Energy in Common

Last updated
Energy in Common
Formation2009 (2009)
Dissolved2013 (2013)
Type Nonprofit organization
Focus Economic development
Location
Area served
World-wide
Method Microcredit
Key people
  • Scott Tudman (chief executive officer from 2011)
  • Hugh Whalan (chief executive officer 2009-2011)
Website www.energyincommon.org [ dead link ]

Energy in Common (EIC) was a not-for-profit organization issuing microloans specifically and only for renewable energy technologies. It operated between 2009 and 2013 when it suspended its lending activity due to a lack of funds.

Contents

What made EIC particularly unique in the microfinance non-profit sector was that they created a model to measure the greenhouse gas emission reductions that were created by their loans. The EIC model helped provide funding to developing world entrepreneurs for energy solutions and also helped to channel additional funding into mitigating climate change.

History

Foundation

EIC was founded by Hugh Whalan and Scott Tudman in 2009 (website launch 2010). It has the very ambitious goal of delivering renewable energy to 15 million people in the next five years, while fighting poverty by empowering developing world entrepreneurs through microloans. [1]

EIC operated very similarly to Kiva. In the case of Kiva, lenders provide funds with zero return expected to developing world entrepreneurs to invest in their businesses (typical loans are for things like seeds for farming). EIC did this as well, but specifically focuses on purchasing renewable energy systems like solar photovoltaic panels.

Change of CEO in 2011

Hugh Whalan, who co-founded the organisation in 2009, left EIC in July 2011 to start a for-profit solar distribution and lending business in Ghana. Scott Tudman had been CEO since the organisation closed.

Suspension of lending activities

Energy in Common announced on its Facebook page on September 19, 2013 that all lending activities had been suspended and that loan recovery from delinquent borrowers were underway. Subsequent replies on Facebook by lenders have gone unaddressed [2] and there have been other reports of concerns being reported without reply. [3] There has been no activity on its Twitter feed since June 26, 2012. [4]

EIC represented one of the most promising contenders in the growing green microfinance sector at that time. As of 2012, it had ceased operations due to a lack of funds after their overseas partners defaulted on their loan obligations.

Impact on green lending

The impact of EIC during its existence was extensive coverage in the green alternative press including The Huffington Post, [5] Mother Nature Network, [6] GreenBiz, the Next Billion [7] and the standard press such as CNN. [8]

Method of operation

Technologies funded by EIC

The following list of primarily renewable energy technologies: [10]

Biodigesters

Biodigesters convert organic wastes such as food waste, human waste and animal waste into nutrient rich liquid fertilizer and biogas (thus a renewable fuel made up primarily of methane). A biodigester is made up of a bag or tank that holds the organic 'wastes' over a period in which bacteria breaks down the organic matter and produces biogas. Biogas is used as a replacement for kerosene, firewood, or any other combustible fuel source used in the developing world such as cow dung. Biodegesters thus produce renewable energy, cut down on odors and pathogens in organic materials, reduce surface and groundwater contamination, improve indoor air quality and provide a source of high quality organic fertilizer as a byproduct—that has been shown to improve crop yields and decrease fertilizer costs.[ citation needed ]

Clean burning stoves

Clean burning stoves improve the fuel utilization over common stoves. There are several types but the ones funded often burn propane instead of less efficient fuels such as wood, charcoal, or dung. This is somewhat controversial as currently this allows for economic savings although clearly there is a potential to have negative effects of becoming dependent on a non-renewable energy source, which in many cases needs to be imported. Less controversial, is a clean burning stove that uses wood, charcoal, or dung, but burns more efficiently. These stoves funded by EIC are designed to increase the airflow to the fuel source, creating a better flame and reducing the amount of fuel required to provide a given amount of heat to the target (e.g. it takes less fuel wood to cook dinner). Both types of clean burning stoves reduce the costs associated with fuel use and improve the indoor air quality within the homes of the users.

Solar powered LED lighting

The LED lamps combine a small solar photovoltaic panel with a rechargeable battery and an array of LED lights into an effective lighting system, which is used to replace dangerous (indoor air quality, GHG emitting, and fire hazard) kerosene lamps. LED lights are known to be very efficient, which prolongs illumination time on the charging made available by the PV.

