Projects Contributing to Reduced Emissions

This is part three of our article series about how we consider the climate projects we support. This part is about the projects that contribute to reduced emissions and covers the projects that GoClimate primarily supports today. 

This category includes, for example, energy-efficient stoves that reduce the need for wood and thus deforestation. There are also projects in renewable energy that reduce the need for coal power plants and those that handle harmful methane gas by converting it into electricity, replacing fossil energy sources. More examples of these climate projects are available here.

2.1 Why We Support This Type of Project

There is scientific consensus that it is urgent to reduce the world’s emissions. Therefore, it is reasonable that at the present time, when there is so much left to do, the focus should simply be on supporting projects that reduce the world’s emissions.

2.1.1 The Technology is Already Here

To reduce emissions, both capital and technology dissemination are required. The necessary technology to cope with climate change already exists to a large extent, but it needs to be spread, financed, and implemented. The type of climate financing that we, our members, and customers contribute to plays a big role here; this is exactly what is needed to speed up the transition. But it’s not just a question of investing money, the projects must be effective and well thought out too.

2.2 Challenges with These Types of Projects

The climate benefit of the projects is often calculated based on hypothetical scenarios, which can be problematic. Changed subsidies, norms, and knowledge levels can affect the projects over time. Some projects may no longer need support due to technical development and price reductions in renewable energy. However, the role of climate financing is crucial. It has historically contributed to economies of scale and price reductions, meaning that some projects no longer need the same support. To manage these dynamic factors, one can choose to support newer projects or specific years.

Despite the complexity of these projects, we are convinced that they can be supported effectively, especially if the right type of project is chosen.

2.3 Projects We Do Not Support in This Category

In this category are projects that we consider to be less efficient or problematic. For example, we do not support the construction of large-scale hydroelectric power plants, as they require large land areas and can have a negative impact on both the environment and local communities.

New renewable energy projects in countries not on the UN’s list of least developed countries are also not certified according to the standard – Gold Standard – that we go by. These projects are often considered to not need financial support to the same extent as they did in the past.

However, it is important to understand the climate credit market and how it affects the lifespan and financing of projects. We still support certain energy projects that would not be certified today, because if we stop supporting certain projects that were certified because climate financing was deemed necessary earlier, it could undermine the confidence in the climate credit market and make it more difficult for future projects to get financing.

We also do not support local projects in Sweden, as the country already has access to financing and relatively low climate emissions compared to other regions. Our strategy is to support projects where they can have the greatest positive climate impact. Even though projects like solar cell support in Sweden can be beneficial, financing does more good when used in other countries, for example, those with a higher mix of fossil fuel sources in their electricity mix.

Please get in touch ([email protected]) if you think there’s anything we’ve missed; we are always open to learning more!

Fuel efficient stoves in Honduras

The GoClimate community is supporting a Gold Standard project financing fuel efficient stoves in Honduras. The installation of these improved stoves does a lot of good. Indoor toxic smoke is being avoided , CO2 emissions are being reduced, trees are saved and new job opportunities created. The non-profit organization selling the carbon offsets to finance the stoves is called Proyecto Mirador.

Open Fire Cooking Causes Problems

Honduras boasts the fourth largest rainforest in the world, but deforestation is occurring at an alarming rate. One of the causes for deforestation is that wood is used as fuel. To lessen deforestation is crucial. Forests help keep our climate stable and regulate our water supply, in addition to providing home to many animal species. Along with the climate crisis, the loss of biodiversity is one of the current and most severe threats to the planet today.

The collection and burning of firewood for cooking is a time intensive task in Honduras, usually a burden for women. It destroys precious village-side forests and causes smoke-related health issues. According to the WHO, close to 4 million people globally die each year prematurely from illness attributable to household air pollution from inefficient cooking practices using polluting stoves paired with solid fuels and kerosene.

The project

The fuel efficient stoves combine clean combustion technology with local Honduran cooking practices. They are sold at an affordable price. The combustion process is more clean and efficient, compared to the traditional open fire system. Less fuel is needed and smaller branches can be used. This helps save the forests.

The toxic carbon monoxide is reduced by 79 percent, while the methane emissions are reduced by 94 percent. Reducing methane has a substantial positive impact on the climate. It’s a powerful greenhouse gas and the second largest contributor to global warming.  The gas has a global warming potential over 80 times that of carbon dioxide over a 20-year horizon. Methane has a shorter lifetime in the atmosphere than carbon dioxide – only twelve years, compared to up to hundreds for CO2 – so cuts in methane will limit temperature increase faster than cuts to carbon dioxide.

