West Africa rises to the occasion
18 June 2015
The first carbon credits transaction involving a seller and a buyer from West Africa
has been announced by Ecosur Afrique, a leading carbon finance group in Africa.
"The exchange of carbon credits involves traditionally their transfer from developing
countries to industrialised countries," says Fabrice Le Saché, the chief executive of
Ecosur Afrique. "We are convinced that the future of the market lies in part in the
development of South / South transactions, particularly within Africa."
In the transaction, his company is partnered by Investisseurs & Partenaires, an
impact investment fund dedicated to small and medium size enterprises in sub-
Saharan Africa, and Volta Rental Services (VRS), a car leasing company operating
in West Africa. It was announced on 15 June.
Ecosur Afrique structured the transaction, which allows VRS customers to offset the
CO2 emissions of vehicles leased in Ghana, Ivory Coast and
Senegal.
Thomas Crand, the co-founder of VRS, says: "We develop a strong environmental
strategy; CO2 emissions are at the heart of our concerns and we are pleased to
offer our customers the option to offset their carbon footprint. Today's transaction is
pioneering and a unique choice, which distinguishes us on the West African market.
We hope it will become standard in our sector."
VRS will aggregate the offset demand of customers taking part in the carbon neutral
programme each quarter and for the whole fleet concerned. The carbon credit
purchases will also be made quarterly.
The carbon credits, or emission reductions, which are at base of the offset
transaction, are generated from the dissemination of energy efficient cooking
stoves in Ivory Coast. The stoves are distributed as part of the Soutra Fourneau
programme financed and operated by Ecosur Afrique.
They use less charcoal, so helping small entrepreneurial users such as restaurants
or canteens. The use of charcoal and firewood for cooking purposes is a major
source of CO2 emissions and deforestation in West Africa. Beyond the
environmental aspect of the stoves, the benefits are numerous: redistribution of
purchasing power to consumers, decrease of noxious fumes, cutting meal
preparation time by half.
"We have been working for several years on our carbon credit offer in order to
create sufficient liquidity allowing the emergence of such a market," says Le Saché.
"With over 40 projects in 17 countries, we now have the largest portfolio of African
carbon credits in terms of volume and diversity. We must now increase and expand
the demand. Similar CO2 offset transactions are under negotiation with African
hotel chains, carriers and agribusinesses."
As a private investor of VRS, Investisseurs & Partenaires played a major role in the
operation. The fund began by offsetting its own CO2 emissions and proposed this
solution to some
companies in its portfolio, particularly to those in the logistics,
transport, and distribution of fresh products sectors.
Jean-Michel Severino, the fund's chief executive, says: "[It] shows, once again, its
commitment to pioneering entrepreneurial ideas, both to strengthen the business
model of its holdings, to offer them distinctive solutions in their market and to
assist them in environmental and social performance, a pre-condition of economic
sustainability."
Source: APO
Stoves distributed as part of the Soutra Fourneau programme, which is financed and operated by Ecosur Afrique. (Image: APO Photos)
