Financing of the carbon market was recently at the heart of discussions between public and private sector actors in the Democratic Republic of Congo (DRC). During the first edition of the Forum économique sur la Nouvelle économie du climat (FENEC), held from 19 to 21 July 2023 at the Congo Fleuve Hôtel in Kinshasa, participants discussed the numerous challenges in putting in place a system of regulation for the carbon market.
Such a complex task, which is not yet fully understood, calls for the involvement of governments as well as public and private sector actors. Rawbank CEO Mustafa Rawji took part in the climate finance panel on Friday 21 July. He underlined the necessity of national coordination to find the right solutions.
“We encourage the setting up of a shared structure of co-ordination so that stakeholders can together find solutions to overcome the challenges,” he said.
Mustafa Rawji said that Rawbank is heavily involved in the process of certifying carbon credits. “Government and the provinces need to make the question a priority” he said.
The CEO said that the DRC authorities should take measures to create tax incentives to encourage investment in the carbon market.
“Once economic actors understand how to convert their carbon credit into currency, they will be encouraged to invest in this market,” Mustafa Rawji said.
Rawbank, via its trading room, is in contact with local and international partners about creating a framework to help clients in the process from identifying projects to marketing carbon credits.
« " Our role is to accompany them in the process of certification of their carbon credit on the international market. This certification, which rests on the value of the carbon credit, will create the possibility of selling it on the international market " Mustafa Rawji said.
Carbon markets offer African countries an excellent opportunity to use their abundant natural resources to create economic value and accelerate sustainable industrialization, as well as diversifying their economies.
“The Congo is blessed by its forests which need to be protected and preserved,” he said.
The CEO noted that different levels of certification currently exist.
“A tree in the Congo does not capture the same quantity of carbon as a tree in Germany or another country. However, we all know that the value of oxygen does not vary from one continent to another. But to reach an equitable position on the international market, we must create a framework which strictly respects the norms and demands of the international market,” Mustafa Rawji said.
The intellectual challenge, he said, needs input from all stakeholders (government, private enterprise, commercial banks, the World Bank, the environment ministry, and so on.
“I think this forum is an ideal point of departure for exchanges on the development of a carbon market. We will work together starting now. I congratulate the president for his initiative, which I think is part of an unstoppable momentum which will create value for generations to come. Rawbank is honoured to be part of the process,” he concluded.
The FENEC forum aims to encourage companies to adopt sustainable practices and to undertake projects to reduce greenhouse gas emissions, while stimulating economic growth and creating sustainable jobs.