Kenya – Building on international taxonomies to accelerate national green bond development
Kenya developed green project definitions as part of its green bond guidelines in 2019, building on the taxonomy developed by the Climate Bonds Initiative (CBI). The taxonomy is detailed and contains both eligible sectors and excluded sectors, or those that can’t be considered green. The Kenyan Banking Association (KBA) worked closely with CBI to adapt the taxonomy to the Kenyan context, for example to include more water projects. This detailed taxonomy has made it easier to report and identify green assets.
From its experience, the KBA suggests that building on already established taxonomies can accelerate the process. The partnership between CBI, an organization with significant expertise developing green project definitions, and the KBA, with its expertise on the Kenyan context and banking system, produced an adapted taxonomy in much less time than if it was started from scratch.