The project has the potential to mitigate 225 000 tonnes of CO2 yearly. To understand how much this is, the EU average CO2 emissions per person and year is 6.8 tonnes. 225 000 tonnes correspond to the emissions of more than 30 000 people living in Europe. 

Economic Benefits

Apart from the positive impact on the environment and Honduran people’s health, the Mirador project provides economic benefits. Women now have more free time for other activities, and can spend money previously reserved for fuel on other essentials. A microenterprise program also runs alongside this project, training entrepreneurs and providing specialized parts to build and install the stoves. 17 thriving microenterprises have expanded to provide 170 local jobs in areas where reliable employment is difficult to find.

The following SDGs are supported

Clean Water Project in Cambodia

The GoClimate community has contributed to a ceramic water purifier project in Cambodia. The project helps improve public health, avoid CO2 emissions and reduce deforestation. Previously, no ceramic water purifier programs have been commercially viable in Cambodia. With the assistance of carbon finance, this project is economically sustainable.

In total, the project has the potential to provide clean drinking water to an estimated 312,000 households over 7 years. GoClimate’s offsetting 6,700 tonnes CO2 is a part of this. Thank you to all our members who have contributed!

The Importance of Clean Water and the Problems with Getting Access to It

In Cambodia, the majority of the population boils water (to make it safe for drinking) on wood fire stoves. Many people do not use any sort of purifying process at all. Drinking unpurified water can lead to illnesses, where young children are particularly vulnerable. In fact, according to the World Economic Forum, lack of access to safe drinking water is one of the biggest threats to humanity today. 

In the cases where the water is boiled, the smoke from the fire can have very harmful effects on respiratory health. Women and children are particularly exposed, spending a lot of time doing household work.  

Boiling is an energy intensive and time-consuming purification method, often involving burning wood. Burning wood leads to emissions of CO2, as well as to deforestation. To lessen deforestation is crucial as forests help keep our climate stable and regulate our water supply, in addition to providing home to many animal species. Along with the climate crisis, the loss of biodiversity is one of the most severe threats to the planet today.

The Solution

The project sells ceramic water purifiers to families across Cambodia. Once the water has passed through the ceramic filter the clean water is stored in a plastic container, giving safe drinking water at just a turn of the tap. No wood is needed, easing the pressure on Cambodia’s vulnerable forests. In addition, the CO2 emissions that would have come from boiling are omitted. 

Other Benefits

Cleaning water through ceramic water purifiers is good for the forests and the climate. 

Furthermore, as indoor smoke is reduced, respiratory health improves, while clean drinking water is an essential component to combatting diarrheal illness. The overall public health is improved, and this helps stimulate economic activity. Rural households save the cost for buying wood, as well as save the labour spent on preparing the water. Their resources are freed up for other activities.

The filters are produced at a purpose-built factory in Cambodia providing employment opportunities to locals. The filters have a number of low-interest financing options and many are sold to non-governmental organisations (NGOs) who offer them at a subsidised price.

The project contributes to the following SDGs:

Low-carbon Public Transport in Delhi

In busy Delhi, with more than 18 million inhabitants, air pollution is a big problem. In addition to causing severe health problems – air pollution caused 1.9 million deaths worldwide in 2019- the emissions from traffic harm us and our one and only planet.

To address this, GoClimate has contributed to the Gold Standard project Regenerative braking technology for DMRC. This project aims at transforming the public transport system operated by Delhi Metro Rail Corporation (DMRC). By increasing the system’s energy efficiency, the project has the potential to mitigate CO2 emissions by on average 47 000 tonnes per year. This reduction corresponds to cutting the yearly emissions from nearly 10 000 people living in India.

Technological Innovation

The project increases energy efficiency in the DMRC transport system by replacing old car brakes with new regenerative braking technology. The regenerative braking technology conserves electrical energy, reducing energy consumption from the electricity grid, leading to cuts in GHG emissions. As of 1st June 2021, DMRC has constructed a massive transport network of around 389 km with 285 stations, meaning that many people are able to commute in an energy efficient way.

What else has the project contributed to?

The project has created both new jobs and training opportunities. The project owner also engages in a number of community initiatives, for example creating the popular Delhi Metro Museum.

This project contributes to the SDGs 4, 7, 8, 9 and 13.

Biogas generation in Thailand

Cassava starch production is a large industry in Thailand. It serves many purposes and is among other things used for food, animal feed and industrial purposes. As with all production, it however has its downsides. The main one being that the industrial process generates large amounts of wastewater, which emits methane when stored in open lagoons, as is the norm.

