IFC Ink Carbon Credit Deal for Sub-Saharan Africa

The International Finance Corp. (IFC), a member of the World Bank Group, has signed its first carbon delivery guarantee agreements in Sub-Saharan Africa. According to a release issued by the IFC, the carbon finance project is expected to give companies selling carbon credits the chance to access a wider range of potential buyers by lessening country and project risk.

In South Africa, IFC’s agreement covers up to 900,000 carbon credits from Omnia, one of the country’s leading fertilizer producers. Under the new carbon delivery guarantee, IFC facilitates delivery of carbon credits from companies in developing countries to buyers in developed countries. Emission reductions for Omnia will come from a nitrous oxide destruction facility that will significantly reduce emissions.

The World Bank member will act as an intermediary, selling companies’ credits in the market and passing on an attractive price back to the projects. Clients profit from IFC’s AAA credit rating by gaining access to markets and also benefit from full price transparency. For buyers in developed countries, the new carbon credit program will also eliminate the risk of not receiving the promised carbon credits.