Business & Management
EfD Takes Research findings to Parliament: Advocates for Regulatory and Policy Framework to Support Transition to Clean Energy for Households
A team of researchers from Makerere University Centre for Environment for Development Initiative (EfD-Mak Center) on Friday 3rd May 2024 went to Parliament to share study findings on Uganda’s heavy reliance on fuel wood and charcoal to guide the country and, in particular Members of Parliament in their policy formulation.
Research fellows Prof. Edward Bbaale, Dr. Peter Babyenda, Dr. John Sseruyange, and Dr. Nick Kilimani undertook a study titled, “Promoting Inclusive Clean Energy Transition in Uganda: Evidence, Challenges and Policy Options”.
The team studied people’s perceptions of cooking energy systems in Uganda, through a document review and Focused Group Discussions, their level of knowledge about the possible effects of using energy systems, the challenges they face when using various energy systems, and their suggestions for promoting the use of clean energy.
Findings indicated an over-reliance on biomass across the country with charcoal being the major energy source in the low-income suburbs of Kampala. Evidence also points to the inherent fear of electricity and liquid petroleum gas, weak awareness, and poor regulatory systems to be the leading obstacles to an energy transition process.
The team, led by the Centre Director, Prof. Edward Bbaale, who is also Director of Research and Graduate Training at Makerere University interfaced with the Members of Parliament on the Committee of Environment and Natural Resources. Bbaale presented on, “Biomass Dependence and Green Transitions: Implications for Policy”.
“Parliament is a very important arm of government, responsible making laws, performing oversight role and therefore our research findings must be shared with them so that they use the information that we have generated through research for them to do their legislative function better.
“Makerere is a research intensive University but at the same time, the main objective of the current strategic plan is to generate as much research as possible. But number two, is to package this research and market it and share it with the rest of the country so that it can be useful and cause a policy and behavior change”, Prof. Bbaale justified the meeting.
Sharing the issue of green transitions, especially in the area of energy transitions in different sectors, as critical, Bbaale told MPs that over 3 billion people globally depend on biomass for energy which exacerbates climate change, forest loss, water scarcity and land degradation.
With a projection of the rise in the Global population from 8.1 to 9.8 billion by 2050, Bbaale decried that more than 700 million people survive on less than $2.15 daily which leads to increased reliance on biomass.
In Sub-Saharan Africa, the professor said over 900 million people use biomass for cooking while Uganda has high reliance on biomass with 85% of the households using firewood, 13% using charcoal .
Charcoal burning and firewood collection according to Bbaale is partly responsible for Uganda’s rapid declining forests cover. Uganda’s Forest cover dropped from 20.4% in 1990 to 9% in 2015, driven by energy needs. Currently forest cover stands at 13.3%. Other factors like logging, farming and development also contribute to forest loss.
Bbaale also informed parliamentarians that heavy dependence on biomass energy poses health risks particularly to women and children. Household Air Pollution, according to Bbaale affects over 20 million Ugandans, causing 13,000 deaths annually, with women and children bearing the brunt.
“…firewood and charcoal are dirty sources of energy. Respiratory diseases, eye diseases, and others can be attributed to the household air pollution, but as a result of cooking, we also contribute to the bigger greenhouse gas emissions, then we see climate change manifest in extreme weather conditions like prolonged drought spells, floods and very heavy rainfall beyond the normal, and this has far-reaching effects on our economy and environment”, He explained.
Bbaale informed the committee about the social economic implications of high dependence on biomass. He said, wood fuel collection distresses child schooling in rural areas as children lose time collecting wood fuel, affecting their education.
Economically, Bbaale told Members of Parliament that dependence on biomass as an energy source impedes on female labor force participation. Ugandan rural women Bbaale reported spend 9.1 hours per week on fuelwood collection, compared to 2.5 hours for men, hence reduces womens’ time for employment and education and this perpetuates gender inequalities in the labor market
In addition to increasing Green House Gas emissions, Bbaale explained that heavy reliance on Biomass increases Uganda’s vulnerability to climate shocks. Uganda is highly vulnerable to climate shocks and ranks 13th position out of 192 countries in terms of vulnerability with low capacity to deal with climate change effects ̶ 160th/192.
Green Transitions
The Director proposed an economy free from fossil fuels, sustainable consumption of natural resources, less biomass energy dependence and low-carbon solutions as stipulated in Uganda’s Vision 2040 and NDP III and the Nationally Determined Contributions – a climate action plan to cut emissions and adapt to climate impacts.
Within Energy, Bbaale expressed the need to increase the use of renewable energy, improve efficiency of biomass production and use, encourage industrial fuel switching, increased energy access for households and promote cleaner cooking technologies.
Noting that Uganda’s Gross National Income per capita is $930 and close to World Bank’s Lower Middle-Income Status ($1,086), Bbaale said the energy ladder indicates a delayed transition towards clean energy.
With 85% households relying on firewood, 13% depending on charcoal and only 2% using clean energy sources like gas or electricity, Bbaale attributed the delayed transition to challenges mainly availability, affordability, reliability, efficiency, and cultural considerations.
