Developing high quality carbon credit projects are a big opportunity amidst a global push toward net zero emissions. And Base Carbon is proving that it can also be profitable.
What’s happening:
- Base Carbon (CBOE: BCBN) has announced that they have received a payment of $10.7M USD from the monetization of high quality carbon credits that were generated from their carbon reduction project in Vietnam
The big idea:
- Base Carbon has funded the manufacturing and distribution of fuel efficient cookstoves and water purifying devices to rural areas in Vietnam
- The distribution of both the cookstoves and water purifying devices reduce carbon dioxide emissions and are able to generate high quality carbon credits for Base Carbon
By the numbers:
- Base Carbon’s $10.7M USD payment is connected to the delivery of 1.85M cookstove carbon credits
- Base Carbon is also anticipating another payment of $1.8M USD related to their financing of 320,887 water purifier carbon credits
- Base Carbon’s Vietnam project is anticipated to generate $29.1M USD in contracted carbon credit offtakes within the next 12 months
- Citigroup is set to purchase the first 7.4M carbon credits that are generated from Base Carbon’s operations in Vietnam
- In total, Base Carbon has committed $20.8M USD in capital towards generating carbon credits in Vietnam and has had approximately 3M high quality carbon credits issued since the beginning of the project
Why it matters:
- In rural areas globally , many individuals cook using open fires or inefficient stoves which are powered by kerosene or biomass and consequently pollute the air with toxic emissions that are harmful to the environment and can be deadly for human beings
Going deeper:
- Base Carbon’s operations in Vietnam have been registered with Verra’s Verified Carbon Standard and the distribution of both the cookstoves and the water purification machines have been done in collaboration with The Women’s Union of Vietnam
