South Africa’s largest stock exchange is aiming to create a pan-African platform to trade in carbon offsets.

Moneyweb reports that the Johannesburg Stock Exchange (JSE) is expected to start trading in carbon credits in the next two months, with five sellers having already applied to register on its platform.

The stock exchange has partnered with Xpansiv to set up the required infrastructure.

The JSE is also in talks with two stock exchanges on the continent about trading their offsets using JSE’s platform.

‘Our vision certainly is to expand to create a pan-African venture or pan-African infrastructure. Carbon sellers in each of the countries could register their carbon credits and those would be available to South Africans or to, for example, Kenyans,’ says JSE Group CEO Leila Fourie.

South Africa’s first carbon credits, which will be tied to forestry and farming projects that absorb carbon from the air, will be traded at the end of April or beginning of May, she says.

Carbon credits are bought by businesses that emit greenhouse gases to offset their activities, with one carbon credit equated to the removal of one ton of carbon dioxide from the atmosphere.

26 March 2024
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