Climate Finance Works in India

Over 60 percent of Indian households do not have electricity. Instead, they rely largely on kerosene for their lighting, which leads to indoor air pollution, GHG emissions and high fuel costs. To help address these problems, the social enterprise D. Light produced a solar-powered light-emitting diode (LED) lamp which could be distributed to the poorest households in countries like India.

Private investors expressed some interest in supporting the project but doubted whether it would be economically viable without additional funds from the potential carbon offsets the program would create. In order to secure that carbon finance, the project was developed into a CDM project by the Dutch firm OneCarbon and was certified as a premium offset by the Gold Standard Foundation, whose major donors include Germany and other EU countries. Due to the necessity of carbon credits in getting the project off the ground, then, EU financial and technical support has proven central to the project’s success.

The project, which will last from 2009 through 2014, will save 30,052 to 53,123 tonnes of CO2e per year, equal to at least 1.9 million Euros over the six-year lifespan of the project assuming a price of 11 Euros per tonne. The project has since been expanded to Tanzania.

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