February 23, 2018

Firm inks deal to sell 2.2m African CDM carbon offset credits

Firm inks deal to sell 2.2m African CDM carbon offset credits... NAIJA INVEST

AS part of efforts towards implementing an emission-reduction project in developing countries, Ecosur Afrique has announced the signature of two forward sale agreements in West Africa with a leading European utility.

The deal features a delivery of an estimated 2,200,000 carbon credits over seven years period and provides the option for an extra supply throughout the crediting period.

Under the Clean Development Mechanism (CDM), defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets.

Specifically, the transaction combines two types of carbon credits: Forward Certified Emission Reductions (CERs) eligible under the European Trading Scheme (EU ETS) and pure Gold Standard credits (GS VERs) for voluntary markets. Both carbon credit assets are generated under two Programmes of Activities (PoAs) located in Togo – a Least Developed Country (LDC) – and Ghana.

Underlying projects aim to disseminate energy efficient products to help local households to reduce their daily energy consumption – and thus mitigate greenhouse gas emissions. Operations and carbon registration process have already started on ground. First carbon credits delivery is expected in Q3-Q4 2014.

The overall transaction has been structured and brokered by Ecosur Afrique, one of the leading CDM consultant and carbon brokers in Sub-Saharan Africa. “Despite anaemic prices and unprecedented collapse, carbon markets are still alive offering strong upsides for whose that are able to lock in positions at current levels.

Creative solutions combining quality offsets, large volume, fungibility of assets, optionality and low development costs yield value. We don’t share the bearish market view and consensus. Climate change global issue has not disappeared with the financial turmoil and carbon recovery will arise with new market rules and routes. In this changing environment, Africa is well positioned to become the largest offset supplier.” stated Fabrice Le Saché, CEO of ecosur afrique.

Firm inks deal to sell 2.2m African CDM carbon offset credits... NAIJA INVEST

Firm inks deal to sell 2.2m African CDM carbon offset credits… NAIJA INVEST

Meanwhile,  the firm has also concluded  registration of the 1st CDM project activity targeting the generation of electricity based on biomass residues (palm oil leaves and trunks) in West Africa. Promoted by Biokala, an affiliate of the agro-industrial leader SIFCA, the “Biovéa” project consists in the construction and operation of a 42 MW power plant in Aboisso (Côte d’Ivoire).


IMAGE: www.thetechherald.com

Comments are closed.