In terms of availability, the Professor told the committee that about half of Uganda’s population has access to any form of electricity largely due to the rural electrification program with a number of households not connected to the grid due to high costs and selective distribution of electricity lines.
Bbaale also reported that whereas the National LPG Supply Infrastructure Development and Promotion targets improving the LPG supply, storage and demand the main gaps include high initial costs, limited refilling centers especially in rural areas, high refilling costs and counterfeits.
In terms of reliability, Parliamentarians heard that only 24% of Ugandans have access to more than 4 hours of electricity per day with inadequate voltage in some areas and limited LPG refill centers.
Policy recommendations
Prof. Bbaale tabled recommendations on infrastructure development, financial incentives, sensitisation and awareness raising, capacity building and technical assistance as well as regulatory and policy framework.
On infrastructure development, Bbaale implored government to invest in expanding electricity grids to reach remote rural areas, establish even distribution LPG refilling centers, develop energy storage infrastructure for reliable power supply from renewable sources and, address rural electrification challenges such as connection costs and distribution issues.
Speaking on financial incentives, the professor asked government to provide subsidies and grants to reduce initial and refilling costs, offer low-interest loans for affordable clean energy technologies, implement tax incentives to encourage clean energy investments especially by the private sector and also provide flexible payment plans or pay-as-you-go schemes for clean energy systems to improve accessibility for financially constrained rural populations.
“We must go green and if we must green our economy, a very big part of it is energy transitions. And the question is, what are the alternative sources that are cleaner? It is electricity, it is LPG. And then will the households afford?
“And as a result we are saying, legislators play an oversight function, they come up with the rules and regulations that govern our country. What can be done, for example, to make clean energy sources affordable? Let Members of Parliament think about some financial incentives, maybe some very cheap loans, advocate for subsidies from government, can be to increase their availability by encouraging the private sector by reducing taxes that overburden them to do business” Bbaale explained.
He also recommended sensitization of the public to raise awareness about subsidies (cooking tariff for electricity in Uganda) and clean energy alternatives, like Tanzania’s national cooking conference and to encourage mindset change towards LPG and biogas, led by Parliamentarians.
“For people that use electricity for cooking, very few households, including those that are around Kampala, know about electricity subsidy. And the Minister of Energy is of the view that electricity is the cheapest source of power these days. Even households that are well-educated, are not aware of what government has done in promoting the clean cooking”
“And being opinion leaders from their different constituencies, Members of Parliament can also act as champions of mindset change wherever they are. Maybe they can be in their constituency, act as a center to demonstrate some of the clean energy sources. How is it working? How is it possible?” Bbaale said.
Government according to Bbaale should offer training programs to rural communities on clean energy technologies and maintenance, provide technical support for installing and maintaining clean energy systems and facilitate knowledge-sharing platforms for rural communities to learn from successful projects.
Bbaale also proposed regulatory and policy frameworks in regard to standardization. He stressed the need for a law and policy in regard to prices and standards with Uganda National Bureau of Standards to rule out counterfeits.
Parliament pledges to support policies on clean energy transition and engage line ministries to collaborate with EfD as a research arm
The Chairperson Parliamentary Committee on Environment and Natural Resources, Dr. Emmanuel Otala who is also Member of Parliament for West Budama South Constituency, Tororo District commended the university dons for sharing the research findings to guide policy formulation.
“And I must say that they are spot on in that their research findings are pointing the country to protection of our environment. And as they concluded by saying that yes, God always forgives, human beings sometimes forgive, but nature will never forgive if we do something. I think that was a fundamental statement, really,” Dr. Otala recalled.
Citing recent and occurring disasters that have ravaged the country due unsustainable use of the environment, Dr. Otala emphasized the need to balance development with environmental conservation.
“Most of our people still use firewood, biomass for cooking. And this is not the right way to go. We must look at renewable sources of energy and how to conserve our forests and that is how they bring in the issue of Liquefied Petroleum Gas.
Unfortunately, government already made an attempt, but at a very small scale. And so, we need to scale up this project of substituting the use of biomass for cooking with the Liquefied Petroleum Gas and even use biogas from homes.” Dr. Otala noted.
Otala pledged total commitment to working with the EfD-Mak center and line ministries to support policies to a green transition.
“What the EfD is doing is in keeping with the current global initiative of trying to address climate change, of conserving the environment, and the turning away from the use of fossil fuels to use of renewable energy for cooking. And we think that as policy makers, most of the policies they recommended are very good and we are going to take them up”. He said.
Dr. Otala also pledged to share the research findings with the Minister of Water and Environment and his team, discuss the proposed policies and interventions and interest the ministry to utilize EfD as a research arm.
“The use of evidence-based policy is critical, and I can’t explain it more. So we shall definitely bring it to the attention of the Minister that in Makerere there is this initiative.
…we shall definitely help you to highlight the need for collaboration in terms of research, but also translating research findings into actual activities on the ground for the benefit of our people based on research”. Otala affirmed.
