• May 22, 2024
  • Last Update May 22, 2024 10:44 AM
  • Nairobi

Kenya’s first framework to achieve carbon neutrality unveiled

Kenya’s first framework to achieve carbon neutrality unveiled

By Peter Ochieng

As the country gears for full adoption of electric vehicles, GA Insurance Limited has implemented a pioneering framework to drive it towards carbon neutrality.

The aim is to help cut down on pollution and develop more climate resilient products. GA’s flagship product – GA Eco Drive – is among the first carbon neutral insurance products in the world.

In 2023, the company – the 5th largest general insurer in Kenya made a commitment to develop products tailored towards covering the unique risks faced by the E-Mobility segment, and the business models around it.

As part of its commitment on carbon neutrality, the insurer has earmarked  transport as one of the most significant sectors to drive carbon neutral initiatives.

The transport sector is responsible for more than 30% of carbon emissions in the country, with the total domestic transport sector emissions in Kenya amounting to 11.25 MtCO2e in 2015. Between 2010 and 2015, average annual emissions were increasing by 0.6 MtCO2e.

MtCO2e stands for Metric tons of carbon dioxide equivalent.

Commenting on the implementation of the roadmap towards carbon neutrality, Mr. Vijay Srivastava, the Group CEO of GA Insurance Kenya Ltd said, “Our specialized products in the e-mobility segment and the entire transport sector will be key in driving industrial shift towards carbon neutrality.”

“As other sectors of the economy grow, transport will be needed to drive and enable this growth; ensuring we have proper mechanisms to reduce emissions and drive climate resilience will be key to conserving our environment for future generations,” he added.

The adoption of electric vehicles in the country has been on a steady rise, with studies revealing that there was a remarkable 108% increase in electric vehicle sales during the 2022-2023 financial year.

The adoption of carbon neutral vehicles and subsequent sustainable insurance products is expected to  play a big part in revolutionizing the transport sector.

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