Carbon markets are one of the mechanisms used to finance the transition to more sustainable economies and help offset carbon emissions for companies that have net zero commitments. Hence, carbon credits can be an important instrument in companies’ sustainability strategies.

To help this sustainable transition, the JSE – in partnership with global platform Xpansiv – launched JSE Ventures, a voluntary carbon market that aims to fast-track the development of carbon offset projects while addressing growing demand for carbon credits from entities aiming to neutralise emissions. ‘By creating a structured and credible marketplace, the initiative is intended to stimulate greater investment interest in South Africa, channel capital into climate-positive projects and play a constructive role in supporting economic growth. At the same time, JSE Ventures seeks to strengthen sustainability practices by enabling measurable emissions reduction efforts and encouraging broader participation in the transition to a lower-carbon economy,’ according to Anelisa Matutu, the JSE’s Head of Commodities. ‘Decarbonisation pathways involve systematic reduction of emissions through energy efficiency, electrification, low-carbon energy supply and carbon capture and storage. While carbon offsets are a com-plementary tool to use to compensate for residual, unabatable emissions by funding emissions reduction or removal projects, the voluntary carbon market brings together buyers and sellers of carbon offsets to negotiate prices in a transparent manner and trade.’

She says mining companies could play an important role in developing their own carbon-mitigating projects that ultimately result in the issuance of carbon credits. ‘Naturally, as mining companies are usually big emitters, they tend to use their credits for their own offsets, either for compliance or on a voluntary basis. However, there could be a scenario where some mining companies have an excess in carbon credits and could sell those on the platform. The second role that mining houses could play is financing and working closely with SMEs to develop high-quality projects which could ultimately generate carbon credits that could be sold on the platform by increasing much-needed local supply.’

The JSE is using frameworks to ensure that carbon credits generated by mining rehabilitation or renewable-energy projects are globally comparable. ‘JSE Ventures connects to many operators of standards/registries globally. Although JSE Ventures cannot advise mining companies on methodologies nor standards to use in developing projects, we have available international standards for trading on the platform which international emitters buy – for example, the Vera Gold Standard and I-REC [International Renewable Energy Certificate]. The key is to ensure the platform connects to many registry operators globally, thereby increasing the number of standards that can be either bought or sold on the platform.’

She says as global carbon markets evolve, the JSE is ensuring SA’s voluntary carbon market remains competitive, particularly in relation to emerging-market peers. ‘Through its partnership with Xpansiv, the platform provides access to approximately 1 700 global buyers and sellers of carbon credits and renewable energy certificates. The platform also provides project developers with an opportunity to sell their carbon credits to a large global audience. The JSE’s ambition is to expand the JSE Ventures platform to the rest of the continent, providing other African countries with an opportunity to sell their projects globally. The platform already supports Corsia credits trading, South African Carbon Tax-eligible carbon credits, and other voluntary credits issued by global standards and is ready to facilitate the trading of Article 6 carbon credits. The JSE views the platform as an instrument to help advance the continent’s carbon markets by providing cost-effective and easy access to a varied global audience.’

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