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Increasing Africa’s Share of the Global Carbon Trade & Mitigating Population Pressures
Tsuma Charo
What is a Carbon Exchange?What Happens at the Exchange?Participants at the Exchange
An exchange is a marketplace in which securities, commodities,derivatives and other financial instruments are traded.
The core function of an exchange - such as a stock exchange is toensure fair and orderly trading, as well as efficient dissemination ofprice information for any products traded on that exchange.
Exchanges give companies, governments and other groups a platformto transact their products.
An exchange may be a physical location where traders meet to conductbusiness or an electronic platform.
A carbon trading exchange uniquely deals with the Carbon Creditsbusiness
Trading of environmental commodities (Electronictrading platform)Mechanism to disseminate information on availableand proposed carbon projectsPromotion of the ConceptEducation and Training of market participantsForum to exchange views on this nascent industryInteractive forum with Governments and Agenciesformulating policy and regulating its implementationon climate issues
Trading Members (carbon brokers)Major Sellers and Buyers Carbon Project ConsultantsCarbon Project FinanciersAccreditation and regulatory agencies, etc
Participants will be requested to register their interest in the various categories
Increase Kenya’s participation in Global Carbon ForumPromote Integrity and Ethics in the carbon tradePositioning Kenya as Africa’s Carbon Trade HubFill the gap in market place for environmentalderivativesIncrease Africa’s share of Clean DevelopmentMechanism revenues.
Lack of government initiatives to support the sectorLow awareness in the private sector about opportunities provided by
carbon marketsLack of human resource capacity in government and private sectorHigh transaction costsBureaucracy and complexity of the CDMLack of high quality projects in the continentNon-participation of the traditional financial sector like banks, insurance
companies and pension funds
ACX will lobby governments through their regional economic blocslike COMESA to ensure the world gets a successor to the KyotoProtocol during the COP in Durban South Africa this year
The exchange will work with governments across Africa to createawareness on the available opportunities in carbon markets and othermultilateral channels
ACX will provide support to projects at early stages throughdevelopment to issuance of credits and trading
The exchange has created a convergence of investment banking,stocks and carbon markets to enable project owners enjoy synergies ofthe environmental and money markets to get their projects off theground
The ACX is accepting membership into various categories which are not exclusive
Sellers of credits
Buyers of credits
Spots or futures
Service Providers
Executive Carbon Training Courses
Private Entities Business enterprises that have interest in carbon trade
Government entitiesMinistry of Forestry and Wildlife, National Environmental management Authority, Ministry of Finance, Ministry of Energy
Multi-LateralsWorld Bank, AfDB
European Union
International Emissions Trading Association
Australia Carbon Exchange
EU-ETS
UNFCCC
CDM/Voluntary carbon markets create a flow of finance and technology to developing countries where population pressure on resources is highestPopulation in big developing countries like will follow a cleaner growth path under Kyoto ProtocolWaste lands will be reclaimed through AFOLUPopulation stressed lands will be enriched through Plan VivoREDD and A/R will reverse desertificationTransparency will create faster benefits
