ANNUAL REPORT

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1 ANNUAL REPORT

2 COLOPHON INDEX FairClimateFund Arthur van Schendelstraat MK Utrecht, the Netherlands T: + 31 (0) E: info@fairclimatefund.nl W: Facebook: facebook.com/fairclimatefund Twitter: twitter.com/fairclimatefund YouTube: youtube.com/fairclimatefundtube Our challenge 1 Vision and mission 2 How we work 3 Our approach 4 Our projects 6 Results 8 Impact 9 Clients 10 Part of:

3 OUR CHALLENGE Climate change is one of the biggest challenges of our time: temperatures are rising and we are increasingly faced with unpredictable rainfall and flooding. With all of this happening the consequences are: failed harvests, food shortages and damage to our ecosystems. Climate change affects us all, but people in developing countries are more vulnerable to its consequences. If greenhouse gas emissions are not reduced quickly, heat waves will make parts of South Asia - such as India - unliveable by the end of this century. At the same time, in the rich West, we are largely responsible for global warming. Europeans and Americans together contribute almost 60 percent to climate change. If we want to combat climate change and offer everyone equal opportunities on our warming earth, then we need to take action NOW! Everyone - individuals, governments and companies - can make a positive contribution to a fair climate by reducing CO 2 emissions themselves and investing in climate projects for the most vulnerable. As a result, the poorest get the opportunity to cook on cleaner and efficient cooking stoves. Herewith, they reduce CO 2 plus harmful emissions that affect the living environment and at the same time maintain our scarce trees. In this way, we make the world a bit fairer. Just follow our lead... Neera van der Geest Director FairClimateFund 1

4 VISION We aim for a fair climate: a world in which those who contribute most to climate change invest in CO2-reduction projects that benefit people who are most vulnerable to the effects of climate change. MISSION We want to demonstrate that the carbon market can benefit people - who are most vulnerable to the effects of climate change - in a fair and effective way. Those with the largest carbon footprint invest in carbon reduction projects with high social impact that meet the Gold Standard and Fairtrade Climate Standard. 2

5 HOW WE WORK Together with local partners in developing countries we implement climate projects such as the introduction of cleaner and efficient cooking methods and the planting of trees. These climate projects ensure less CO 2 emissions, protection of trees and a better life for the poorest, such as an improved living environment indoors. The CO 2 emissions that are reduced by our projects are 1 2 certified. We then sell (at a fair price) these certified CO 2 credits to private individuals and companies in Western countries that want to offset the CO 2 emissions that they cannot (yet) reduce. Local households pay off their cooking stoves with the CO 2 credits they produce. They also receive a Fairtrade e 4 3 premium which is invested in climate adaptation activities. Part of the revenues from the sales of the CO 2 credits is invested by us in new climate projects. 3

6 OUR APPROACH Together with our partners, we hope to reduce CO 2 emissions and make the most vulnerable people resilient to climate change. We plan to do this in the most effective and fair way as possible. EFFECTIVE Our projects are effective because they are sustainable: for example, our bottom-up way of working ensures that local communities are closely involved in the development and implementation of the project. In this way, they feel responsible and cooking stoves are properly maintained. Also, knowledge transfer takes place with regards to climate change. Furthermore, we are working towards a market-based approach in which our local partners create a market by making potential customers aware of the advantages of cleaner and efficient cooking. Finally, our approach is based on a win-win situation: local households that reduce CO 2 within our climate projects benefit from this and pay off their new cooking stoves. At the same time, the buyers of carbon credits, mainly companies, become climate neutral and therefore more attractive to stakeholders and customers. 4

7 FAIR Together with our partners we are working on creating a fair climate: people with the greatest carbon footprint reduce CO 2 and invest in climate projects for the most vulnerable people to climate change. c. A premium is paid on top of the minimum price. This premium is managed by the local cooperative and invested in climate adaptation activities. d. Bottom-up capacity building: local communities initiate the climate projects themselves, provide trainings and take care of the monitoring and maintenance. e. Buyers of FCCs have a CO 2 reduction plan. In addition, we are the first and only provider on the European market to offer Fairtrade certified carbon credits (FCCs). This relatively new standard is developed by Fairtrade International and Gold Standard, in cooperation with FairClimateFund and is based on the following principles: a. The end user pays a minimum price for the CO 2 credits or FCCs. This minimum price covers all costs of the project. b. Local households own the FCCs with which they pay off their cooking stoves. Usually these revenues are for the merchant. 5

