Today, we start developing our new financial instrument with The Global Innovation Lab for Climate Finance. This will finance methane capture from tropical hydropower reservoirs, and be piloted in Brazil.
The new financial instrument will promote methane capture in the turbined waters of hydroelectric plants in the tropics. The facility will include emission capture potential assessment, individual project design and development, investor engagement, and carbon credit generation and trade. The instrument will front the costs of these structures and be compensated in fixed and variable fees, according to the energy generated.
The new financial instrument can potentially reduce 53,000 tons of methane emissions per year in Brazil and 550,000 tons if scaled globally. Also, emissions reduction will improve the water quality downstream.
The idea has been featured widely in the Brazilian press. Here’s one example:
Huge thanks to our partners Open Hydro and The Global Innovation Lab for Climate Finance for bringing this idea to life.
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