AQUALIBRE PROJECT AFRICA: A TRANSPARENT TRADING PLATFORM FOR CARBON CREDITS

By Zimkhita Kweza

The debate around carbon credit exchanges in Africa is a reflection of broader concerns about environmental justice, economic development, and global climate policy. These markets offer significant potential benefits, such as financial incentives for sustainable practices and contributions to global emission reduction goals. However, they also pose substantial challenges. Climate-tech companies like Aqualibre Project Africa are pivotal in addressing these challenges and ensuring that carbon credit exchanges are implemented fairly, transparently, and effectively. This is crucial for harnessing the potential of carbon credits while safeguarding the interests of African nations and their populations.

Aqualibre Project Africa is a climate-tech firm that assists companies and individuals throughout the continent transition and profit from the green economy. The firm covers 55 African countries, providing a comprehensive carbon-neutral solution. This solution is designed to help companies and individuals offset their carbon emissions by investing in green projects and trading carbon credits.

For those unfamiliar, carbon credits are permits that represent the right to emit a certain amount of carbon dioxide or other greenhouse gases (GHGs). On the other hand, a carbon credit exchange is a market-based system that allows for trading these carbon credits. The primary aim of these exchanges is to incentivise the reduction of greenhouse gas emissions by assigning a monetary value to the cost of emitting carbon.

Aqualibre Project Africa, a key player in the carbon credit exchange process, is dedicated to combating climate change. It facilitates African companies’ transition from a carbon-based economy to a green economy, generating and promoting carbon credits. The company’s trading aspect is particularly impactful, as it helps green projects monetise their environmental efforts. By connecting these projects with carbon-polluting companies, Aqualibre Project Africa creates a sustainable income source for project stakeholders and local communities, instilling hope for a greener future.

Background

Aqualibre Project Africa, a young climate change firm based in Cape Town, South Africa, is a key player in the Voluntary Carbon Market (VCM). The firm’s three founding principles, including the relentless pursuit of excellence, rigorous application of critical thinking, and a culture of humour and humility, guide our operations in the VCM. These principles ensure that they maintain high standards of their transparency, fairness, and effectiveness in our carbon credit exchanges, providing the reassurance and confidence to our stakeholders.

Aqualibre Project Africa is a climatetech firm that assists companies and individuals throughout the continent transition and profit from the green economy. The firm covers 55 African countries, providing a comprehensive carbon-neutral solution. This solution is designed to help companies and individuals offset their carbon emissions by investing in green projects and trading carbon credits. While conducting ESG due diligence, the firm discovered that unscrupulous business people were defrauding companies because there was no transparent trading platform for carbon credits. This led to the company becoming heavily involved with carbon credit exchange and utilising its extensive networks on the African continent.

How

does Aqualibre Project Africa identify and select projects for collaboration?

The firm’s commitment to transparency and effectiveness is evident in its selection process. Every application from green project owners is carefully considered, and each receives a proprietary questionnaire. A small team, guided by the principles of excellence and critical thinking, decides whether to become involved with the project based on the questionnaire’s completeness and detail. This rigorous process ensures that only of these carbon credits when traded on the Aqualibre platform. Finally, a Memorandum of Understanding (MoU) with the green project on agreement and submission of a smart contract is signed. On completion of the MoU, the firm offers the project owner an opportunity to get their carbon credits verified by one of the verification agencies; alternatively, the project’s unverified carbon credits can be placed on the Aqualibre exchange to be traded within a thriving ecosystem of buyers, investors, and traders.

Can you share some examples of successful green projects you have collaborated on with companies or investors?

“We have collaborated with several green projects on track to achieving their environmental goals. One of these projects is a manufacturer of an all-natural fuel additive that reduces carbon emissions from any fuel by 5% while improving maintenance downtime by 25%. We also have several million REDD+ verified and insured carbon credits on our Exchange”. - Aqualibre Africa Project team

“A green project has generated these carbon credits, which have been verified and insured. Currently, they trade at $1.75 each. The carbon tax in South Africa is R190 per ton, or $10.55. Imagine offsetting your carbon footprint and helping a green project so cheaply. The opportunities for utilising carbon credits to achieve environmental goals are manifold”.Aqualibre Africa Project team the most promising and impactful projects are selected for collaboration.

How does Aqualibre Project Africa ensure that its projects have a positive social impact on local communities?

At Aqualibre Africa, we are committed to collaborating with green projects that benefit the environment and uplift local communities. To ensure a positive social impact, we submit a due diligence form to be completed by the project owner before collaborating with any green project. This document provides the baseline for us to conduct our local inquiries and confirm whether the project brings tangible benefits to the local communities where the project is based. Along with the project owner and local community members, we discuss how the project can improve access to clean water, create jobs, and enhance local infrastructure.

