Carbon market 'overdue'

Zweli Mokgata

Zweli Mokgata

Climate change could cost world economies between 1percent and 10percent of gross domestic product (GDP), depending on how soon industry responds to the problem, said law firm Webber Wentzel Bowens yesterday.

The Central Energy Fund yesterday launched their International Carbon Markets Business to allow for easier trading of carbon credits internationally.

The market was launched to encourage the development of projects that produce lower greenhouse gas emissions.

The strategy of the market was to offer a one-stop-shop for developers of carbon projects, "a service which is currently not offered by any South African company", the energy fund said.

The JSE said that a carbon market was long overdue in South Africa and that while the country was a signatory of the Kyoto Protocol very little was being done to voluntarily lower emissions.

"While South Africa may be a third world country, we have the sophisticated financial markets systems in place to start trading in carbon products within the next month," said JSE strategy manager Siobhan Cleary.

Genesis Analytics senior associate Emily Tyler said Africa was in a difficult situation because the only way to prepare for climate change was to develop adaptive infrastructure, which most African countries did not have.