Hivos website

Carbon Finance

Carbon Finance

Aim

To make the technologies required for renewable energy and sustainable, ecological farming practices affordable for rural low-income citizens so they can both improve their living conditions and help reduce the effects of climate change.

Where

Kenya, Tanzania, Uganda, Cambodia, Nicaragua, Indonesia

Why

Most underprivileged people who live in rural areas depend on the state of their natural environment for their basic livelihoods, but this is coming under increasing threat from climate change. To counter this threat they can use renewable energy sources and climate-smart agricultural methods. Biodigesters for producing biogas are one good example: they both improve living conditions of rural people, especially women, and help to mitigate climate change. Carbon finance makes these new technologies more affordable, which is why Hivos supports access to it for low-income rural communities.

How

Since 2011, Hivos’ Carbon Finance program has used carbon finance to develop and support rural projects that build renewable energy systems and introduce ecological, climate-smart farming methods. Hivos sells carbon credits to voluntary buyers who are willing to pay prices that include a contribution to pro-poor sustainable development. All our carbon credits are registered under the Gold Standard. Revenue from carbon credit sales is used to make purchasing biogas digesters affordable and subsidizes program activities such as aftersales services, quality management and training staff and end-users. See the Hivos’ Carbon Finance website for information on its activities in specific countries.

Results so far (2011-2018)

76,000 biodigesters installed; 828,000 tons CO2e sold, € 5.0 million in revenue.

Current period and budget

2016-2025, €8.5 million

Partners

Netherlands Ministry of Foreign Affairs (donor), SNV Netherlands Development Organisation (technical assistance), Climate Neutral Group, MyClimate, National Biogas Programme (NBP) Cambodia, Indonesian Domestic Biogas programme (BIRU), Kenya Biogas Programme (KBP), Tanzania Domestic Biogas Programme (TDBP) and Biogas Solutions Uganda Ltd (BSUL).