JSE, Africa’s Largest Exchange, To Begin Carbon Offset Trading

JSE, Africa's Largest Exchange, To Begin Carbon Offset Trading - Carbon Herald

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

The company, headquartered in Johannesburg, recently collaborated with Xpansiv Ltd., a provider of trading infrastructure for environmental commodities like carbon credits and renewable energy certificates, to leverage Xpansiv’s specialized knowledge in the industry.

The decision of JSE to start carbon offset trading comes as a response to the growing global focus on sustainability and environmental responsibility and serves as a way to address the potential demand in the local marketplace.

Relevant: The Johannesburg Stock Exchange And Xpansiv Launch Voluntary Carbon Market In South Africa

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

Earlier this week, Leila Fourie, JSE’s Chief Executive Officer, mentioned in an interview that there have been a minimum of five sellers interested in registering. The issuance of the first credits is anticipated to take place around April or May. 

Fourie also stated 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 engaged in discussions with two other African exchanges for a potential partnership in trading offsets using the platform that the South African exchange has established.

Read more: UAE Investors Pledge $450 Million For African Carbon Credits

This collaboration will not only expand the reach of carbon offset trading in Africa but also foster greater cooperation in addressing climate change on the continent.

This move marks a significant step towards greater sustainability in the region, as companies will now have the opportunity to participate in carbon offset trading on a regulated platform. 

As the largest exchange in Africa, the JSE has the potential to set a precedent for other exchanges on the continent and to lead the way towards a greener future for the continent and the global markets as a whole.

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