The Lawley fuel switch project was South Africa’s first CDM project to receive carbon credits from the UN, allowing Corobrik to receive the Certificates of Carbon Emissions Reductions (CERs) under the UN Framework Convention on Climate Change standards.
Corobrik was the company responsible for the project which is one of 11 registered CDM projects in South Africa, and one of only two in the country, which have been issued with CERs.
“We have sold our carbon credits to Statkraft Markets Gmbh, a large, German-based electricity producer that operates throughout Europe. The funds we receive go back to Lawley to offset the cost of financing the project,” explained Corobrik MD Dirk Meyer.
The Corobrik Lawley factory switched from coal to natural gas firing in 2004, resulting in an average yearly reduction of 17,500 tons of carbon dioxide emissions, explained Meyer.
The Lawley project was issued with 35,130 CERs for the two calendar years 2005 and 2006. One CER is equivalent to one ton of carbon dioxide reduced.
CERs are likened to share certificates issued on a stock exchange. Under the emissions trading scheme, developed countries can achieve their emission reduction targets by purchasing greenhouse gas emission reductions, or carbon credits, from developing nations.
“The driving force behind the decision to switch to natural gas firing was to enhance the greening of our business. The world is at a critical point and we all have an obligation to ensure that we conserve our limited natural resources for the benefit of future generations,” said Meyer.
The company said that other benefits of the investment were being realized in the form of better product quality, higher yields, reduced wastage, improved comfort and safety for staff.
“To obtain these certificates required absolute perseverance and integrity, as the verification process is bureaucratic and extremely stringent,” the company noted.
"Being early out of the starting blocks to undertake this process, we were not aware of how it worked and have learned valuable lessons along the way. In order to encourage other companies to follow suit, we will be happy to share this knowledge,” added Meyer.