Members of Parliament speak out
Shadow Minister for Environment and Energy who is also Woman Member of Parliament representing Kiboga District, Christine Kaaya Nakimwero requested the EfD Researchers to research on the census tools and fossil fuels that the country is looking up to.
“One, we have not looked at the census tools for the census that is going to begin on 10th May this month, we would request you to look at the tool urgently and see if ownership of energy tools in households, for us to know what households really use.” Kaaya submitted
Kaaya also requested researchers to appreciate that Uganda is set to make money from fossil fuels and to research into emissions resulting from different energy sources and initiatives like afforestation.
“How much emissions come from production of one liter of fossil fuel? And what do we need to do to offset emission from one liter of fossil fuel? That is the exact message we’re supposed to share with our people. People need to know, if I plant five trees, does it help?” She pondered.
Kaaya also decried the issue of counterfeits in the energy sector calling on the committee members to discuss more on how the Uganda National Bureau of Standards can be supported to check counterfeits. She observed that affordability and culture are some of the factors hindering the adoption of clean cooking energy.
“There is a gender aspect in making people run away from use of biomass. I’m supposed to cook. Without food, there is no marriage. So, when we are phasing out biomass, we must have that at the back of the mind. I’m in Kampala, you have refused people to bring charcoal. I’m here in Kampala, I’m married, I’m supposed to cook, I don’t have LPG, I cannot afford electricity.
“And how long are we going to wait to resolve this matter? You cannot just stop charcoal vehicles in Kiboga, please don’t proceed to Kampala. How do you expect us to make our husbands eat and the entire family? If you cannot answer that, then let’s go slow. We need to advise the President very appropriately.” Kaaya said.
Recently, the President of Uganda banned the commercial making, transportation and selling of charcoal to safeguard the environment.
The other cultural barrier to adoption of clean cooking energy according to Kaaya is the method of food preparation. In Buganda and other cultures that eat bananas, one is not a wife if she cannot prepare bananas, squeeze and leave them on fire in banana leaves for long hours until it is soft before serving.
“It is that cultural practice which is becoming very difficult. The electric cooker cannot accommodate banana leaves. After squeezing bananas, you are supposed to leave it on fire. It becomes very soft, such that even somebody who will come at midnight, finds it soft and hot. That is what we are battling with in our cultural settings. With this new gadget, you can’t have it. And then, in other words, you are not a good wife.” The MP said.
Hon. Orone Derrick Member of Parliament from Gogonyo county encouraged researchers to put more effort on the media awareness to the public.
“We as policy makers, we shall really support you but put more awareness of the media to the public that’s the only encouragement. I want to thank the chair for organizing these researchers to come and tell us, educate us, sensitizing us about the clean energy”. Orone said.
Hon. Apollo Yeri of Tororo Municipality implored the university to look into cheaper clean energy technologies like the use of biogas from animal and human waste.
“There are some people who have started to manufacture biogas themselves locally using cow dung and pit latrine. It is a bit cheap to produce. So if you encourage them to manufacture their own biogas, and maybe teach them how to store – because they don’t store anything, just use and sometimes they overuse. If they can store, they can even sell excess and more people would be encouraged”, Yeri suggested
Hon. Clare Mugumya, the District Woman Representative of Isingiro was hopeful that Uganda’s oil wells from Kirenga would provide cheap gas for the population. She noted that other clean energy sources and gadgets are costly for ordinary Ugandans.
“Otherwise, behavior change alone will not be possible, even if we sensitize, unless the issue of affordability is seriously addressed by government”. she said.
Jane Anyango is the Communication Officer EfD Uganda
Business & Management
Dissemination Workshop: Government and Regulators urged to formalize the informal sector
On 29th August 2025, researchers from Makerere University College of Business and Management Sciences and the Copenhagen Business School, in partnership with Uganda Small Scale Industries Association disseminated the key findings and policy recommendations aimed at impacting both the informal and formal sectors in Uganda.
The dissemination workshop follows an intensive and participatory research project, which presents insights from a large scale study of over 1,100 small-scale firms across Uganda. Hosted at Makerere University, the dissemination workshop on Firm Formalization and Sustainable Development, brought on board key stakeholders including regulators, policy implementers, researchers, industry partners, the private sectors, manufactures, the academia, business men and women from the informal sector, and the media.
Approximately 90% of Small and Medium Enterprises (SMEs) in Sub-Saharan Africa operate in the informal sector. Uganda’s informal economy employs the majority of workers, but is characterized by low productivity and unsustainable practices. In Uganda, nearly 78% of the working population operate in the informal economy, spanning from street vendors to large unregistered businesses. Firms may choose to remain informal to hinder the accessibility of tax information, which consequently affects the government’s ability to mobilize domestic revenue. While informality provides livelihoods and informal firms may enjoy a significant degree of adaptability and flexibility, they typically face low productivity, limited worker protection, and environmentally harmful practices.
In 2022, an interdisciplinary team of scholars and practitioners embarked on research to examine the informal sector, gain a deeper understanding of the informal sector, as well as, its impact on sustainable development. The research team conducted field experiments and survey-based studies between 2022-2024 to evaluate the links between formalization and sustainable development.
