We note the update of Verra's Section 6 review into the Kariba REDD+ project assessing the carbon accounting and safeguards of the project during its first crediting period.
Although South Pole has ceased all involvement with both project and the project owner since 2023, we have cooperated with Verra, a global carbon standard body, through every step of this review, which we see as an important process to give everyone, including South Pole and its various stakeholders, more clarity and guidance on the project's status and future.
Verra's statement on the review reaffirms that :
In its past role as carbon asset developer, South Pole has consistently applied Verra's VM0009 methodology as it pertains to carbon accounting. In normal circumstances under Verra's VM009 methodology, any discrepancy between projected and actual deforestation (i.e. after a periodic assessment of the baseline as outlined in the methodology itself), would be corrected in subsequent verification periods. However, given the unprecedented situation of the project withdrawing from the Verra Registry, there are no subsequent monitoring periods where such compensation could occur. Verra's update confirms that the carbon standard body is now taking proactive, corrective steps to balance credit issuances in lieu of the correction that would have otherwise been applicable as per the in-built true-up mechanism in VM0009.
Alongside South Pole's wider cooperation as part of the review, South Pole has proactively requested that Verra cancel the 2.5 Million verified Kariba REDD+ credits South Pole holds to help address the discrepancies in issued credits and uphold the environmental integrity of the project.
This contribution builds on South Pole's concerted efforts over the last two years to undergo a comprehensive transformation, which included a full review and strengthening of the company's quality, risk, and compliance protocols. The company introduced stricter KYC and partner diligence processes to ensure project partners align with our ethical and compliance standards.
South Pole also welcomed experienced leadership from regulated markets, appointing sustainability leader Dr Daniel Klier as CEO, and former CEO of Lloyd's of London, Dame Inga Beale, as Chair of Board in May 2024. This was followed by Nadia Kaddouri's appointment as CFO and Kushal Bhimjiani as General Counsel and Head of Compliance in June 2024. In January 2025, former HSBC Climate Risk Head, Leila Kamdem, joined as Chief Risk Officer.
As a carbon asset developer hired by the project owner, South Pole's past responsibility was to ensure that Verra's VM0009 methodology was being consistently applied as it pertains to the carbon accounting of the project, in order to receive verified carbon credits. In addition, South Pole was engaged to manage the sale of carbon credits to the market in order to secure funding for the project's operations on the ground. Full responsibility for operating the project on the ground – including engagement with and distribution of funds to local communities and initiatives – has been with CGI's local partner Carbon Green Africa (CGA). The project has always been owned by the communities and run by the operator, CGA. South Pole never had any equity stake in the underlying project.
South Pole acknowledges the challenges this project has faced and since terminating our involvement in October 2023 we have learnt from it, especially with regards to our project partnerships, and have taken action to ensure we are leading the industry around best practice due diligence, governance and risk management. We have moved efficiently to enhance our internal systems, processes and capabilities, all with a view to delivering market leading quality and integrity in the global carbon markets.
