Kenya Power and Lighting Co. (KPLC) moves closer to Clean Development Mechanism (CDM) project brokering a carbon trading deal with Standard Bank’s CfC Stanbic Bank.
The deal, based on current carbon exchange trading rates, is expected to generate about $1.25 million per annum if registered as a CDM under the UN Framework Convention on Climate Change (UNFCCC).
KPLC’s CEO Joseph Njoroge said that the project would help the utility avoid about 90,000 tons of emissions.
CfC Stanbic Bank’s Managing Director Greg Brackenridge said, “CfC Stanbic Bank through Standard Bank has been working to develop its carbon business in Africa over the last one to two years.” The financier is currently in 17 sub-Saharan countries. He continued, “This and a number of other projects in East Africa are position Standard Bank as a leader in the development and execution of CDMs in Africa.”
“We believe that it’s possible to make a contribution to the physical and economic health and well‐being of individual nations and the world at large by applying sophisticated financial instruments to the needs of grass roots populations,” said Fenella Aouane from Standard Bank’s Carbon Trading desk in London.
The contract with Standard Bank for development of CDM projects will be valid for the next five years, but the sale of carbon credits for successful projects would continue for the relevant crediting period according to each project.
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