"In November 2009, Nedbank partnered on a carbon offset agreement with Wildlife Works Inc. to provide environmental protection and a financial boost to some of rural Kenya's poorest areas," says Whitfield. "As part of the multi-million dollar agreement, Nedbank acquired carbon credits through the avoided deforestation of Wildlife Works' Kasigau Corridor Project, a certified offset project located in the Rukinga Wildlife Sanctuary. This was Africa's first project whereby reduced emissions from deforestation and degradation (REDD) would be achieved.
"The deal has given Kenyan landowners the ability to monetize the forest assets they hold, and has made available to the international market more than 2.5 million metric tonnes of carbon, which Nedbank continues to sell on the global carbon market.
"In the bigger picture, this innovative financing solution demonstrates that carbon offset programs in Africa hold promise on both environmental and economic fronts," says Whitfield. "It is also the first carbon offset program of any real significance in Africa, which has been slower to generate money through creating, harnessing, and selling credits than other emerging countries, including India and China."
Whitfield calls on African business and the NGO sector to follow the lead of Kenya. "South Africa and the rest of Africa is well placed to attract international funds by monetising its natural assets. NGO's and businesses can turn green projects into investment opportunities if they follow the Kenyan model."
If you would like to interview Kevin Whitfield I would be happy to arrange a time.
Press Release
For immediate release
20 January 2010
'GREEN' DOLLARS POUR INTO AFRICA ON THE BACK OF PIONEERING CARBON OFFSET DEAL
Nedbank announced today that its partnership with Wildlife Works Inc. to make available to the international market African carbon credits has proved extremely successful. The demand for carbon credits from the international business community is extremely strong.
In November 2009, Wildlife Works Inc. and Nedbank entered into a business arrangement whereby Nedbank acquired carbon credits from Wildlife Works Inc. for on-sale to the international and South African business community. More than 2,5 million tonnes of carbon was made available through the avoided deforestation of the Kasigau Corridor guaranteed until 2026.
Nedbank retained a portion of the credits for its own carbon offset requirements which has seen the bank secure carbon neutrality. This makes Nedbank the first African bank to achieve this status and gives it the same status as global banks HSBC and Deutsche Bank. Nedbank has sold a portion of the remaining credits and is currently negotiating the sale of additional credits.
In According to Kevin Whitfield, Head of Carbon at Nedbank Capital, the Wildlife Works' Inc. project, called the Rukinga and Kasigau Wildlife Corridor project, has proved to Africa that it is possible for the continent to become connected with the global green economy, and by so doing to drive revenues, to conserve its own rich natural heritage and to safeguard the livelihoods of its people. "This market has made it possible for the continent to effectively fight climate change, to uplift rural communities and to protect its wildlife through accessing carbon markets," he says. However he admits there has been a scarcity of projects of this type to date, and even fewer large scale carbon projects.
"Our experience is that there is extraordinary demand for good quality African offsets, and prices are good. Carbon credits represent a new asset class and I encourage Africa to leverage this opportunity," says Whitfield.
Mike Korchinsky, founder and president of Wildlife Works, says its new venture, Wildlife Works Carbon, was established to help local landowners in the developing world to monetize their forest and biodiversity assets whether they are governments, communities, ownership groups or private individuals.
"The corridor project was designed to bring substantial benefits to local communities through education, job creation, environmental protection and direct financial rewards, while protecting precious biodiversity at the same time. It has met the most rigorous standard for ensuring communities and biodiversity benefit from climate change projects. To date it has delivered hundreds of jobs and four schools, setting a positive example for millions of Africans who have the potential to gain financial reward from REDD to boost the future of sustainable development in the face of climate change-related pressure to their livelihoods.
"We are excited that the global voluntary carbon marketplace has shown such keen interest in reducing its carbon footprint by investing in our carbon credits. The money that this project is yielding will help the Kenyan community to protect its natural forests, endangered species and the livelihoods of its people," says Korchinsky.
Saliem Fakir, head of the WWF in South Africa, says the indigenous forests of Africa are under constant threat as a result of human activities and climate change.
"Many of these types of forests cannot be found anywhere else in the world. Saving them should be an utmost priority. Rukinga and the associated Kasigau Wildlife Corridor project are world class examples of projects that are making a tangilble difference to both communities and the environment and it is innovative finance solutions, like carbon financing, that makes them possible. Both Nedbank and Wildlife Works are to be commended for their role in bringing this deal to fruition," he says.
The deal between Nedbank and Wildlife Works Inc. was Africa's first reduced emissions from deforestation and degradation (REDD) project developed at scale. Registration from the benchmark voluntary carbon market registry, the VCS (Voluntary Carbon Standard) was achieved. The project has also been awarded gold level approval under the Climate Community and Biodiversity Alliance's (CCBA) forestry protection standard - a milestone in establishing REDD in the global carbon marketplace.
Ends
For more information please visit www.nedbankgroup.co.za; www.nedbankcapital.co.za or www.wildlifeworks.com
About Nedbank Capital
Nedbank Capital comprises the Nedbank Group's investment banking businesses that together manage the structuring, lending and underwriting activities and all trading and broking activities in the equity, capital, interest rate, and foreign exchange and derivative markets across the African continent.
To position Nedbank, and its clients, appropriately for a carbon-constrained future Nedbank Capital has a dedicated Carbon Finance Team that views carbon dioxide and other emissions holistically. The team looks at emissions end to end, using a five-pronged approach that draws on cross-functional expertise in finance against the backdrop of a value proposition comprising the following:
· Sustainability – devising carbon strategy and policy.
· Carbon advisory and footprinting services.
