News and updates from the continent


Japanese government in SA carbon deal

Japanese government in SA carbon deal

Jun 1, 2013

Promethium Carbon, a local carbon advisory firm, has entered into an agreement with the Japanese government to participate in the development of a new carbon market mechanism as an alternative to the Clean Development Mechanism (CDM). 

Robbie Louw, a director of Promethium Carbon, says the mechanism will be known as the Bilateral Offset Credit Mechanism (BOCM).

“The Japanese government is one of the first countries to take a proactive approach in developing another carbon trading mechanism.
It is aimed at stimulating investment in low carbon technologies, products and services, and will provide a supplementary carbon trading market in line with the UNFCCC’s New Market Mechanisms.

“The initial phase of the project will use case studies to establish the principles on which such a market mechanism can be based. The current case study under investigation is an energy-efficiency project at a Gold Fields operation,” he says. “This phase focusses strongly on monitoring, reporting and verification.”

This global initiative includes 28 countries, with Zambia and South Africa the first two SADC countries involved. The scheme will initially produce offset credits, and the plan is to convert into a market for trade-able credits over time. The first pilot will be run in Asia from the beginning of 2013.

Louw says this is a positive development in the global carbon market, and is an indication of the Japanese government’s leadership role in the establishing new market mechanisms.

 

 

 

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