Rwandan start-up to help unlock funding for 20,000 green projects

Do you possess a woodland with a minimum area of two hectares? Your project proposal may be eligible for climate finance by considering the amount of carbon emissions that the forest will reduce. This is what Rwanda-based start-up, Ayambe Zero, will help calculate and then connect with potential buyers of reduced emissions. ALSO READ: Carbon market: A look at Rwanda’s probable prices The founder and CEO of the start-up, Alex Kalanda told The New Times that it is planning to enable 20,000 green projects, including those in the forestry sector, to sell carbon credits between 2023 and 2030 globally. ALSO READ: Rwanda counts on new forest bill to tap global carbon market Carbon credits on the carbon market are measurable, verifiable emission reductions from certified climate action projects that reduce, remove, or avoid greenhouse gas emissions. A carbon credit represents a tonne of carbon emissions removed and Rwanda is considering at least $30 (approx. Rwf 35,000) per tonne, although the price varies depending on the project impact. ALSO READ: Rwanda to plant 63 million indigenous trees for carbon market The carbon market, which is in line with the Paris Agreement on reducing carbon emissions to mitigate and adapt to climate change effects, allows nations, companies, or entities to finance carbon-cutting projects in other countries or entities and count the avoided emissions towards their own climate targets. This means the polluters compensate for emissions they cause by financing green projects. Kalanda, who is working on tools and infrastructure to accelerate reduction of carbon emissions and help companies calculate their reduced emissions in less climate-resilient countries, has a background in construction and computer science. He studied Computer Science from African Leadership University- Mauritius campus. The entrepreneur studied technology entrepreneurship at Stanford University and interned at the entrepreneurship center at the Stanford School of engineering. He was selected by Stanford University to attend the Silicon Valley Innovation Academy in 2019 and 2020. His previously founded start-up was also one of the 42 chosen globally (one of three in Africa) and completed the MassChallenge Israel in the 2021 cohort. MassChallenge connects start-ups, experts, corporations, and communities to grow and transform businesses and economies. He also spoke on a panel during the Business of Conservation Conference held in Kigali. His technology to also enable companies to determine their emissions, and purchase carbon offsets comes at a time when Rwanda is preparing to launch a carbon market framework in December 2023. ALSO READ: Inside Rwanda's ‘carbon market scheme’ Carbon offsets are actions intended to help polluters compensate for their emission of carbon dioxide into the atmosphere as a result of industrial or other human activity, especially when quantified and traded as part of a commercial scheme. “The developing countries are more vulnerable to the impacts of climate change. However, they lack key infrastructure and tools to receive climate finance to build resilience. The carbon economy is also one of this century’s biggest business opportunities,” Kalanda told The New Times. He explained that the start-up provides an end-to-end platform and tools that leverage real-time sustainability metrics to accelerate deployment of climate finance to green solutions to build resilience. The start-up charges a fee from companies and institutions that need to determine their emissions and purchase carbon offsets. It also charges fees from those who have sustainable solutions and need climate finance in sectors such as forest and landscape restoration, sustainable forest management, renewable energy, sustainable transport, sustainable cities, green and energy efficient buildings, livestock gas capture, agriculture, carbon capture and storage, livestock and manure management, and others. “Even an individual with a minimum of two hectares of forest can benefit but it is advisable to have larger hectares, because of sizeable impact,” he said. $7.4 billion climate finance expected Kalanda said his start-up wants to provide net zero infrastructure options, especially for the developing world, that they can use to determine various impacts and receive sustainable finance in an instant. He revealed that between 2023 and 2027, the projects to benefit from climate finance generated by the carbon market could help create between 40,000 and 100,000 green jobs, reduce 7.5 billion tonnes of emissions and attract $7.4 billion climate finance. The $7.4 billion (approximately Rwf 8.9 trillion) climate finance will be provided by polluters who want to include these avoided emissions in their own climate targets, he said. Some companies are criticised for polluting the environment but also funding environmentally friendly projects that do not contribute to air pollution. This approach could potentially achieve carbon neutrality by balancing carbon emissions with carbon absorption in designated areas. How does it work and which projects are eligible? The companies, institutions, individuals with green projects will submit project proposals which can be approved and get funding. The projects include micro-projects seeking below $1 million (approx. Rwf1 bn), small projects seeking between $1 million and $5 million (approx. Rwf6 bn), medium projects in need of between $5 million and $15 million (approx. Rwf18 bn) and large projects seeking between $15 million and $25 million (approx. Rwf30 bn). Companies in need of offsetting their footprint (compensating for emissions they cause) will provide the funding. “We charge fees for access to the projects,” he said, adding that they are piloting the tool in 31 countries across the globe including 22 countries in the Caribbean region. The users create an account on https://www.ayambezero.com/. Kalanda said tapping into the carbon market in Rwanda is in line with the country’s 10-year climate plan seeking $11 billion climate finance. Herman Hakuzimana, the Climate Change Programme Manager at the Rwanda Environment Management Authority (REMA), in September, said that the carbon market scheme, which will be launched during COP28, outlines the procedures for interested investors to purchase carbon credits in Rwanda, and that this will also demonstrate the diverse projects the country can offer in the carbon market, including innovative cooking technologies aimed at reducing pressure on our forests. “The carbon market framework serves as a tool to attract investors to Rwanda’s carbon market, and these projects are all part of Rwanda’s 10-year climate action plan,” he said. Rwanda has committed to reducing its greenhouse gas emissions by 38 per cent by 2030. To achieve this target, $4.155 billion (approx. Rwf 5 trillion) will be sourced domestically, contributing to a 16 per cent reduction in emissions, while $6.885 billion (approx. Rwf 7 trillion) will come from external financing, contributing to a 22 per cent emissions reduction. Meanwhile, a recent report by civil societies in Africa considered Africa’s carbon markets scheme as a ‘wolf in sheep’s clothing’ and called for transparency, or to consider alternative solutions.

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Rwandan start-up to help unlock funding for 20,000 green projects