Establishing Foundations for Climate Finance: Somalia is prioritizing the development of national carbon market frameworks to transition from humanitarian-led responses toward sustainable climate finance. By establishing a Designated National Authority (DNA) office for carbon affairs under the Ministry of Environment and Climate Change, the government has created a central hub for market governance. This move anchors Somalia’s intent to participate in Article 6 of the Paris Agreement and the Voluntary Carbon Market (VCM), ensuring that climate projects align with national interests and provide developmental returns.

Developing Regulatory and Technical Infrastructure: The federal government is actively drafting the legal and technical frameworks necessary to transform environmental projects into tradable carbon credits. Key initiatives include:

• Institutional Capacity Building: Targeted training for governmental and non-governmental sectors to manage Monitoring, Reporting, and Verification (MRV) systems.
• Regulatory Oversight: Developing policy to ensure environmental integrity and prevent the double counting of emission reductions.

Prioritizing Adaptation and Community Co-Benefits: Given Somalia’s high vulnerability to climate shocks, the carbon market approach is designed to deliver tangible social and environmental co-benefits. The government focuses on sectors with high mitigation and adaptation synergy, such as:

• Renewable Energy: Reducing reliance on biomass and improving energy security.
• Nature-Based Solutions: Supporting reforestation and sustainable land management to combat desertification.
• Climate-Resilient Agriculture: Enhancing food security while generating carbon offsets.

Scaling Impact through Strategic Partnerships: Somalia is leveraging international cooperation to bridge financial and technical gaps. In its NDC 3.0, the country increased its mitigation ambition to a 34% reduction by 2035, identifying carbon markets as a vital tool to meet its $11.5 billion financing need. By creating a rules-based pathway, Somalia aims to attract private sector investment and blended finance models, ensuring that carbon revenues complement traditional aid to build a resilient, green economy.