EKI Energy Services Ltd expands Clean Cooking initiative under Article 6 of the Paris Agreement in Malawi

EKI Energy Services Limited - a leading global carbon credits developer and supplier announced that it received a Letter of Authorization (LOA) from the Ministry of Natural Resources and Climate Change (MNRCC) of Malawi for its Improved Cookstove Distribution project. This authorization paves the way for the issuance of Verified Emission Reductions (VERs) or Article 6.2 carbon credits generated from the project.

Article 6.2 of the Paris Agreement outlines the rules for cooperation between countries in implementing climate mitigation projects. It allows countries to transfer mitigation outcomes (like carbon credits) between themselves, as long as they avoid double-counting and ensure environmental integrity. This mechanism can help countries meet their emissions reduction targets more efficiently and cost-effectively.

The LOA grants EKI permission to issue up to 1.4 million tonnes of carbon dioxide equivalent (tCO2e) in carbon credits over the project's crediting period, which extends from January 12, 2023, to January 11, 2030. The carbon credits represent the project's contribution to reducing greenhouse gas emissions through the distribution and usages of improved cookstoves by the community in Malawi. EKI has already distributed nearly 25,000 improved cookstoves in Malawi over the past 18 months and target to reach 50,000 households in total, hence directly improving the lives of nearly 250,000 individuals.

Mr. Manish Dabkara, Chairman and Managing Director, EKI Energy Services Ltd, said "Clean cooking is an imperative, to which everyone in the world should have an uninterrupted and unconditional access. This is not just a matter of improving the quality of lives of those among us, the underprivileged section. It also serves environmental health by being a part of climate action."

Mr. Siddhant Gupta, Vice President of Business Development, EKI Energy Services Ltd., said, "We are committed to complying with all conditions outlined in the LOA, including the submission of annual reports to the MNRCC and the payment of administrative and ITMO issuance fees. The company will also adhere to Malawi's climate change policies and legislation. We are also working towards building a strategic relationship with MNRCC to ensure that more such projects in Malawi can take the benefit of carbon financing."

This LOA is a significant milestone for EKI and reaffirms the company's dedication to addressing climate change through sustainable solutions. By distributing improved cookstoves, EKI is not only reducing greenhouse gas emissions but also improving the lives of Malawian communities by providing cleaner and more efficient cooking options.

Shares of EKI Energy Services Ltd was last trading in BSE at Rs. 330.00 as compared to the previous close of Rs. 329.10. The total number of shares traded during the day was 22937 in over 868 trades.

The stock hit an intraday high of Rs. 333.15 and intraday low of 326.60. The net turnover during the day was Rs. 7573426.00.

Source : Equity Bulls

Keywords

EKIEnergyServices INE0CPR01018 LOA MNRCC Malawi CookstoveDistributionProject