Capturing methane

GoClimate and its members have contributed to the Gold Standard project CYY Biopower Wastewater Treatment Plant in Thailand. By installing a closed anaerobic system, the methane emissions (a greenhouse gas 21 times more potent than CO2) are captured. Methane has a shorter lifetime in the atmosphere than carbon dioxide – only twelve years, compared to up to hundreds for CO2 – so cuts in methane will limit temperature increase faster than cuts to carbon dioxide.

Double gain

The captured methane is reused as biogas. The biogas can be used both as thermal oil replacement in the starch manufacturing process and also for generating clean energy for own use and sale to the grid. The emissions of the potent methane are avoided, and the energy sourced from the burning of fossil fuels is displaced.

Social sustainability

As all Gold Standard certified projects, this project is also socially sustainable. The project has significantly improved local air and water quality and the carbon revenue it generates provides jobs for locals, while also supporting social and educational activities. The clean wastewater is used to irrigate nearby fields and allows fish farming, enabling local communities to increase their income.

The SDGs and the numbers

The project contributes to the Sustainable Development Goals number 6,7,8 and 13.

97,000 tonnes of CO2 are mitigated annually, on average. Based on that the world average CO2 emissions per person was 4.9 tonnes (2019), this corresponds to reducing the CO2 emissions from nearly 20,000 people each year.

Clean Electricity from the Indian Sun

India is the world’s fourth largest emitter of carbon dioxide. With its rapid population growth, energy demands continue to increase. This is why GoClimate has chosen to support a large-scale solar plant – the Gold Standard certified Greenko Renewable Energy Project, in Madhya Pradesh in central India.

India is heavily dependent on fossil fuels where coal is the largest source of energy. It stands for 70% of the country’s energy. For the climate, a shift towards more renewable energy is crucial.

The solar plant in numbers

With its annual average production of 328,000 MWh, the Greenko project has the capacity to supply nearly 400,000 people in India with clean energy every year. The solar plant could in other words generate enough electricity to cater for a middle sized city.

Each year, 308,000 tonnes CO2e on average are mitigated. In 2020 (a year incused by the pandemic) the CO2 emissions per capita in the world were 4.62 tonnes. This means that the climate benefits from the solar plant are equal to avoiding the emissions caused by nearly 70,000 people.

How the location of the solar plant is chosen

This large scale solar plant generates green electricity that goes directly to the Indian grid. The Gold Standard certificate is a hallmark and an insurance that the location for the solar panels is carefully chosen. They are often installed in desert-like environments where there is a lot of radiation from the sun and little vegetation, where the panels do not negatively affect the local ecosystem. No forests shall be cut down to make space for a solar plant, neither shall arable land be used.

New jobs in the local community

When a project of this scale is to be built in a small village, it is fundamental that they develop a good relationship with the local community. All Gold Standard certified projects have a grievance mechanism which enables community members to register and voice concerns.

On top of the project’s climate benefits, this project contributes towards the local economy through the creation of 12 jobs and has conducted 6 trainings to educate staff.

Efficient Cookstoves in Central China

– less wood and better health

GoClimate is happy to have contributed to reducing over 1,000 tonnes of CO2e emissions together with its members. This has been done through supporting the Gold Standard WWF Meigu High Efficient Cook Stove Project. The project is located in the Shaanxi Province in the Central China mountains. It contributes to decreasing deforestation and protecting a giant panda habitat. In addition, the local community benefits from improvement in health and time savings. 

How is it done?

The project is based on a process of reconstructing inefficient built-in stoves for cooking and heating into being 70% more efficient. As the thermal efficiency is improved, the new cookstoves use substantially less woodfuel. Another benefit is the chimney that filters out toxic smoke.

The project operates in the Ningshan County towns of Huangguan, Xingchang and Simudi. Theses towns are near Huangguanshan Nature Reserve in Ningshan County in the Shaanxi Province. Due to the inconvenient traffic and the weak power supply system and high electricity price, there is no other power solution to replace the wood consumption. Making the use more efficient is of utmost importance.

For the planet

Not only is the climate helped by the 1,000 tonnes CO2e mitigated as less wood needs to be collected and burnt, but the deforestation pressures on the local giant panda habitat are eased. For decades, the deep mountain communities of Shaanxi’s Ningshan County in Central China have collected their woodfuel from the nearby Huangguanshan Nature Reserve. To lessen deforestation is important. Forests help keep our climate stable and regulate our water supply, in addition to providing home to many species. The crucial giant panda habitat is currently threatened and  violated, harming the rare pandas and other wildlife. Despite reports on the giant panda population slowly increasing, it remains one of the rarest, most vulnerable bears in the world. Habitat preservation is therefor key. Along with the climate crisis, the loss of biodiversity is one of the current and most severe threats to the planet. 

