Sustainable Development Makes a Case for Clean Development Mechanism, Finds Frost & Sullivan

CAPE TOWN, South Africa, June 14, 2010 - The global uncertainty regarding potential developments post Copenhagen
has reined in the prospects of the African clean development mechanism (CDM)
market. Africa has abundant resources to develop the CDM market, often at
relatively low costs. The rising global awareness about sustainable
development is going a long way towards establishing and supporting projects
that cause minimal damage to the environment.

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New analysis from Frost & Sullivan (www.energy.frost.com), African
CDM Market, finds that the market is expected to grow from 34 projects in
2009 to well over 100 projects by 2015. In this study, Frost & Sullivan
examines the following end-user markets: chemicals, renewable energy, energy
efficiency, landfill gas, waste handling and disposal, manufacturing,
reforestation and others.

If you are interested in more information on this study, please send an
e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"In 2008, the carbon market was valued at US$118 billion, which
represented a robust increase of 84.0 per cent in the total value of
greenhouse gas (GHG) emission reductions traded in 2007," says Frost &
Sullivan Programme Manager Cornelis van der Waal. "Africa can capitalise on
this as, under the United Nations' CDM, developed countries are allowed to
offset some of their GHG emissions by funding cleaner energy projects in
developing countries."

Although most potential CDM projects, especially renewable energy, remain
undeveloped in Africa, sustainable development could help many new projects
to qualify for CDM credits. Many countries are increasingly realising the
benefits of diversifying their energy mix or reducing waste. Hence, CDM
projects are likely to multiply over the next two years despite the long CDM
process and all the administrative hurdles.

"In South Africa, the recent feed-in tariffs are likely to offset the
additional investment in coal-fired base stations," Van der Waal states.
"However, there is some uncertainty regarding the future mechanisms for
carbon finance."

The governments must take steps to co-ordinate and simplify the approach
to CDM management to stimulate private investment as private financiers tend
to be sceptical about the role CDM can play in making marginal projects
feasible. This apprehension is causing a delay in the flow of funds, which,
in turn, limits utilities' ability to expand supply.

Recently, the International Monetary Fund indicated that sub-Saharan
Africa would have to invest about 3.0 per cent of its gross domestic product
in the power sector to redress its chronic power shortages. Despite the
considerable financial challenges, many projects still hold value.

"Companies are gradually realizing that they need to become more
sustainable and hence, are changing their wasteful practices and often
benefiting from this as a result of CDM," notes Van der Waal. "The chemicals
sector in South Africa is a fine example of this with a number of projects in
this space qualifying for CDM."

African CDM Market is part of the Energy & Power Growth Partnership
Services programme, which also includes research in the following markets:
CDM - Strategic Analysis for Growth Opportunities in Asia, Carbon Trading
Systems and CDMs Brazil, SEA CDM Market - Opportunities for Equipment
Suppliers, Impact of Global Warming on Latin American Energy Sector, The
Steam Turbine Market in Sub-Saharan Africa, The Sub-Sahara African Power
Pools, State of the South African Electricity Industry in 2009 and African
Large-Scale Wind Turbine Market. All research services included in
subscriptions provide detailed market opportunities and industry trends that
have been evaluated following extensive interviews with market participants.

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    African CDM Market

    M4FE

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

    www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com