8 OUR PROJECTS Chulika project in rural India Janara Samuha Mutual Benefit Trust (JSMBT) Raichur is a poor region in South India with a serious shortage of wood. In this project over 18,000 families in Raichur use an efficient cooking stove: a Chulika. The Chulika uses no less than 67.5 percent less wood than the traditional cooking method. This protects trees. Because of the Chulika CO 2 emissions are reduced and there is much less smoke in the house so that the indoor air quality improves. The Chulika also saves women a lot of time, because they need less wood and cook faster. Finally, extra trees are planted in this project. Biogas for households in India Bagepalli Coolie Sangha (BCS) This project replaces cooking on wood by building almost 12,000 biogas plants for households in the Chik Ballapur region in the state of Karnataka, India. Organic waste (mainly cow dung) is fermented in an underground unit, so that enough biogas is available to cook on a daily basis. This method of cooking prevents harmful smoke in the house, cleans up organic waste and saves household kerosene and time. The residue from the fermentation process also forms fertile manure. 27,037 tonnes CO 2 per year reduced 1,243 trees planted 21,410 tonnes CO 2 per year reduced 24.7 million kilos wood saved or 49,459 trees 26.6 million kilos wood saved or 53,240 trees NO POVERT Y GOOD HEALTH AND WELL -BEING GENDER EQUALITY AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION LIFE ON LAND NO POVERT Y GOOD HEALTH AND WELL -BEING GENDER EQUALITY AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION LIFE ON LAND 6

9 Cleaner wood stoves in Ethiopia Oromia Coffee Farmers Cooperative Union (OCFCU) The coffee sector in Ethiopia is threatened by deforestation and climate change. Coffee is extremely sensitive to temperature rise. An increase of one degree already causes a loss of quality of the coffee beans, two degrees means loss of productivity. Especially farmers are hit hard. That is why we invest in 40,000 more efficient wood stoves for coffee farmers. The wood stoves reduce the use of wood and CO 2 emissions by 40 percent. Farmers (mainly women) spend less time collecting wood and can leave necessary shade trees on their plantations. Improved cooking techniques in South-Africa NOVA Institute More than a million people in South Africa cook on coal. With this method of cooking, many harmful gases are released if the coal does not burn properly. This project helps people burn the coal in a better way; the fire is built in a way that it burns from top to bottom instead of bottom to top. This cleaner and efficient way of cooking Basa Magogo causes fewer health complaints, a saving on coal of almost 30 percent and a reduction of CO 2 emissions of about 1.3 tonnes per family per year. 12,590 tonnes CO 2 per year reduced 34,056 tonnes CO 2 per year reduced 7.8 million kilos wood saved or 15,652 big trees NO POVERT Y GOOD HEALTH AND WELL -BEING GENDER EQUALITY AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION LIFE ON LAND NO POVERT Y GOOD HEALTH AND WELL -BEING GENDER EQUALITY AFFORDABLE AND CLEAN ENERGY CLIMATE ACTION LIFE ON LAND 7

10 RESULTS 2017 Income from sold credits (euro) Total turnover (euro) Sales carbon credits 11% 1,000,000 Donations & consultancies resellers companies NL companies EU NGOs and other 12% 34% 840,000 43% 800, , , , Sold CO 2 credits (tonnes) Total contracted investments (euro) 65,880 Gold Standard 82,000 Fairtrade/ Gold Standard 16, million 10

11 IMPACT , ,938 Tonnes CO 2 reduced through 59 million kilos of wood saving or 118,351 trees People reached of which 49,254 women are trained 1,243 Trees planted 4.4 Hours per week saved for 33,646 women 55,659 More efficient cookstoves are used 49,254 Households with improved living environment 9

12 CLIENTS 2017 Other clients (selection): Arcadis wants to be a leader in the field of sustainability. For example, we want to reduce our CO 2 emission annually by 4%. That is more than twice as much as most of our friendly competitors. In the long term, in 2020 we want to emit 40% less CO 2 per FTE than in That is ambitious, but it looks like we are going to achieve that goal. Because the technology does not exist as yet for companies to operate 100% climate neutral in a healthy way, we offset part of our CO 2 emissions. We offset with Fairtrade Carbon Credits from FairClimateFund, because their mission and vision fit seamlessly with our passion: improving the living environment of people worldwide. Niels van Geenhuizen, Sustainability Leader at Arcadis