KB Securities Signs MOU with Glencore and Sutton GTS for Carbon Reduction in Ghana, Africa

KB Securities announced on the 2nd that it has signed a 'Sustainable Charcoal Production Support Memorandum of Understanding (MOU)' with Glencore and Sutton GTS to reduce carbon emissions in Ghana, Africa.

Glencore, headquartered in Switzerland, is one of the world's largest integrated natural resource companies, operating in more than 35 countries with over 150,000 employees and contractors. Through its global network, it engages in the development, production, recycling, and distribution of products that help meet energy demand and support decarbonization.

Sutton GTS is a company specializing in the design and development of global carbon reduction projects. It has secured technical capabilities and established a global investment network for this project. Currently, it is focusing on the Ghana project in Africa and is a joint venture co-invested by Korea's Econexus Carbon Credit and KCCTS.

KB Securities pursued this MOU with global companies to practice ESG (Environmental, Social, and Governance) management. Together with Glencore, it plans to invest the necessary funds for carbon reduction activities in Ghana and acquire greenhouse gas reduction results (ITMO) under Article 6 of the Paris Agreement (an international agreement addressing climate change after 2020). Additionally, Sutton GTS will act as the project developer, responsible for project planning and management.

In particular, this project will be registered and conducted under conditions approved in a bilateral agreement between the host country Ghana and the participating country Switzerland, in accordance with the latest best practices under Article 6 of the Paris Agreement. Efforts will be made from the development stage to expand the project scale and the number of participating countries.

Lee Cheol-jin, Head of FICC Operations at KB Securities, said, "We hope this tripartite agreement will be an important step contributing to sustainable development while carrying out the carbon reduction project needed in Ghana." He added, "KB Securities plans to secure leadership in the carbon market ecosystem and actively participate in the carbon credit business to play a crucial role in establishing a virtuous cycle structure for carbon neutrality in Korea."

KB Securities established the Carbon and Energy Finance Team within the FICC Operations Headquarters in July 2022 to secure business opportunities in the voluntary carbon credit market. It is active in various fields such as research and analysis of the carbon credit energy market and trading.

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