Introduction

ACCE is creating an electronic trading platform to bring together buyers and sellers of carbon credits and other ‘green’ instruments in a transparent and risk-mitigated marketplace. Buyers can be assured of credible credits, and sellers can benefit from price discovery in an open marketplace rather than negotiating over-the-counter deals in which prices are not always optimal and the lion’s share of profits leaves the continent.

 

Initially the Exchange will focus on trading of Certified Emissions Reduction (CER) and voluntary market credits. Forward contracts traded on ACCE will generate seed capital for implementing low-carbon projects, filling a critical gap in the current project development process for Africa. 

 

The Exchange will comprise an electronic trading space supported by state-of-the-art IT infrastructure, a coordinating center in Lusaka, and a network of brokers throughout the continent. Through an international clearing and guarantee system under development, the Exchange will be able to mitigate counterparty risk and provide investor protection. 

 

The framework for the trading platform is based on that of the Lusaka Stock Exchange, which is fully harmonised with the Johannesburg and London Stock Exchanges and others. This enables us to capitalise upon longstanding best practices and align ACCE operationally with other marketplaces. ACCE is working closely with the Securities and Exchange Commission of Zambia to ensure that the trading platform is covered by statutory regulation. 

 

We foresee the Exchange maturing not only as a platform for CER and voluntary offset trading, but also for listing ‘green’ companies, raising ‘green’ capital and trading ‘green’ bonds, insurance products and renewable energy certificates (RECs). Certainly, as other ecological resources (such as water) fall under more strain and new market instruments emerge for managing them, the ACCE trading platform will be ready and able to accommodate these new mechanisms. 

 

To supplement the trading platform, ACCE will provide an interactive online database to facilitate the connection of buyers and sellers with each other and with technical experts and consultants.