The Namibian Stock Exchange (NSX) says there is a real opportunity for Namibia in carbon credits, but it’s still too soon to have carbon trading on the African continent.
According to the NSX Chief Executive Officer Tiaan Bazuin, collaboration is a key focus, noting that regional exchanges are exploring opportunities to collaborate on carbon credit trading.
“Harmonisation is essential to avoid a fragmented approach, and discussions within the African Securities Association are ongoing. The potential of the carbon credit market is significant, but it’s challenging to quantify given the evolving global landscape. It’s essential for governments and exchanges to work together to seize this opportunity.”
The CEO highlighted that Namibia’s growing economy will bring ample opportunities for existing companies to raise capital, either through listing or bonds, to meet the demands of this economic boom.
“Unfortunately it is still early days from an NSX perspective. South Africa and Egypt have been doing preliminary studies on the topic and NSX believes there is a real opportunity for Namibia in carbon credits, but it’s still very far away to have carbon trading on the African continent,” he said.
This comes as the government is exploring the possibility of venturing into carbon trading.
Presidential Economic Advisor and Hydrogen Commissioner James Mnyupe said the undertaking resulted from a collaborative effort with the World Bank, the Japanese government and the Harvard Kennedy School of Government, who have diligently explored the concept of Article 6 of the Paris Agreement.
“The Namibian government is exploring how the country can certify carbon credits, should Namibia manage to reduce its carbon emission below its nationally determined contributions given the various green energy projects being developed,†he told The Brief.
“This article governs how countries can exchange carbon credits with one another. The core idea is to employ this framework to certify carbon credits if Namibia successfully reduces its carbon emissions below its nationally determined contributions, thanks to the various clean energy projects we’re currently implementing.â€
The Commissioner said if the ambitious plan becomes a reality, Namibia could trade its carbon credits with nations such as Switzerland and Japan.
“The revenue generated from such transactions could be channelled towards mitigating the risks associated with renewable energy and sustainable molecule projects in Namibia. Therefore, this concept remains a central topic of discussion, particularly at events like COP28, where Article 6 and its subsections 6.1 and 6.2 are thoroughly explored,” he said.
He also pointed out that apart from the regulated market, there is a voluntary market where companies can purchase carbon credits to offset their emissions.
“Organisations engaged in activities that capture or sequester carbon, such as Kelp Blue, which cultivates kelp in Lüderitz, may have the opportunity to sell carbon credits to companies like Namdeb, which typically emit carbon through their mining activities,” Mnyupe said.
He said by meeting emissions reduction targets, Namibia could harness carbon trading to finance renewable energy projects and other sustainable endeavours.
