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.
Over 35 public officials from various Ministries, Departments and Agencies (MDAs) have commenced a two-week intensive training in Financial Appraisal and Risk Analysis in Mbarara. The training is organized by the Public Investment Management (PIM) Centre of Excellence at Makerere University, in collaboration with the Ministry of Finance, Planning and Economic Development (MoFPED), the National Planning Authority (NPA), and Cambridge Resources International (CRI).
Speaking on behalf of the Permanent Secretary and Secretary to the Treasury, Ms. Esther Ayebare commended the ongoing efforts to strengthen Uganda’s public investment management systems. She highlighted the recent launch of the National Public Investment Management Policy, describing it as a robust and unified framework guiding the entire investment cycle—from planning and appraisal through to implementation and post-evaluation.
Ms. Ayebare further noted other key reforms including the Framework for Tracking Implementation and Performance of Public Investments, the revised Development Committee Guidelines, and the Integrated Bank of Projects, all of which are designed to improve efficiency, accountability, and value-for-money in public investments.
“Each of these reforms plays a key role in enhancing public investment management. I urge you to familiarize yourselves with them and integrate these frameworks into your daily work,” she added.
The Deputy Director of the PIM Centre of Excellence, Prof. Eria Hisali, encouraged participants to actively engage throughout the training and make the most of the opportunity to build their analytical and decision-making capacity. He commended the Ministry of Finance for its continued financial support to the Centre and reaffirmed Makerere University’s commitment to providing high-quality training and research to strengthen public investment governance.
The Manager of the PIM Centre, Dr. John Sseruyange, underscored the importance of the training, emphasizing that the PIM Centre was established to build national capacity in the appraisal, management, and evaluation of public investments. He called on participants to apply the knowledge gained to improve project preparation and implementation within their respective institutions.
Dr. Sseruyange also expressed appreciation to the team of facilitators drawn from Makerere University, MoFPED, NPA, and CRI for their expertise and continued dedication to building Uganda’s human capital for effective public investment management.
The Financial Appraisal and Risk Analysis course is part of a broader capacity-building programme implemented by the PIM Centre aimed at enhancing the skills of public officials in the design, evaluation, and monitoring of development projects to ensure that public investments deliver optimal socio-economic returns for the country.
Business & Management
PIM Centre Holds 9th Steering Committee Meeting, Set to Benefit from World Bank Support
The Public Investment Management (PIM) Centre of Excellence at Makerere University today, October 10th, 2025, held its 9th Steering Committee Meeting to review progress made in the first quarter of the financial year and plan for the months ahead.
The meeting was chaired by Ms. Getrude Basiima, who represented Mr. Hannington Ashaba, Director Budget at the Ministry of Finance, Planning and Economic Development (MoFPED). Ms. Basiima commended the Centre for its continued commitment to strengthening public investment management capacity across government institutions.
In her remarks, Ms. Basiima applauded the Centre for successfully hosting the Public Investment Management Conference held in August at Makerere University. The conference attracted key policymakers, development partners, and academics who deliberated on how to enhance the efficiency, sustainability, and impact of public investments in Uganda.
She further shared exciting news that the Government of Uganda has secured funding from the World Bank to support the public investment management function. The PIM Centre, she announced, will be among the key beneficiaries of these funds — receiving support for the construction and acquisition of a permanent home to enhance its institutional sustainability and training capacity.
Reviewing the Centre’s quarterly performance, Ms. Basiima congratulated the team for successfully conducting three specialized trainings in the first quarter, reaching officials from various Ministries, Departments, and Agencies. These trainings continue to strengthen the technical competencies required for effective project preparation, appraisal, and implementation in line with Uganda’s National Development Plan.
She encouraged the Centre to integrate climate change considerations into its future training programmes, noting that sustainable public investment must now account for environmental resilience and climate adaptation.
The centre team presented the proposed structure/ organogram, the financial performance of 2024/2025, research areas for 2025/2026 and the strategic plan for 2025 – 2030.
