Dutch Green Business Group N.V.
On November 1, 2021 DGB announced both Kenian carbon projects have passed the feasibility studies.
The teams working on both projects have a strong track record in implementing large-scale carbon projects.
A long-term offtake agreement is a legal contract in which a buyer agrees to purchase a set amount of carbon credits at set price points at a set time, usually several years into the future.
They provide access to high-quality, verifiable carbon credits at a typically discounted price, in an environment where cost is rising as demand outstrips supply.
In Q3 2021 DGB has entered into its first binding carbon credit offtake agreements pursuant to which DGB committed to offset carbon emissions for various customers.
To boost the amount of offtake agreements and finance its project pipeline, DGB is actively expanding its sales and distribution network by partnering with key-players in the sector, On May 18th, 2021 the Company announced a strategic stake in retail platform Corekees.
DGB’s vision is to be a leading high-impact investor in sustainably managed forests by providing competitive real investment returns for shareholders combined with high social impact.
The projects will engage over 20,000 farmers and create employment opportunities for thousands of people in local communities.
The manufacturing and distribution of cookstoves will be designed as a standalone carbon offsetting project under the Gold Standard methodology ”Technologies and Practices to Displace Decentralized Thermal Energy Consumption”.
In addition, expenditure spent on project area protection and conservation can potentially lead to higher GHG emission reductions within the running projects through a decrease in needed credit buffers, and thereby increased carbon credits in future years.
Community involvement is also enhanced through the development of programs to improve quality of life, such as water filtration systems, floating healthcare facilities, educational scholarships, and solar energy.
In each case, the project will extend to the communities living below the forested areas, where fruit and nut trees will be planted along with a small percentage interspersed with crops such as tea and coffee.
Trees planted in the homesteads will consist of fruit and nut trees, such as avocado and macadamia, alongside selected tree species that intercrop well with tea, coffee and horticultural activities.
A recent assessment estimated Mt Kenya’s forest cover at 80,962 hectares, which has declined 21% in less than 10 years.
Below the forest, the project will extend the planting into communities living there to involve them in meaningful economic empowerment, use of energy efficient wood cookstoves and planting of woodlots that will generate carbon credits.
The world needs a range of measures to limit carbon dioxide emissions while meeting rising energy demand.
Quite often, however, it is not possible for these entities to meet their targets or eliminate their carbon footprint, at least in the near term, with internal reductions alone.
By using the carbon markets, entities can neutralize, or offset, their emissions by retiring carbon credits generated by projects that are reducing GHG emissions elsewhere.
Companies and private individuals are interested in contributing to their living environment.
A biodiversity offset is an innovative approach to quantify in a transparent way the net positive impacts of an investment on 1 hectare preserved, restored, or managed through sustainable land practices.
By “retiring” a carbon offset or biodiversity offset on behalf of its clients, DGB removes the offsets from the market, rendering them unusable by the heavy-polluting companies.
Nearly 1,700 certified VCS projects have collectively reduced or removed more than 630 million tonnes of carbon and other GHG emissions from the atmosphere.
Projects developed under the VCS Program must follow a rigorous assessment process in order to be certified.
This does not mean that DGB is always the owner of the land.
In 2021, China launched its country-wide emissions cap-and-trade system, after being postponed since 2015, and it quickly became the world’s largest.
Companies involved in these systems receive carbon credits, so they can participate in economies that monitor and regulate carbon emissions.
Companies receive carbon credits, which allow them to emit carbon dioxide, as their allowance toward the cap, or they can sometimes purchase carbon credits at auction.
The voluntary carbon market enables private investors, governments, non-governmental organizations, and businesses to voluntarily purchase carbon offsets to offset their emissions.
Regulated trading schemes cover a larger amount of carbon emissions with fewer parties involved when compared to the voluntary carbon markets.
In the same year, the voluntary carbon market issued over 220 million high-quality carbon credits of 1t of CO2 each.
As efforts to decarbonize the global economy increase, demand for voluntary carbon credits could continue to rise.
Depending on different price scenarios and their underlying drivers, the market size in 2030 could be between $5 billion and $30 billion at the low end and more than $50 billion at the high end.
The biggest difference is between avoidance type offsets and removal type offsets.
The Taskforce was initiated by Mark Carney, UN Special Envoy for Climate Action and Finance; is chaired by Bill Winters, Group Chief Executive, Standard Chartered; and is sponsored by the Institute of International Finance under the leadership of IIF President and CEO, Tim Adams. Annette Nazareth, senior counsel at Davis Polk and former Commissioner of the US Securities and Exchange Commission, serves as the Operating Lead for the Taskforce.
The TSVCM’s over 250 member institutions, represent buyers and sellers of carbon credits, standard setters, the financial sector, market infrastructure providers, civil society, international organizations and academics.
Large customers but also national and supranational governments should demand more standardization and regulation of this market to make this a reality in the near-term.
Factors that may lead to, or contribute to, differences in current expectations include, but are not limited to: developments in legislation, technology, tax, regulation, stock market price fluctuations, legal proceedings, regulatory investigations, competitive relationships and general economic conditions .
DGB Group NV published this content on 22 March 2022 and is solely responsible for the information contained therein.