The Dawn of Cell Phone-Based Carbon Micro-Credits

The reality of cell phone based carbon micro-credit is dawning.

Soon, ordinary planet denizens in developing nations with low carbon footprint will be enfranchised to “sell” carbon offsets while at the same time adopting more earth-friendly cooking methods that conserve forests in a novel carbon micro-credit monetization plan.

The cell phone-based carbon micro-credit system will employ SMS (simple message service) and unique identifiers to allow millions of families in the developing world to claim on a bi-weekly or monthly basis the carbon offsets they produce by using more efficient cooking methods such as a modern charcoal stove or solar cooker, instead of an inefficient open-pit fire burning biomass.

As a result, each family will be able to monetize directly its own contribution to mitigating global warming, while also reducing nationwide rates of deforestation and desertification.

David Palella, a San Francisco based carbon offsets advocate who describes himself as defender of carbon micro-credit property rights worldwide believes the plan will enable those at the bottom of the pyramid to help those at the top to mitigate against global warming by lessening their larger carbon footprint in a win-win situation for both people and planet.

He is the brains behind Carbon Manna Unlimited which is initiating a strategic partnering campaign to support what will be the world first’s first roll-out of a cell-phone-based carbon micro-credit system in Africa.

Later this year and in 2010, the carbon micro credits system will be rolled out in Kenya and other East African countries, and subsequently in multiple West and Southern African countries.

The roll-out in Kenya will include the town of Kogelo, Kenya, U.S. President Barack Obama’s ancestral home town.

Each family that cooks more efficiently may claim approximately 3 tons of CO2 offsets/year, which is worth about US$ 20 – 35 when sold in Europe on a regulated or voluntary carbon-offset market.

The family also saves far more on fuel — from US$ 70 – 150/year. For individuals living on less than US$ 1 – 2/day, these earnings and savings are very significant.

Pre-selling tens or hundreds of thousands of tons of bundled carbon micro-credits provides the start-up capital needed to buy stoves and cell phones for the participating families, thus making the system self-funding and markets-based.

Later the offsets are crowd-sourced by the tens of thousands of families participating in the program. Validation and auditing protocols will ensure that the offsets were indeed produced.

“Carbon micro-credits are not a form of debt-based microfinance; rather, they provide immediate micro profits to the poor and are therefore similar in concept to frequent flyer miles”, Palella says.

“They are an asset, not a liability. And like frequent flyer miles, they are a fungible, universal currency and non-inflatable store-of-value”.

Palella is inviting companies with a strategic interest in expanding their business in Kenya, East Africa, and later in South and West Africa, to contact his Carbon Manna Unlimited for partnering possibilities.

Such companies would include: cell-phone handset manufacturers, wireless carriers doing business in Africa, manufacturers of wireless transmission equipment, cell-phone accessory suppliers and providers of cell-phone-based information services or software.

Other possible partners would include consumer product companies interested in co-promotion campaigns, and companies from any industry interested in expanding their presence in Kenya via this highly-visible nationwide effort to reduce deforestation and carbon emissions.

For major philanthropies that wish to extend their reach in Africa, or companies with Corporate Social Responsibility (CSR) or Triple Bottom Line (TBL) programs, the carbon micro-credits system provides a novel, rapidly-scalable paradigm for enriching the livelihoods of tens of millions of poor families anywhere in the developing world, Palella said.

Image credit: WhiteAfrican/ Flickr