Solar photovoltaic home systems

A typical solar photovoltaic home system funded by EIC consists of a small solar panel (both pole or roof mounted) connected to a charge controller and a small battery. The stored solar electricity can be used both in the day and after dark to power lights and an electrical socket for other electrical equipment (e.g. cell phone charger, OLPC, radio, TV, or computer).

Carbon offsets

EIC creates carbon offsets from emission reductions that have occurred over the loan term and only once the loan term has finished. In this way, lenders and those that make donations to retire carbon credits can be sure that all emission reductions have already happened. [11] They do this by providing a detailed questionnaires before, during and after the loan, and in-depth field surveys conducted by both by EIC and independent auditing firms in order to sell the carbon offsets. The particularly clever part is that loaners may then buy the carbon credits and get a tax credit from EIC.

Nanoloans

In order to overcome the initial investment barrier that many people had when considering microfinance, EIC developed the "Nanoloan" concept. For most microfinance institutions (e.g. Kiva) the minimum loan is $25 and the average time until repayment is about 18 months. This could put a lot of well-intentioned people off of the concept. EIC Nanoloans were a limited run of $5 loans, specifically designed to be repaid in just 60 days. [12] The object of offering nanoloans was to introduce new lenders to the entire microlending process fast.

See also

Related Research Articles

<span class="mw-page-title-main">Biogas</span> Gases produced by decomposing organic matter

Biogas is a gaseous renewable energy source produced from raw materials such as agricultural waste, manure, municipal waste, plant material, sewage, green waste, wastewater, and food waste. Biogas is produced by anaerobic digestion with anaerobic organisms or methanogens inside an anaerobic digester, biodigester or a bioreactor. The gas composition is primarily methane and carbon dioxide and may have small amounts of hydrogen sulfide, moisture and siloxanes. The methane can be combusted or oxidized with oxygen. This energy release allows biogas to be used as a fuel; it can be used in fuel cells and for heating purpose, such as in cooking. It can also be used in a gas engine to convert the energy in the gas into electricity and heat.

<span class="mw-page-title-main">Microcredit</span> Small loans to impoverished borrowers

Microcredit is the extension of very small loans (microloans) to impoverished borrowers who typically lack collateral, steady employment, and a verifiable credit history. It is designed to support entrepreneurship and alleviate poverty. Many recipients are illiterate, and therefore unable to complete paperwork required to get conventional loans. As of 2009 an estimated 74 million people held microloans that totaled nearly US$40 billion. Grameen Bank reports that repayment success rates are between 95 and 98 percent. The first economist who had invented the idea of micro loans was The Very Reverend Jonathan Swift in the 1720’s. Microcredit is part of microfinance, which provides a wider range of financial services, especially savings accounts, to the poor. Modern microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983 by their current Chief Adviser Muhammad Yunus. Many traditional banks subsequently introduced microcredit despite initial misgivings. The United Nations declared 2005 the International Year of Microcredit. As of 2012, microcredit is widely used in developing countries and is presented as having "enormous potential as a tool for poverty alleviation."

<span class="mw-page-title-main">Biofuel</span> Type of biological fuel

Biofuel is a fuel that is produced over a short time span from biomass, rather than by the very slow natural processes involved in the formation of fossil fuels such as oil. Biofuel can be produced from plants or from agricultural, domestic or industrial biowaste. Biofuels are mostly used for transportation, but can also be used for heating and electricity. Biofuels are regarded as a renewable energy source. The use of biofuel has been subject to criticism regarding the "food vs fuel" debate, varied assessments of their sustainability, and ongoing deforestation and biodiversity loss as a result of biofuel production.

<span class="mw-page-title-main">Solid fuel</span> Solid material that can be burnt to release energy

Solid fuel refers to various forms of solid material that can be burnt to release energy, providing heat and light through the process of combustion. Solid fuels can be contrasted with liquid fuels and gaseous fuels. Common examples of solid fuels include wood, charcoal, peat, coal, hexamine fuel tablets, dry dung, wood pellets, corn, wheat, rice, rye, and other grains. Solid fuels are extensively used in rocketry as solid propellants. Solid fuels have been used throughout human history to create fire and solid fuel is still in widespread use throughout the world in the present day.

