COM­BAT­ING CAR­BON EMIS­SIONS

Finweek English Edition - - Business strategy roofing and cladding - GUGU­LAKHE MASANGO

ECOSE­CU­RI­TIES, a Dublin-based orig­i­na­tor, de­vel­oper and trader of car­bon cred­its, is eye­ing more op­por­tu­ni­ties in SA’s clean de­vel­op­ment mech­a­nism (CDM) in­dus­try.

The com­pany has an agree­ment with Stan­dard Bank to pro­vide car­bon credit ad­vi­sory ser­vices, to fi­nance car­bon credit projects and bro­ker and buy car­bon cred­its. Car­bon cred­its are a new com­mod­ity cre­ated as a re­sult of the Ky­oto Pro­to­col on Cli­mate Change. Fi­nance for car­bon cred­its is chan­nelled through the clean de­vel­op­ment mech­a­nism cre­ated by the pro­to­col.

Ac­cord­ing to a 2005 study by Price­wa­ter­house­Coop­ers, SA stands to gen­er­ate about $400m (R2,8bn) from gas emis­sions re­duc­tion projects.

“SA is one of the most car­bon-in­ten­sive economies in the world and there­fore has a mas­sive CDM po­ten­tial,” says Henk Sa, EcoSe­cu­ri­ties SA’s coun­try di­rec­tor.

He says al­though the com­pany has been ac­tive in SA since 2003, by last year its ac­tiv­i­ties had grown to such an ex­tent that a lo­cal of­fice made busi­ness sense.

EcoSe­cu­ri­ties reg­is­tered the Sappi Tugela CDM project last week, which rep­re­sents a car­bon value of about R25m un­til 2012. The project is ex­pected to cut meth­ane emis­sions from land­fill biomass waste and con­trib­ute to sus­tain­able de­vel­op­ment through the re­duc­tion of fos­sil fuel use.

Sa says that as the gate­way to south­ern Africa, SA is the ideal lo­ca­tion to ex­pand the com­pany’s African op­er­a­tions.

The SA of­fice is re­spon­si­ble for de­vel­op­ing op­por­tu­ni­ties in south­ern Africa and acts as the co-or­di­na­tion hub for op­er­a­tions in East and West Africa.

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