Gains for the local community

Every year, indoor air pollution causes many deaths. Women and children being the ones most involved or exposed to this environment are worst affected. The project has the potential to make everyday life a little bit safer for the local community through decreased indoor toxic smoke.

Furthermore, time is freed up for local residents to focus on more productive tasks, like working for income. The chopping and collecting of woodfuel is done faster, when less is needed. 

Why should we care about the new climate science report that has gone out?

A new report titled “Impacts, Adaptation and Vulnerability” from the IPCC was published this Monday, 28th Feb 2022. But why should we care about it? And what does it mean to us?

Let’s start by learning what the IPCC is

IPCC stands for Intergovernmental Panel on Climate Change. It is an independent body of the UN that provides policymakers and the world with science around climate change and how it affects us. The panel reviews research of multiple scientists around the world assesses it, condenses it, and publishes it for people to understand where we are, what we are doing and what we need to do.

So, what does the report say? and why should I care?

The report hits closer and harder than other reports. It speaks about how people’s lives and the natural world can continue to be affected by a changing climate in different parts of the world and how we can respond to those impacts. It lets us know that we need to continue mobilizing, we need to work together, we need to cut emissions boldly and fast, and we need to adapt appropriately. One thing is left clear, we are experiencing climate change impacts today, the whole world will continue to feel them, and billions will feel them harder than others. And, how much and how fast we reduce emissions will determine how heavily we will be hit; “every small increase in warming will result in increased risks.” said the IPCC co-chair.[1]

The report tells us what lies ahead if we continue as we are. We will face significant human losses, economic disruptance, loss of biodiversity, and more. It invites us to create a climate-resilient development where we reduce climate risks, reduce greenhouse emissions, enhance biodiversity and achieve the sustainable development goals.

Is there anything for me to do?

As a business:

  • Learn about your climate impact.

Understand the number of emissions you are responsible for and which ones will be more effective to reduce. Later, plan how to reduce them, set a reduction target, and work to become NetZero.

  • Support projects that avoid the emission of greenhouse gases

Support others working to prevent emissions from going to the atmosphere through financial support. This will help reduce the amount of GHG in the atmosphere. You can also support projects that remove them from the atmosphere.

  • Engage your supply chain

Help create a snowball of action by inspiring your suppliers to reduce their emissions.

  • Engage with the local governments your offices are located in

Different local governments are taking action and need business allies to implement their ideas. Learn about what your local government is doing and engage with them

As an individual:

  • Learn how you can reduce your emissions

Read some of our climate tips and get inspiration

  • Learn about climate justice

Climate change will not affect everyone in the world equally. Instead, already socially vulnerable communities will be the ones more affected. So we should work for a better future for everyone, not just a few.

  • Vote sustainably and hold your politicians accountable

As the ‘managers’ of our society, governments have a big role to play. Whoever is in the driving seat can make a big difference in how fast and well we adapt and reduce emissions. Think about this when deciding who to vote for and hold them accountable when in office. read more

Remarks from the report

  • Climate change affects people unequally. It will significantly affect Central and South America, parts of Africa, South Asia, the Artic, and Small Islands.
  • There is a small window for us to act; we must not miss it.
  • There is a tipping point for ecosystems and social systems from which we will not return if we reach them. If reached, it is possible we won’t be able to adapt.
  • We should prioritize adaptation. Finance has to be prioritized for it.
  • Maladaptation is a thing. We have implemented measures that falsely reduce risks and that emit greenhouse gases.
  • Improving social infrastructures such as health systems is part of adapting to climate change
  • Nature is our friend (it has always been, but let’s really take it in). Nature is key to adaptation and an essential component for keeping emissions in the ground.

[1] IPCC Press Conference – Climate Change 2022: Impacts, Adaptation & Vulnerability – YouTube

AR6 Climate Change 2022: Impacts, Adaptation and Vulnerability — IPCC

The Price of Carbon Offsets

The last 6 months have been busy in the voluntary carbon offset market. Demand have surged and prices have increased 3-5 fold. This happened mostly on what is called off the shelf credits – credits that are available for purchase now – but also on credits that can be contracted for future issuance.

The Background

When a certified climate project does climate impact and it can be verified, they receive one climate credit for every tonne CO2e saved from entering the atmosphere.

Certified carbon credits are then sold on a market – the voluntary carbon offset market. It being a market means that the price is determined by the buyers and sellers agreeing on a price that is beneficial for both parties.

The effect of this is that prices can vary over time, so when sellers see an increase in demand they can increase the price and vice versa.

