The Johannesburg Stock Exchange (JSE) has launched the JSE Ventures Voluntary Carbon Market, marking South Africa’s first trades of carbon credits eligible for use against the country’s carbon tax.
The initial transaction saw 10,000 credits traded at $8.25 per credit, covering approximately 80% of the current tax rate of $20.25 (190 South African rands) per ton, JSE said in a statement last week.
JSE Ventures, a division of the JSE, operates the carbon market through Xpansiv, a global spot exchange for environmental commodities.
The Xpansiv platform enables participants to trade carbon credits and renewable energy certificates held in both local and international registries.
These credits can be used for tax compliance and voluntary commitments, supporting corporate net-zero strategies.
JSE Director of Capital Markets Valdene Reddy emphasized the significance of this milestone, stating: “These transactions reaffirm the JSE’s commitment to providing products in the sustainability sector that not only support investment into projects producing carbon credits but also introducing a wider buyer network to the sellers of the credits.”
She added that the exchange looks forward to facilitating further trades and encouraged South African corporates exposed to the carbon tax to explore offset opportunities.
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In addition to carbon credit trading, JSE Ventures has launched International Renewable Energy Certificates (IRECs), which allow companies to offset their scope 2 emissions—those linked to energy supplied by third parties.
Russell Karas, senior vice president at Xpansiv, highlighted the broader impact of this development, noting: “The initial trades of domestic project credits to comply with the national compliance program demonstrates the benefits of creating a centralized regional marketplace.”
He expects this will help expand South Africa’s carbon and renewable credit markets, accelerating corporate net-zero programs.
Since its partnership with Xpansiv, JSE Ventures has been onboarding participants and connecting them with project developers and financiers to strengthen the supply of environmental credits.
South Africa introduced its carbon tax in June 2019, allowing phased implementation and the use of approved carbon credits to support the transition toward net zero.