Led by Prof. Marcus M. Larsen as the Principal Investigator, the research team consisted of the following the members: Prof. Faisal Buyinza-Local Principal Investigator, Dr. John Seruyange-Makerere University School of Economics, Dr. Ismail Kintu and Dr. Yusuf Kiwala-Makerere University School of Business, and Prof. Rebecca Namatovu-Copenhagen Business School. The research was funded by the Independent Research Fund Denmark.
“Our research shows that formalization can promote sustainable development, but outcomes differ by type: URA tax registration drives the most meaningful improvements in business, labour, and environmental practices, while URSB business registration mainly boosts legitimacy and local government licensing lags behind. To realize Uganda’s green and inclusive growth goals, formalization must be coupled with sustainability incentives, targeted reforms, and strong support from government, business associations, and civil society. From the policy perspective, the government needs to simplify the legitimization process through increased proximity of the registration centres for SMEs to leverage the benefits of formalization.”
Opening the dissemination workshop, the Principal of the College of Business and Management Sciences-Prof. Edward Bbaale represented by the Deputy Principal, Professor James Wokadala, emphasized the significance of the study in shaping Uganda’s development agenda. He underscored that Makerere University is committed to undertaking research with partners to drive inclusive growth and sustainable economic development. The Deputy Principal noted that the interdisciplinary research team combining the global north and global south expertise, positions the College of Business and Management Sciences at Makerere University, to produce impactful research to influence policy and practice at the national and global levels.
Unpacking the key concept in the research project, Ms. Veronica Namwanje, the Director of Uganda Small Scale Industries Association (USSIA) explained that formalization goes beyond business registration. “Formalization is about strengthening enterprises to grow sustainably,” she articulated. Commending the partnership between USSIA and the School of Economics at Makerere University, Ms. Namwanje stated that this collaborative learning experience will strengthen SME’s in Uganda. “This research will significantly impact Uganda’s economy. 75% of the labour force is employed in the non-formal sector. The research will support over 12,000 member SMEs across Uganda,” she said.
Building on the remarks from the College Principal and the Director of USSIA respectively, the Moderator of the dissemination workshop, Dr. Anthony Tibaingana called upon the project Principal Investigator, Prof. Marcus Larsen from Copenhagen Business School, to present to the audience, the gist of the research on formalization and sustainable development.
Prof. Larsen commenced his presentation by acknowledging the Local Principal Investigator, Prof. Faisal Buyinza and Makerere University researchers in Economics and Business for their commitment and dedication. “This project started in 2022. You have worked with me wholeheartedly. Thank you for being true partners,” he remarked. Prof. Larsen explained that this research exposed him to the beautiful country called Uganda, its fine weather and hospitable people. As this particular research project comes to an end, he leaves Uganda and Makerere University with good memories, of working with people, committed to the transformation of society.
Setting the pace into his presentation that provided a strong case for formalization of business given its contribution to inclusive growth and development of any country, Prof. Larsen provided a comparison between the Global north where formalization is a norm. “The Global North has zero tolerance for informal practices. In the Global North, you must be formally registered to operate a business,” he reported.
In the Global South, Prof. Larsen disclosed that the research studies proved that the number of firms under the informal sector was quite high. Through the research project, Firm Formalization and Sustainable Development in Uganda, they observed that many small scale businesses operate without any form of registration, from the Uganda Revenue Authority (URA) and the Uganda Registration Services Bureau (URSB).
With over 78% of the working population employed in the informal economy through numerous establishments (ILOSTAT, 2024), Prof. Larsen stressed that the situation in Uganda, necessitates a combined effort to ensure formalization of businesses/firms. He notified the audience about Sustainable Development Goal (SDG) 8.3, which encourages the formalization and growth of micro, small and medium sized enterprises. He also made reference to Uganda’s 4th National Development Plan, which states, and I quote: “This dual nature of informality contributes to low productivity, survival and growth of enterprises, as well as, limiting effectiveness of government policy incentives.”
Prof. Larsen argued that addressing high firm informality in the Global South through formalization can unlock growth, enable access to resources, spur sustainable development, drive inclusive growth, and contribute to the realization of Sustainable Development Goals (SDGs).
Examining SMEs and the environment, Prof. Larsen reported that the research findings indicated that that environmental issues are given less attention by SMEs. “Informal workers are particularly affected by and affect climate change. Most of the interactions proved that informal workers use environmentally unfriendly practices,” he stated. Prof. Larsen together with the research team advocated for a transition to formalization of firms, which leads to environmental sustainability with decent workers.
The research team observed that informal workers suffer from job insecurity, and in most cases, their employers do not remit their social protection funds. For instance, in Uganda, most of the workers in the informal sector did not have any contributions with the National Social Security Fund (NSSF).
Presenting the key research insights, Prof. Larsen focused on the formalization and practices, interpretation for policy makers, and SME survival and sustainability. Formalization and Practices provided hints on URSB (business registration), URA (Tax Registration) and Local Government (Trading Licenses).
