Nigerian impact fund in carbon credits deal
All On, a Shell-funded impact investment firm focusing on strengthening the off-grid energy markets in Nigeria, announced an investment in the Danish technology company Solstroem. In doing so, All On matches a previous investment made by Persistent Energy Capital LLC into the company in November 2021.
“We are really thrilled about this partnership which supports the development of Solstroem’s platform that will enable micro carbon credit in everyday activities,” said All On CEO, Wiebe Boer.
All On is taking a chance on an innovative business model which could prove transformative and create hard currency revenue generating opportunities for Nigerian renewable energy companies.
The investment in Solstroem supports the further development and scaling of the company’s software platform, which enables solar home system distributors and other solar off-grid operators across sub-Saharan Africa to issue and sell carbon credits on the international voluntary carbon market. This investment is an opportunity for All On to strengthen access to climate finance for its existing portfolio companies, as well as other established and emerging players in the solar off-grid space in Nigeria and beyond.
“We are very grateful for All On’s support in our mission to make carbon markets more accessible to solar off-grid operators”, said Karim Jabbar, CEO and co-founder of Solstroem. “The relentless work of these actors in giving marginalised communities access to renewable energy has a considerable impact in terms of CO2 emission reductions, as well as measurable social co-benefits. We are therefore looking forward to collaborating with All On in making this solution available to companies in their network, and to enabling an increased climate finance flow to where it is really needed.”
This investment will support Solstroem’s aim to increase revenue streams of solar developers around the world by linking their projects to voluntary carbon markets in a transparent, verifiable, and sustainable manner, enabling the purchase of carbon credits associated with their projects.
The carbon credits issued on the Solstroem platform are fully traceable, calculated on the basis of an established UN Clean Development Mechanism (CDM) methodology, and are third-party verified by DNV. The issued credits are made available on the platform to corporate buyers wishing to compensate for their CO2 footprint.
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