Forward sale of associated CERs to Swedish Energy Agency
UpEnergy Group, a Mauritius and Kampala-based social enterprise, today announced an initiative to develop a Programme of Activities (PoA) in Uganda jointly with the Swedish Energy Agency (SEA) as buyer of the resulting UN- backed certified emission reductions, or CERs. The programme will provide low income communities in Uganda, a least developed country, with access to energy-saving household cookstoves. The transaction, which totals 500,000 CERs, represents a significant commitment to climate change mitigation and poverty reduction during a time when most UN-sanctioned carbon finance programs are struggling due to low carbon prices. CERs from the programme will be transacted at above current prevailing secondary market prices, a prerequisite for making the programme viable.
UpEnergy (www.upenergygroup.com) builds distribution channels that sell vital clean energy technologies in the developing world, with the aim of alleviating poverty, improving health, and protecting forests. The UpEnergy team registered each of the world’s first three Gold Standard energy-saving cookstove projects, led each of those programs to profitability and has managed 20 additional cookstoves projects on a principal or advisory basis. UpEnergy has already sold over 23,000 improved stoves in Uganda, in addition to solar lanterns and water filtration systems.
The Swedish Energy Agency is responsible for the governmental CDM programme in Sweden. The Agency has been active since 2002 in participating in CDM and JI projects and acquiring emission reduction credits. The programme is focused on renewable energy and energy efficiency projects and aims at a broad geographical distribution of CDM projects, including Africa and Least Developed Countries. At present, the Agency is engaged in over 80 projects bilaterally and, in addition to that, participates in around 130 projects through its participation in eight multilateral CDM and JI funds.
In this collaboration, UpEnergy and SEA will target the more than 95% of the Ugandan population that currently cooks with wood and charcoal over dangerous open fires and dirty stoves. UpEnergy sells high quality, efficient biomass stoves that decrease biomass consumption by more
than 50% and significantly reduce indoor air pollution, a leading cause of death and disease in Uganda. Saving fuel means reduced greenhouse gas emissions, which Swedish Energy Agency will buy in the form of UN- compliant CERs. The programme also has the ancillary benefit of reduced deforestation pressure on Uganda’s fragile forests, as well as a positive financial impact on Ugandan household budgets.
UpEnergy’s CEO, Erik Wurster said “Our programme in Uganda has the potential to deliver transformational health and livelihood benefits to the people of Uganda while reducing a significant amount of greenhouse gas emissions. The Swedish government should be commended for their leadership in supporting such projects during a time when most wealthy nations are turning their backs on market-based mechanisms that address climate change.”
Kenneth Möllersten, Senior Scientific Advisor of The Swedish Energy Agency said, “The Swedish Government is committed to purchasing CERs from projects that have measurable outcomes for their host communities and where a fair carbon price is central to the project’s success. Having analysed a large number of efficient cookstove projects, we are delighted to sign this transaction with UpEnergy.”
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