Our Carbon Investment Model
Carbon finance has been at the core of our business model since day one, and here is how it works.
When a Wonderbag is used by families in developing countries, it not only empowers individuals and communities, it helps to tackle the climate crisis.
Globally, 2.5 billion people still cook over an open fire, creating a significant amount of carbon emissions as a result. When a Wonderbag is used for cooking, it reduces the amount of cooking fuel required by up to 70 percent, saving up to one tonne of carbon emissions from entering the earth's atmosphere each year.
Wonderbag employs an independent third-party to calculate and verify the carbon savings generated by the bags in circulation. This data is certified by an organization called Verra, a trusted carbon standard, who then issue Wonderbag with carbon credits equal to the carbon emissions our bags helped to prevent.
Once Wonderbag are in possession of these carbon credits, one option we have is to sell them to companies looking to balance their carbon emissions, this is known as ‘spot carbon’. Alternatively, and where the majority of our revenue comes from, is through pre-financing partnerships with organizations. This is when Wonderbag agrees to issue an organization a set number of carbon credits each year, for a certain number of years, and at a pre-agreed price.
Such agreement offers our partners a guaranteed pipeline of carbon credits, a hedge against rising carbon prices, and the opportunity to be involved with the specific communities that their investment is benefiting. In return for offering this type of commercial deal, Wonderbag receives a portion of the investment upfront from the organization, funding which helps to finance the manufacturing and distribution of bags to communities.
Our carbon investment model has a flywheel effect whereby carbon finance continuously flows back into the manufacturing and distribution of bags, which then generates further carbon savings, and thus more carbon finance.
At the centre of our flywheel, and core to our business, is the empowerment of communities. Communities benefit through jobs at our factories, more time and money by using a Wonderbag, better health, and rewards for verifying usage data in our innovative mobile app.
As the pressure on companies to achieve net zero increases, the demand for carbon offsets continues to rise. Wonderbag is at the start of an exciting journey ahead, and we are proud to have already agreed carbon deals with companies such as Microsoft, Nando's, EDF, and Sasol.
If you are interested in learning more about our carbon investment opportunities, feel free to get in touch: carbon@wonderbagworld.com.