The Steering Committee reaffirmed its commitment to supporting the PIM Centre’s vision of becoming a regional leader in building capacity for efficient, transparent, and sustainable public investment management.
Business & Management
Breaking Boundaries in Doctoral Training: COBAMS PhD Colloquium Unites, Equips, and Empowers Scholars
By Moses Lutaaya
Makerere University, COBAMS Conference Hall – Friday, October 3, 2025
In a closing address at the COBAMS Annual Doctoral Colloquium, Prof. Julius Kikooma, Director of the Directorate of Graduate Training (DGT) at Makerere University, urged PhD students to view their research as a vital tool in solving Uganda’s and Africa’s most pressing societal problems.
He reminded students and faculty that doctoral training at Makerere is no longer just an academic exercise, but a strategic national investment.
“PhD is not just about writing a thesis—it is about writing the future of our country, our continent, and indeed our planet,” Prof. Kikooma told participants. “Your research must be part of the solution to the challenges we face as a society.”
Prof. Kikooma began his remarks by reflecting warmly on his longstanding ties with COBAMS, describing it as “home” both professionally and collegially. He praised the college leadership for their foresight in organizing the doctoral colloquium and aligning it with the broader vision of the Directorate of Graduate Training and Makerere University.
He also noted the synergy between the colloquium’s theme and the Directorate’s recent graduate student induction theme which focused on “Positioning Graduate Training in National and Global Trends.” He said that this alignment reflects a growing institutional commitment to making graduate education more responsive to real-world challenges.
Prof. Kikooma emphasized the critical role that doctoral students play in shaping Uganda’s development trajectory.
“While the decision to pursue a PhD is personal, the outcomes of your research must not be. They must become part of our national assets,” he stated.
He encouraged students to look beyond the traditional confines of academia and to consider how their work can inform policy, address community needs, and contribute to sustainable development. In particular, he highlighted urgent national issues such as food insecurity, climate-related disasters, youth unemployment, and underutilized demographic dividends.
“We live in a country where a single flood can disrupt the entire economy. We have fertile soils but continue to face food insecurity. We are a youthful country, but we fear the youth because we lack solutions to productively engage them,” Prof. Kikooma said. “These are problems your research should address.”
Prof. Kikooma also used the platform to announce several ongoing reforms at Makerere aimed at improving the doctoral training experience. These include the introduction of an almanac—a structured academic guide outlining semester-by-semester expectations and milestones for PhD candidates.
He said the reforms were not designed to make the PhD journey easier, but to eliminate unnecessary administrative obstacles and ensure students can complete their programs within the planned three-year period.
“The university is ready for you. We are committed to ensuring that your journey is as smooth administratively as possible,” he affirmed. “But for that to happen, you must play your part.”
Additionally, the Directorate has introduced mandatory credit-based activities beyond thesis writing, such as producing policy briefs and participating in public engagement forums, aimed at equipping students with practical communication and policy translation skills.
Prof. Kikooma proudly noted that Makerere University remains Uganda’s—and the region’s—leading institution in doctoral training. He reaffirmed the university’s commitment to becoming a “trainer of trainers”, emphasizing that no other local institution currently matches Makerere’s capacity in handling doctoral studies.
He called for greater collaboration between students, academic units, and the Directorate, describing DGT as an administrative coordinator that works to support frontline colleges like COBAMS in delivering quality doctoral education.
“We are not just about policy. We are your partners in this journey,” he emphasized. “And together, we can make your research work not just for your academic growth, but for the greater good of the country.”
In his remarks, Associate Professor James Wokadala, Deputy Principal of COBAMS, emphasized the significance of the colloquium, calling it a “timely catalyst” in the academic calendar. He applauded the leadership of the Doctoral School, the Directorate of Graduate Training (DGT), and the organizing team for mainstreaming graduate research into the college’s strategy.
“This initiative aligns perfectly with the university’s focus on graduate training and knowledge regeneration. As a college, we are strategically investing in platforms that enable researchers to contribute meaningfully to academia and society,” Prof. Wokadala said. Drawing from his own PhD journey, he encouraged students to remain resilient and proactive, reminding them that while facilitators provide the spark, “over 90% of the work must be done by the student.”
