NSE eyes green bond to drive sustainable growth agenda
SEE ALSO :Rwandan bank ends NSE listing droughtIn a round-table discussion on sustainable stock exchange dialogues on green finance at the just concluded fourteenth United Nations Conference on Trade and Development (UNCTAD 14), Odundo noted that while there are investors who look at financial benefits, there are others who want to see the social benefits of their investments. “There is a need for us to come up with a framework and address this opportunity,” he said, noting that there are a number of investors trooping into the country who are conscious of environmental and social issues. He noted that Kenya is already miles ahead in some green financing as it has already pumped a lot of money in a number of renewable energy projects including geothermal, wind and solar. These projects, he said, can attract long-term funding. “NSE is looking at how to convert these conversations into products,” he said during a round-table discussion on green finance. The Nairobi Securities Exchange (NSE) was recently boosted by a government announcement that it would soon introduce carbon credits trading after the Government pledged to offer expertise and facilitation.
“We will chip in if you (NSE) need any expert advice or facilitation from the ministry. “We are more than willing to support this important and innovative idea of trading in carbon credits,” said Dr Njoroge. Mr Sean Kidney, Chief Executive Officer and Co-founder, Climate Bonds Initiative in the United Kingdom noted that there are a lot of stocks in Kenya that should be described as green bonds. CEO of NSE Geoffrey Odundo said Africa has a huge population with a limited number of infrastructure opportunities. African government would thus benefit a lot from green financing.
However, he requested the government to consider offering tax incentives to energy-efficient projects as these are long-term projects.