By Shirley Mambadzo
Following my previous opinion published, readers contacted me with detailed questions about sectoral implementation. These conversations revealed something encouraging: companies are already researching, planning, and positioning themselves for carbon market participation.
This indicates that industries in Namibia view climate responsibility as an opportunity rather than merely a rule to follow. They are preparing for a future where sound environmental practices enable them to access new markets and funding.
Mining sector: beyond compliance thinking
Mining companies are adopting strategic approaches to carbon markets. The sector’s energy-intensive operations present opportunities for demonstrating climate leadership through large-scale renewable energy installations.
Installing solar power at mining sites can cut emissions and reduce costs, positioning mining companies as drivers of regional energy transition and enhancing their operational efficiency.
The sector recognises that comprehensive emissions measurement offers competitive advantages in increasingly sustainability-focused international markets. For example, De Beers invested US$2 million in Kelp Blue, a start-up growing kelp forests off the Namibian coast. Rather than simply buying carbon credits, this investment creates employment in Lüderitz whilst removing carbon dioxide from the atmosphere.
This demonstrates how companies can integrate carbon strategy with community development, creating shared value whilst supporting nature-based solutions.
Green iron and circular agriculture
Beyond traditional mining, innovative industrial processes are also demonstrating this strategic thinking. The HyIron Oshivela project proves that zero-emission industrial production can be economically viable. By replacing traditional coal-based reduction with green hydrogen, the project is expected to avoid 27,000 CO₂ emissions per year, demonstrating that processes can be restructured for sustainability without losing competitiveness.
The Daures Green Hydrogen Village highlights synergies between agriculture and industry, focusing on green scheme agriculture to produce green hydrogen and ammonia. Sustainable farming practices in Namibia show that environmental and economic goals can align through improved productivity and carbon credit opportunities.
Learning from regional experiences
These local innovations align with successful approaches emerging across the region. Namibian companies can learn from Kenya’s carbon market experience, where companies received 11 million voluntary carbon credits in 2022 from nature-based projects. Recent regulations mandate proper certification and community involvement, requiring environmental and social impact assessments with at least 25% of earnings benefiting local communities.
The aviation industry’s Global Emissions Offset products demonstrate how sectors can effectively participate in carbon markets while upholding integrity standards. This suggests Namibian companies need strong, inclusive project frameworks.
Financial infrastructure: domestic access to climate finance
Supporting these market opportunities, Namibia’s financial infrastructure is rapidly evolving. The Development Bank of Namibia’s accreditation by the Green Climate Fund as a Direct Access Entity represents a significant development for Namibian companies.
This accreditation means DBN can directly design, submit, and implement climate adaptation and mitigation projects valued between US$ 50 million and US$ 250 million without requiring international intermediaries.
As discussed previously, the Ministry of Environment, Forestry and Tourism is finalising the carbon market policy and framework, with a carbon market office expected to be operational by August 2025. The office will manage the registry of renewable energy assets for international trading platforms.
This creates domestic pathways to international climate finance, reducing project development timelines whilst building local institutional capacity. Companies can now access concessional financing for climate-related investments through established domestic channels, improving sustainability project economics.
The readiness advantage
Namibian industries see carbon markets as vital for future competitiveness. Early action and progress measurement will allow companies to build partnerships, secure funding, and succeed in a climate-focused world. Recent international court decisions highlight climate accountability as crucial for international business. Namibian companies can become responsible global leaders and create lasting value for everyone involved by building strong systems.
*Shirley Mambadzo holds a Master of Philosophy (cum laude) and a Postgraduate Diploma in Sustainable Development from Stellenbosch University. She is the Executive Director of Eden Greenfields. Her work examines polycentric governance of social-ecological systems, sustainability reporting, and the role of local institutions in just transitions. Email: shirley@edengreenfields.com
