Climate finance from carbon markets for water and sanitation, illustrated by safe water projects in East Africa

Climate finance for water and sanitation through carbon markets has been small in total volume relative to other financial flows in the water sector, as well as relative to the entire carbon market. Moreover, to date, it has been concentrated in a limited number of countries in East Africa, and for specific types of NGO and private sector projects. At the same time, there is scope for growth whereby the share of carbon credits from water and sanitation projects could further be increased. This is not likely to generate substantial amounts of additional finance, but can play a role in very specific interventions, particularly by NGOs. This brief case study was written for the 2025 SWA Sector Ministers' Meeting held in Madrid, 22-23 October.