Africa’s largest exchange to initiate carbon credit trading


Johannesburg Stock Exchange in South Africa. (Photo: iStock)

JSE Ltd., the largest stock and bond exchange in Africa, plans to begin trading carbon offset credits in the next two months. 

The company, based in Johannesburg, has recently partnered with Xpansiv, a provider of trading infrastructure for environmental commodities such as carbon credits and renewable energy certificates, to utilize Xpansiv's specialized expertise in the field.

JSE's decision to initiate carbon offset trading is a response to the increasing global focus on sustainability and environmental responsibility. It aims to meet potential demand in the local market while addressing these concerns.

As the largest producer of greenhouse gases on the continent, South Africa is gradually rolling out a carbon tax, leading to a potential boom in the offset market. Furthermore, being the continent’s leading generator of solar and wind energy would simplify the process of issuing carbon credits.

Leila Fourie, CEO of JSE, mentioned in a recent interview that at least five sellers have expressed interest in registering. The issuance of the first credits is expected to take place around April or May. 

JSE has partnered with Xpansiv to begin trading carbon offset credits within the next two months. (Photo: Xpansiv)

She also said that the initial carbon credits available for trading are linked to forestry and agriculture initiatives that sequester CO2 from the air.

The JSE is currently in talks with two other African exchanges regarding a potential partnership to trade offsets using the platform established by the South African exchange.

This collaboration will not only broaden the reach of carbon offset trading in Africa but also promote greater cooperation in addressing climate change across the continent.

The action signifies a notable advancement towards enhanced sustainability in the region, enabling companies to engage in carbon offset trading through a regulated platform. As the largest exchange in Africa, the JSE has the capacity to establish a precedent for others across the continent, guiding the path towards a more environmentally friendly future for Africa.

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