MDG Carbon Facility Rwandan clean water project

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New York, 30 October 2009 — In a groundbreaking new UNDP project brokered by the [MDG Carbon Facility (MDG-CF), carbon financing will be used to fund the delivery of safe drinking water to students in up to 400 secondary schools in Rwanda. This project is set to contribute to numerous Millennium Development Goals (MDGs) through reduced carbon emissions, better health and sanitation outcomes and improved school conditions. It is the first project of its kind in Rwanda, where to date no Clean Development Mechanism (CDM) projects have been registered.

Context

Focus Areas

water supply

Geographic Scope

Stakeholders

UNDP MDG Carbon Facility, with technical assistance from Manna Energy Ltd.

Contacts

Contents

Background and Significance

The project will involve installing solar-powered water treatment systems near government-owned schools. These systems will offer free-of-charge, clean water to school children and the local communities. As the systems will avoid the burning of non-renewable firewood otherwise commonly used to make the water safe to drink, the project is expected to be registered to issue carbon credits. The project’s developer, Manna Energy Ltd. (Manna) will then utilize the carbon credits to finance the cost of installation and maintenance of the treatment plants.

MDG-CF has been providing technical assistance to Manna since early in the project’s inception. On 9 October 2009, Manna entered into a service agreement with UNDP, cementing this relationship. With MDG-CF’s assistance, Manna also recently signed a contract to sell the project’s carbon credits, including post 2012 carbon credits, to the Swedish Energy Agency.

The project is remarkable for its contribution to sustainable development, positively impacting nearly all of the MDGs, and in particular education, health and poverty reduction.

“UNDP’s MDG Carbon project in Rwanda demonstrates that carbon finance has the potential to achieve a double dividend. It can help reduce greenhouse gas emissions and deliver basic social services like clean water to the developing communities most in need. That underlines the win-win connections between tackling climate change and reaching the Millennium Development Goals,” said Olav Kjorven, the Director of UNDP’s Bureau for Development Policy.

Manna was founded as a social enterprise aimed at generating profits through carbon credits to fuel social improvements in the health and environment sectors. Manna will implement the project in partnership with the Rwanda Environment Management Authority (REMA) and Rwanda Ministry of Education (MINEDUC). The project has attracted letters of intent for financing from several well-known US-based social investment funds.

“To date, Africa has been under-represented in the carbon markets. Here we see how, with the appropriate capacity development, carbon finance can be a major instrument for development in Africa at a local level” added Elizabeth Fong, Deputy Director, Regional Bureau for Africa.

It is hoped that this project model and methodology can eventually be replicated in other developing countries.

The Experience: Challenges and Solutions

Results and Impact

Lessons for Replication

Testimonies and Stakeholder Perceptions

References

See also

Rwanda

Eastern Africa

Africa

External Resources

MDG Carbon Facility Website

Attachments

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