For a small-scale energy producer in an emerging market, one of the biggest constraints to survival is access to appropriate levels of finance. The rapid growth of the carbon finance industry in recent years could offer a lifeline – emissions trading or ‘carbon credits’ represent a valuable source of income for energy businesses and create financial incentives for cleaner sustainable energy provision – but so far it is mainly larger providers that have been able to benefit.
GVEP International, an international non-profit created to reduce poverty through ‘accelerated access to modern energy services’ aims to change this. Recognising the potential of carbon trading to enable the expansion of innovative social enterprises who deliver development impacts in addition to carbon reductions, GVEP has teamed up with the Ashden Awards for Sustainable Energy to produce a guide for energy entrepreneurs who wish to link their businesses to carbon finance.
“GVEP International often gets asked questions on carbon finance from the many enterprises it is working with. Thus, we tried to make this guide very practical.” says David Disch, co-author of the guide.
“There is so much written on carbon finance but most of it is theoretical and very detached from the questions a small-size biogas enterprise or a cookstove manufacturer has. Drawing on input from various experts and illustrative case studies, this little guide can help small and medium enterprises to understand the complexities and allows them to evaluate the pros and cons of the financial and technical requirements to access carbon finance.”
The partnership has produced a very useful and instructive manual for new entrants into the carbon finance market, addressing questions such as:
• How do I assess the potential carbon revenue my business could deliver?
• What level of investment do I need up front?
• What challenges will I face in getting carbon credits?
• How will investors assess the feasibility of my project?
• How do I approach possible carbon credit buyers?
You can download the guide to Carbon Finance from the GVEP website here.
Read the full story on: Carbon Finance: A Guide for Sustainable Energy Enterprises and NGOs.
Read the full story on: Carbon Finance: A Guide for Sustainable Energy Enterprises and NGOs.
