Assessing private sector participation in South Africa’s voluntary carbon market

Abstract

This qualitative study explores how institutional voids shape private-sector involvement in South Africa’s voluntary carbon market. The research investigates if institutional weakness exists, and if so, how they shape the private sector’s engagement in South Africa’s voluntary carbon market. The study identified four instances of institutional voids, namely, regulatory ambiguity, scarcity of domestic intermediaries, opacity in information and pricing, and legal and contractual uncertainty. Firms respond through offtake agreements, reliance on international standards and registries, and emerging collective actions and capacity building initiatives. The study recommends practical measures, including clear, consistent, and coordinated regulations; establishing a formal coordination mechanism; developing standard contracts; strengthening intermediaries; and publishing reference data to facilitate price discovery. The study offers an integrated framework linking institutional structures to market participation within an African context.