Helping Emerging Economies Meet the Energy-Climate Challenge
To avoid the most severe impacts of climate change and meet the goals of the Paris Agreement, countries around the world are pledging to drastically reduce greenhouse gas (GHG) emissions by 2050. Still, fossil fuels will power the global economy for years to come. The International Energy Agency forecasts demand for oil and gas rising until the mid-2030s. This is critical for countries in which an established or emerging oil and gas sector is central to economic growth.
How can developing economies achieve GHG reduction targets while continuing to benefit from their conventional energy resources? The answer lies in de-coupling energy sector growth and rising emissions by reducing GHG emissions associated with oil and gas activities. The tools, technologies and processes exist to do this today. CarbonAi can help.
Full-Cycle GHG Reduction & Monetization Services
CarbonAi is a world-leading provider of fully integrated GHG reduction and monetization infrastructure. It provides full-cycle GHG reduction project services from origination, finance, construction and operation, to carbon credit documentation, verification and sale. CarbonAi’s leadership team has over 75 years of experience in GHG project development, carbon finance and carbon markets, and engineering and project management for complex energy projects in the Middle East and Africa.
CarbonAi’s Carbon Finance Model
For eligible projects, CarbonAi provides up to 100% of relevant project funding, with minimal cost to the operator or the host government. In return for this investment, CarbonAi retains all of the emission reduction credits generated for an agreed-upon period of time, usually one year. After that time, an agreed-upon percentage of emissions reductions will be shared with the producer or host government. After certain project milestones have been met, ownership of the project facility will transfer to the operator at no cost to the operator or the government.
CarbonAi Solutions and CarbonAi Projects
CarbonAi offers two GHG reduction services: CarbonAi Projects and CarbonAi Solutions. CarbonAi Projects develops large-scale, international GHG reduction projects in countries with significant reduction opportunities. CarbonAi works with host countries, energy sector regulators, local producers and contractors to provide project origination, finance, construction and operation. It also provides the documentation, verification, registration and sale of high-value compliance carbon credits to companies with regulatory requirements to reduce GHGs.
CarbonAi Solutions is a proprietary software platform that automates real-time emissions aggregation, quantification, verification and reporting of GHG emissions reductions. Solutions is a SaaS- based data management system that streamlines the exchange and management of GHG emissions data between diverse, dispersed, often-remote data sources. The software underlying Solutions has integrated over 12,500 methane-emitting devices, managed over 1.5 million files in 13 countries and supported the verification of over 3 million tonnes of CO2 reductions, reducing verification data error due to data gaps (and related costs) from 7 percent to less than 1 percent.
Benefits to Producers and Local Communities
By capturing gas that would otherwise be flared, CarbonAi increases revenues for local oil and gas producers while improving local air quality and creating procurement opportunities and high-quality jobs in project construction and operation. Further, for each project that CarbonAi develops, the company will reinvest a portion of the carbon credit revenues through its Climate Dividend Fund, enabling a local organization to develop a small-scale renewable energy project in its community. This will spur highly impactful knowledge transfer and skills development.
Benefits to Host Countries
The CarbonAi model generates numerous benefits for project host countries. The projects it finances and develops represent significant foreign direct investment that will help the host country achieve its commitments under the Paris Agreement while supporting the production of lower-carbon energy resources and creating high-value jobs. CarbonAi’s projects also provide host countries with invaluable experience in GHG reduction projects and carbon markets.
GHG Reduction Opportunities in Middle East and Africa
A 2022 World Bank report concluded that GHG emission reduction projects in emerging economies are more likely to occur when third-party developers provide project financing, design, and construction. CarbonAi’s full-lifecycle development and financing model meets all of these requirements.
CarbonAi is currently seeking large-scale GHG reduction opportunities in the Middle East and Africa. The company will work local companies to provide project finance, construction and operation. The projects will be financed through revenues from emissions reduction credits generated by the projects. The host countries will thus enjoy long-term environmental and economic benefit with little to no capital investment required.