Green Bag Lunch: E+Co & Carbon Finance

On November 27, 2007, the International Business Club and Davis Net Impact hosted Erik Wurster from E+Co., a Green Bag Lunch speaker. E+Co., whose motto is ‘Energy through Enterprise, is an NGO that invests in clean and alternative energy enterprises in developing countries. Erik is a Carbon Finance Officer who spoke with us about E+Co.’s work in general and about carbon finance within their global investment portfolio.

E+Co. currently works with 150 companies in 25 countries. To choose a business, E+Co. undergoes a due diligence process including the necessary financing as well as asking whether carbon financing, compared to other types of capital, would benefit this business. In addition to providing capital, the NGO also provides business training – including how to write a business plan and accounting – to entrepreneurs so they may in the future seek more traditional forms of financing in the future. E+Co. embarked on carbon finance as a way to close the gap between capital and enterprise; before this endeavor, the company was largely dependent on fundraising.

Erik shared an example of how energy credits are created through the investment of a solar retailer in Nicaragua. In this country, energy often comes from a diesel generator. A third party measures the difference on carbon emissions through solar energy. That measurable difference is then labeled as a carbon credit and sold either to companies or to individuals through TerraPass. Businesses who produce carbon credits are regularly monitored and are (usually) licensed for 7 years at a time, with up to 3 renewals, or 10 years at one time. Although carbon credits address carbon emissions and help raise awareness, Erik also spoke to the fact it may not decrease carbon usage.

In addition to E+Co. seeking businesses to invest in, entrepreneurs come to E+Co. for “a shared vision of how business should run.” To learn more about E+Co., please visit their website: http://www.eandco.net.

- Christine Lim, GSM ‘09