Formalising the environmental asset trade

Africa is increasingly taking the lead in driving the green asset trade, with more than $7.5 billion invested in carbon projects in 2022. CNBC Africa had the opportunity to speak with Nicholas Browley, Founder and Managing Director of Green Asset Exchange, to discuss the traction and growth of green asset exchanges in the region. Browley highlighted the significant increase in interest in green assets, emphasizing the importance of valuing the environment within the capitalist system. He pointed out that factors such as South Africa's carbon tax have been driving the adoption of green assets, allowing companies to use carbon credits to offset their tax obligations. The Green Asset Exchange aims to provide a visible and transparent marketplace for green assets, offering a platform for investors to trade and invest in environmentally sustainable projects. By creating a marketplace that is accessible and easy to navigate, the exchange hopes to attract more capital towards green initiatives, ultimately benefiting the environment and society as a whole. One of the key features of the Green Asset Exchange is its focus on reducing intermediaries and increasing market transparency, ensuring that investments are channeled directly to projects that make a positive impact. By offering listings for carbon credits and renewable energy certificates, the exchange enables listed entities to meet their carbon reduction targets and contribute to global sustainability goals. Browley projected a strong growth trajectory for the green asset market, citing a significant demand for credits and a legislative push towards reducing global warming. As the first exchange of its kind in Africa, the Green Asset Exchange plays a vital role in connecting entrepreneurs and investors in the green space, fostering collaboration and innovation. In addition to serving as a marketplace for green assets, the Green Asset Exchange acts as a facilitator for information sharing and project development. Browley emphasized the importance of guiding project developers and investors toward sustainable opportunities, bridging the gap between capital and impactful projects. As Africa embraces the green asset trade and capitalizes on its potential for foreign direct investment, initiatives like the Green Asset Exchange are poised to drive sustainable development and environmental stewardship across the continent. With a commitment to transparency, innovation, and collaboration, the exchange stands as a beacon of progress in the evolving landscape of environmental finance.