Providing the interpretation for policy makers, Prof. Larsen elaborated as follows: URSB formalization mainly signals legitimacy, but has limited impact on deeper practices; URA formalization, though resisted initially, delivers the strongest and broadest improvements in business, worker and environmental practices once firms adopt it; and Local government licensing is associated with negative or weak outcomes indicating a need to reform systems to better incentivize sustainability.
On SME Survival and Sustainability, the key research insights include the following:
Financing: MSMEs that started with external financing were 12% more likely to survive than those using internal funds.
Gender: Male owned MSMEs had a higher survival rate (+13%) due to greater access to resources, though firms owned by females reported stronger sustainability orientations.
Location: Urban-based firms had 10-20% higher survival than rural firms, though rural enterprises displayed higher sustainability practices overall.
Education: Owners with university education had survival rates 17 to 24% higher than those with primary schooling.
Business associations: Female-owned MSMEs in associations had 13 to 16% higher survival rates
Registration effects: Surprisingly, longer registration with URA/URSB was associated with slightly lower survival rates (1 to 4%), pointing to burdens of compliance.
The Local Principal Investigator, Prof. Faisal Buyinza, advocated for multi-faceted policies to empower SMEs in Uganda for instance, through simplifying registration, providing green tax incentives, protection of workers and guarding against counterfeit products. Prof. Buyinza presented the following policy recommendations:
- Raising sustainability standards in business formalization
- Building green and fair fiscal systems
- Strengthening social protection and green employment
- Enhancing entrepreneurial skills for sustainability
- Promoting youth and ago-led green innovation
- Advancing women’s leadership in sustainable enterprises
- Digital transformation for green formalization
- Civil society and employer advocacy for just transition
The participants delved into an interactive question and answer session moderated by Prof. Eria Hisali, former Principal of the College of Business and Management Sciences, who provided strategic guidance and oversight at the inception of the research project.
Prof. Hisali called upon the participants and key stakeholders to contribute to the discussion, when he said: “The informal sector is not abstract. The informal sector is with us. I therefore call upon you to share lived experiences and practices on this matter.”
Taking on the form of a plenary, the following ideas were raised:
- Financial constraints are a major blow to SMEs. This is further complicated by the payments required through registration, licensing, taxation, and other formalization processes including the high cost for online operations that require access to the Internet.
- Power outages in Uganda significantly affect business operations. When power is on and off, SMEs incur losses due to the nature of their activities.
- URA has a close working relationship with Uganda Small Scale Industries Association (USSIA). This partnership should be leveraged to reach out to business owners in the informal sector.
- The government should provide tax incentives to local investors. This incentive will positively impact formalization of businesses.
- URBS should come up with tough measures on standards in order to safeguard Ugandans from counterfeit products.
- URA and URSB should note that majority of players in the informal sector are not educated, and, as such, should come up with specialized awareness programmes delivered in a language that they can understand.
- Noting that despite the benefits of formalization, entrepreneurs fear to formalize their business, those concerned should invest time and resources to identify the reasons behind this attitude.
- Create awareness by deliberately popularizing the benefits of formalizing a business, and the incentives that accrue to someone who has formalized his or her business.
- Commending the stakeholder mapping and segmentation with respect to policy recommendation, the participants requested for the involvement of the Ministry of Gender, Labour and Social Development.
- Tackling the policy recommendation on digital transformation, the participants recommended the involvement of NITA-Uganda.
- Formalization of businesses and registration is affected by the high cost of Internet services and subscriptions. The participants reported that the high costs of Internet deter online operations.
Reflecting on the ideas raised during the plenary sessions, Prof. Hisali observed differences in the level of awareness regarding business formalization. He called upon the Uganda Small Scale Industries Association and Makerere University to continue the discussion with key stakeholders to conduct periodic awareness creation and training sessions.
On a positive note, the participants and stakeholders were notified that URA was in advanced stages of according tax holidays to SMEs. Prof. Faisal Buyinza, who interacted with URA, during the course of the research project (2022-2024), highlighted that effective July 2026, start-up business up to UGX 300million, will not be taxed. Such start up business, will enjoy a tax holiday of three years.”
The submission from Prof. Faisal Buyinza was supported by officials from URA who were physically present in the dissemination workshop held in the Conference Hall, at the College of Business and Management Sciences, Makerere University.
The participants were thoroughly engaged during the dissemination workshop, which entailed remarks from the College Principal, presentation by USSIA, project purpose and findings, research presentation, policy implications, question and answer session, and final reflections.
Business & Management
Carbon Prices Too Low to Cut Emissions, Says Canadian Professor Mark Purdon at EfD-Mak Seminar
Kampala, Uganda – August 27, 2025
A new study spanning a decade has revealed that the prices currently offered for carbon credits and other climate finance instruments are too low to meaningfully reduce greenhouse gas emissions in developing countries.
The findings were presented by Canadian scholar Prof. Mark Purdon during a seminar at Makerere University, where he launched his new book “The Political Economy of Climate Finance Effectiveness in Developing Countries: Carbon Markets, Climate Funds, and the State.” The event, hosted by the Environment for Development (EfD) Mak Centre, attracted graduate students and academic staff from the Schools of Economics and Agricultural Sciences.
