Country: Namibia

We analyzed the environmental attributes that could be generated from Namibia’s energy sector development, including but not limited to emission reduction credits (ERCs) without government authorization in voluntary carbon markets (VCM), authorized ERCs in compliance markets under Article 6 of the Paris Agreement (A6 mechanism), Renewable Energy Certificates (RECs), and Guarantees of Origin (GO) for green hydrogen. We will examine the factors that would inform Namibia’s pricing strategy, such as the current price of credits from different sectors in VCM, the basis for pricing under the A6 mechanism, such as the opportunity cost for additional mitigation action, and the potential reduction in the climate-related obligations of the buyers of Namibia’s green exports.  This will lead to the proposition of country processes for establishing a streamlined approach and ensuring a legal basis for transfer of ownership and/or monetization, coherent with other policy frameworks and strategies related to carbon markets and energy sector development, as well as potential benefit sharing mechanisms, potential uses of proceeds, with a particular focus on the potential impacts on price.

Duration: 12/2023-07/2024