<span class="mw-page-title-main">Zero-emissions vehicle</span> Class of motor vehicle

A zero-emission vehicle (ZEV) is a vehicle that does not emit exhaust gas or other pollutants from the onboard source of power. The California definition also adds that this includes under any and all possible operational modes and conditions. This is because under cold-start conditions for example, internal combustion engines tend to produce the maximum amount of pollutants. In a number of countries and states, transport is cited as the main source of greenhouse gases (GHG) and other pollutants. The desire to reduce this is thus politically strong.

<span class="mw-page-title-main">Landfill gas</span> Gaseous fossil fuel

Landfill gas is a mix of different gases created by the action of microorganisms within a landfill as they decompose organic waste, including for example, food waste and paper waste. Landfill gas is approximately forty to sixty percent methane, with the remainder being mostly carbon dioxide. Trace amounts of other volatile organic compounds (VOCs) comprise the remainder (<1%). These trace gases include a large array of species, mainly simple hydrocarbons.

<span class="mw-page-title-main">Carbon offsets and credits</span> Carbon dioxide reduction scheme

Carbon offsetting is a carbon trading mechanism that enables entities to compensate for offset greenhouse gas emissions by investing in projects that reduce, avoid, or remove emissions elsewhere. When an entity invests in a carbon offsetting program, it receives carbon credit or offset credit, which account for the net climate benefits that one entity brings to another. After certification by a government or independent certification body, credits can be traded between entities. One carbon credit represents a reduction, avoidance or removal of one metric tonne of carbon dioxide or its carbon dioxide-equivalent (CO2e).

<span class="mw-page-title-main">Kiva (organization)</span> Micro-loan platform

Kiva Microfunds is a 501(c)(3) non-profit organization headquartered in San Francisco, California. Kiva's mission is "to expand financial access to help underserved communities thrive."

<span class="mw-page-title-main">Greenhouse gas emissions by the United States</span> Climate changing gases from the North American country

The United States produced 5.2 billion metric tons of carbon dioxide equivalent greenhouse gas (GHG) emissions in 2020, the second largest in the world after greenhouse gas emissions by China and among the countries with the highest greenhouse gas emissions per person. In 2019 China is estimated to have emitted 27% of world GHG, followed by the United States with 11%, then India with 6.6%. In total the United States has emitted a quarter of world GHG, more than any other country. Annual emissions are over 15 tons per person and, amongst the top eight emitters, is the highest country by greenhouse gas emissions per person.

The Emissions & Generation Resource Integrated Database (eGRID) is a comprehensive source of data on the environmental characteristics of almost all electric power generated in the United States. eGRID is issued by the U.S. Environmental Protection Agency (EPA).

ecosecurities is a company specialized in carbon markets and greenhouse gas (GHG) mitigation projects worldwide. ecosecurities specializes in sourcing, developing and financing projects on renewable energy, energy efficiency, forestry and waste management with a positive environmental impact.

<span class="mw-page-title-main">Renewable energy in Canada</span>

Renewable energy in Canada represented 17.3% of the Total Energy Supply (TES) in 2020, following natural gas at 39.1% and oil at 32.7% of the TES.

Renewable energy in Tuvalu is a growing sector of the country's energy supply. Tuvalu has committed to sourcing 100% of its electricity from renewable energy. This is considered possible because of the small size of the population of Tuvalu and its abundant solar energy resources due to its tropical location. It is somewhat complicated because Tuvalu consists of nine inhabited islands. The Tuvalu National Energy Policy (TNEP) was formulated in 2009, and the Energy Strategic Action Plan defines and directs current and future energy developments so that Tuvalu can achieve the ambitious target of 100% renewable energy for power generation by 2020. The program is expected to cost 20 million US dollars and is supported by the e8, a group of 10 electric companies from G8 countries. The Government of Tuvalu worked with the e8 group to develop the Tuvalu Solar Power Project, which is a 40 kW grid-connected solar system that is intended to provide about 5% of Funafuti’s peak demand, and 3% of the Tuvalu Electricity Corporation's annual household consumption.

