NAIROBI, Kenya July 4-The Nairobi International Finance Center and NSE have signed an MoU with the AirCarbon Exchange(ACX) to create Kenya’s first carbon offset exchange.
ACX will trade certified carbon offsets to help Kenya to finance environmental projects, including reforestation and land restoration, as it seeks to meet its climate commitments
The setting up of a Carbon Exchange coupled with the Nairobi Securities Exchange’s existing capabilities in green finance is expected to support companies and the Government, future-proof against climate change risks.
“The Carbon Exchange will be an important element in Kenya’s sustainable finance ecosystem and will be instrumental in channeling global capital flows into Kenya’s high-impact environmental projects such as Reforestation, Land Restoration and new technologies such as DACS and BECCS,” said Kevin B. Iwanaga, President & COO, AirCarbon Exchange Middle East/Africa.
Prudential PLC, the Centre’s anchor client, will also be able to gain additional revenue by selling its carbon credits on the new carbon exchange.
NIFC Chairman Vincent Rague said the Centre’s decision to prioritize green finance and pursue innovative new initiatives like carbon trading is a strong signal of its determination to face the future with confidence.
“Kenya has vast comparative advantages in the carbon offset space – including abundant offset-eligible project potential. Through this exchange, we will be leveraging existing verification models and brokering networks to standardize, regulate, and promote Kenya’s existing production of carbon offset activities internationally,” said President Uhuru Kenyatta.
A recent report by McKinsey estimates that the annual global demand for carbon credits could grow exponentially and the market size by 2030 could be between $5 billion and $30 billion.