Prof. Purdon, an Associate Professor at Université du Québec à Montréal (UQAM), based his conclusions on a comparative study conducted between 2008 and 2018 in Uganda, Tanzania, and Moldova. His research showed that while carbon markets and climate funds are theoretically designed to reduce emissions, their real-world effectiveness is constrained by the low financial incentives attached.
“Carbon prices during the period I studied were simply too low to drive meaningful emission reductions,” said Prof. Purdon. “They only worked in contexts where governments were already trying to push development initiatives-like Uganda’s forestry projects and the climate finance just helped amplify that effort.”
The research contrasts Uganda’s relatively proactive approach with Tanzania’s limited engagement, attributing the difference not to institutional capacity but to political will.
“In Tanzania, the government just wasn’t genuinely interested in these instruments -they didn’t find the financial incentives compelling. Uganda, on the other hand, saw even the modest funding as worth integrating into its broader development goals,” he added.
Interestingly, Moldova also showed effectiveness similar to Uganda, despite having different levels of state capacity. Prof. Purdon emphasized that success in utilizing climate finance depends more on political interest than institutional strength alone.
The seminar highlighted the importance of domestic commitment in making international climate finance work. According to Purdon, climate finance is unlikely to succeed in countries lacking political interest, regardless of the mechanisms in place.
The professor’s book aims to inform policymakers, development agencies, and researchers about the conditions under which climate finance can effectively contribute to emission reduction. He expressed hope that students and faculty at Makerere University would further engage with the study’s findings.
“This is how ideas turn into action – through forums like this,” he said, noting his appreciation for the strong turnout and engagement at the event.
Prof. Purdon was in Uganda to attend the International Growth Center (IGC) conference later in the week, but used the opportunity to share his latest work with the Makerere academic community.
Uganda to Launch National Climate Finance Strategy as Experts Call for Private Sector Investment in Adaptation
Uganda is set to launch its first-ever National Climate Finance Strategy on September 12, 2025, a milestone development in the country’s climate policy architecture, according to remarks made by Dr. Peter Babyenda, Policy Engagement Specialist at the EfD-Mak Centre.
Speaking on behalf of Prof. Edward Bbaale, Director of EfD-Mak Centre, Dr. Babyenda emphasized that climate finance will only be effective if private sector participation is prioritized especially in adaptation-focused investments.
“The private sector will only invest where there’s a return. We must ask how to make climate investments profitable,” Dr. Babyenda said. “Much of our climate financing currently goes toward mitigation, but Uganda’s needs are more aligned with adaptation especially in agriculture, which remains highly vulnerable.”
He cited his recent consultancy with the International Fund for Agricultural Development (IFAD), which explored strategies for increasing private sector investment in agricultural adaptation. The findings, expected to be published soon, were presented to various donor communities and could shape future financing models in Uganda.
Dr. Babyenda noted that while mitigation efforts like tree planting are easier to quantify and attract funding, adaptation remains underfunded despite its critical relevance for Uganda. He called for targeted strategies to shift this imbalance.
Highlighting the significance of Prof. Purdon’s new book, “The Political Economy of Climate Finance Effectiveness in Developing Countries”, Dr. Babyenda stressed the importance of understanding political will in determining the success of climate initiatives.
“The experiences from Uganda, Moldova, and Tanzania outlined in the book show that effectiveness is possible where there is political interest. It is not just about institutional capacity it is about commitment,” he said.
He further revealed that Uganda’s Ministry of Finance, Planning and Economic Development has already established a Climate Finance Unit, which is now leading efforts to formalize the upcoming strategy.
In addition to national developments, Dr. Babyenda warned of growing international pressure. He pointed to upcoming European Union regulations, including the Cross-Border Adjustment Mechanism (CBAM), which could restrict exports such as coffee unless exporters prove their products are deforestation-free.
“If we don’t have systems like carbon taxes or certified credits, our goods will face fines or lose market access. We must prepare for this global shift,” he warned.
Dr. Babyenda also announced that Makerere and IGC would sign a Memorandum of Understanding, solidifying their continued partnership in climate economics research and policy development.
He closed by encouraging students to engage with the issues raised during the seminar, suggesting they could form the basis of graduate research or postdoctoral work, especially with available funding in climate-related fields.
“Monies are there and these are the issues. Our roads, our crops, our lives are being affected. We need solutions rooted in evidence and action,” he said.
Book Offers Critical Insights for Evidence-Based Policy, Says Reviewer Dr. Byakagaba
Dr. Patrick Byakagaba, a leading Ugandan environmental policy expert and one of the reviewers of the launched book, praised the publication for shedding light on the political economy factors that determine the success or failure of climate finance instruments in developing countries.
Dr. Byakagaba described the work as a timely and evidence-based resource that should inform both policy and practice.
“In my opinion, this book helps us understand the political economy factors that are critical for the effectiveness of the different climate financing instruments,” Dr. Byakagaba said. “It shows what is working, what is not, and what we must do to leverage successful measures.”
