CYNK, a Kenya-based platform, says it has traded over two million carbon credits from the Tamuwa renewable biomass project. PHOTO | SHUTTERSTOCKCarbon credits, also known as carbon offsets, allow the owner to emit a certain amount of carbon dioxide or other gases linked to climate change.
Read: Kenya's plan to unlock carbon credit market
One credit permits the emission of one tonne of carbon dioxide or the equivalent of other greenhouse gases.
CYNK chief executive Sudhu Arumugam said in a statement the carbon credits markets had lost credibility and that this new transaction would help rebuild confidence.
“This trade of over two million forward carbon credits shows the trust being rebuilt in the high-quality segment of the voluntary carbon markets after a period of complete loss in confidence in wider markets,” said Mr Arumugam.
“It also showcases the potential for climate projects and sovereign nations in the global South, which are net long carbon, to monetise this fast-growing asset class.”
Tamuwa produces briquettes and pellets from agricultural waste and sugarcane bagasse, offering an alternative to other non-sustainable energy sources like charcoal.
Tainted markets
Misrepresentations around standardisation and misestimating of credits have tainted the carbon markets due to a historic lack of transparency that has made it challenging to obtain underlying data, monitor project progress, and assess the real impact of carbon offset projects on the ground.
“Our landmark trade illustrates the value of carbon credits as an asset class for the global South, which can create climate action and benefits for local communities,” said Nils Razmilovic, chief executive at Tamuwa.
A new law assented to by President William Ruto will see Kenya join several countries globally in efforts to set up domestic carbon trading markets as the need for more financing towards combating the adverse effects of climate change.
