UpEnergy Announces Tanzania’s First Article 6 Authorized Carbon Credits

UpEnergy Announces Tanzania's First Article 6 Authorized Carbon Credits - Carbon Herald

UpEnergy, a social enterprise with a mission to channel climate finance to fight energy poverty through decarbonization projects, today announced it has secured a historic letter of authorization (LOA) from the Government of Tanzania. The new LOA represents the country’s first-ever carbon credits authorized for corresponding adjustments under Article 6 of the Paris Agreement.

A corresponding adjustment by a host country ensures that the impact of carbon credits is not counted in the host country’s carbon inventory, but can instead be counted in the inventory of the credit’s buyer and, where applicable, in the country in which that buyer seeks to neutralize the climate impact of an activity. The mechanism was originally intended to help nations meet their nationally determined contributions (NDCs), but UN protocols also allow for private sector companies to use corresponding adjustments via voluntary markets.

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The Tanzanian government’s stamp of approval on carbon credits from emissions-cutting cookstoves under UpEnergy’s Community Carbon initiative underscores the importance of international climate finance in supporting decarbonization efforts in the Global South to combat climate change and support a just energy transition.

The announcement also marks the first Korean-based company to acquire Article 6-authorized credits from Tanzania, with EcSangsun Ha, executive managing director at centered “It’s an honorea’s largest carbon offset project developer, Ecoeye is poised to supply credits to the market for compliance and voluntary offset purposes, such as for nationally determined contributions (NDCs), international mitigation purposes (IMPs), and other specific objectives – including the potential of Ecoeye utilizing these credits towards its own reduction goals.

Source: Tatohra/Shutterstock

“Corporate buyers are looking for credits that go further, and we recognise these new credits deliver exactly that,” said Sangsun Ha, executive managing director at Ecoeye. “It’s an honor – and an important responsibility, as the first Korean developer – to act as an early international adopter to acquire correspondingly adjusted credits from Tanzania. We hope to support the achievement of Tanzania’s climate targets while furthering income benefits for those most vulnerable to – and least responsible for – climate risks.”

UpEnergy plans to distribute 425,000 cookstoves that save fuel through energy efficiency. Distribution is performed by the UpEnergy Tanzania team, who conduct local distribution, behavioural change support, and effective monitoring to support long-term usage. UpEnergy has also established a state-of-the-art cookstove manufacturing facility in Dar es Salaam, Tanzania. Credits associated with the project are certified through Verra, a global leader in voluntary carbon markets, and the Sustainable Development Verified Impact Standard (SD VISta).

“The Tanzanian government has sent a powerful signal by allowing corresponding adjustments for UpEnergy, enabling the company to drive funding that supports Tanzania’s energy and climate goals while also improving lives. This aligns with our goal of advancing a just energy transition that prioritises low-income individuals by facilitating their access to cleaner technology and directing climate finance where it’s most needed,” said Rehema Mbalamwezi, vice president of UpEnergy’s Africa operations.

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Working closely with the Tanzania National Carbon Monitoring Centre (NCMC) to coordinate this momentous agreement, UpEnergy’s collaborative strategy will help Tanzania achieve its ambitious plans for electricity access expansion and increased generation capacity. Access to electricity in the East African nation has more than doubled since 2010, according to the World Bank. Still, the government is committed to further improving access to clean cooking by working to increase electricity access across the country. NCMC saw UpEnergy’s programme as a powerful way to bring the many benefits of fuel-efficient, locally manufactured cookstoves to its citizens.

Anantha Karthik, director of carbon programme at UpEnergy, added, “We express our sincere gratitude to the United Republic of Tanzania and its National Carbon Monitoring Centre for their unwavering support in bringing the first Article 6-authorised credits to market from high-quality projects like ours. These credits are designated for unilateral transfers, allowing for their use in various initiatives such as nationally determined contributions (NDCs), international mitigation purposes (IMPs), or other purposes. The authorisation for corresponding adjustments based on the first transfer will significantly contribute to the development of the Article 6 pathway within Tanzania. We are confident that this achievement paves the way for wider adoption of carbon offsetting practices, ultimately leading to a more sustainable future for Tanzania.”

This news follows on the heels of UpEnergy’s recent announcement that it will scale renewable electric cooking in Tanzania with a €2 million MCFA investment to provide zero-emission cooking for the population that has electricity access. The ongoing work is part of the Community Carbon initiative launched by UpEnergy, which supports communities by reinvesting project revenue back into project areas centered on cleaner cooking and safe drinking water.

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