Uganda

The 2025 Carbon Market Regulations operationalise a legal framework under the 2021 Climate Change Act for measurement, reporting and verification, project approval, emissions crediting and benefit sharing. The launch of a National Green Taxonomy and a National Climate Finance Strategy in 2025 adds financial directionality. These initiatives align investments with green economy goals. Uganda’s updated NDC (2022) establishes an economy-wide mitigation target of a 24.7% reduction in GHG emissions by 2030 compared to business-as-usual, 5.8% unconditional and 18.9% conditional on international support. In parallel, Uganda prepared its Long-Term Low-Emission Development Strategy in 2022.

The Companies (Amendment) Act of 2022 introduced changes to corporate governance, including the requirement for public companies that don't follow a specific code to comply with a set of best practices. The Uganda Bankers’ Association together with the Central Bank developed an ESG framework for the banking sector. And in 2024, the Bank of ganda introduced new Corporate Governance Regulations for Financial Institutions, revising and regulating board composition, governance committees, board succession, independent directors, etc.

Uganda is developing a National Corporate Governance Code under ICGU’s leadership to extend to listed, private, state enterprises, NGOs etc.

The Third National Development Plan (NDP III) and the recently launched National Green Taxonomy (2025) provide a framework for how businesses can contribute to national sustainability goals. Some businesses use digital tools to link business to SDG and NDC goals, but there is no national mandate to align corporate governance with SDGs.

Uganda has institutionalized processes for impact assessment and consultation related to gender and equity budgeting and national/local development planning, driven by the Equal Opportunities Commission and the National Planning Authority. The Public Finance Management Act mandates to issue a Gender and Equity Certificate for budget documents, which are subject to public review, leading to an increase in compliance with gender and equity requirements up to 67% over the last decade. Also, the planning process for the Fourth National Development Plan (2025/26-2029/30) involved consultations with stakeholders at national and local levels. While Environmental and Social Impact Assessments are mandatory for certain projects, a universal mandate for general legislation and policies is not applied. Effective participation of some marginalised groups remains a challenge.

Uganda's land physical asset accounts, forest/wood accounts and ecosystem service valuations are beginning to inform policy. For example, the National NCA program (2018–2023) enabled adjusted macroeconomic indicators and institutional capacity building. These natural capital accounts are explicitly linked to planning instruments such as the National Development Plan and policy dialogues. However, Uganda has not yet institutionalised a comprehensive wealth accounting framework covering human, social, financial, and physical capital. Accounts remain more focused on natural capital. The Fourth National Development Plan's objectives explicitly go beyond a narrow focus on GDP growth to include sustainable socio-economic transformation and wealth creation. Natural Capital Accounting (NCA) Integration: Uganda has developed and continues to update natural capital accounts for key resources (water, forest, and ecosystem services). There is ongoing work to integrate these findings into macroeconomic modeling (using the UGAMOD model) and policy. This integration allows policymakers to evaluate the economic impact of preserving natural resources. The Ministry of Finance, Planning and Economic Development (MoFPED) continues the practice of producing adjusted macroeconomic indicators (like Net National Income and Savings) that incorporate comprehensive wealth estimates. Training workshops in 2025 focused on building the capacity of government officials to integrate natural capital into macroeconomic modeling, indicating a push for long-term institutionalization of these measures within the planning process.

The government has issued "Guidelines for Mainstreaming Climate Action in the Financial Sector" to guide institutions in integrating climate risk into lending, investing, reporting and risk management. The Bank of Uganda is preparing climate risk guidelines to instruct banks on identifying, managing, and disclosing exposures. Many banks have adopted ESG and climate risk frameworks (for example, the Uganda Bankers’ Association’s ESG Framework 2024) and training programmes like Green Banking Uganda build capacity in banks and the financial sector. However, stress testing of banks is primarily focused on conventional financial risks and lacks mandatory environmental or social stress testing. Many of Uganda’s green finance instruments remain in pilot or guideline. In 2025, the government launched the National Green Taxonomy and the National Climate Finance Strategy. These documents provide a framework for classifying sustainable economic activities and a roadmap for mobilizing, accessing and tracking climate finance. Also, the government's use of a Climate Change Budget Tagging tool to track climate-related public expenditures demonstrates a systemic review of fiscal policy for sustainability.

A key development is the institutionalization of the Climate Change Budget Tagging tool, which is a significant advancement from the earlier directive for government bodies to produce green budgets. This tool, led by the Ministry of Finance, allows the government to track and report on climate-related expenditures. While the tool is implemented and institutionalized, compliance by line ministries is uneven, and the process remains in an early maturity stage, requiring further strengthening and oversight

The new National Climate Finance Strategy 2025-2030 serves as a blueprint for mobilizing both public and private capital for climate projects. This strategy is complemented by the Bank of Uganda's proactive engagement, as it has unveiled new climate risk guidelines for financial institutions, making climate risk management a central component of their risk frameworks. The BoU's initiative aims to encourage lending towards climate-resilient projects and green initiatives.

