After a marathon of talks at the just concluded climate change talks in Doha, where it was agreed that the rich nations will pay poor countries money to deal with effects of drastic weather changes, Ugandan companies now have a chance to make some bit of money.
Up to $100bn has been set aside to compensate poor companies facing such drastic weather changes like drought and floods. Ugandans with safe energy projects have been encouraged to apply for the clean development mechanism (CDM), where upon they would earn credits for reducing carbon emissions - the key elements said to cause drastic weather changes like floods and drought.
Public and private companies and NGOs with projects are encouraged to participate to tame the widespread climate change effects caused by emissions produced by the biggest industries in the developed countries. By applying for the Clean Development Mechanism, their projects can earn certified emission reduction (CER) credits, which can be sold to those companies expected to reduce their emissions.
The companies include those with projects promoting efficient use of energy, and those in large-scale tree planting campaigns, among others. About £30,000 (Shs 100m) has been earmarked to facilitate companies in Uganda that seek to implement the CDM projects.
Adriaan Tas, the international technical advisor, Belgian development Agency (BTC), says they work together with the people who own the projects, where they offer advice and financial support to CDM related processes like registration and consultation.
"The project owner must demonstrate that the project will be in a position to reduce carbon emissions. It is about environmental integrity; the project owner must make sure that the emission reductions are real," Tas said.
Every energy company seeking to undertake a CDM project will be required to at least to reduce 10,000 tonnes of carbon emissions. Here, the company will win carbon credits. The United Nation believes CDM will reduce climate change-related outcomes.
Companies in Uganda eying a CDM should expect a long and tedious process. They have to pay for CDM consultation, legal costs, verification costs and registration.