Standard Bank Group has agreed to buy 313 000 certified emission reductions (CERs) from Karan Biofuels, a biomass energy producer in Kenya, over the next 10 years.
Carbon credits will be generated through the implementation of the largest biomass briquettes plant in Africa to date. Its production will replace fossil fuels used by Nairobi-based industrial refinery.
Biomass supply for Karan Biofuels is ensured by Muhoroni Sugar, a local sugar factory that has a large excess of bagasse. Bagasse is the fibrous waste that remains after sugarcane is crushed to take out the liquid.
Standard Bank Group sells the carbon credits to companies who may need them at any stage to allow them to offset their greenhouse emissions. In effect, carbon trading puts a monetary value to the cost of polluting the air.
Fenella Aouane of Standard Bank Group's carbon trading team, says: "As a leading African financial institution we are active in global carbon markets with a special focus on the continent.
"We hold one of the largest portfolios in the region and are looking to lock in opportunities that match our CDM (clean development mechanism) investment strategy, which is mainly Africa, renewable energy and green technologies. Standard Bank Group is proud to be one of the market leaders in carbon financing in East Africa and we are delighted to be working with Karan Biofuels and this innovative new technology in Africa."
For more on Standard Bank Group's carbon trading expertise, see www.standardbank.com/cib.
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