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San Clemente Hydroelectric Power Plant in Chile, a carbon offset project

San Clemente Hydro Power

This project supports the construction and operation of a hydro plant that will generate renewable energy for the Chilean national grid. Along with avoiding emissions from fossil fuels, the project also promotes stewardship of the region’s water resources and ecosystems. The rural communities that live in the area benefit from improved infrastructure as well as employment and skill development opportunities.

Where & Why

Like most countries, Chile is highly reliant on fossil fuels to power homes and key industries, like copper mining. In 2010, at the onset of this project, nearly two thirds (60%) of Chile’s electricity generation came from fossil fuels. As Chile is only a minor producer of fossil fuels, most of this energy must be imported from other countries.

In recent decades, Chile’s population and economy experienced significant growth. As this happened, the amount of electricity consumed steadily increased. Today, total electricity consumption in Chile is five times higher than it was 30 years ago. This power demand is expected to continue to rise by just over 2% every year for the next 20 years.

To keep up with this rising demand for electricity, Chile must develop new sources of energy. To avoid harmful CO2 emissions, the country must transition away from fossil fuel power plants towards renewable energy solutions, such as hydroelectric power.

How & Who

This project avoids carbon emissions through the construction and ongoing operations of a small-scale hydroelectric power plant. The power plant, which opened in 2010, is located in the rural community of San Clemente in central Chile. It’s a small, ‘run-of-the-river’ hydro plant, meaning it utilizes the water diverted from the Sanatorio Brook to generate electricity. These types of hydro plants are considered to be a more environmentally friendly alternative to large hydroelectric dams, as they do not typically alter the natural flow of the river and have a smaller impact on aquatic ecosystems.

Thanks to the natural flow of the brook, the hydro plant is expected to generate 28,470 MWh of electricity each year. This equates to the amount of electricity that it takes to power roughly 2,000 households. The electricity from the San Clemente hydro plant flows into the Sistema Eléctrico Nacional (SEN), an interconnected grid that spans nearly the entire length of Chile and supplies 99% of the country’s electric power. This renewable power replaces energy that would otherwise have been partially generated by fossil fuel-fired power plants. Resultantly, the project is expected to prevent 16,560 metric tons of greenhouse gasses from entering the atmosphere each year. 

Along with swapping fossil fuels for renewable energy, the project is also creating other environmental benefits. Located in the fertile Maule region, the lands surrounding the hydro plant are patterned with agricultural fields. Here, farmers grow pine crops, berries, apples, and other crops. Irrigating these crops places pressure on the area’s water resources. To conserve water, the project developer signed an agreement with the association of local farmers which encourages water saving and irrigation efficiency. During the 2016-2017 season, this led to 29% less water used for irrigation. To further raise environmental awareness, a teaching manual was developed for local schools that will help students learn about their region and how to care about the environment.

The project also generates benefits for the local community, which has a high level of poverty and unemployment compared to the national average. More than 120 workers, most of whom were local, were hired for the initial construction of the hydro plant. Additionally, the increase in people living in the area and the hydro plant’s ongoing operation injects more dollars into the local economy. In 2019, the project developer purchased $2 million of goods and services from suppliers across the region. A certification program was also created to engage local entrepreneurs in nature tourism, such as kayaking on a nearby reservoir. In total, 23 local tourism entrepreneurs were certified through the program.

Along with these economic benefits, the project developer also supported local communities in recovering from natural disasters. In 2010 a severe magnitude 8.8 earthquake struck off the coast of south-central Chile, damaging nearly 400,000 homes. Again, in 2017, some of the worst forest fires in Chile’s history ravaged the region. In the aftermath of these events, the project developer built more than 30 houses for community members who had lost their homes. 

The project led to the extension of the potable water network to supply water to more households. Other community initiatives supported by the project developer include purchasing supplies for a local school and building a community center with games for children.

Environmental Benefits

  • Mitigates climate change by generating renewable hydro power 
  • Promotes water conservation
  • Raises awareness around environmental stewardship

Community Benefits

  • Supports local jobs and channels dollars into the economy
  • Improves the potable water infrastructure
  • Builds the capacity of local entrepreneurs to engage in nature tourism
  • Provides housing for disaster-affected communities
  • Increases Chile’s energy independence

Project Type

Energy

Location

Annual CO2 Reduction

16,560 metric tons CO2e (expected annual average for crediting period)

SDGs Supported

Verification Standard

Project Developers

Colbun S.A.

