FDH Bank plc has committed to work with local companies and non-governmental organisations in providing a platform for buying and selling of carbon credits.
After generating carbon credits, farmers or plantation owners can sell them to buyers, including businesses and individuals, who want to offset their industrial emissions.
The credits are traded on special markets, where both sellers and buyers interact and FDH plans to offer that platform, according James Chinkhandwe, the bank’s senior manager for corporate banking responsible for non-governmental organisations, parastatals and government.
Speaking during a side event on carbon trading at the United Nations Climate Change Conference of Parties (CoP29) underway in Baku, Azerbaijan, he said the growing interest in carbon trading should be a wakeup call for financial market players to engage an extra gear to tap into the potential that the credit trading market offers.
Said Chinkhandwe: “FDH Bank is ready to support institutions, non-governmental organisations working towards producing carbon products so that the benefits of the same should also benefit their customers.
“We have had learning meetings with different banks from Germany where we have tapped more knowledge on how our friends are focusing much on carbon trading.”
Environmental activist Mathews Malata, who is also former president of the Association of Environmental Journalists, hailed the trajectory FDH Bank plc has taken considering that most local commercial banks focus much on profit making that contributes to the environment.
CoP29 now into its second and final week has focused on climate financing.