Uganda trades mainly via EAC/COMESA and the AfCFTA, but green trade obligations are voluntary and Uganda does not enforce them. No Ugandan deal currently targets tariff liberalisation for environmental goods/services or recognises carbon-pricing/taxonomy interoperability. No ISDS reforms yet, and no embedding of CBDR-aligned market-access rules. In 2025 the government operationalised carbon markets through the National Climate Change Regulations. This could support future interoperability with other carbon systems internationally. Still, Uganda has no carbon tax, nor ETS, and no national green finance taxonomy.

Uganda lacks a national carbon tax or a mandatory emissions trading system (ETS) to set a direct price on domestic emissions. Progress can be found in developing a framework for carbon trading via offset mechanisms. In 2025, Uganda launched the National Climate Change Regulations which operationalize the 2021 Climate Change Act by creating a legal framework for project registration, third-party verification, benefit-sharing, and the international transfer of carbon credits (Article 6 of the Paris Agreement). On carbon budgeting, the Climate Change Act 2021 mandates the setting of national GHG reduction targets, but the commitment (24.7% reduction by 2030) is conditional on international finance. A legally-binding carbon budget framework aligned with 1.5 C is not yet in place; the current effort is focused on developing regulations and mechanisms for carbon trading and meeting the NDC.

Uganda has maintained its position as a leader in green sectoral policy by successfully translating its strategic vision into tangible, coordinated plans. The Uganda Green Growth Development Strategy (UGGDS) continues to provide the foundational roadmap for a low-carbon, inclusive economy. This strategy has been further solidified by the recent enactment of the Climate Change Act of 2024.

The new Green Manufacturing Strategy proves this coordinated effort, as it provides a clear roadmap for industrial and trade policies to adopt green practices and promote resource efficiency. However, independent analyses of the national budget for fiscal year 2025/26 have highlighted some funding gaps.

In 2024, the government launched a national circular economy roadmap process, developed in collaboration with the African Circular Economy Alliance and the African Development Bank. This was followed in 2025 by the announcement of a nationwide ban on single-use plastic carrier bags, while the National Environment Act of 2019 includes provisions for promoting a circular economy. That same year, the Ministry of Local Government finalized a National Waste Management Policy, complementing the Sustainable Public Procurement (SPP) Action Plan 2022–2026, which seeks to embed sustainability criteria in public spending.

Despite these important steps, Uganda has not yet adopted clear targets for CMUR, and existing measures focus on specific waste streams whose impact will depend on effective enforcement. A comprehensive, integrated framework for the circular economy therefore remains to be established.

The cornerstone of Uganda's green transport policy is the National E-Mobility Strategy (2023), which sets long-term targets: full electrification of public transport and motorcycles by 2030, complete electrification of passenger vehicles by 2040, deployment of 15,000 e-buses supported by light rail, and others. This is supported by concrete actions and fiscal policies. In 2024, Uganda launched a state-funded public transport pilot, the E-Bus Xpress, introducing electric buses equipped with e-payment systems. E-Bus Xpress relies on Kayoola EVS buses, built by local manufacturer Kiira Motors. Uganda's focus on local manufacturing and a just transition, specially for the "boda-boda" (motorcycle taxi) sector, elevates its policy framework into a sound SDG-aligned strategy. Also, Uganda has an ambitious vision to have a network of 3,500 public charging stations and over 10,000 fast chargers by 2040. While a 25% import duty has been placed on EVs in 2025 as part of the East African Community's common external tariff, Uganda has balanced it through targeted tax breaks. On air quality standards, the National Environment Regulations (2024) require all imported vehicles to meet specific standards, which are Euro 4 equivalent.

The government's commitment to clean energy is now firmly integrated within the new Energy Policy for Uganda (2023) and the Uganda Energy Transition Plan (2023). These documents provide a clear roadmap for achieving universal energy access by 2030 and decarbonizing the energy sector. Furthermore, the government has launched a biofuels blending program and is actively promoting clean cooking technologies, signaling a new focus on decarbonizing the transport and household sectors. While the country's reliance on fossil fuels is a persistent concern, with commercial oil production set to begin in 2025, the government is pursuing an integrated energy approach that gives equal weight to renewables.

A key development is the government's integration of the programme's goals into its broader national strategy. The Fourth National Development Plan, for example, explicitly recognizes the role of green jobs in achieving socio-economic transformation and sustainable development. The programme's innovative components, such as the support for the informal sector, known as "Jua-kalis," and the establishment of industrial business shelters, have seen continued implementation. The government's focus on re-skilling is also being reinforced by initiatives like the Inclusive Green Economy in Practice Capacity Building program, which equips senior civil servants with the tools to develop and implement evidence-based, inclusive environmental policies.