A market has many advantages, it’s easy to scale, it’s efficient and it minimizes waste. But, it also has some disadvantages, the primary one many are feeling now is that it’s hard to predict where the prices are going in order to plan future purchases.

How much of an increase are we seeing now?

As of January 2022, we at GoClimate saw an increase of prices with 3-5 times for the type of high quality Gold Standard-certified projects we support. This has resulted in that we increased our prices to our GoClimate members from 4 EUR per tonne to 15 EUR per tonne. This is quite a dramatic increase which have lead to members scaling down the amount they offset, and business customers needing to redo their budgets.

Bear in mind that we at GoClimate are buying big volumes (50-100k) and spending lots of time sourcing the best and most efficient high quality carbon credits. Prices for smaller volumes are typically higher.

What are the consequences?

Just to be clear, this price increase is brilliant news for the climate. It will mean that:

  1. Companies and individuals are even more incentivized to lower their emissions.
  2. Climate projects get more money for doing climate impact. This leads to even more climate projects being built – and more climate impact!

This price increase happening now is exactly what we at GoClimate has strived for since the start. Finally it starts to get even more profitable to save the climate!

Why are we seeing an increase now?

It’s not possible to know the exact reasons, but clear is that demand for climate credits have increased by a lot. Our hypothisis on why this has happened is:

  1. After COP26 the interest among individuals and companies to do something about climate change increased, and offsetting – even though not the only tool – is something you can do now and that has a fairly high impact (if done in high quality climate projects) for a relatively low effort.
  2. Cryptocurrency has entered the market. KlimaDAO has purchased about 14,7 million credits in just the last few months. And that are even more crypto projects out there.
  3. Net Zero-targets have been set by many companies. SBTi definition of Net Zero mentions offsets a tool to help with climate financing even though it’s not enough to claim Net Zero (which is also GoClimates view).
  4. The general awareness of climate crisis has increased. It’s more clear to businesses and individuals that we all need to act now and that time is running out.

Feel free to add other thoughts in the comments below.

The Future

It’s impossible to predict the future of a market, but I personally don’t see anything which suggests a decrease in demand the coming 5-10 years, rather the opposite. That could be interpeted as a reasons that the price would not go down, but as in all chaotic systems this view might already be priced into the market.

On the supply side of the market, I believe it will take a couple of years for climate projects to initiated and credits being approved and issued. This means that the market will not see lots of new climate projects any time soon.

Depending on what type of offsets you are looking at there are speculation that the prices will continue to rise, maybe as much as 50x more. I feel quite confident that this is not the case of Gold Standard credits though, but an 2x increase during 2022 is of course not possible to rule out.

A survey on the view of the individual carbon footprint, climate action taken and GoClimate

During the summer 2021, we conducted a survey among all our members who offset their carbon footprint with GoClimate. 552 people participated, corresponding to 12% of our members at that point in time.

GoClimate members are truly active climate change fighters

25-30% of GoClimate members take climate action that goes far beyond their own lifestyle changes and climate funding contributions. In response to the question “In the last three years, have you done any of the following?”, this is the result:

30% of GoClimate members state that they have participated in climate protests, 71% have signed climate petitions, 27% have been in contact with politicians or their municipality with climate-related issues, 25% have asked their workplace or school about their climate work, 21% have contacted a store or a brand about their sustainability work and 77% has made a major lifestyle change like swapping to a more climate-friendly diet, stopped flying or switching fossil cars to electric ones or bicycles.

This is climate action taken by our members on top of their monthly contribution to important climate financing to move away from fossil based energy systems among others.

The view of one’s own climate footprint

In response to the question of how our members view their personal carbon footprint, 74% states that they are working actively to reduce their footprint. 8% say that they would like to, but don’t know how. Another 7% say that they already have a low footprint and have a hard time lowering it more. 8% say that they are not working actively with reducing their footprint. Several members state that it is difficult to change diet and travel habits completely.

The next focus of GoClimate

We gave eleven suggestions on what the GoClimate team could focus on in the future. The suggestions that got the most votes were a carbon budget tool for individuals (57%), that GoClimate increase the focus on influencing politicians and society through creating opinion, petitions and debate articles (55%), a feature that displays exactly which climate projects a member personally has supported and with how much (53%), individualized tips to help reduce a member’s footprint (48%) and the possibility to compare climate footprints from year to year (39%).

Growing the GoClimate community

The majority of the respondents found out about us via recommendations and social media. So please keep discussing the climate with friends, tell them about us and share blog posts and our infographics on Instagram.

Here you can find the results of the 2019 and 2020  member survey on carbon footprint, carbon offsetting and GoClimate.