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.
The two-week training programme aims to equip government officers with practical skills to assess project viability, manage investment risks and ensure public resources deliver value for money.
The Public Investment Management Centre of Excellence (PIM CoE) is strengthening the capacity of government officers to undertake financial appraisal and risk analysis of public investment projects through a two-week training programme designed to improve the quality of project preparation, appraisal and decision-making in Uganda.
The training, which started in Fort Portal on October 19, 2026, brought together participants from various government ministries, departments and agencies (MDAs), alongside facilitators from Makerere University, the Ministry of Finance, Planning and Economic Development, Cambridge Resources International (CRI), the National Planning Authority and the Uganda Development Bank.
Officially opening the training on behalf of the Permanent Secretary/Secretary to the Treasury, Ms Esther Ayebare, Acting Assistant Commissioner in the Project Analysis and Public Investment Department of the Ministry of Finance, Planning and Economic Development, emphasised the importance of rigorous project appraisal in strengthening Uganda’s public investment management system.
She noted that projects admitted into the public investment plan must be aligned with national priorities, technically sound, financially viable and capable of delivering value for money.
“Government must be able to compare investment alternatives and ensure that only viable projects proceed through the public investment process,” she emphasised.
Ms Ayebare explained that sound appraisal enables government to make informed investment decisions, maximise returns on public expenditure and ensure that limited public resources are directed towards projects with the greatest potential to deliver development outcomes.
Building practical skills for better investment decisions
The training builds on the Public Investment Management course conducted in June, which introduced participants to Uganda’s public investment management framework, including project conceptualisation, stakeholder analysis, project costing, implementation action plans, the Integrated Bank of Projects, and monitoring and evaluation of public investment reforms.
The current programme advances this foundation by equipping participants with technical competencies in financial appraisal, financial modelling and risk analysis.
Participants will explore integrated investment appraisal, alternative investment criteria, cash-flow statements, inflation and exchange-rate movements, asset valuation, project financing, project scale and timing, risk-sharing arrangements and cost-effectiveness analysis.
Through practical exercises and case studies, participants will apply these concepts to investment scenarios in sectors such as roads, health, education and water. The programme will also examine how climate change, social considerations and other risks can be integrated into project preparation and appraisal.
Ms Ayebare encouraged participants to engage actively with the facilitators, question the practical application of the tools and consider how the skills acquired could improve investment decisions within their respective institutions.
She also reminded participants that the programme includes an examination and that certification requires more than attendance. Participants are expected to demonstrate an understanding of the concepts and acquire practical skills that they can apply in their work.
Reducing dependence on externally prepared studies
A key objective of the training is to strengthen the ability of government institutions to undertake high-quality project appraisal studies using their own technical teams.
Ms Ayebare observed that many studies submitted to the Development Committee have traditionally been prepared by external consultants, often at considerable cost. Building the capacity of public officers to conduct these studies independently can help institutions strengthen their technical expertise and improve the quality of project proposals presented for consideration.
She urged participants to take full advantage of the facilitators’ expertise and return to their institutions equipped to undertake sound financial appraisals and provide evidence-based advice to decision-makers.
She further emphasised that project approval requires thorough preparation, analysis and justification, rather than simply identifying available funding and proposing a project to utilise it.
Strengthening public investment management through capacity development
In his remarks, Prof. Edward Bbaale, Director of the PIM CoE, thanked the Ministry of Finance for its financial support and for identifying participants from government institutions. He also recognised the contributions of the facilitators and partner institutions in delivering the programme.
Prof. Bbaale noted that the Centre’s work extends beyond training to include research and advisory services aimed at improving public investment management practices. He encouraged continued collaboration with government institutions and other partners to advance research, knowledge sharing and capacity development.
Speaking during the training, Dr John Sseruyange, Manager of the PIM CoE, highlighted the importance of commitment, active participation and punctuality throughout the programme. He encouraged participants to engage with the facilitators, ask questions and apply the knowledge gained to the projects they support.
Dr Sseruyange also acknowledged the Government of Uganda, through the Ministry of Finance, Planning and Economic Development, for financing the training, and appreciated Cambridge Resources International for its continued support towards improving public investment preparation and analysis in Uganda.
The training reflects ongoing efforts to strengthen Uganda’s public investment management system by equipping public officers with the knowledge and practical competencies needed to assess projects rigorously, identify potential risks and make informed investment decisions.
By developing in-house expertise across government institutions, the programme seeks to contribute to better-prepared projects, more efficient use of public resources and improved delivery of Uganda’s development priorities.
Business & Management
Makerere University Signs MoU with World Association of Noonomy: Sets pace for the African Centre of Excellence
By Ritah Namisango and Monica Meeme
Makerere University has signed a Memorandum of Understanding (MoU) with the World Association of Noonomy, setting the pace for academic collaboration, research and the establishment of a Centre of Excellence for Noonomy in Africa.
On behalf of Makerere University, the MoU was signed by Professor Sarah Ssali, Deputy Vice Chancellor (Academic Affairs), during the World Congress on Noonomy held in Rome, Italy, from 16th-19th September 2026, paving the way for the establishment of a dedicated institute of Excellence for Noonomy at College of Business and Management Sciences (CoBAMS).