Project Documents

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Proboscis monkey in Indonesia Katingan Mentaya carbon offset project

Katingan Mentaya Project

This project is protecting and restoring one of the largest remaining peat swamp forests in Indonesia. Massive stores of carbon are locked away beneath the swamp’s surface, while the aboveground forest habitat is home to over 5% of all remaining Bornean orangutans. Along with conserving this critical ecosystem, the project is enhancing the quality of life of rural communities by creating livelihood opportunities, formalizing land rights, and improving public services.

Where & Why

With dense tropical jungles and winding rivers, the Southeast Asian island of Borneo is a treasure trove of biodiversity. Some of the world’s most endangered species are found here, including the last remaining populations of the Bornean orangutan, proboscis Monkey, and Bornean white-bearded gibbon.

Along with providing a critical habitat for wildlife species, Borneo’s ecosystems play an important role in the fight against climate change. Long regarded as unproductive ecosystems, scientists recently discovered that the region’s ancient peat swamp forests are one of the world’s best carbon sinks – 90% of which is stored underground. These unique blue carbon ecosystems were formed over thousands of years as waterlogged conditions prevented dead plant matter from fully decaying. The resulting layers of peat hold massive amounts of carbon. Though peatlands cover about three percent of the earth’s land surface, they are the largest terrestrial carbon store.

Over the past half-century, vast tracts of Borneo’s peat swamp forests were logged and converted for industrial agriculture, such as oil palm cultivation or timber production. As peatlands are cleared, drained, and burned to make way for plantations, their carbon stocks are released into the air. These irresponsible practices often cause further harm by triggering long-lasting peatland fires which spread quickly and are difficult to extinguish. Along with releasing tons of carbon, these fires churn out toxic smoke that is hazardous for local communities. 

The destruction of Borneo’s peatlands has been devastating to the wildlife that live there. The rapid decline of over half of the Bornean orangutan population in less than 60 years is largely attributed to the loss of peat swamp habitats. 

Indigenous communities who have lived in the region for generations are also affected by the loss of Borneo’s peat swamps. Along with destroying the forest resources that these rural communities depend on, commercial exploitation has led to land conflicts that jeopardize their customarily held land rights.

How & Who

The Katingan Mentaya Project is protecting and restoring over 370,000 acres of carbon-rich peat swamp forest in Kalimantan – the Indonesian part of Borneo. This area represents one of the largest remaining intact peat swamp forests in Indonesia, making it a critical wildlife habitat. The project area is home to 14 species that are endemic to Borneo, including over 5% of the remaining global population of Bornean orangutans, proboscis monkeys, and Bornean white-bearded gibbons. 

Though the region remains largely undeveloped, about 11,500 families live in small villages surrounding the project area. The peat swamp forest provides important natural resources for these remote communities who rely on traditional livelihoods such as farming, fishing, and harvesting non-timber forest products such as gemor, honey, and medicinal plants. 

Without the project, this peat swamp would have been converted to fast-growing industrial acacia plantations, grown for paper and pulp wood products. By obtaining the legal license to the land, the project prevented this conversion from happening. As illegal exploitation of the ecosystem remains a risk, the project is taking extra measures to improve monitoring and enforcement. This includes establishing monitoring posts at the main entry-exit points to the forest, mobilizing forest rangers, and raising community awareness about the impacts of illegal resource extraction and unsustainable land-use practices. 

Along with protecting the intact peat swamp, the project is also restoring nearly 11,000 acres of degraded areas. Local communities help grow the seedlings in newly established village nurseries. To date, over 200,000 native tree seedlings have been planted and more than 1,000 acres restored. In addition to this intensive restoration, two economically-valuable local species will be planted to support community-led agroforestry and small plantations of local fire-resistant species will be established to prevent the spread of fires. 

Because fires represent such a serious threat to peatlands, the project is also taking other steps to detect fires earlier and prevent them from spreading to the project area. This includes developing early warning systems, establishing watch towers in fire prone areas, providing fire extinguishing equipment, training firefighters, rewetting peatlands, and educating local farmers on alternatives to slash-and-burn. 

The project also aims to reduce poverty and improve the lives of local communities. It is creating sustainable sources of income by developing community-based economic activities such as ecotourism, agroforestry, rattan weaving, and coconut sugar farming. To make it easier for local people to take up these activities, the project provides microfinance loans and training, develops small processing facilities, and assists communities to access value-added markets.  

