FairClimateFund, MECS & ATEC have joined forces to pilot a first of its kind carbon credit revenue share with households based on verifiable usage data – enabled by ATEC’s Internet of Things (IoT) design with carbon credit and fintech integrations. The pilot project facilitates the transition from traditional cooking methods involving firewood or charcoal to clean cooking solutions powered by electricity in Bangladesh and Cambodia. The program will implement a unique cook-to-earn model where ATEC’s Internet of Things (IoT) stoves can track live usage data then make carbon credit micropayments directly into household’s mobile money account linked to usage levels. This provides a direct financial incentive to households to rapidly adopt modern cooking solutions over traditional means.
ATEC, a project developer in the modern cooking sector, will implement the cook-to-earn concept in their project in Bangladesh and Cambodia, enabling households access to clean cooking solutions while generating income through their cooking practices. ‘We are excited to partner with FairClimateFund & MECS on this project,’ says ATEC CEO Ben Jeffreys, ‘households in the developing world having control of the value of their emission reductions is the ultimate goal we should inspire to for the sector. This pilot helps us all to understand at a technical and financial level of how this could be achieved at a global scale.’
FairClimateFund, a project developer, supplier and trader of Gold Standard and/or Fairtrade certified carbon credits, has entered into a purchase agreement with ATEC, wherein they agreed to sell the Cook-to-Earn carbon credits from the project. The carbon credits will be sold to companies that want to fund fair climate action. ‘FairClimateFund believe in benefit sharing and transparent cost flows in their projects,’ says Neera van der Geest, Director of FairClimateFund, ‘those who are responsible for CO2 reductions should be the ones who benefit the most from these efforts.’
By establishing transparent cost flows with ATEC’s IoT digital verification and embedded finance technology, ATEC is able to ensure transparently that the financial benefits generated from the carbon credit sales reach the households - providing them with economic opportunities and improved living conditions. A minimum price and a target price have been agreed upon between the FairClimateFund & ATEC, to enable a pilot of 70% of the purchase price to directly reach the users as a mobile payment while the remaining 30% will cover credit generation costs incurred by ATEC.
Utilizing the Gold Standard metered methodology to enable digital verification, carbon credits can be issued as emission reductions are achieved through real-time monitoring, reporting and verification.
The collaboration among the organizations strives to bring about sustainable change and empower vulnerable communities in Bangladesh and Cambodia with a public report of initial findings to be released early 2024.