19 June 2012
Standard Bank Group supported a deal that today led to the registration of the first Clean Development Mechanism (CDM) project in Ghana. The project has been undertaken by Zoomlion Ghana Ltd.
To date, 4 225 projects have been registered by the CDM executive board – mainly in China, India and Brazil. Projects such as these demonstrate the vital role Standard Bank Group is playing in enabling African industry to develop in a sustainable way forward.
Zoomlion’s project involves composting of municipal solid waste in the Accra area. It features the largest sorting and composting facility of West Africa that is able to process 300 tonnes of waste per day in its first year of operation and 600 tonnes per day in susequent years.
The plant was inaugurated earlier in 2012 and will start to produce and sell compost for agricultural, horticultural and landscaping activities in the next few weeks.
Carbon credits to be generated by the project were bought forward by Standard Bank Group in October 2010. Standard Bank Group funded the CDM registration process, which was completed by Ecosur Afrique, the leading advisory and brokerage group operating in carbon markets across Africa.
Geoff Sinclair, Head of Climate Finance at Standard Bank Group, says: “Standard Bank is active in, and committed to, growing the carbon market in Africa. We are proud to be supporting the first registered project in Ghana, and working with Zoomlion on this project is another tangible sign of our commitment to CDM and growth throughout the continent. We congratulate Zoomlion and Ecosur Afrique for this achievement.”
Dr Joseph Siaw Agyepong, CEO of Zoomlion, says: “CDM and the fight against climate change are in complete line with Zoomlion’s commitment to keep Ghana clean, green and healthy.” He praised the local authorities, especially the DNA and Ministry of Environment, for their support throughout this process.”
About the Clean Development Mechanism
Since the Kyoto Protocol (16 February 2005), any project reducing greenhouse gas emissions in a developing country can be rewarded with valuable carbon credits under the CDM of the United Nations Framework on Climate Change (UNFCCC). CERs are sold to States and/or industries under carbon constraint in Europe, Japan, Canada or Australia.
The benefit of the CDM is twofold: (i) it reduces the costs induced by the adaptation of industrial countries to global warming; (ii) it promotes the transfer of clean technologies to developing countries.
To date, 4,225 projects have been registered by the CDM Executive Board – mainly in China, India and Brazil.
For the year 2011, the amount of transactions in carbon markets were estimated at 176 billion USD (+11% compared to 2010 data).