Introduction to voluntary action and the voluntary carbon market: Project developer perspectives. Buenos Aires

Transcription

1 Introduction to voluntary action and the voluntary carbon market: Project developer perspectives Buenos Aires

2 What we do - Connect development projects to sources of funding and expertise that enable both of them to maximize their potential and scale up their impact; - Make climate finance solutions counts toward the global goals; - Act as regional advisor, impact funds manager and network facilitator in SEA. 2

3 Since 2009, we have successfully used our Innovative Finance solutions and Network Facilitation capacity to connect and support our members and partners: as a result delivered over 6.5 million tons of CO 2 avoided $10 million USD leveraged for our members with various climate finance tools 15 projects and organisations supported by Climate finance, our Funds under management, Crowdfunding and other finance tools 2M people benefiting from projects funded in M USD estimated value in net co-benefits delivered 150 financier stakeholders mapped and involved 3

4 Our members Nexus for Development gathers 20 NGOs and social businesses working to deliver low-carbon solutions to meet energy, water and sanitation needs in Asia and Africa. 4

5 Local projects for global impact - Local context (e.g. purchasing power and cooking habits) > locally appropriate technology - Project additionality - Carbon pricing > project sustainability 5

6 Bridging the risk gap Monitoring Design / Pre-feasibility Fundraising & feasibility Project design documents Validation & registration Issuance Verification Risk Gap Voluntary carbon market challenges: - Manage early-stage risk and need for upfront funding - Visibility on demand - Carbon pricing levels > Engage from project inception > Model of risk-sharing > Aligned incentives for success 6

7 Support clean cooking and accelerate sustainable development For some of us cooking is a way of relaxing or being creative in the kitchen. Yet for billions of people, cooking each meal brings health risks to the table. Improved cookstoves help families across the world cut down on indoor toxic smoke. 7

8 Laos - cutting carbon in the kitchen Project developer: SNV Laos & ARMI Technology: Locally made efficient cookstoves Carbon credits: Gold Standard on Markit Registry Nexus technical assistance and finance is helping the Laos Improved Cookstove Programme to develop a market for cleaner, more environmentally friendly cooking options in Laos. Local producers receive training, while customers are saving on fuel and breathing cleaner air. 8

9 Vietnam - Transform waste into opportunity Project developer: SNV Netherlands Development Organisation & Ministry of Rural Development Technology: Ceramic water purifiers Carbon Credits: Gold Standard on Markit Registry The Biogas Program in Vietnam supports more than 790,000 people in over 45 provinces, harnessing biogas from animal waste to provide households with clean fuel. Besides technical assistance and up-front finance, Nexus has supported the sustainability of the Program by managing the sale of over 750,000 VER credits to corporates worldwide. 9

10 Quality assurance Carbon standards Our portfolio of CO 2 e saving projects is validated and verified to market-leading standards. Projects are regularly audited by accredited third-parties and meet quality requirements, ensuring that all carbon credits are real, measurable, additional, permanent, unique, and traceable. Nexus developed a pre-screening and screening process in order to assess members projects before supporting them in accessing carbon finance and issuing carbon credits. We apply rigorous selection criteria and conduct thorough due diligence on all new projects in our portfolio. Registries Our projects carbon credits are held in Markit s online registry, ensuring a transparent chain of custody, from issuance through to retirement. All credits listed in registries have unique serial numbers for tracking and management purposes, ensuring traceability. All credits sold to our clients are subsequently retired, a procedure that ensures they can never be re-sold thus avoiding any risk of double counting. 10

11 Quality assurance Industry standards Nexus is a member of the International Carbon Reduction and Offset Alliance (ICROA), a non-profit industry body promoting best practice in voluntary carbon management and offsetting. ICROA is committed to providing the highest quality carbon reduction solutions for business and public sectors. ICROA is managed by an independent secretariat housed within the International Emissions Trading Association (IETA), an organization created in 1999 to establish a functional international framework for trading in greenhouse gas emission reductions: 11

12 Transition to Paris Impact on project developer work and ensuring market supply: - Legal and financial visibility: to factor in project cycle timeline of 2 to 7 years from project design, to implementation and issuance of carbon credits; - Carbon pricing: determines project viability and need of complementary or alternative sources of funding; - Lean implementation: no additional constraints or permissions additional to those required from a local or international business; 12

13 Thank you Keppel Road, #03-05 Jit Poh Building, Singapore #33 E3, Sothearos Blvd, Sangkat Chey Chomnas, Daun Penh Phnom Penh, Cambodia