JSE trades 10,000 carbon credits, opening new offset pathways

The Johannesburg Stock Exchange (JSE) has taken a major step into the carbon market with its first-ever trade of carbon credits, providing businesses with new opportunities to offset their emissions. A total of 10,000 credits were exchanged on the JSE Ventures Voluntary Carbon Market at $8.25 per credit—approximately 80% of South Africa’s current carbon tax rate of ZAR190 ($10.30) per tonne of CO₂.

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This milestone signals growing momentum for carbon trading in South Africa. JSE Ventures, launched in 2023 in partnership with US-based environmental markets firm Xpansiv, was created to bridge the gap between carbon credit producers and buyers seeking credible offset solutions.

“These transactions reaffirm the JSE's commitment to providing products in the sustainability sector that not only support investment into projects producing carbon credits but also introduce a wider buyer network to the sellers of the credits,” said Valdene Reddy, director of capital markets at the JSE.

Reddy highlighted that the platform is open to all South African businesses subject to the Carbon Tax, encouraging them to explore the available offsetting options.

South Africa’s Carbon Tax, implemented in 2019, is structured to encourage emissions reductions through a phased approach. Companies can use approved carbon credits to partially fulfil their tax obligations, driving investment in carbon reduction initiatives.

Since its launch, JSE Ventures has been actively onboarding participants onto the Xpansiv platform while fostering collaboration between project developers and financial backers to expand the availability of environmental credits in the region.

With its first successful trade, the JSE carbon market is now fully operational, paving the way for broader participation and offering South African businesses a vital tool to manage their carbon liabilities.