 6 is likely to attract more partners looking for measurable, verifiable impact.

CIP’s Role in a Changing Policy Landscape

CIP’s reforestation and agroforestry work in Uganda is designed to support both environmental and social outcomes. The project spans thousands of hectares of degraded land and supports smallholder participation in sustainable agroforestry systems. Now, with a legal structure in place, there is a clearer route for integrating these outcomes into Uganda’s broader climate strategy.

Why This Matters

Uganda’s decision to formalize its carbon market comes at a time when host countries are increasingly asserting ownership over how climate finance is governed. Across the Global South, national frameworks are emerging in response to rising scrutiny of voluntary carbon markets and growing demand for transparency and accountability.

Uganda’s regulation provides the structure needed to distinguish credible projects from those lacking oversight. It lays out the conditions for project approval, monitoring, and credit transfer, while embedding requirements for benefit-sharing and alignment with national climate goals. According to UNDP Uganda, the regulation is part of a broader strategy to accelerate climate action and sustainable development, with support from the Ministry of Water and Environment and international partners.

A recent analysis by C‑Carbon.info also suggests that Uganda’s Article 6 framework could help unlock new pathways for transparent, high-integrity carbon finance, setting an example for other countries developing their own regulatory systems.

Uganda isn’t alone in this shift. Just weeks earlier, Paraguay issued a national decree establishing its own legal framework for carbon market activities, another sign of momentum across the Global South toward regulated, Article 6-aligned carbon crediting.

Takeaways

• Uganda has established a formal legal structure for carbon crediting, with clear procedures for project approval, MRV, and international credit transfers.
• The regulation enhances Uganda’s readiness to participate in Article 6 cooperation, making the country a more attractive and credible destination for carbon finance.
• Climate Investment Partners’ reforestation and agroforestry project in Uganda is well-positioned to align with the new national framework and contribute to both global mitigation goals and local development outcomes.
• Afriwise highlights the regulation’s focus on third-party verification and fair benefit-sharing, reinforcing the importance of integrity and inclusion in project implementation.

This development reflects a wider shift toward stronger carbon market governance in emerging economies, signaling that the future of the market will be built on accountability and national ownership.