Monetization of Carbon Absorbed by the Restoration Projects

While the Southern Highlands has abundance of natural and planted forests, recent data shows a steady decline in the forest cover. In Tanzania, existing studies and reports reveal extreme weather conditions such as increased seasonal variations in rainfall and temperature, and prolonged drought occurrences have become more significant.

This therefore presents an opportunity to encourage farmers to incorporate trees within their farms therefore still providing food security for their families while also increasing the forest cover. With funding from the MiT Solve Land Restoration projects, farmers can have access to free tree seedlings and trainings on implementing integrated crop-livestock-forestry systems and get extra revenue from carbon credits.

The current carbon market price trends show a huge potential for farmers to get substantial revenue from implementing systems that not only earn them revenue but also help cushion them against adverse effects of climate change. It is high time that farmers get paid for the incredible effort they put into mitigating against climate change.

EACP will register the carbon credits and sell them on the carbon market and the revenue generated shared to local authorities and surrounding communities. EACP will also establish a philanthropy fund that will go towards supporting other small-holder farmers to implement integrated crop-livestock-forestry systems on their farms after the MiT Solve funding period. This fund will also support other community projects that touch on the 17 Sustainable Development Goals.

EACP will work with local authorities and surrounding communities and establish a philanthropy fund that will go towards supporting other small-holder farmers to implement integrated crop-livestock-forestry systems on their farms after the MiT Solve funding period. This fund will also support other community projects that touch on the 17 Sustainable Development Goals.

EACP has its headquarters in Iringa, located in the Southern Highlands, with 3 out of 4 directors resident there. These directors and most of our team located at Iringa have a long experience working in the area doing sustainability work, business, financial, tree farming and other professional work

Estimated project cover 2,000 acres, or 1,200,000 trees, from Mufindi District (Local Government Authority - LGAs) having an estimated 283,000 people

Our financial model is based on 2,000 acres of an integrated crop-forest system with eucalyptus tree as our first project. For this, we will require funding of $182,000 for project development, monitoring and verification costs, monthly direct costs and administration costs for the first year of project establishment. After this funding, the project will not require any more funding, and will be self-sustainable.

EACP will be among the first movers in East Africa at large to incorporate such a business model that seeks to benefit small-holder farmers and the most vulnerable within the society. The appeal of added revenue from carbon credits will provide a great incentive for farmers to adopt integrated crop-livestock-forestry systems. This system will also ensure that tree cover is kept intact for a long period of time in order for farmers to earn revenue from carbon credits. This will also ensure self sustainability of the project’s way past the funding period.

This, therefore, gives EACP a first mover advantage. In addition, the company has a wide pool of expertise who are East African natives and are actively engaged in the industry, which provides good entry point for the company.

EACP will engage on a second project as soon as project development activities of the first project is done. The company will recruit project monitoring, evaluation, reporting, compliance, legal and accounting to ensure proper management of the projects and governance structures.

EACP is also planning to engage with Efficient Cooking stoves project at national level, which is part of Tanzania Government action to improve energy use in the country. As a background, in Tanzania (and many other African countries): more than 80% of households use charcoal of firewood as their energy for cooking. If EACP is able to put at least a dent to this dirty energy use, by creating a financially sustainable system to support efficient cooking stoves, will create a huge impact for better use of clean energy.

No indicators yet

Once EACP is able to show how the projects could have financial sustainability, then more companies may be influenced to start and do this business. This will create more actors, and hence more impact

We will mainly use the following:

1. Internet for our business and communication

2. Blockchain - project registration at the registry level

3. Other softwares for accounting, monitoring and evaluation, satellite mapping etc

Our policy is we engage everyone who is motivated to add value to our organization. Our team comprise of all genders and nationalities that we have encountered. When we have more people, then we may reassess whether we need to re-balance our diversity in our team structure.

EACP will not own any land for the sell of carbon, but will partner with project owners that can be individuals, companies, local authorities, or even central government. The revenues will be shared according to a contract that is governed by Tanzanian regulation.

All revenues will be primarily be sent to EACP, who are account holders at the carbon registry, then will be redistributed according to the contract. EACP will put robust financial and contract management system

The revenues from carbon sale will make the EACP financially sustainable within 8 months from the inception of the project. All cash flows will be favourable after the first project, and therefore, the project will not require any further cash injection

The company only has owner equity up to now