The ELLTRIX Carbon Credit programme has been launched by Ellies and EcoMetrix Africa, two industry leaders who have combined their expertise to create a sustainable financial incentive mechanism for solar technology in Southern Africa.
The programme will allow local businesses at all scales to access a financial reward for greening solutions under the auspices of the United Nations.
“Global warming is a relevant and current issue, the impacts of which are expected to become a significant threat to economic stability in the near future,” says Sean Buchanan, projects director, EcoMetrix Africa. “A shift in the global economy is required now, we need a sustainable energy model that does not threaten economic stability.”
Understanding carbon credits
Carbon Credits are created by activities that reduce or prevent the emission of greenhouse gasses (GHG) into the atmosphere. A carbon credit is a financial instrument, governed by the UN in terms of the Kyoto Protocol, where one credit is equivalent to one metric tonne of carbon dioxide.
The objective of Carbon Credit trading is to fund projects that reduce emissions by issuing a tradable certificate for every tonne not emitted. These certificates are sold to overseas entities with a legal obligation to reduce their emissions. With the world’s energy needs growing rapidly, leading financial institutions are predicting that carbon credits will become one of the world’s most traded commodities.
Encouraging foreign investment
ELLTRIX was created under the Clean Development Mechanism (CDM) of the Kyoto Protocol. This mechanism effectively encourages foreign investment in local clean technology projects. Throughout this process the UN assures quality and integrity of these emission reductions and as a result CDM credits are the globally accepted standard.
ELLTRIX has over the last 18 months undergone rigorous validation processes with the UN and its appointed auditors. The status now allows participation in two United Nations programmes of activities namely:
- Southern Africa Solar Thermal Energy (SASTE) Programme of Activities: This programme is designed to encourage the uptake of solar thermal energy technology and allows project developers utilising these technologies to access additional revenue. These technologies include solar water heaters, heat pumps and concentrated solar plants, where thermal energy would otherwise have been obtained from electricity or fossil fuels.
- Southern Africa Solar Electrical Energy (SASEE) Programme of Activities: This programme is designed to encourage the uptake of solar electrical energy technology such as photovoltaic panels. Where PV panels are used to reduce a buildings demand on grid electricity or fossil fuels carbon credits can be claimed for the energy savings.
As part of this process the two programmes have been granted authorisation to assist project developers in several Southern African countries including South Africa, Namibia, Mozambique, Swaziland and Lesotho.
The programmes are open, turnkey and supplier agnostic meaning that for the first time all project developers can participate on a single platform in an easy and transparent manner whilst remaining in full control of their carbon credits.
There are no requirements to use a specific technology or to sell the credits up front, in fact the only rules for participation are those set down by the United Nations to ensure the environmental integrity of the system.
ELLTRIX is now able to assist other leading organisations to benefit from carbon credit revenues and is calling for participation from project developers who intend to utilise these technologies. The business model allows participation in a variety of ways which allows even the smallest installation to qualify and access the markets. ELLTRIX has simplified the process and will advise the project developer with every step of the process offering expert advice, technical know-how, service and support.