He emphasized the book’s relevance not only for academics but also for practitioners and students in economics, environmental science, and natural resource management – many of whom are directly involved in projects funded by international climate finance.
Unlike many theoretical publications, Dr. Byakagaba noted that the book stands out for its field-based evidence drawn from Uganda, Tanzania, and Moldova – countries with shared democratic governance structures but differing levels of engagement in climate finance initiatives.
“This isn’t just theoretical work,” he said. “It gives us a strong theoretical foundation but also backs it up with real-world evidence. That’s exactly what we’ve been missing – research that informs policy in a tangible, practical way.”
He stressed the importance of building on this research to expand the body of evidence needed for crafting effective and locally relevant climate finance strategies.
“If we are going to adopt evidence-based policy instruments, we must continue investing in research that reveals what’s actually working on the ground,” Dr. Byakagaba urged.
The seminar highlighted the growing need to critically evaluate and adapt international climate finance mechanisms to local political and economic realities – a message echoed by both Prof. Purdon and other experts at the event.
Book summary
There is ample evidence that engaging developing countries on climate change mitigation would have significant, positive impacts on global climate efforts. There is much debate, however, on the most effective strategy for unlocking these low cost mitigation opportunities. While the Clean Development Mechanism (CDM) emerged as the main climate finance instrument for engaging developing countries under the Kyoto Protocol, the carbon market approach it embodied would largely be replaced by a new array of climate finance instruments based on climate funds.
In The Political Economy of Climate Finance Effectiveness in Developing Countries, Mark Purdon shows that the effectiveness of climate finance instruments to reduce emissions under either strategy has depended on the interaction between prevailing ideas about how to develop a nation’s economy, as well as state interests in various economic sectors.
Based on multiple field visits over a decade in three countries, the author demonstrates that climate finance instruments have been more effectively implemented when the state treats them as vehicles for addressing priority development issues. Climate finance instruments were more consistently and effectively implemented in Uganda and Moldova than Tanzania, despite differences in state capacity between countries. This pattern held for the CDM,as well as subsequent instruments largely based on climate funds such as Reducing Emissions from Deforestation and Forest Degradation (REDD+) and other national mitigation actions. Contributing to broader debates on international climate cooperation, Purdon’s findings inform international efforts to support national climate plans and catalyze low-carbon development by emphasizing the importance of domestic politics and the state.
The Political Economy of Climate Finance Effectiveness in Developing Countries: Carbon Markets, Climate Funds, and the State
By Mark Purdon
Oxford University Press 2024
Purchase Online: https://global.oup.com/academic/product/the-political-economy-of-climate-finance-effectiveness-in-developing-countries-9780197756836
Jane Anyango is the Communication Officer EfD Uganda.
Business & Management
Uganda Urged to Embrace Community-Based Conservation Approaches to Tackle Biodiversity Crisis
Over 40 Ugandan government officials have been called to integrate communities into biodiversity conservation following a two-day high-level training (August 20–21, 2025) at Makerere University.
Organized by EfD Uganda, the workshop focused on biodiversity conservation, community-based natural resource management, and economic valuation of national parks. Led by renowned environmental economist Prof. Edwin Muchapondwa, the training emphasized aligning conservation efforts with community involvement for lasting impact.
“Communities must be seen not just as beneficiaries but as co-managers of biodiversity,” said Prof. Muchapondwa. “Policy frameworks need to devolve rights to local people to increase their stake in conservation outcomes.”
Participants from ministries and agencies explored Uganda’s biodiversity challenges—including habitat loss, agricultural expansion, poaching, and climate change. Sessions covered conservation principles, legal frameworks, ecosystem valuation, and regulatory tools to integrate biodiversity into national planning.
Valuing Nature to Shape Policy
A central theme was the economic valuation of ecosystems—putting monetary value on biodiversity to inform policy and investment decisions.
“When we reduce everything to a common metric, we can make objective, evidence-based decisions—especially when weighing development against conservation,” Prof. Muchapondwa said.
Officials practiced applying valuation methods like contingent valuation and payment for ecosystem services in real-world policy settings, including environmental impact assessments and Uganda’s National Development Plan III.
Despite strong conservation policies on paper, implementation remains weak. “The issue isn’t policy absence but execution,” he noted. “We must adapt successful community-based models from Southern Africa to Uganda’s context.”
Tourism and Development: A Delicate Balance– Prof. Edward Bbaale
Speaking at the opening, Prof. Edward Bbaale, Director of the EfD–Mak Centre, emphasized collaboration between academia and government to support tourism development and sustainable resource use.
He praised Prof. Muchapondwa as a “pillar of the Environment for Development network” and highlighted the urgent need for research that connects tourism, conservation, and economics.
“We’ve had little research from Makerere on tourism and natural resource valuation,” Bbaale said. “Yet this is exactly where government seeks advice.”
Bbaale underscored Uganda’s ambition to grow GDP tenfold—from $50 billion to $500 billion—through sectors like tourism, agro-industrialization, and manufacturing, urging researchers to support this growth with evidence-based insights.
“Makerere houses the highest concentration of PhDs in this country,” he said. “If this research isn’t happening here, where else should it happen?”
