Off-Grid Solutions B.V. has partnered with the FairClimateFund (FCF), a carbon offsets financer and retailer to commercialize WakaWaka Carbon Credits. OGS reinvests the benefits from carbon-offset sales, illustrating that carbon markets can support sustainable technologies that improve the lives of people living at the Base of the Pyramid.

Credits are generated by using WakaWaka Light and the WakaWaka Power in off-grid situations. The distribution of these solutions in developing countries eliminates the use of kerosene lamps, thereby reducing CO2 emissions. The goal is to encourage the reduction of CO2, provide households in developing countries with clean, renewable energy and involve corporations in this noteworthy endeavour by selling carbon credits.

As a result of the Kyoto Protocol a clean development mechanism (CDM) was developed to develop and certify carbon credits, which is governed the United Nations Framework Convention on Climate Change (UNFCCC). The WakaWaka products are (and this will be put into effect in the coming years) eligible for the CDM procedure. However, in emergency situations like Syria and the Philippines, it is impossible to meet the official certification requirements. This is largely due to the fact that the recipients of the WakaWaka products are refugees and non-permanent residents, which makes it impossible to monitor their use. Furthermore, for accountability reasons a designated national authority (DNA) has to confirm the distribution of the lights. Consequently, these lights and chargers distributed during emergency situations are not eligible for receiving certified carbon credits, while they do compensate CO2 emissions.

WakaWaka Relief Credits

Opportunities have been explored by WakaWaka to generate a new category of non-certified carbon credits and sell these on the voluntary market. The  ‘relief carbon credit’ system© adapts to the situation of refugee camps and other ‘non-permanent’ residences. As this is not part of the core business of WakaWaka, FairClimateFund (FCF) was chosen as a partner to develop parameters that will guide WakaWaka to make the right choice between certified and non-certified credits. FCF is a social not-for-profit venture that aims to trade fair, reliable and develop relevant CO2 rights. 5.4 WakaWaka lights will generate approximately 1 Relief Credit (RC), which equals 1 ton CO2 (please see calculations below). These will be sold on the voluntary market for a price of €12.50 per RC.

This system is unique in its operations due to the fact that all revenues generated by the WakaWaka Relief Carbon Credits will be used to donate more WakaWaka units to relief areas, rather than make profit.

Available Markets

There are two main carbon credit markets: the voluntary market and the compliant certified market. The main difference between the two is that the voluntary market is unregulated.  Even so, there are recognised international standards, such as the UNFCCC and Gold Standard, which monitor and verify the quality and validity of carbon credits that are traded. The parties involved in both markets also tend to have different profiles. Compliance schemes, such as the EU-ETS, are currently aimed at the most “energy intensive” emitters (at a company level). These include power generators, oil refineries, iron and steel production and processing companies, those who produce commodities such as cement, glass and ceramics and the paper and pulp industry. The voluntary market serves the purpose of businesses, government departments, NGOs and single individuals wanting to manage their carbon footprint.

Criteria of the WakaWaka Relief Carbon Credits©

There are a number of criteria that must be fulfilled prior to the qualification of relief credits generated by the distribution of WakaWaka units to emergency, crisis and disaster areas.

The choice of the two-year AMS-III.AR methodology from the UNFCCC is based on what is most applicable and feasible for WakaWaka, while remaining realistic. Although the expected lifetime of a WakaWaka unit is ten years, thereby generating many carbon credits, the 2-year scheme will be applied. In the 2-year option there is no registration of individual lights and individual users, which is the complicating factor in the 7-year methodology. The lamps that have been part of a 2-year scheme can never become part of another cycle of 2-years or part of 7-year cycle.

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