Tag Archives: technology

Business Daily:  – Corporate News |KPLC enters carbon credits trade

Business Daily:  – Corporate News |KPLC enters carbon credits trade

via Business Daily:  – Corporate News |KPLC enters carbon credits trade.

A similar plan also set to be implemented in Zambia with ZESCO

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Carbon News and Info: Copenhagen, Kyoto & climate politics World Bank fund for new carbon markets

Carbon News and Info > Climate change news > Copenhagen, Kyoto & climate politics > World Bank fund for new carbon markets

via Carbon News and Info > Climate change news > Copenhagen, Kyoto & climate politics > World Bank fund for new carbon markets.

Why Banks in Zambia are Shy to Invest in Carbon Projects

The financial benefits for Africa from carbon finance are exponential, as well as for environmentally sustainable development in the region. However the process to develop projects in Zambia that will create carbon credits is slow.  This can be linked to a lack of reliable knowledge and some myths about the financial viability of carbon projects.

Myths About Carbon Finance

“Zambia is not industrialized so it cannot benefit from carbon credits”

 True, Zambia is not especially industrialized, however this does not mean that the activities of the country have not had a serious environmental impact. The use of charcoal has been so detrimental to the country’s environment that Zambia is now rivalling other more developed countries in emissions. 

“90% of Zambia’s electricity is ‘clean’ so we don’t need carbon projects”

Again, this is true.  90% of Zambia’s electricity is from hydropower, however  this only serves 20% of the population.  In very rural areas communities may be using charcoal or generators where there is no electrification.  80% of the population results in possibly new customers for carbon projects.[i]                                     

“The risk involved is too high”

 This is a common misconception. The risk involved in a carbon project is no greater than in property development or other futures markets.  The difference is the required checks and balances required before registration as a carbon project can be costly, but in direct proportion to the return on the investment.  Carbon projects have two potential revenue streams, the profits made from the project itself through sales plus the additional revenue stream created through the sale of carbon credits. These two revenue streams make carbon projects highly lucrative.

GKI’s Training for the Finance Sector

As a result of these misconceptions banks have been shy to invest in carbon projects, missing out on major investment opportunities.  GKI has therefore developed training courses to educate and train bankers and financiers equipping trainees with all they need to make informed and secure decisions with regards to investment in carbon projects. 

Carbon Finance as a growth area is:

  • Highly lucrative
  • Ethically Sound
  • Developmentally sustainable

The question is not whether Zambia will develop a carbon market, the question is, when and whether local investors will be the first in line to benefit.


[i] This number depends on the project