Earning money with carbon credits experiences and best practices. atmosfair ggmbh Dr. Dietrich Brockhagen 30 October 2014, Seminar on Energy Efficiency
Agenda Introduction: atmosfair ggmbh atmosfair s global project portfolio and efficient cook stove projects The Improved Cooking Stoves for Nigeria Programme of Activities Structure and responsibilities The way forward Extension of cook stove activities through new distribution partners Seite 2
Profile of atmosfair ggmbh Non-profit company (ggmbh) Founded in 2003 from a research project of the German Federal Ministry for the Environment Ongoing supervision through the advisory board from the Federal Ministry for the Environment and environmental NGOs Financially independent No public subsidies for offsetting projects 90% of the donations reach the climate protection projects High-level patrons from politics and science Climate protection projects Administration, HR Prof. Dr. Hartmut Graßl Prof. Dr. Klaus Töpfer Prof. Dr. Mojib Latif Former director at the Max Planck Institute for Meteorology in Hamburg Former Executive Director of the United Nations Environment Program (UNEP) Leibniz Institute of Marine Sciences at the University of Kiel Page 3 09/04/2015 atmosfair ggmbh
Overview of atmosfair products CO 2 calculation Online emissions calculator for flights, cruises, and events CO 2 accounting of events, conferences, meetings, seminars, and conventions CO 2 reporting of business travel activity according to the VDR Standard CO 2 avoidance Innovative consulting concept: sustainable business travel management CO 2 tools to avoid and reduce emissions Switching to web conferencing and telecommunication CO 2 offsetting Development of high-quality CDM (Clean Development Mechanism) Gold Standard climate protection projects Page 4 09/04/2015 atmosfair ggmbh
Offsetting means saving CO 2 in other parts of the world How does atmosfair work? Travel agency Page 5 09/04/2015 atmosfair ggmbh
Quality, media and campaign Market leader in quality 8-time test winner in national and international comparative studies atmosfair in the media About 250 news articles and over 50 minutes on TV every year Poster campaign since 2010 at German airports 22 celebrities fly atmosfair Page 6 09/04/2015 atmosfair ggmbh
Offsetting means saving CO 2 in other parts of the world Nicaragua, wind power Nigeria, efficient fuel wood stoves Honduras, small hydro power India, efficient gasifier stoves Thailand, biogas from sewage water India, biogas India, electricity from crop residues Nepal, biogas Kenya, biogas Rwanda, efficient fuel wood stoves India, fuel efficient irrigation pumps South Africa, low-energy housing Sri Lanka, small hydro power Bolivia, electricity from crop residues Indonesia, electricity from organic household waste Lesotho, efficient fuel wood stoves Cameroon, efficient fuel wood stoves Georgia, Solar Water Heaters Technologies applied: Renewable energy (e.g. small-scale biogas, electricity from crop residues, ) Energy efficiency (e.g. efficient cooking stoves, ) Page 7 09/04/2015 atmosfair ggmbh
atmosfair project standards CDM: transparency and external checks Transparency atmosfair projects follow the rules of the UN Clean Development Mechanism (CDM) Publication of all relevant project data on the website of the UNFCCC UN-accredited auditors check projects regularly Independent auditors, e.g., TÜV, verify every CDM project on-site on a regular basis UN checks the accredited auditors Auditors are liable for every tonne of CO 2 that they certify External check of atmosfair project in Nigeria Page 8 09/04/2015 atmosfair ggmbh
atmosfair project standards Gold Standard: social benefits All atmosfair projects are certified by the Gold Standard in addition to the CDM Supported by 80 NGOs and the German Ministry for the Environment Involvement of local population in the project development (stakeholder consultation) Guaranteed positive social and economic benefits and protection of the local environment, such as better health or creation of local employment Example: efficient cookstoves in Nigeria Less time and money spent on firewood Reduced conflict over natural resources Fewer smoke emissions and thus a reduction in respiratory diseases Creation of local employment for assembly and distribution of stoves Page 9
Examples of atmosfair cook stoves projects Nigeria Rwanda Cameroon Seite 10 India Lesotho
The Save 80 Cook Stove set The Save80 Cook Stove Set consists of: One Save80 cook stove 8 litre pot with glass lid heat retaining box Wonderbox Small pieces of wood, which are not traditionally collected and burnt can be used Time necessary for boiling of 6 litres of water: 25min Seite 11
Generation of carbon credits Clean Development Mechanism (CDM) Example: 1 Save80 stove CO 2 -emissions Three-stone-fire = minus 2,5 tons CO2 = 2,5 carbon credits = 2,5 CERs Save80 Three-stone-fire Save80 Seite 12