· Identification and development of Clean Development Mechanism projects.
· Identification and development of carbon projects for the voluntary carbon market.
· Carbon trading – trading of certified emission reduction and verified emission reduction certificates and providing client brokerage services to monetise carbon benefits or to obtain carbon neutrality.
Nedbank's Green Credentials include:
· Dow Jones Sustainability Index membership – the world's premier performance benchmark for companies in terms of corporate sustainability. Included for fifth year. One of only 25 banks worldwide and three companies with primary listings in South Africa to be included on the index (only SA Bank). 2009: 78% (2008: 74%).
· JSE SRI Index – inclusion since 2004.
· South African Carbon Disclosure Project Leadership Index – ranked 1st in 2009.
· Financial Times – Emerging Markets Sustainable Bank of the Year for Middle East & Africa (2007 and 2008).
· Equator Principles – first African bank signatory (in 2005).
· Carbon Neutrality – announced intention to become 100% carbon neutral in 2009, first large South African corporate to do so.
· WWF Conservation Partnership
· UNEP FI – co-chair on the UNEP FI African Task Force.
· African Banker – Social Responsibility Award (2009).
· UNEP FI – signatory to official Statement on Climate Change and Copenhagen Communiqué.
Nedbank is represented on the following bodies both locally and internationally:
•Climate Neutral Network
•UNEP FI African Task Force
•UNEP FI Biodiversity & Ecosystem Services Work Stream
•UNEP FI Human Rights Work Stream
•United Nations Global Compact – 'Caring for Climate' Programme
•National Business Initiative Sustainable Futures Advisory Committee
•National Energy Efficiency Accord
•Banking Association of South Africa; Sustainable Finance Committee
•UNISA Climate Change Advisory Committee
About Wildlife Works' Rukinga Wildlife Sanctuary / Kasigau Wildlife Corridor Project
| · In 1997 WWI (Wildlife Works Inc.) established the 30 000 hectares Rukinga Wildlife Sanctuary at the Northern end of the Kasigau corridor adjacent to Tsavo East National Park. Working closely with local communities and the Kenya Wildlife Service, WWI has been protecting the fragile dry-land forest which is home to Africa's 'big 5' wildlife as well as many other of the smaller but equally as important game. · The Kasigau Wildlife Corridor sits between two National Parks, Tsavo East and Tsavo West. It is approximately 200,000 hectares of dryland forest and savannah grassland that serves as an important wildlife corridor for movement of elephant, giraffe, zebra, and other large mammals between the two National Parks. The forest is under constant threat of subsistence farming, grazing, logging for fire wood, charcoal and hunting of bush meat. It is WWI's intention to protect the entire Kasigau Corridor with the carbon proceeds received from avoided deforestation and reforestation at the Rukinga Wildlife Sanctuary, thereby safeguarding wildlife movement in the area. · The Rukinga project represents a unique model of commercial wildlife preservation in Africa, accessing global carbon markets to provide financial support for conservation instead of allowing "fence-and-shoot" trophy hunting. WWI has implemented a wide range of sustainable development initiatives at Rukinga over the past ten years, including: · Organic clothing factory An Ecofactory has been constructed, employing young women from the community to sew organic cotton clothing which is exported to the US and Europe for sale on the internet and in fashion boutiques · Organic greenhouse An organic greenhouse has been established to grow citrus trees which are sold at a discount to local farmers so that they can plant a tree for shade that will also earn them income. WWI uses the funds from the citrus sales to fund the growth and distribution of free agroforestry species such as Neem and Morabaini to local farmers, to meet their medicinal, nutrition and fuelwood needs. · Dryland farming scheme In conjunction with the Kenyan Agricultural Research Institute (KARI), a climate appropriate plant called Jojoba that provides a cash crop through its seeds and is extremely drought tolerant is being cultivated. · Schools and bursary scheme A school building programme is underway which has, over the years in partnership with the community and various donors, built 18 classrooms throughout the district. A school bursary programme has also sent dozens of local children through private high school, and several on to college. · Ecotourism In partnership with an ecotourism provider a camp in the centre of the Rukinga Sanctuary is operated. This provides employment for safari guides and other service jobs, and a market for local produce. |
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| About the Carbon Credits |
· WWI qualifies for carbon credits based on its preservation of forest and wildlife. The Rukinga project has already achieved certification with the Climate, Community and Biodiversity Alliance ("CCBA") standard and registration is being sought with the Voluntary Carbon Standard ("VCS").
· The carbon credits are Verified Emission Reductions ("VER's") which can be used to offset an organisation's carbon footprint, over and above cap-and-trade emission regulation.
· Due to the high quality community work and biodiversity benefit attached to the project it has received gold standard accreditation from the CCBA, which is the highest level of accreditation given by the CCBA.
· The World Bank has indicated that the CCBA and the VCS standards are two of the five most reputable carbon offset standards globally.
· According to a study done by the World Bank, the CCBA and Gold Standard schemes are two schemes which sell 'premium credits' at higher prices for guaranteed sustainable development 'co-benefits'.
· In terms of both VCS and CCBA rules the project qualifies for credits from 2006 for a period of 20 years.
· The project will qualify for approximately 130 000 credits per annum (excluding a buffer of 40 000 credits)
Best regards
Maria Mazis
Fleishman-Hillard Cape Town
Ground Floor, South Entrance
15 Georgian Crescent
Bryanston
Tel: +27 11 548 2000
Fax: +27 11 706 7320
Mobile: +27 72 207 2695
maria.mazis@fleishman.co.za
Delivering Results at the Point of Impact ℠
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