Base Carbon and Citigroup to launch carbon reduction project in Vietnam
by CM Staff
The project will introduce cookstoves and water purifiers to households in Vietnam and is expected to generate approximately 26.6 million carbon credits over a 10-year period.
TORONTO — Base Carbon Inc. says it has executed an agreement through Base Carbon Capital Partners Corp. to facilitate the development of a cookstove and water purifier carbon reduction project in Vietnam with Sustainability Investment Promotion and Development Joint Stock Company as in-country project developer.
The company entered into project agreement with SIPCO to develop a cookstove and water purifier carbon reduction project in Vietnam. It also facilitated a project offtake agreement between Citigroup and SIPCO.
The company says it anticipated initial investment of approximately US $20.8 million over 24 months, and it also expected project generation of approximately 26.6 million carbon credits over a 10-year period.
The parties involved expect the project will generate approximately 26.6 million voluntary carbon credits over an estimated 10-year period from the distribution of approximately 850,000 cookstoves and 364,000 water purifiers to participating households in Vietnam.
According to a statement from Base Carbon, cookstoves improve household energy efficiency through a reduction in combustible biomass needed for daily household activities such as cooking and heating. Additionally, water purifiers can eliminate the need to boil water for safe consumption. Both types of devices are recognized under well-established carbon reduction methodologies.
“The project is a core addition to Base Carbon’s project portfolio and our commitment to the development of the project furthers our efforts to become the trusted developer, producer, and financier of carbon credits. This capital commitment provides Base Carbon stakeholders with exposure to a carbon reduction asset with expected multiple of money capital returns, sized to Base’s balance sheet, with mitigated capital at risk through attractive payback periods, a partnership with our experienced in-country project partners, SIPCO, and a contracted carbon credit offtake between SIPCO and Citigroup,” said Michael Costa, CEO of Base Carbon in a statement.