The Access to Energy Institute (A2EI) has developed a new concept of “Climate Impact Payments”, complementing existing results-based financing (RBF) schemes to fund clean energy projects and to achieve substantial carbon mitigation. A report written in partnership with Open Capital Advisors is describing the mechanics of the approach and positioning it in the broader context of taking urgent action to combat climate change (SDG13) and achieving universal energy access (SDG7).
In order to put the concept into action, the A2EI has launched its global Climate Impact Payments Platform (CLIPP) pilot on May 1st. A2EI has partnered with five off-grid solar companies – Bboxx, Engie Mobisol, Victron, SunCulture and Lorentz Pumps – to test the platform specifically for productive use appliances (PUAs). A2EI’s own products will also be featured. The platform focuses on PUAs because they are very often directly in a position to achieve a positive climate effect by replacing a fossil fuel energy source or by empowering a user to better adapt to climate change.
At the core of the CLIPP is a data driven, fully automated set of algorithms which radically reduce the complexity of conventional RBF schemes. The processes embedded in the CLIPP use IoT and data analytics to validate installation, product and climate performance – drawing from detailed data reported automatically by the installed systems to CLIPP. Therefore, a real time verification and monitoring of the climate impact is possible – both at a single system and at an aggregate level. This transparently describes the impact directly linked to the funding and supports distributors to achieve a faster scaling of climate smart technologies.
CLIPP aims to show which processes benefit most from automation, digitization, and data gathering. This will help demonstrate the climate impact of the products in real time, increase the efficiency of donor funding, and streamline payments to recipients that have delivered an explicit, positive climate impact.
Thomas Gottschalk, A2EI, says, “The distributors of climate smart technologies feel the heat and head wind of daily execution in the field. Simultaneously they carry the full expectation to scale and achieve SDG7. We need to ensure that they can concentrate on the most difficult part of SDG7 which is sales and aftersales. Therefore we created CLIPP to significantly lower the barriers of participation and disbursement for data-enabled solar-powered productive use appliances. Working together with donors, solar companies and distributors, we strive to fight climate change while achieving the many benefits of sustainable energy for all by 2030.”
Tessa Lee, Bboxx, comments: “Bboxx is excited to be joining the A2EI CLIPP Initiative. We have co-built digital end-user subsidy programs in Togo and now in the DRC and have over 10 years of Bboxx experience with results-based funding programs across the world. There is now little doubt that to unlock potential through energy access for all off-grid customers, public subsidies are absolutely crucial. Specifically, CLIPP will help Bboxx deploy our 300W product to small business owners in Kenya, helping power their activities with reliable and affordable solar energy. The program will also showcase an innovative Smart Subsidy model for productive use technologies; one that is more scalable and therefore more impactful than other approaches.”
Yoann le Fol, Victron, adds: “At Victron, we designed innovative high power solar systems to offer SMEs located in off-grid or grid-edge areas a reliable solution to grow their business. We believe A2EI’s CLIPP is a powerful lever to diffuse efficiently such technologies and generate positive economic impacts at scale.”
Adrian Honey, Lorentz Pumps, comments: “Distributors of our products value the A2EI approach with their Climate Impact Payments as it rewards solutions that actually work in the field. The added technical governance ensures that only solutions that provide direct customer benefit are rewarded. This is good for the farmers and good for scaling climate positive product use appliances.”
Samir Ibrahim, SunCulture, says: “History shows us that if we want to see meaningful positive impact against climate change, food insecurity, and rural poverty, subsidies and RBF programs have to be part of the solution. We know that technologies work, and subsidies/RBF will help familiarize proven technologies for those who need them, and make them more affordable for millions of people.”
Gillian-Alexandre Huart, Engie Energy Access, elaborates: “We look forward to collaborate with A2EI in this RBF pilot program which will contribute to deliver on our shared ambition: electrifying off-grid communities throughout Africa with affordable, reliable and sustainable solutions. The RBF Climate Impact Payment scheme focuses specifically on the productive use of appliances which is at the very core of ENGIE Energy Access’s off-grid business model. The support from this program should considerably lower the cost of our 200 W solar kits, facilitating access for our customers to productive use solutions and income-generating activities.”
Download the publication here: https://a2ei.org/news/a2ei-launches-global-climate-impact-payments-platform-clipp
Sign up for the webinar here: https://us02web.zoom.us/webinar/register/WN_hF16rK5SRVmei8t9rTqvhA
Please contact us via CLIPP@a2ei.org if you are interested in more information or if you want to join CLIPP as a distributor or supplier of data-enabled productive use appliances.