JSE Voluntary Carbon Market Sees First Trades Of Carbon Credits Eligible For The SA Carbon Tax
The JSE Ventures voluntary carbon market powered by Xpansiv facilitates the first transactions that qualify for the South African carbon tax. A total of 10,000 points are traded at $8.25 per credit, which is equivalent to 80% of the current carbon tax rate of R190 per ton.
The Carbon Market enables market participants to purchase and sell carbon credits and renewable energy certificates in local or global registries. Carbon and renewable energy credits can be used in compliance programs, including carbon taxes and voluntary programs that support the company’s net zero commitment.
“It was a great start for the year and a great time for many South African companies to want to align their carbon tax obligations. These deals reaffirm JSE’s commitment to delivering products in the field of sustainability that not only supports investment in Projects that generate carbon credits, and also launch a wider network of buyers to sellers of credit. We believe this is just the beginning and look forward to more transactions on the platform. This is an open invitation to all South African companies, who contact them to carbon tax to contact us to obtain qualified offsets,” said Valdene Reddy, director of capital markets at JSE.
To further expand the company’s opportunity to advance its sustainability goals, JSE Ventures Carbon Market has launched a deal for the International Renewable Energy Certificate (IRECS). IREC enables companies to offset their “two” emissions in their range from energy provided by third parties.
“The initial transactions of domestic project credits comply with the national compliance program, which demonstrates the benefits of creating a centralized regional market,” said Russell Karas, senior vice president of Xpansiv. “We expect this to be developing carbon credits and The first step in IREC’s strong market, which will allow South African companies to accelerate their net zero plans and meet compliance requirements.”
Since the collaboration between JSE Ventures and Xpansiv, JSE has been actively entering the Xpansiv platform and assisting in building and introducing capacity to project developers and financiers to expand the environmental credit supply in the region.
South Africa’s carbon tax was conducted in a phased approach in June 2019, allowing the use of approved carbon credit taxes to transition to net zero.
