East African Securities Regulators forge path to green finance leadership

In a historic move toward fostering sustainable finance practices, the East African Securities Regulatory Authorities (EASRA) announced a landmark agreement on Monday, May 6th, 2024, to develop a pioneering regional framework promoting green finance. 

Josephine Okui Ossiya, Chair of EASRA and Chief Executive Officer of Uganda’s Capital Markets Authority, unveiled the innovative framework during a press briefing in Nairobi, Kenya. Ossiya emphasized that the framework aims to empower capital markets across the region to mobilize essential funds for combatting the adverse effects of climate change. 

“This framework will set forth stringent standards for regulating sustainability-linked securities issuance, fund allocation, project evaluation, and transparent reporting,” Ossiya stated, underlining the pivotal role of the framework in overseeing carbon credit issuance and trading. 

Highlighting the framework’s significance, Ossiya emphasized its oversight of carbon credit issuance and trading, crucial components in achieving the region’s ambitious net-zero emissions targets. By implementing robust regulations and standards, EASRA aims to ensure that carbon credits effectively incentivize emissions reductions and promote sustainable practices across various sectors. 

Moreover, transparent and accountable oversight of carbon markets can instill confidence among investors and stakeholders, fostering greater participation and liquidity in these markets. Through proactive monitoring and enforcement, EASRA aims to mitigate the risks of market manipulation and ensure that carbon credits contribute meaningfully to the region’s net-zero emissions objectives. 

The agreement, hailed as a groundbreaking achievement, lays the foundation for the formulation and implementation of a regional carbon credit framework tailored to each nation’s specific requirements. EASRA’s initiative underscores a collective commitment among East African nations to champion sustainable finance practices that safeguard the environment while promoting inclusive economic growth and development. 

This announcement comes at a critical juncture as global efforts intensify to address the climate crisis, emphasizing the importance of regional collaboration in driving green investments and advancing towards a low-carbon economy. EASRA’s groundbreaking initiative is poised to rally stakeholders, including governments, financial institutions, and businesses, to prioritize sustainable finance initiatives and pioneer innovative solutions to climate challenges. 

As East Africa embarks on its sustainability journey, the historic agreement is set to unlock new avenues for investment, bolster resilience against climate risks, and chart a course towards a greener, more prosperous future for generations to come. This collaborative effort signals a significant stride towards aligning financial markets with environmental sustainability goals, fostering economic resilience, and ensuring a brighter future for the region. 

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