Responsibilities under the Programme of Activities Local partner organisation atmosfair 1. Coordination of import of raw material in Nigeria 2. Assembly of stoves 3. Distribution of stoves 4. Data management (collection of sales agreements, data transfer, database management) 5. Annual monitoring (conduction of user interviews and efficiency tests) 6. Organisation and accompanying annual visit of external auditors 1. Official documents (Monitoring Report, Project Documents) 2. Communication with the UN, Gold Standard & the external auditor 3. Check of local documentation and quality control (check of database and sales agreements) 4. Financial subsidy to Save80 & ordering process of raw material 5. Overall programme management Seite 13
Import and storage of material Responsibilities: Handling of customs procedure and be importer of record for container of raw material Transport from Lagos Port to final storage place Safe and secure storage place for the Save80 Material and stoves Seite 14
Assembly and distribution Responsibilities: Assemble the Save80 stoves according to manufacturer s specifications Sale of Save80 stoves to a pre-defined price and through different distribution channels Seite 15
Data management Responsibilities: Filling out sales agreements for every sold Save80 and scan them Entering all data into a database (Excel/Access) Provide all data documents to atmosfair Permanent quality control and exchange with atmosfair Seite 16
Monitoring Responsibilities: Visit of about 70 households in one month time Conduction of about 70 household interviews (depending on sample size calculation) Conduction of about 10 Efficiency tests (depending on sample size calculation) Seite 17
The way forward New distribution partners: atmosfair is looking for new partners who see distribution of cook stoves as an interesting opportunity to grow your business What atmosfair offers: to pay the full price for the Save80 stove to the manufacturer after you have ordered and the transport to Nigeria. to pay CDM related costs (Clean Development Mechanism and Gold Standard) (CDM costs for Program (PoA) and cluster (CPA) registration, verification (visit of the UN accredited auditors, preparation of the visit of the auditors by atmosfair staff) atmosfair staff to follow-up the CDM process) Seite 18
New partners for the distribution of efficient stoves What is required by new distribution partners: for each Save80 stove received by atmsofair you are required to pay 5 US$ to atmosfair. The payment is due after 50 of one batch delivered to you is sold, the other 50% after the sale of the full batch and before ordering the next batch from atmosfair select and order two costume fit local pots with lids which fit into the Save80 stove, selected together with atmosfair pay all custom and import fees and any VAT applicable Assemble the stoves in your workshop and have warehousing capacity Market and sell the Save80 stove set at a fixed maximum sales price for the full Save80 set (stove, 2 pots, pot adapters) of 50 US$ ink. VAT Document all stoves sales in a database and provide scaned copies of the sales agreement to atmosfair Monitor a randomly selected sample of about 70 stove users each year and run efficency test on about 10 stoves. Seite 19
New partners for the distribution of efficient stoves Possible profile of a distribution partner: Sale outlets 1) One or more sale outlets in rural areas of Nigeria 2) At least 10,000 residents within 20 km radius around one outlet Micro finance: Offer micro credits for the stoves with up to three years repayment period either by 1) Your own finance or 2) Through a cooperation with a micro finance bank Sales 1) A sales team that actively sells to customers in the sales area around the outlets. 2) Pre-sale demonstration and introduction to the correct use of the stove to the customer 3) After sales services to customers (seldom repairs and user how-to-use) 4) Track record which demonstrates that you are capable of selling in between 2,000 to 5,000 stoves per year, including the logistics from the outlet to the customer. Seite 20
New partners for the distribution of efficient stoves Possible profile of a distribution partner (continued): Documentation 1) A database manager who enters all data from the sales contracts in an online data base and uploads scans of sales agreements on dropbox 2) Transparent and up to date open book accounting to atmosfair of all costs incurred 3) Tracking system for stove delivery, stove sales and sales contracts between different outlets Assembly 1) Access to a workshop in which the stoves can be assembled 2) Staff who can be trained to assemble the stoves Monitoring 1) Allow your distributors to participate in monitoring training provided by atmosfair. 2) Establish a monitoring team which can monitor ~70 random stoves and do 10 efficiency tests in one month Seite 21
Contact information atmosfair ggmbh Zossener Str. 55-58 10961 Berlin atmosfair project in Nigeria Tel: +49 (0)30 62 73 550 0 Email: brockhagen@atmosfair.de Page 22 09/04/2015 atmosfair ggmbh