Prof. Wokadala also paid tribute to Dr. Kasim Sendawula, who was recognized for his voluntary coordination of doctoral activities at both school and college levels. “Dr. Sendawula is a true academic servant — committed, approachable, and selfless. We are grateful for his contribution,” he said.
Prof. Godfrey Akileng, Dean of the School of Business at COBAMS, echoed similar sentiments, applauding the organizing committee and student scholars for their enthusiasm and sacrifice throughout the three-day session. He offered special appreciation to students who, despite personal commitments or distances, showed up without fail. “Some of you paused political campaigns just to be present here. That’s how much this matters,” he noted.
Prof. Akileng formally introduced his graduate coordination team, including Dr. Caroline Twanjire, a recent PhD graduate from Hanyang University in Korea, who will now assist at the school level. He also announced changes in the Master’s coordination team and used the moment to advocate for institutional recognition of voluntary academic roles such as program cordinators. “Mainstreaming these roles in the university structure would enhance efficiency and further strengthen the graduate training ecosystem,” he emphasized.
To the PhD students, Prof. Akileng reaffirmed his commitment. “We are here to serve you. If something is delaying your progress, walk into any school — we are one college, one academic family.”
Dr. Kasim Sendawula, Coordinator of PhD Students at COBAMS, offered a structured evaluation of the colloquium under the theme “Interrogating Knowledge Frontiers: Doctoral Research as a Catalyst for Theory and Practice.” He noted that the program had successfully covered the doctoral journey — from research conceptualization to manuscript development for publication.
“We used a participatory approach that allowed rich engagement with experienced supervisors and presenters. The feedback from students confirms that the structure, content, and delivery were impactful,” Dr. Sendawula stated.
He highlighted key areas appreciated by participants, such as the quality of presenters, sessions on data collection and writing, and the interactive format. Suggestions for improvement included more days, clearer participant evaluation mechanisms, and additional data analysis sessions, which the organizing team committed to explore in future planning.
“This programme has been a success because of your active engagement. Let’s keep the momentum, and we promise to offer you more tailored academic support going forward,” Dr. Sendawula concluded.
Adding the voice of the doctoral students, Ms. Sylvia Namujuzi, Vice President of then newly formed COBAMS PhD Forum, expressed heartfelt appreciation to the university leadership, facilitators, and organizing committee on behalf of the PhD student body. She described the colloquium as “a rigorous but transformative space of learning, reflection, and growth.”
“This gathering has empowered us with insights not just to enhance our academic work, but also to transform our institutions and contribute to society,” she said.
Ms. Namujuzi extended executive committee’s’ gratitude to Professor Edward Bbaale, Principal of COBAMS, for championing the creation of the COBAMS PhD Forum — a unifying platform for scholars across the three schools to collaborate and support each other. She also acknowledged the Dean of the School of Business, Prof. Akileng, for opening the colloquium to the entire college, recognizing the growing need for cross-disciplinary dialogue among PhD scholars.
She thanked the facilitators, both present and in absentia, for generously sharing knowledge, and credited the organizing committee for their tireless work behind the scenes. Special appreciation went to her fellow student leaders, including Mr. Okelo George (President), Mr. Emmanuel Othieno (Finance), and others managing secretarial, coordination, and publicity roles across schools.
Student representative Mr. Vanecious Bbale Kirwana delivered a heartfelt message of appreciation on behalf of the PhD cohort, capping off three transformative days of intellectual engagement, mentorship, and peer collaboration.
Thanking the university and college leadership for both creating and actively supporting the forum, Mr. Kirwana emphasized the importance of in-person interaction, noting how the physical gathering fostered academic bonding and peer support among doctoral students.
Commending the emergence of organic student-led initiatives — such as a newly formed data analysis platform — Mr. Kirwana encouraged further informal groupings and knowledge-sharing spaces among students, building on the momentum of the colloquium.
“Let’s continue to create more spaces for learning among ourselves. That, in itself, is one of the greatest outcomes of this gathering,” he concluded.
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