How many light bulbs does it take to change the world?

Age
Saturday 20/6/2009 Page: 7

A small Melbourne firm is showing the way in cutting carbon dioxide emissions, Adam Morton reports.

THIRTY million energy-saving light bulbs will be handed out to the Mexican poor under a groundbreaking project run out of a tiny office in Melbourne's inner north.

Developed by Brunswick East based start-up Cool nrg, the project is touted as both pro-environment and anti-poverty. It is expected to save 8 million tonnes of carbon dioxide emissions - equivalent to closing down Mexico City streets to traffic for a year - and significantly cut electricity bills for people on low incomes. In return, it will earn Cool nrg up to 8 million carbon credits to be sold on the European carbon market.

Perhaps more importantly, its backers hope it will also provide a new model for socially responsible carbon offset programs if, as expected, the United Nations this week accepts it into a scheme set up under the Kyoto Protocol. It would be the first clean energy project designed to cut emissions at a household, rather than industrial, level listed under the UN's Clean Development Mechanism.

"This shows the (mechanism) is not just industrial, it's not just companies owning this, it can be delivered to poor people," Mr Frances said. "It will save Mexican families a couple of weeks' wages every year. If you aggregate that, it is $US165 million ($A207 million) a year direct to poor families for 10 years, which is how long these light bulbs last."

Mr Frances estimated the project would also save the Mexican Government $US200 million a year in electricity subsidies. It will run in 30 Mexican cities over the next three years, starting in the state of Puebla. Households will be able to exchange incandescent light bulbs for four energy-saving fluorescent bulbs at a Mexican hardware chain. Monitoring equipment will be installed in some houses to verify energy savings, which will then be converted to carbon credits following an auditing process.

Cool nrg last week secured a deal through carbon broker TFS Green to sell the first million credits generated to a Dutch company above the current deflated market price. Cool nrg senior policy officer Dougal McInnes said the Australian Government had shown interest in the project, but that Australia had not capitalised on the carbon trading job market. Canberra does not yet have a clean development mechanism registration office.

Mr McInnes said opportunities were being missed due to the delay in introducing emissions trading.