Once the project is vetted and the firm feels the collaboration would benefit the project and its community, it continues to conduct a comprehensive assessment of the project, propose a strategy, and calculate the carbon credits that will be generated. A transparent and fair process determines the potential pricing

“The following three examples of successful green projects we have collaborated with include Mangrove rehabilitation along the southern coastline in Mauritius, a water purification and reticulation project for a nomadic community in Mauritania, and a green project that converts waste food into carbon-neutral fertilisers used in hydroponic vegetable gardens. “Suffice to say there have been reforestation, hydrogen gasification, and water purification projects involving the local community.” - Aqualibre Africa Project team criteria: Environmental criteria, such as assessment of biodiversity impact, climate change resilience, natural resource management, and pollution control. Social criteria: Evaluation of community engagement, labour practices, human rights, health, safety, and security standards, and specific attention to the impact on local livelihoods. Governance criteria: Focus on transparency, regulatory compliance, anti-corruption measures, board diversity, and corporate ethics.

Understanding and addressing community and third-party concerns is crucial for the success of any green project. Based on our experience with some community-based projects, we assist the project team when they need to have open dialogues with community members. We adopt a practice from the military called the “Chinese parliament.” In these meetings, anyone can express an opinion, voice a concern, or share their apprehensions without fear of ridicule or censure. This technique promotes transparency and generates some valuable ideas.

How does Aqualibre Project Africa facilitate the generation and trading of carbon credits?

By building trust and demonstrating the project’s long-term benefits, we help the project team turn resistance into support. Interestingly, in Africa, more than elsewhere, political interference is a substantial stumbling block that needs to be addressed with sensitivity and courage. By involving community leaders, NGOs, and community members from the outset, we ensure that the projects are aligned with their values and needs.

We encourage the project team to hold regular consultations, deliver workshops, and facilitate planning sessions. These activities must be part of the project methodology and documented for audit purposes. Aqualibre Africa likes collaborating with green projects that want to create a greener and more inclusive future. That is why we encourage green projects to apply to us so that we can choose projects that meet our expectations and those of the communities the project leaders hope to serve.

What criteria are most critical in your ESG assessments, particularly in Africa?

Conducting ESG (Environmental, Social, and Governance) due diligence investigations in Africa requires a holistic approach that considers several critical

Aqualibre Africa facilitates and generates the trading of carbon credits on its blockchain through a holistic approach to green finance. This approach includes six steps toward monetising carbon credits: Verification and Certification: Aqualibre Africa has close associations with accredited third-party organisations (e.g., Puro, Verra, Gold Standard) that verify and certify carbon credits. These carbon credits are typically generated by green initiatives known as “carbon offset projects.” Projects must meet international standards for carbon reduction. By meeting such standards (e.g., UN Article 6 or equivalent), the project demonstrates its legitimacy and the value of the carbon credits created.

Listing and Trading Platform: The verified carbon credits generated by a green project are listed on the Aqualibre Project online trading platform. This user-friendly interface allows companies and individuals to buy, sell, hold, and trade carbon credits quickly and easily. The platform ensures secure transactions through robust cybersecurity measures on our blockchain.

Market Access and Liquidity:

Aqualibre Africa is one of three desks that provide access to exchanges from different geographic regions. Apart from the UK desk, which covers Europe and the Americas, the firm has established Aqualibre Africa, covering all 55 countries, and Aqualibre Asia, which handles projects and trade in India, China, and the Pacific Rim. These desks operate like boutique merchant banks, connecting many buyers and sellers, including corporations, governments, and individuals.

Educational Resources and Support:

The Aqualibre Project platform provides educational resources, tools, and support to help participants understand the carbon credit market, the benefits of trading, and how to leverage carbon credits to meet their sustainability goals.

Data Transparency and Reporting:

The company’s carbon credits platform offers real-time data on carbon credit prices, trading volumes, and market trends. Detailed reporting tools help users track their transactions, carbon savings, and progress towards carbon neutrality, ensuring full transparency and accountability.

Partnerships and Networking:

Collaboration with various stakeholders, including environmental organisations, governments, and private sector entities, helps expand the market by promoting innovative carbon capture or emissions reduction projects. This network provides a robust ecosystem for carbon credit trading.

The carbon credit exchange system presents a promising yet complex opportunity for Africa. It offers potential financial incentives for sustainable development while raising critical concerns about equity, environmental integrity, and long-term viability. The involvement of mediators like Aqualibre Project Africa is crucial in navigating these challenges. By ensuring transparent governance, providing technical expertise, and safeguarding the interests of local communities, such mediators can help maximise the benefits of carbon credit exchanges while minimising risks of exploitation and inefficacy.