COMBATING CARBON EMISSIONS
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.