About
The Foundation signed purchase agreements with three project owners and one intermediary for the delivery of certificates stemming from climate protection programmes already registered with the UN and in operation, taking into account the requirements specified by the Swiss Federal Council in the CO₂ Ordinance as to the admissibility of certificates.
Outcome
The Foundation received delivery of 5 million CERs in total from two climate protection programmes in India as well as in Malawi, Kenya and Uganda. Via the intermediary, it further received delivery of 2.7 million CERs stemming from small and medium-scale landfill gas projects in South America.
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Microfinancing for clean energy solutions, India
About the programme
Granting of microloans (microcredits) to households in India for improved cook stoves, solar systems/lamps and drinking water treatment devices. The programme was registered by the UN in December 2012 as no. 9181. The Foundation purchased 3 million CERs stemming from the years 2013 to 2020.
Programme owner
The US company MicroEnergy Credits (MEC) was established in 2007 in order to enable microfinance institutions to distribute products that reduce greenhouse gas emissions. The company operates in Mongolia, East Africa and India.
Programme description
Revenues generated by the sale of CERs were used mainly to establish a distribution network for improved cook stoves, solar systems/lamps and drinking water treatment devices, run by microfinance institutions. This involved an information and marketing campaign in order to encourage demand for such products, the set-up of distribution and service networks, capacity building measures for microfinance institutions, and the distribution of a cloud-based software to process loans. This ensured that more households were given access to products that reduce greenhouse gas and prevented the large-scale distribution of highly subsidised products that do not meet local requirements.
Households could apply for a loan, which they had to repay within a few months at annual interest rates of 20-30%. The monthly savings made possible by the products were so high that households already saved money during the payback period. Once the loan had been paid back, monthly savings per household reached up to 20 USD.
MEC worked with ten microfinance institutions in India. Together with its partners, by late 2021 MEC had reached around 3’000’000 households in India.
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Water purification, Malawi, Kenya and Uganda
About the programme
Drinking water purification through chlorination in Malawi, Kenya and Uganda. The programme was registered by the UN in December 2012 as no. 5962. The Foundation purchased 2 million CERs stemming from the years 2015 to 2020.
Programme owner
Pure Water Ltd., a 100% subsidiary of the South Pole Group and one of the worldwide leading developers of climate protection schemes, operated the programme in cooperation with Evidence Action.
Programme description
For many households in developing countries, boiling water is the only available way to prepare their drinking water. Using firewood contributes to deforestation, which – next to other negative ecological effects such as a loss in biodiversity – is one of the main origins of greenhouse gas emissions in developing countries. Pure Water fitted wells and springs in Malawi, Kenya and Uganda with chlorine dispensers, enabling 4 million people to purify their drinking water in a safe and simple manner. Chlorination is one of the cheapest and most efficient ways to purify drinking water. Studies have shown that this lowers diarrhoea rates – one of the major causes of death for children under 5 in developing countries – by more than 40%. At the same time, every installed chlorine dispenser reduces between 20 and 40 tonnes of CO₂e a year.
The chlorine dispensers were installed only with the approval of the local population. Technicians ensured that they functioned faultlessly and were regularly restocked. Rigorous and continuous evaluations assessed what percentage of households used the chlorine dispensers (as experience shows: 45%) and what percentage of treated water was safe (as experience shows: 90%).
The planned 27‘000 chlorine dispensers have been installed.
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Small and medium-sized landfill gas projects, Latin America
About the programme
Continued operation of stranded small and medium-sized landfill gas projects in Latin America. The Foundation purchased around 2.7 million CERs stemming from the years 2016 to 2020.Programme owner
First Climate (Switzerland) AG is a worldwide service provider and investor in the field of climate protection, headquartered in Zurich.
Programme description
Due to low market prices, it was no longer economically viable to operate, service and develop torches and collection systems in registered CDM projects aiming to collect and destroy landfill gas. Small and medium-sized landfills were particularly affected because they lacked access to adequate funding.In order to make it possible to keep operating such stranded projects, the Climate Cent Foundation signed a purchase agreement with First Climate (Switzerland) AG. First Climate in turn concluded separate purchase agreements with landfill gas projects in Latin America, each generating a maximum of 200’000 CERs per year. An innovative pricing structure, which followed the marginal costs of methane destruction, lowered risks for project owners and set incentives to maximise emission reductions, e.g. by optimising torch maintenance or setting up additional gas wells.
Contracts were signed with 9 landfills in Brazil, 5 landfills in Colombia, 5 landfills in Mexico and one landfill in Chile. The projects registered by the UN as n° 911, 1165, 1179, 1247, 1371, 1491, 1506, 3378 and 7799 delivered XXX CERs.