The carbon markets offer a unique opportunity to fund sustainable projects that serve critical needs in developing world communities. The Paradigm Project aims to use them as a tool that can be leveraged on behalf of the poor.
London, UK (PRWEB) November 09, 2011
iNVEZZ.com today released a new article claiming that carbon credit sales are key to encouraging innovative environmental entrepreneurships, which combine the mission of a non-profit with the market-based principles of a for-profit. Reflecting on an initiative by the Paradigm Project, which made headlines for its experimental fundraising campaign last moth, the website explains how their creative business model can teach organizations to support their causes while still generating revenue.
The Paradigm Project, explains the carbon portal, supplies energy-efficient and less toxic stoves to communities in third world countries, thus, minimizing the harmful effects of the cooking methods traditional for these regions, such as open fires and primitive stoves. At the same time, their products reduce greenhouse gas emissions, making them eligible to earn verified carbon credits.
iNVEZZ.com further cites a recent statement by the U.S. Agency for International Development (USAID). The statement estimates that almost half of the world’s population uses poorly functioning stoves or open fires, which cause household air pollution killing nearly two million people, mostly women and children, each year. The website further explains that, according to United Nations statistics, open wood fires and primitive stoves used for cooking in third world countries account for nearly 20 per cent of global greenhouse gas emissions.
The Paradigm Project, the article says, is on a mission to prevent these health and environmental effects of toxic stoves. To fulfill its purpose, Paradigm uses capital from both investors and donors to fund the production and distribution of stoves, as well as the issuance and certification of carbon offsets. The net revenue from the offset sales is then used to pay investors and to replenish the Project’s fund.
In its article, invezz.com cites Craig Wainscott, CFO and Board Member of the Paradigm Project, who says: “The carbon markets offer a unique opportunity to fund sustainable projects that serve critical needs in developing world communities. The Paradigm Project aims to use them as a tool that can be leveraged on behalf of the poor.” The website sees carbon trading as an effective and straightforward way to help the sustainability of strapped-for-cash ethical entrepreneurships.
“Current global economic woes have put NGOs, which traditionally deal with solving social and environmental issues, in an uneasy position,” says Tonka Dobreva of Dezz, the digital media company operating invezz.com. “While charities and government programs that fund them are going through financial challenges, the world’s most pressing problems should not be taking a back seat. On the contrary, investors should identify more comprehensive entrepreneurship schemes where these issues could be integrated.”
The article notes that Paradigm Project is defined as low-profit limited liability company (L3C) under U.S. law – a business unit formerly implemented across the Atlantic in the middle of the 2008 financial crisis. In their economic nature, L3Cs bridge the gap between non-profit and for-profit investments. iNVEZZ.com also explains another investment model -- hybrid value chains (HVCs). Similarly to L3Cs, these entities create real economic, social or environmental value, can scale across borders, sustain themselves on their own profits and foster new competition. And just as L3Cs, says the website, carbon trading can be key to encouraging more investors to explore them as potential revenue streams while serving underprivileged people around the world.
Last, but not least, the article emphasises that the new economic offset scheme meets the innovative business vision of the world’s riches philanthropist, Bill Gates. In 2007, he delivered a commencement address at Harvard University, encouraging young entrepreneurs to engage in “a more creative capitalism,” making profits while at the same time serving the world’s disadvantaged communities.
To read the full article and to get more information about carbon credits, visit http://invezz.com/analysis/alternative-investments/what-are-carbon-credits-and-why-they-are-not-a-retail-investment-product
Dezz is a UK-based boutique digital media company providing original and reliable up-to-date information in the area of carbon credit trading and sustainable investments to large investment company decision makers, NGOs and to eco-minded individuals.Dezz Limited, 843 Finchley Road, London, NW11 8NA. Registered in England and Wales as a Limited Company. Company Number: 07376661