The proposed collaboration is set to contribute to the rising demand for carbon credits in African nations
India's EKI Energy Services (BOM: 543284) and Ghana's Jospong Group of Companies (JGC) are contemplating a collaboration that could generate up to $1 billion in carbon credits in Ghana, according to a proposed memorandum of understanding (MoU).
As outlined in the MoU, the five-year partnership involves EKI Energy providing technical support to Jospong for developing carbon offset projects in Ghana, according to Bloomberg, citing a text message from Sophia Kudjordji, a spokeswoman for JGC.
The collaboration aims to significantly contribute to the rising demand for carbon credits, particularly in African nations. Several countries in Africa are enacting legislation and fostering the creation of carbon offset initiatives.
EKI Energy has already supplied over 200 million carbon credits to the international market, according to CEO Manish Kumar Dabkara. Despite past controversies, including scrutiny over the value of traded offsets that led to a stock price plunge after its 2021 debut on the Bombay Stock Exchange, EKI Energy remains a key player in the carbon credit market.
The carbon credit market plays a crucial role in global efforts to combat climate change, with each credit representing the removal or prevention of one tonne of carbon dioxide (CO2) or its equivalent from entering the atmosphere. This collaboration aligns with broader trends in Africa's sustainable development initiatives, with various countries actively promoting carbon offset projects, from Kenya to Zimbabwe.
The potential partnership between EKI Energy and Jospong comes as many industries, including energy and utilities, IT, financials and real estate, industrials and materials, transport, logistics, and automotive, express high intentions to hire talent for sustainability goals, reflecting a growing emphasis on environmental responsibility.
Talent leaders note challenges such as finding qualified candidates, creating effective reskilling programmes, and identifying transferable skills as barriers to their green transitions. Despite these challenges, the collaboration between EKI Energy and Jospong reflects a positive trend in the industry, fostering innovation and collaboration to address the global need for sustainability.
In summary, the potential collaboration between EKI Energy Services and Jospong Group of Companies holds promise for significant contributions to carbon credit generation in Ghana, aligning with broader sustainability trends in the region and the global fight against climate change.