Zidisha is a peer-to-peer microlending service that allows people to lend small amounts of money directly to entrepreneurs in developing countries. It is the first peer-to-peer microlending service to link borrowers and lenders across international borders without a local microfinance institution intermediary. The organization is named after the Swahili word zidisha, which means "grow" or "expand".

E+Co is a non-governmental organization based in Bloomfield, New Jersey, United States, that from its founding in 1994 to its restructuring in 2012 made over 250 clean energy investments in developing countries. Over these 18 years, E+Co maintained field offices in San Jose, Costa Rica, Bangkok, Thailand, Dar es Salaam, Tanzania and Accra, Ghana. The company's name is pronounced, "E and Co".

The environment of Luxembourg has been affected by the country' rapid population growth, its heavy road traffic and its lack of renewable energy resources.

<span class="mw-page-title-main">Renewable energy in New Zealand</span>

Approximately 44% of primary energy is from renewable energy sources in New Zealand. Approximately 87% of electricity comes from renewable energy, primarily hydropower and geothermal power.

Renewable energy in Bhutan is the use of renewable energy for electricity generation in Bhutan. The renewable energy sources include hydropower.

Air pollution in Germany has significantly decreased over the past decade. Air pollution occurs when harmful substances are released into the Earth's atmosphere. These pollutants are released through human activity and natural sources. Germany took interest in reducing its greenhouse gas (GHG) emissions by switching to renewable energy sources. Renewable energy use rate from 6.3% in 2000 to 34% in 2016. Through the transition to renewable energy sources, some people believe Germany has become the climate change policy leader and renewable energy leader in the European Union (EU) and in the world with ambitious climate change programs, though Germany's CO
2 emissions per capita are in fact among the highest in Europe, almost twice those of e.g. France. The current goal of the German government was approved on 14 November 2016 in the German Climate Action Plan 2050, which outlines measures by which Germany can meet its greenhouse gas emissions by 2050. By 2050, Germany wants to reduce their GHGs by 80 to 95% and by 2030 they want to reduce it by 55%, compared to the EU target of 40%.

<span class="mw-page-title-main">Energy poverty and cooking</span> Issues involving access to clean, modern fuels and technologies for cooking

One aspect of energy poverty is lack of access to clean, modern fuels and technologies for cooking. As of 2020, more than 2.6 billion people in developing countries routinely cook with fuels such as wood, animal dung, coal, or kerosene. Burning these types of fuels in open fires or traditional stoves causes harmful household air pollution, resulting in an estimated 3.8 million deaths annually according to the World Health Organization (WHO), and contributes to various health, socio-economic, and environmental problems.

References

  1. ↑ "Energy In Common: New Microfinance Venture Fights Poverty with Clean Energy". HuffPost. 2010-06-19. Retrieved 2023-04-18.
  2. ↑ "Energy in Common". www.facebook.com. Retrieved 2019-09-05.
  3. ↑ "Energy In Common Inc Reviews and Ratings | Honeoye Falls, NY | Donate, Volunteer, and Review | GreatNonprofits". greatnonprofits.org. Retrieved 2019-09-05.
  4. ↑ "EnergyinCommon (@EnergyinCommon) | Twitter". twitter.com. Retrieved 2019-09-05.
  5. ↑ "Energy In Common: New Microfinance Venture Fights Poverty with Clean Energy". HuffPost. 2010-06-19. Retrieved 2023-04-18.
  6. ↑ "Energy". Treehugger. Retrieved 2023-04-18.
  7. ↑ "Pushing Forward Energy Microfinance: Energy in Common - NextBillion". nextbillion.net. Retrieved 2023-04-18.
  8. ↑ "Video News". CNN. Retrieved 2019-09-05.
  9. ↑ "Pushing Forward Energy Microfinance: Energy in Common". NextBillion. 2010-06-08. Retrieved 2019-09-05.
  10. ↑ Energy Technologies. EIC. Available: http://www.energyincommon.org/about/energytechnologies.cfm Archived 2011-03-19 at the Wayback Machine visited Jan 4, 2010.
  11. ↑ "Glossary - Energy in Common". Archived from the original on 2011-03-20. Retrieved 2011-01-23.
  12. ↑ "Nanoloans by Energy in Common - Microlending for Beginners". Archived from the original on 2011-03-17. Retrieved 2011-01-23.
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