JSE, which operates Africa’s biggest stock and bond exchanges, will start trading carbon offsets within two months. The Johannesburg-based company in October formed a partnership with Xpansiv, which provides infrastructure to trade what it calls environmental commodities such as carbon credits and renewable energy certificates.
“We have had at least five sellers wanting to register,” JSE’s Chief Executive Officer Leila Fourie said in an interview on Monday. “We expect that the first credits to be issued will be around April and May.”
While South Africa is not the continent’s biggest producer of carbon credits, it is the region’s largest emitter of greenhouse gases. With the country gradually increasing a carbon tax, the market for offsets is set to surge. The nation is also Africa’s biggest producer of solar and wind power. –Bloomberg