Namibia is exploring the possibility of venturing into carbon trading, The Brief can exclusively reveal.
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.”
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. Koen Doens, the Director General at the European Commission’s Directorate General for International Partnerships, told The Brief that: “Namibia is well-positioned to capitalise on this opportunity, given its substantial wind and solar energy capacity for renewable energy production.”
He said Namibia has the potential to drive the industrialised production of green steel, green fertiliser and other environmentally friendly products. Doens also revealed that discussions with Namibia were already in progress, focusing on the comprehensive strategic partnership, the roadmap and its various components.
When quizzed about the timeline for finalising the agreement, Doens emphasised the complexity of the process and the time it may take to work out the roadmap. ”So, that is why we’ve established a roadmap with multiple pillars. Some will progress more swiftly than others. Some aspects are more intricate to unravel than others.
The feasibility and bankability of certain elements are more straightforward than others. Consequently, setting a specific target date is impossible,” he explained.