Uganda was the only African country represented at the World Congress on Noonomy, with a Makerere University delegation including Prof. Sarah Ssali-Deputy Vice Chancellor (Academic Affairs), Prof. Edward Bbaale-Principal College of Business and Management Sciences (CoBAMS), Dr Peter Babyenda-Lecturer at the School of Economics and Policy Engagement Coordinator, College of Business and Management Sciences (CoBAMS), and Mr. Tonny Mayambala Sebbaggala, a Ugandan Economist based in Russia.
Commenting on the development, the Vice Chancellor, Professor Barnabas Nawangwe said, “By signing this MoU, the African Centre for Noonomy has been established at Makerere University. This adds to the growing number of African continental research centres that are coordinated by Makerere University. Makerere is clearly a leader on the Continent.”
The MoU signed on 19th September 2026 in Rome-Italy, builds on the inaugural conference on Noonomy, held in Uganda on 20th August 2026 at Makerere University under the theme, “The Theory of Noonomy and its Role in Resolving Modernity Issues: Pathways to Sustainable Social and Economic Transformation.”
At the Global Congress of the World Association of Noonomy, the scholars from Makerere University delivered three (3) presentations focusing on Noonomy and development challenges in East Africa, the transition from informal to formal employment, and the role of universities in advancing Noonomy.
About the Theory
The Theory of Noonomy is an emerging theoretical approach developed by Professor Sergey Bodrunov, Director of the S.Y. Witte Institute, which examines the changing relationship between knowledge, technology, production and human development. The theory places emphasis on knowledge and human potential as important drivers of development, while highlighting humanistic values and solidarity in shaping economic and social progress.
Advancing Alternative Economic Thought in Africa
Speaking at the Annual gathering in Rome, Prof. Sarah Ssali described Makerere University’s partnership as a great honour, highlighting the importance of creating space for broader theoretical perspectives on political economy and the global economy.
Reflecting on the evolution of political science and political economy studies, Prof. Ssali noted that following the era of Glasnost and Perestroika, free-market ideology and neoliberalism became increasingly dominant in global economic thinking.
“This dominance created a need for scholars to critically examine both the opportunities and limitations of market-based approaches,” she said.
She welcomed the opportunity to explore alternative ways of understanding the world, including not only the material relations of production, but also the material relations of consumption.
Prof. Ssali also acknowledged the Witte Institute for initiating the initiative and for choosing Makerere University as a key partner on the African continent.
She said Makerere University plans to establish a dedicated centre focused on the emerging area of study, with the institution aiming to launch the centre in February 2027.
“We hope the centre will become a leading African platform for research, teaching and dialogue on these issues,” she asserted.
Prof. Ssali noted that the ideas emerging from the Kampala meeting (held on 20th August 2026) are already being incorporated into Makerere University’s theoretical classes, with plans to substantially expand the initiative following the establishment of the centre of excellence.
She reaffirmed Makerere University’s commitment to the partnership and to expanding scholarly engagement on alternative approaches to political economy.
Call for Growth that Advances Social Welfare
Delivering the presentation titled: “The Role of Noonomy in Addressing Development Challenges in East Africa,” Prof. Edward Bbaale, Principal of the Makerere University College of Business and Management Sciences (CoBAMS), explored the potential of Noonomy as an alternative framework for understanding and addressing persistent development challenges in East Africa.
Prof. Bbaale noted that the approach contributes to emerging academic discussions on how economic systems can better connect economic growth with social wellbeing and inclusive development outcomes in the region.
“The study contributes to emerging academic discussions on how economic systems can better link economic growth with social wellbeing and inclusive development outcomes in the region,” he said.
The paper was co-authored with Dr Peter Babyenda and formed part of the scholarly contributions presented at the World Congress on Noonomy in Rome, Italy.
Prioritizing Human-Centred Development
Dr Peter Babyenda said Makerere University’s participation in the World Congress on Noonomy in Rome marked an important step in the University’s international engagement with the Theory of Noonomy.
“The engagement paves the way for establishing a Centre of Excellence for Noonomy at the School of Economics, under the College of Business and Management Sciences (CoBAMS),” he stated.
Dr Babyenda explained that the Theory of Noonomy places human welfare at the centre of development, arguing that development should be assessed not only through productivity and infrastructure, but also by how it improves people’s wellbeing.
He said consumption, knowledge transfer and solidarity are important considerations, including in the application of emerging technologies such as Artificial Intelligence.
Dr Babyenda revealed that Uganda has been offered an opportunity to host an upcoming World Congress on Noonomy, which he said could bring together participants from more than 55 countries and create opportunities for academic exchange, industry engagement and international visibility for Uganda.
He called upon the academia and industry to collaborate with Makerere University in advancing its engagement with the emerging field.
The Signing of the MoU at the Global Congress of the World Association of Noonomy marks a milestone in Makerere University’s efforts to contribute to international scholarly discussions on alternative approaches to understanding economic systems and development.
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