A new Biogas Consortium partners up with FairClimateFund

Hivos is happy to announce that it has transferred its successful carbon finance programs to longstanding partners Yayasan Rumah Energi (YRE), Biogas Solutions Uganda Ltd. (BSUL), and African Bioenergy Programs Ltd. (ABPL). These organizations have become fully independent entities and will implement national biogas programs and associated carbon finance programs in Indonesia, Uganda and Kenya.

This move underlines Hivos’ strong commitment to local ownership. The transfer of the carbon finance programs allows local partner organizations to initiate new projects, provide training, take care of the monitoring and maintenance of the biogas digesters and, most importantly, own the carbon credits themselves.

The three organizations, united in a Biogas Consortium, will partner up with FairClimateFund. FairClimateFund will help the consortium sell their carbon credits on the European market and globally.

Carbon finance programs

Rural households are amongst the most vulnerable to the effects of climate change. Since 2011, Hivos has used carbon finance to help them access technologies that improve livelihoods and mitigate climate change. We sold carbon credits to voluntary buyers – individuals and companies looking for ways to compensate their CO2 emissions – who were willing to pay prices that included a contribution to sustainable development. Starting in 2014, the main focus shifted to biodigesters, which provide a sustainable way to reduce dependence on firewood and expensive fossil fuels for cooking.

The carbon emission reductions resulting from the use of biodigesters are certified by the Gold Standard. Revenue from sales of the carbon credits is used to make purchasing biogas digesters affordable and to subsidize program activities such as aftersales services, quality management, and training of staff and end-users.

Thanks to our various biogas programs, some 89,500 biodigesters have been installed. YRE, BSUL and ABPL, who were our key implementing partners, are now taking over Hivos’ work.

A three-step approach

With the introduction of the Strategic Compass 2021-2024, Hivos decided to focus on three impact areas, one of which is Climate Justice. Our work in this impact area is guided by our vision to put justice, equity and human rights at the core of global climate action. However, the service delivery nature of our biogas programs falls outside of the scope of the compass.

At the same time, the compass reaffirms our strong belief in local ownership. That is why we decided to transfer our biogas programs to independent organizations based in the Global South. To achieve this, we followed a three-step approach.

1. Fully independent organizations

We supported YRE, BSUL and ABPL in becoming strong and fully independent organizations that can provide services on their own without Hivos’ assistance. As a result, Hivos can hand over general project management, carbon project development and certification, and carbon ownership rights to them.

2. Creating the Biogas Consortium

We facilitated the foundation of a Biogas Consortium between the three organizations. This consortium cements their position, helps to increase knowledge of carbon certification processes, and makes it easier for them to be recognized on the global carbon credit market.

3. Linking the consortium to the FairClimateFund

As the main market for carbon credits is in Europe, it is a big advantage to have a focal point within Europe. With support from Hivos, the Biogas Consortium therefore signed a partnership agreement with FairClimateFund. FairClimateFund is a social enterprise owned by Cordaid, an internationally operating value-based emergency relief and development organization. With this partnership in place, Hivos can withdraw from the international carbon credit market. FairClimateFund will market and sell carbon credits on behalf of the three organizations during the next three years. They will also provide technical assistance for the consortium to deal with changing regulations in climate change policies and increase its visibility on the international carbon market and in carbon or climate funds.

About FairClimateFund

Much like Hivos did, FairClimateFund wants to demonstrate that the carbon market can benefit people and communities most vulnerable to the effects of climate change in a fair and effective way. The organization does this by facilitating investments of those with the largest carbon footprint in carbon reduction projects with high social impact that meet the Gold Standard and/or Fairtrade Climate Standard.

You can learn more about how FairClimateFund helps reduce CO2 emissions and deforestation and improves the living conditions of people in low and middle-income countries on their website.