Uganda is at an early stage in developing a just transition framework, with initial efforts led by the Government of Uganda, in partnership with the Climate Investment Funds and the African Development Bank beginning in 2024 to define national principles and sectoral priorities. The process aims to align climate, energy and employment goals but remains consultative and not yet embedded in law or national policy. Existing initiatives like the Green Jobs Programme by the Ministry of Gender, Labour and Social Development continue to promote sustainable employment and social inclusion but are not explicitly framed within a just transition strategy.

The government’s Green Jobs Programme targets informal “Jua-kali” enterprises with green technologies, start-up toolkits, training, certification and accreditation, and ongoing outreach. Financially, Uganda Development Bank has operationalised a Climate Finance Facility to mobilise blended green capital, aligned with the government’s National Climate Finance Strategy (2025); and dedicated accelerators such as the Uganda Green Enterprise Finance Accelerator provide capacity-building and tailored loans to green MSMEs. Uganda also maintains an MSME policy framework and an MSME directorate within the Ministry of Trade Industry and Cooperatives. No distinct legal form for social enterprise exists in national law. A 2025 report on the state of entrepreneurship in Uganda highlighted the government's efforts to provide legal and institutional frameworks for MSMEs.

The country's primary social protection initiative, the Social Assistance Grants for Empowerment (SAGE), which includes the Senior Citizen Grants, has been scaled up and is now a central component of the government's efforts to address poverty.

A major development is the creation of a National Shock-Responsive Social Protection Framework, finalized in 2025. This framework explicitly aims to improve coordination between social protection and disaster risk management systems.

The government is also exploring new digital innovations to enhance social security coverage for workers in the informal economy, such as the "boda-boda" (motorcycle taxi) sector, by leveraging mobile technology to facilitate savings and contributions.

Uganda has an ambitious National Biodiversity Strategy and Action Plan III (NBSAP III) for 2025–2030, which aligns its national targets with the Kunming-Montreal Global Biodiversity Framework. Uganda has also published a Roadmap for the Implementation of the GBF (2023) and a National Green Taxonomy (2025) to help direct public and private finance towards green growth objectives. A new National Development Plan IV (NDPIV) (2025/26–2029/30) has been developed to incorporate these priorities. However, the strategy’s implementation is still in early stages, and progress reporting and target tracking are being established. Uganda also implements a National Plan for Managing Wildlife Outside Protected Areas (2022–2031) to manage land conservation beyond parks and build linkages with communities.

Its Third National Development Plan and the new National Green Taxonomy (2025) reference natural capital and its role in sustainable development. The Uganda Bureau of Statistics develops and updates natural capital accounts. The country has moved beyond the initial accounts for water, land and forests, to include biodiversity and tourism accounts. This work is supported by collaborations with partners like the World Bank and the Darwin Initiative. The National Planning Authority and the Ministry of Finance, Planning and Economic Development are the coordinating bodies, with the Water and Environment Sector Working Group acting as a Natural Capital Accounting Steering Committee. This committee is composed of government officials, academia, NGOs and development partners. The government has been training officials from various ministries on how to integrate natural capital into macroeconomic models.

Uganda is actively pursuing a sustainable agriculture agenda, but it is still en early stages. The National Development Plan IV prioritizes agro-industrialization and food security, and contains commitments on sustainable farming practices, food waste, and nutrition; still, it does not constitute an overarching national food systems strategy. The multi-year, World Bank-funded Uganda Climate Smart Agricultural Transformation Project launched in 2024, with a budget of over $350 million, aims to increase productivity while adapting to the effects of climate change through interventions like providing improved seed varieties, building irrigation infrastructure, and promoting technologies for sustainable land and water management. Additionally, discussions are underway to create a National Agrifood Systems Financing Strategy. Subsidy reform is not being pursued.

Uganda has advanced its nature finance framework with the launch of the National Climate Change (Carbon Market) Regulations 2025 and the National Green Taxonomy 2025. The Carbon Market Regulations include provisions for ownership and benefit-sharing of carbon credits, which is intended to empower communities and local stakeholders in carbon market projects. And the National Green Taxonomy 2025 will promote investment in environmentally sustainable activities. Also, a National Climate Fund is planned. The country also has a National Biodiversity Finance Plan with a vision to attain sustainable and innovative financing for biodiversity conservation.

Uganda has progressed to a more structured Green Recovery Action Plan (2023) that embeds climate, resilience and nature considerations into recovery stimulus design. This plan includes measures across sectors (renewable energy, resilient agriculture, land use, biodiversity, waste) intended to guide stimulus packages toward sustainability. Uganda has also developed a National Climate Finance Strategy (2025–2030) to mobilize and track climate and green investment. But many stimulus and investment programs remain conventional in focus, with weak green conditionality or just transition criteria. The National Development Plan still prioritizes rapid industrialization and resource extraction over a complete structural green transition.