Luz Verde: Mexico Sees the Light
The world’s first example of a household energy efficiency project gets under way in Mexico under the United Nations Clean Development Mechanism (CDM). Cool nrg Executive Chairman Nic Frances is excited about the outcomes of Luz Verde (which means Green Light) as 30% of the Mexican population will benefit from the program.
World First: Programmatic Carbon Trading for Tackling Climate Change and Poverty Reduction
Luz Verde: Mass scale emissions reduction to benefit the environment and Mexico
Cool nrg, a global organisation based in Australia, is delivering a world first partnership initiative in Mexico this month that will see carbon trading fund a mass scale energy efficiency program to benefit the environment and Mexican households.
Cool nrg’s partners in this ground breaking project include three Dutch companies: Eneco Energy Trade B.V., Philips Lighting, ING; and four Mexican partners: Coppel, Comex, Fundacion Televisa and the Consejo de la Comunicacion. The Mexican Federal Government through the Ministry of Environment is also supporting this commercial venture.
To be launched by the Mexican Government, the program Luz Verde (‘Green Light’) will see Cool nrg and its project partners give away the first one million of a total 30 million energy saving lights to low and middle income households.
Cool nrg Executive Chairman Nic Frances is excited about the outcomes of Luz Verde.
“We believe 30 per cent of the Mexican population will benefit from the program, with four lights provided to each family. This will save low-income Mexican households US$165 million in energy bills annually once the 30 million lights are distributed and installed.
“As a poverty alleviation measure, the program is around four times the annual USAID development cooperation budget to Mexico” he said.
The project is the world’s first example of a household energy efficiency project under the United Nations Clean Development Mechanism (CDM), which allows companies in industrialised nations to finance emissions reduction in developing countries.
While there are over 1,800 projects registered with the CDM, Luz Verde is a first under programmatic CDM. Unlike traditional CDM, programmatic CDM means the program can be rolled out across a wide area multiple times, resulting in large scale greenhouse gas abatement.
Luz Verde will cut carbon emissions by over 7 million tonnes over ten years.
The saved carbon is traded as carbon credits into industrialised countries where companies and Governments have emission reduction targets.
The benefit to Mexico is also significant. “The Government will save US$200 million in reduced household electricity subsidy payments each year” Mr Frances said.
Cool nrg’s partnership programs address the problems of poverty, inequality and environmental sustainability while still enabling a commercial return.
“Mexico shows that we have an approved model for domestic energy efficiency under the CDM we can now take to other developing countries,” said Mr Frances.
Luz Verde partners
Guido Dubbeld, Managing Director at Eneco Energy Trade B.V, said: “Our partnership in Luz Verde is an outstanding example of our own innovative approach and long term view on the carbon market. This project showcases top quality CDM, combining environmental and social merits. We are very pleased to be part of this project
Eneco Energy Trade B.V. is a business unit of Dutch energy company Eneco Holding N.V. and is responsible for purchasing and trading energy. Its trading activities cover electricity, gas, coal, oil, freight, biomass, bio-fuels, emissions and related products. Eneco Energy Trade B.V. is the link between the market and the (co-) production assets of Eneco Holding N.V. It also acts as an independent trading party for parties without trading capacity.
Eneco Holding N.V. is one of the three leading utilities in the Netherlands with a strong focus on renewable energy. It follows an integrated distribution strategy and focuses on production, transmission, trading, supply and metering of energy (electricity, gas and heat) and related products and services. In total the energy company serves approximately two million industrials and households. Eneco Holding N.V. employs approximately 5,500 people and its head office is located in Rotterdam. For more information about the Carbon Desk of Eneco Energy Trade B.V. visit www.eneco2.com.
Philips sees the environmental challenge – and the sustainability opportunity – as one of a number of important global trends it is responding to. Philips has been vocal and consistently called for a switch to energy efficient lighting bulbs, since it provides a win-win scenario. With the switch, people will save money and immediately contribute to a reduction of energy consumption and carbon emission to combat climate change. Many governments are taking actions, and with this program we enable more people to benefit from the advantages. It is a great opportunity and adds to the difference in climate change we all can make with a simple switch.
Royal Philips Electronics of the Netherlands (NYSE: PHG, AEX: PHI) is a diversified Health and Well-being company, focused on improving people’s lives through timely innovations. As a world leader in healthcare, lifestyle and lighting, Philips integrates technologies and design into people-centric solutions, based on fundamental customer insights and the brand promise of “sense and simplicity”. Headquartered in the Netherlands, Philips employs more than 118,000 employees in more than 60 countries worldwide. With sales of EUR 26 billion in 2008, the company is a market leader in cardiac care, acute care and home healthcare, energy efficient lighting solutions and new lighting applications, as well as lifestyle products for personal well-being and pleasure with strong leadership positions in flat TV, male shaving and grooming, portable entertainment and oral healthcare. News from Philips is located at www.philips.com/newscenter
Stephen Hibbert, Global Head of Emissions Products at ING Wholesale Banking, said “ING is delighted to be the first bank to fund a project under the United Nations’ programmatic CDM. Social and environmental responsibility is one of four core business principles for ING and our involvement with Luz Verde is a first-class demonstration of the way a financial institution can combine its particular skills and capabilities with those of others to promote sustainable development. “
ING Wholesale Banking, the business banking division of ING Group, has 15,000 employees serving the largest companies and institutions. ING serves clients through its extensive network in the world’s major financial services markets. During 2009, the bank has built a leading position across the whole corporate banking spectrum: Lending, Mergers & Acquisitions, Equity Markets, Equity Capital Markets, Fixed Income and Debt Capital Markets. Visit www.ing-wholesalebanking.nl and www.ingwholesalebanking.com
Cool nrg is a global company, head quartered in Australia, which cuts greenhouse gas emissions through the design, development and delivery of household energy efficiency projects. It was founded in 2007 and has offices in Melbourne, London, Connecticut and Mexico City. Cool nrg’s clients include governments, national and multi-national companies and non-government organisations in developed and developing countries. Cool nrg is the only Australian company delivering programmatic projects under the UN Clean Development Mechanism.
Source: www.coolnrg.com