Innovative Carbon Financing Solution Accelerates Clean Energy Growth Across Africa
In a groundbreaking move to address the pressing environmental and health challenges in Africa, RMB has forged a strategic partnership with climate technology leader KOKO, emerging as the lead mandated arranger and financier for an innovative carbon financing solution. The information was reported by Sweetcrude, citing a press release from APO Group.
Over 900 million people in Africa rely on polluting fuels such as charcoal for cooking, leading to widespread deforestation, over 600,000 deaths annually due to household air pollution, and greenhouse gas emissions equivalent to the global aviation industry. To combat these issues, KOKO is at the forefront of a continent-wide transition to clean and modern fuels.
KOKO’s approach involves replacing the demand for charcoal by supplying bioethanol cooking fuel to over 1.1 million homes. This is achieved through a network of high-tech KOKO Fuel ATMs strategically located in numerous corner stores across urban Kenya. The resulting carbon revenues are shared with households as a non-government energy subsidy, making it feasible for even the most economically disadvantaged households to make the switch.
Phil Norton, Carbon Finance Lead at RMB, expressed pride in the partnership, stating, “We are proud to partner with KOKO in supporting their continued rapid growth while bringing far more affordable and lower emissions energy to millions of people in Africa.
As a pan-African investment bank, this deal fits well within our ambition to build a market-leading carbon trading and finance business operating across Africa, serving both existing and new clients.”
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Greg Murray, CEO & Co-Founder of KOKO, commended RMB’s strong commitment to harnessing carbon for transformative change in the lives of Africa’s citizens. Murray stated, “We’ve been looking for an entrepreneurial banking partner that understands Africa, climate markets and technology. We are proud to embark on this long-term partnership with RMB to help accelerate the expansion of KOKO’s platform across Africa.”
Nigel Beck, Head of Sustainable Finance and ESG Advisory at RMB, highlighted the alignment of this partnership with the Nairobi Declaration.
The Nairobi Declaration, revealed at the Africa Climate Summit in Kenya in September, outlines Africa’s strategy to utilize carbon as a mechanism to finance the continent’s energy transition. The declaration is a key element of Africa’s negotiating position at the ongoing COP28 climate summit.
The collaboration between RMB and KOKO is expected to play a pivotal role in developing the African carbon market, contributing significantly to the region’s sustainable energy transition.
Source: APO Group
