It’s a known fact that investments in renewables such as wind, solar, hydro power or reforestation projects are widely used forms of carbon offsets. But who knew that investing in cook-stoves could earn carbon credits? JPMorgan Chase did.
The investment bank is currently involved in a project that subsidizes energy-efficient stoves in Uganda. Not only do the stoves work with lower amounts of fuel, bring about a reduction in the pollutants that have an adverse effect on the lungs, but also each stove reduces carbon emissions by 2 or 3 tons per year as compared to regular ones. The idea to use these stoves for earning carbon credits was developed by the offset provider – Climate Care, that was purchased by JPMorgan last year.
The venture is expected to rake in huge amounts of revenues and JPMorgan has plans of expanding the cook-stove project to cover Kenya, Ghana, Cambodia along with other regions. The credits earned by the bank are being sold to retailers such as Land Rover UK and Aviva Insurance.