Partnering with FiCS Innovation Lab, Climate Policy Initiative, and Promethium Two Degrees, DBSA has created a Carbon Repo Facility and Carbon Bond, currently under internal review.
These instruments aim to provide liquidity and funding for carbon projects, addressing limited early-stage investment and illiquidity that hinder South Africa’s carbon credit supply as demand rises with phase two of the carbon tax.
If approved, the instruments could position DBSA as a key intermediary for public and private climate finance, offering a model for other emerging economies to mobilize capital and strengthen carbon markets.
Could South Africa's new Carbon Repo Facility and Bond truly unlock private finance, or will old market barriers persist?
How might blockchain-based registries transform the credibility and liquidity of carbon credits in emerging markets?
How will independent verification bottlenecks and audit delays impact the success of these carbon market instruments?
Will these innovations actually increase project development, or just shift existing credits around the market?
Could tokenized carbon credits inadvertently create new speculative risks or market manipulation opportunities?