The UNDP has called on Sri Lanka to quickly set up clear rules for carbon trading, warning that private investors need predictable policies before committing capital. Speaking at the Sri Lanka Climate Summit 2026, UNDP Resident Representative Azusa Kubota said ambition on paper must be backed by solid implementation systems, financing tools, and institutional credibility. Sri Lanka targets a 20 percent emissions cut by 2035 under its latest NDC and aims for carbon neutrality by 2050. But recent government moves, like blocking renewable energy developers from selling carbon credits to third parties, have hurt investor confidence. Kubota stressed that clear project authorization, robust registries, and strict accounting rules are needed to prevent double counting and unlock foreign exchange revenue. Climate-related damage already costs Sri Lanka over 50 billion rupees annually, with recovery needs exceeding 1,000 billion rupees over three years. The UNDP argues that rebuilding to higher resilience standards protects supply chains and lowers long-term costs. The message is that the private sector will not invest on ambition alone, and the government must move from concept to execution.
