EKOenergy’s Climate Fund – Financing climate projects

A growing number of companies and households are committing to use 100% renewable electricity. This is very good news. Yet, there is growing awareness that we can all do more, and this is where EKOenergy comes in. EKOenergy aims to help consumers make a real difference. One way to do so is through the EKOenergy Climate Fund.

For each MWh of EKOenergy sold, a minimum of 10 eurocents goes to EKOenergy’s Climate Fund. The money from the Climate Fund is used to finance climate projects that would not have happened without these contributions.

EKOenergy does not set up its own projects, but finances projects managed by experienced organisations. The fund is a flexible tool. There is a minimum contribution of 10 cents per MWh, but sellers and consumers can voluntarily decide to donate more. A wide range of projects can be accepted for funding under the Climate Fund, in cooperation with suppliers or corporate consumers. EKOenergy is continuously evaluating the results.

EKOenergy financed the first projects in 2015 and have since financed 36 projects

Solar panels on a school in Northern Tanzania

The Italian NGO Istituto has been active in Northern Tanzania for a long time. A couple of years ago, they got EU funding to install a small hydro turbine near the Ngarenanyuki secondary school in the Meru District, Northern Tanzania. The school also installed two small wind turbines that together provided the school with basic electricity services. However, the challenge was that the water flow (and energy production) fluctuated throughout the year and in the dry season and during irrigation time, the school often remained without electricity.

EKOenergy’s Climate Fund donated 10,000 euro to a add 3 kW peak of solar panels to the system. The installation of the solar panels was part of a more ambitious project, in which also the University Politecnico di Milano and the company SunEdison participated. The goal was to interconnect all local energy sources with a smart inverter.

Students of this school are now able to follow their study plan without any limitations caused by a lack of electricity.

Skolebarn i Tanzania

Recommended by Greenhouse Gas Protocol

EKOenergy’s Climate Fund is explicitly mentioned in the Greenhouse Gas Protocol Scope 2 Guidance (Chapter 11), which encourages companies to make extra efforts to spur the deployment of renewable energy.

“Some voluntary certificate programs or supplier labels or tariffs may structure their product so that a dedicated portion of the revenue from the program is applied as “incremental funding” for new projects identified by the program. This type of fund model, exemplified by (…) EKOenergy (…) can help directly contribute to the growth of new low-carbon energy projects. Companies providing this type of donation can document this separately.”

See also p. 89 – 92.

Summary of the Greenhouse Gas Protocol Scope 2 Guidance translated to 17 languages by the EKOenergy Secretariat.