In addition to community-based business development, the project is also improving sanitation and access to quality education and sustainable energy. This includes replacing river latrines with hygienic toilet facilities, creating floating health clinics, distributing books to elementary schools, providing scholarships to students, and installing solar panels in rural communities.

Environmental Benefits

  • Protects and restores over 370,000 acres of tropical peat swamp forest
  • Conserves biodiversity by protecting the habitat of endangered and endemic species
  • Mitigates climate change by preventing deforestation and fires

Community Benefits

  • Secures traditionally held land rights
  • Increases income generating opportunities for local communities 
  • Provides training and capacity-building, empowering women in particular 
  • Improves access to quality education, health services, and sustainable energy 
  • Improves local sanitation and air quality 
  • Safeguards the natural resources that rural communities depend on

Project Type

Blue Carbon

Location

Annual CO2 Reduction

7,451,846 metric tons CO2e

SDGs Supported

Verification Standard

Project Developers

PT. Rimba Makmur Utama

Project Documents

News & Stories

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Trocano Araretama forest carbon offset project area

Trocano Araretama Conservation Project

Located along the Madeira River, this project is protecting a vast area of the Brazilian Amazon that is under imminent threat of deforestation. By improving living conditions and strengthening environmental monitoring and awareness, this project will conserve this critical ecosystem while improving quality of life for local communities.

Where & Why

The Madeira River is one of the Amazon’s largest tributaries. The waterway runs more than 2,000 miles, serving as an important freshwater source and route for transportation in the Brazilian Amazon.

While major transportation routes like the Madeira open up access to more remote areas of the rainforest, this also means that they make deforestation easier. Oftentimes, this results in a fishbone pattern of deforestation, where parallel lines of deforestation occur off a main road.

The Trocano Araretama project is located on the banks of the Madeira in the Municipality of Santo Antônio de Borba. This area is home to an incredible array of animals including 2,500 species of birds and 2,500 species of fish. Howler monkeys, white-nosed sakis, jaguars, and river dolphins are just a few of the species that are found here. 

Unfortunately, this biodiverse region faces severe threats of deforestation. Along with the Madeira River, the area also borders major roadways, leaving it highly susceptible to illegal logging, the expansion of livestock farming and cattle ranching, and other drivers of deforestation. The lack of economic opportunities in the region exacerbate this problem as local communities resort to working for illegal logging companies in order to survive. Between 1991 and 2010, Borba’s population more than doubled, placing further pressure on the region’s precious forest resources. 

Without intervention, it is projected that there will be extensive deforestation in the project area within the next 20 years.

How & Who

This project is protecting more than one million hectares of the Brazilian Amazon from being lost to deforestation. By conserving this essential ecosystem, the project will ensure that the trees hold their current carbon stores and continue to remove emissions from the atmosphere. 

The project will prevent deforestation and address its root causes through a variety of activities, including:

  • Implementing a new, technology-driven monitoring and intervention system against the perpetrators of illegal deforestation.
  • Educating local communities on forests to foster environmental appreciation and activism.
  • Training and employing local inhabitants in land maintenance and conservation. 
  • Providing alternative livelihood opportunities for local people so that they no longer need to engage in illegal logging as a means of survival. In the longer-term, funds will be used to provide micro-loans and develop sustainable ecotourism.
  • Training residents on sustainable practices, such as small-scale sustainable agricultural practices that avoid the devastation caused by slash and burn.

The project funds will also be used to create additional benefits for communities and improve local standards of living. As there is currently no waste management in place, proceeds from the project will be used to establish sewage and waste systems. Furthermore, funds from the project will support the improvement of basic services, such as the deployment of mobile health units, distribution of water purification systems and renovation of schools, as well as the provision of professional training.

Environmental Benefits

  • Mitigates climate change by preventing deforestation
  • Protects 1.3 million hectares of tropical rainforest
  • Conserves biodiversity by protecting the habitats of vulnerable and endemic species
  • Reduces environmental pollution by establishing waste management systems

Community Benefits

  • Supports improved water sanitation, education, and health
  • ​​Provides training to local communities
  • Provides employment alternatives for local communities

Project Type

Forests

Location

Annual CO2 Reduction

7 million metric tons CO2e (annual average for project crediting period)

SDGs Supported

Verification Standards

Project Developer

Go Balance Ltd

Project Documents

News & Stories

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