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Project Summary

Community Carbon intends to bring fuel-efficient cookstoves and safe water solutions to millions of households in eastern and southern Africa. It is focused on seven energy-saving projects: delivering cookstoves in Mozambique, Uganda and Tanzania and distributing safe water devices in Malawi, Mozambique, Uganda and Zambia. The initiative is expected to roll out over the course of the next two years commencing with the delivery of 3.5 million fuel-efficient, cleaner cookstoves and water purification devices to communities across the five countries. These vital energy-saving devices will prevent emissions, improve health outcomes, and preserve local environments by protecting forests from illegal charcoal and wood harvesting.

Community Carbon was launched in 2022 by UpEnergy Group, a social enterprise with headquarters in Kampala, Uganda. UpEnergy has successfully operated carbon projects for more than a decade. The goal for the projects is to collectively prevent approximately 50 million tonnes of greenhouse gas emissions from being emitted over the course of 15 years. An equivalent number of verified emissions reductions are expected to be independently verified under The Gold Standard for six of the projects and under the Verified Carbon Standard of Verra for the project in Tanzania. First delivery of credits is expected in 2023, increasing as cleaner cookstove and water purification units are distributed.

Impact Highlights

 

According to Global Forest Watch, Uganda lost 967,000 ha of tree cover from 2001 to 2021, equivalent to a 12% decrease in tree cover since 2000 and 438 million tonnes of greenhouse gas emissions. The majority of African households rely on charcoal, wood or other forms of biomass for their cooking needs. It takes between 4 to 6 tonnes of wood to create 1 tonne of charcoal when produced using inefficient technologies and unsustainable resources. The distribution of fuel-efficient cookstoves and water filtration devices to millions will help directly reduce charcoal demand in the countries where the projects are located.

 

 

The price of charcoal has tripled in the past decade putting families and nearby forests under sustained pressure. One cleaner cookstove in an average Ugandan household can prevent over 3 tonnes of carbon dioxide emissions per year and save up to 18-24% of household income thanks to reduced charcoal needs. Similarly, a household water purification unit for example can prevent 2.37 tonnes of carbon dioxide emissions thanks to removing the need to boil water.

Cookstoves for the projects will be locally manufactured stimulating economic growth, and provide additional employment opportunities within project communities.

 

 

Globally, women cook on average more than twice the number of meals as men1. As a result, the benefits of both cleaner cookstoves and water filtration devices disproportionately impact women and girls in typical houses due to their close connections to the environment and their responsibility for household chores, particularly cooking, the fetching of water and related energy sources.

Impact Investing

As Community is the greatest enabler of change, for both the planet and its inhabitants, Community Carbon and Carbon Streaming have agreed to jointly fund the Community Carbon Fund. The initial activities of the fund will be dedicated to the education and empowerment of women and girls, who are disproportionately impacted by climate change. The fund will also support tree planting initiatives nurturing forest health in the surrounding areas. Both Community Carbon and Carbon Streaming will contribute a percentage of their revenue from the sale of carbon credits from the projects to support the fund’s programs. To learn more about the fund and Community Carbon, please visit its website at communityco2.org.

Carbon Credit Stream

Carbon Streaming has made an upfront cash investment of US$6.5 million on closing, with additional payments of up to US$13.5 million as emissions reduction milestones are met and as cookstove and water purification units are distributed under the carbon credit streaming agreement.

The Company expects to receive a portion of the credits generated from the emission reductions of the projects over 15 years. The portion of the emission reductions received by, and the economic interest attributable to, Carbon Streaming is consistent with the Company’s other stream investments.


1 https://worldcookingindex.com/#data