Africa can lead in carbon markets, boosting economic growth and cutting emissions. Standard Bank champions innovation in carbon trading, leveraging natural resources for sustainable development.
As the world strives to limit global warming to below 2°C under the Paris Agreement, Lawrence Cole-Morgan, Lead of Carbon Credit Trading at Standard Bank, highlights carbon trading as one vital tool to safeguard the planet.
"We need to utilise every tool available. Reducing emissions solely within individual operations and borders will not suffice; carbon markets offer an opportunity to amplify ambition," he said.
Cole-Morgan spoke as the moderator of a panel titled 'Unlocking the Financial Potential of Carbon Markets in Africa' at the Africa Sustainability Forum. The discussion centred on utilising carbon markets—an emerging concept in Africa—to support climate mitigation efforts, foster economic growth, and contribute towards the global net-zero emissions target.
Lawrence Cole-Morgan, Lead of Carbon Credit Trading at Standard Bank
Lawrence Cole-Morgan, Lead of Carbon Credit Trading at Standard Bank
Standard Bank, in its latest group climate policy, announced the launch of its carbon trading business, designed to trade carbon credits.
Cole-Morgan elaborated on its importance:
"Carbon credits are an export commodity for Africa. We aim to support carbon credit development just as we support other export commodities—by acting as a market intermediary and financing upstream production."
Highlighting Africa's vast natural assets, Cole-Morgan emphasised their potential to significantly reduce carbon dioxide emissions annually and establish a new economic market for the continent.
"All of this, combined with available land and a young labour force, has the potential to foster a significant carbon-emission industry in Africa. This can become a cost-competitive export commodity, driving economic development, adaptation finances, job creation, and prosperity—if we can harness it effectively," he said.
Financing for Carbon Trading
Regarding financing and facilitating carbon trading, Cole-Morgan noted that although the sector is relatively new, Standard Bank employs tried-and-tested financial tools innovatively. The bank focuses on structuring deals to minimise market volatility by leveraging future revenue streams.
"What we’re seeking to do in financing carbon credit projects is not something new. While it’s a new sector and commodity, we’re applying the tools and expertise gained from funding other sectors, like renewable energy," he said.
The theme of this year's Africa Sustainability Forum was 'Harnessing Sustainable Finance Potentials in Africa: Opportunities, Challenges and Actions.’ The two-day event explored ways African nations can maximise sustainable finance investments, balancing economic success with positive environmental and social outcomes.
The forum was hosted by the Capacity-building Alliance of Sustainable Investment (CASI), a global platform dedicated to building sustainable finance expertise in developing economies and emerging markets. CASI connects 67 global organisations with local partners to share best practices and deliver knowledge resources.
"The establishment of a robust domestic green financial system is essential," said Ma Jun, Chairman of CASI. "The financing needed for renewable energy projects in Africa far surpasses current levels. Governments alone cannot meet the demand, and dependence on foreign aid is unsustainable. Building green financial systems domestically is critical."
In another initiative geared towards enhancing this green financial system, Standard Bank is working to support farmers in earning carbon credits through regenerative agricultural practices. Additionally, the bank aims to publicly disclose its carbon credit purchases and the outcomes of related projects.
"Standard Bank's motto is 'Africa is our home. We drive her growth.' This represents a growth opportunity that delivers significant co-benefits. It will create jobs, attract foreign direct investment, and support climate mitigation," Cole-Morgan concluded.
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