kate hughes + matthew kuzio - saving a toxic city through eco banking

8/6/2019 Kate Hughes + Matthew Kuzio - Saving a Toxic City Through Eco Banking

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Poverty 60% of the city population lives in the Ger Districts (200,000 households).

The average household income is 240,000 MNT ($148 USD). The bottom fifth quintile spend as much as 40% of their monthly winter

income on heating fuels.

Climate 9 Month Heating Season

Average Winter Temperature: -20C

Pollution On average, households located in the Ger Districts use 5 tons of coal and 1.5

tons of wood per year. Most polluted city in the world by particulate matter during heating season

Sources: - ADB Grant Assistance Report August 2008- Energy Efficient and Cleaner Heating in Poor, Peri-urban Areas of Ulaanbaatar,

World Bank Consultant Summary Report on Activities, October 2008


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Where to Start? Addressing Market Barriers.

Financing Products Marketing/ Distribution Long Term Program Sustainability


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Part 2: The Role of the Voluntary Markets


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Ger pollution before use of

Financed Energy Efficient Product

8 Tons 3 Tons

Ger pollution after use of

Financed Energy Efficient Product

CO2 reduced

by 5 Tons

5 Tons XCarbon

Creditsold by

MEC=$$

for bank

Carbon Offset Basics Carbon Financing


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Carbon Monitoring

1. Product is monitored at time of installation via smart phone (GPS iscollected and installation is confirmed as active)

2. XacBank follows up every three months with the client through phone oran in-person visit

Monitoring Methodology prepares program for CDM accreditation via PoA


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CarbonOffsets

Generatedby User

CarbonOffsets

Generatedby User

CarbonOffsets

Generated

by User

CarbonOffsets

Generated

by User

Day 0: Product Installed

and Monitored

Day 91: Product

Monitored by Phone

Day 183: ProductMonitored In-Person

Day 274: Product

Monitored by phone

Carbon Payment Cycle

of Yearly CarbonRevenue Earned

of Carbon YearlyRevenue Earned

of Carbon YearlyRevenue Earned

of Yearly CarbonRevenue Earned


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CarbonOffsets

Generatedby User

CarbonOffsets

Generatedby User

CarbonOffsets

Generated

by User

CarbonOffsets

Generated

by User

$5.00

$5.00$5.00

$5.00

Hypothetical 1: Product Operated Year Round

Assumptions:Yearly Offset: 4 tonsPrice per ton: $5

Yearly Revenue: 4 x $5 = $205 year Revenue: 5 x $20 = $100


and Monitored

Day 274: Product

Monitored by phone

Day 91: Product

Monitored by Phone



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CarbonOffsets

Generatedby User

CarbonOffsets

Generatedby User

CarbonOffsets

Generated

by User

Product Notin Use - no

Offsets

Generated

$5.00

$5.00

$5.00


and Monitored

Day 274: Product

Monitored by phone

Day 91: Product

Monitored by Phone


Assumptions:Yearly Offset: 4 tonsPrice per ton: $5

Yearly Revenue: 3 x $5 = $155 year Revenue: 5 x $15 = $75

Hypothetical 2: Product Operated 9 months


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Voluntary Markets CDM Markets

Registration Costs: $0 $200,000+

Registration Period: 0 to 9 months 550+ Days

Price per Ton: $5 to $7 Market (2011 Est. $15)

Credit Pre-purchase: No/ Not Yet Yes

Validation Period: 5 years 10 to 21 years

Voluntary Markets v. CDM


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XacBank will Use The Carbon

Revenues To:Takeaways/Discussion Points:

- Voluntary Markets are aviable avenue, but not a cureall for all small scale projects

- Match standards for smallscale projects to the rigorouslevels of the compulsorymarkets

- Further incorporate lessonsfrom the Voluntary markets

within the larger carbonmarket debate

kate hughes + matthew kuzio - saving a toxic city through eco banking

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