The event concluded with a renewed call for stronger partnerships among academia, government, and communities to ensure conservation and development go hand-in-hand.
Public Sector Must Rethink Economic Policy Through Biodiversity Lens– Dr. Peter Babyenda
Uganda risks jeopardizing its natural wealth if it continues to undervalue its ecological resources, warned Dr. Peter Babyenda, Research Fellow and Policy Engagement Specialist at EfD–Mak Centre.
“Our forests, wetlands, and ecosystems are routinely excluded from GDP calculations due to limited technical capacity and funding,” he said. “Kenya has made progress—Uganda must catch up.”
To bridge the gap, EfD–Mak Centre, with support from SIDA, has launched a training program for technical staff from ministries and agencies like the Ministry of Tourism, Uganda Wildlife Authority, and NEMA.
“These are the people who draft policy,” Dr. Babyenda said. “We’re training them to use data and evidence, not emotion, when defending policies.”
He cited recent transport policy missteps—such as a speed enforcement proposal that failed due to lack of public engagement—as an example of why community participation is essential.
“Especially with human-wildlife conflicts, you must involve locals,” he said. “Solutions like electric fencing must be safe and community-driven.”
Conservation vs. Economic Growth
Uganda’s ambitious goal to grow its economy from $50 billion to $550 billion by 2040 presents risks to biodiversity, particularly from agricultural expansion. Dr. Babyenda stressed the need to balance development with environmental preservation.
“We must promote agriculture without destroying forests and wetlands,” he said. “Our tourism sector, which depends heavily on biodiversity, must also be protected.”
He urged officials to present conservation as an economic asset. “If you show that every additional dollar invested in tourism marketing creates jobs and boosts GDP, people will listen.”
Aligning with Uganda’s National Development Plan IV, Dr. Babyenda called for cross-sector policy coherence.
“Tourism, agro-industry, and mineral development must be guided by sound, evidence-based policy,” he concluded. “Otherwise, we risk losing it all.”
Participants Reflections from the Training
Adson Tumwebaze – National Environment Management Authority (NEMA)
As someone working in the Research and Innovations Unit at NEMA, this training was a timely eye-opener. We’ve gained valuable insights into how economic valuation can be integrated into our research and planning frameworks. Understanding the tangible benefits ecosystems provide—and knowing how to quantify those benefits—equips us with the tools to make informed decisions when balancing development and conservation.
For us at NEMA, this goes beyond theory. It supports our mandate of protecting ecosystems and helps us align our work with national policies such as the National Biodiversity Action Plan and BISAP. One of my key takeaways is that you cannot talk about implementing a project on an ecosystem without understanding its value. Once we can economically define these benefits, we can also justify conservation measures, influence policy, and guide budgeting processes more effectively.
Alice Nalweera – Economic Policy Researcher
This training brought clarity to a challenge many of us are grappling with: the growing threats to biodiversity in the face of urbanization, climate change, and population pressure. As we pursue economic development and strive for goals like those outlined in the 2040 export-oriented strategy, we must ask: Can biodiversity and development coexist?
Tourism is one of Uganda’s biggest earners, and it’s entirely dependent on biodiversity—the parks, wildlife, flora, and fauna. Without protecting these resources, our economic aspirations could collapse. What struck me most is the urgent need for accurate data. We can’t conserve what we haven’t identified or valued. Accounting for our natural resources is not optional—it’s essential.
Arthur Ebong – National Planning Authority
From the national planning perspective, this training helped bridge a crucial gap between policy and implementation. While NDP III and NDP IV highlight biodiversity mainstreaming, they often lack depth in practical conservation measures. We used to insert the term “biodiversity” into plans, but lacked the tools to truly value and integrate it.
Learning about valuation methods like hedonic pricing and travel cost analysis opened new avenues for making biodiversity count—literally—in our national plans. And beyond the technical tools, this session also promoted inter-agency collaboration. With stakeholders like NEMA, UWA, and the Ministry of Water in the same room, we can now work more cohesively toward a shared goal.
The training has also inspired curriculum reviews. If we want future planners and policymakers to value biodiversity, we must train them early—through revised academic programs and capacity-building initiatives. This is not just about today’s policies, but the long-term socio-economic transformation of Uganda.
Gertrude Kirabo – Uganda Wildlife Authority (UWA)
At UWA, we face the challenge of balancing conservation with increasing economic pressure around protected areas. This training has been invaluable in helping us understand how to defend conservation efforts using data-driven economic valuation.
Previously, arguments for protecting a forest or wetland often sounded emotional or abstract. Now, we can present facts—cost-benefit analyses that compare the long-term value of ecosystem services with short-term economic gains. This also supports practical decisions like adjusting park permit fees or advocating for higher conservation budgets.
Personally, this training served as a wake-up call. It made me realize how often we’ve given away resources without truly valuing them. I strongly recommend that more field officers and institutional planners go through this kind of training. It’s one thing to learn these concepts in school, and another to see their real-world application. It’s time we started backing conservation with data and strong economic logic.
Jane Anyango is the Communication Officer EfD Uganda.
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