Financing models for climate initiatives
Green Bonds and Environmental Credits
The Nedamco Technology Solution is an innovative approach to addressing climate change through advanced digital tools. This deep tech end-to-end solution leverages cutting-edge technologies, including AI, machine learning, and digital twin models, to provide comprehensive insights into environmental activities. By integrating data from various sources, including satellite imagery and existing digital twin solutions like Microsoft, Planetary Computer and NASA’s Earth Exchange, Nedamco offers a robust virtual model of environmental systems.
Central to this solution are the Carbon Digital Twin and Water Digital Twin, launched to enhance forestry, biomass, and water management. The Carbon Digital Twin enables efficient forestry management, generating carbon credits by calculating biomass intake increases. This standard-agnostic approach adheres to various global standards, ensuring broad applicability.
The Water Digital Twin, part of the Catchment-City-Wastewater (CCW) solution, improves water management through digital mapping and predictive simulations, leading to significant improvements in water quality and availability.
Nedamco’s partnership with the Big4 ensures data integrity and continuous auditing of environmental credits, enhancing trust and transparency. Microsoft’s Environmental Credit Services (ECS) blockchain platform facilitates the trading of these credits, making it easier for stakeholders to manage and verify environmental impacts.
The solution’s ability to provide accurate, real-time data and simulations supports effective decision-making for climate interventions. By aligning with global financial markets and leveraging substantial investment opportunities, Nedamco’s technology solution paves the way for sustainable environmental management and climate adaptation initiatives across Africa. This comprehensive approach ensures that climate technology becomes a viable and sustainable business model, driving long-term environmental and economic benefits.
Climate tech as a service
Combine physical and digital realms to solve climate issues.
As the world transitions towards net-zero, in order to support the gradual net-zero journey, a new business model has emerged that has the potential to become a significant source of income for African countries – carbonomics. This model involves trading environmental credits and certificates that represent the reduction or removal emissions.
These credits and certificates can take different forms, including carbon , renewable energy , and water. The demand for environmental credits and certificates is projected to increase exponentially, with McKinsey estimating that it could grow by a factor of 15 or more by 2030, and by a factor of up to 100 by 2050.
African countries are poised to take advantage of the growing trend towards carbonomics by creating various types of environmental credits and certificates that can be traded on regulated stock exchanges, and attracting private financing for climate-action projects that might not otherwise be funded.
To meet the United Nations’ call for trillions of dollars to be invested in the fight against climate change, the World Bank’s new leadership is expected to provide innovative financing options for environmental credit certificates. This presents a tremendous opportunity for African countries to become leaders in the carbonomics market and contribute to the global effort to combat climate change. By tapping into this growing market, African countries can not only address their environmental challenges but also create wealth and sustainable economic development.
Additionally, the digitalization of the environmental credit market has become an increasingly important aspect in the industry, with companies like Nedamco Africa pioneering the use of Microsoft’s Environmental Credit Service (ECS) to log and administer all interactions, data storage, and transfers across the whole end-to-end flow. The use of ECS supplies a transparent, secure, and efficient way of trading environmental credits and certificates, which can further benefit African countries looking to participate in any environmental market.
Talent as a Service
The Nedamco Academy empowers the next generation to shape Africa's sustainable future.
In the past, many projects have failed due to a lack of local (institutional) capacity. Nedamco has committed to engaging with local communities from the onset of all projects. In support of this approach, the Nedamco Academy was established in December 2021 to provide Ethiopian youth with technology skills that are not typically included in conventional educational programs. Focused on climate and cloud technologies, the academy offers upskilling and employment opportunities to recent graduates.
Nedamco Academy has successfully narrowed the skills gap and nurtured a culture of innovation in the region. It has empowered young Africans to engage significantly in the tech industry through continuous learning alongside employment, helping them to become leaders in the global tech landscape and drive socioeconomic development throughout the continent.
Since its launch, the Academy has enabled local youth to obtain over 500 Azure and Microsoft certifications, emphasizing its dedication to preparing them for the digital era.
The top Nedamco Academy graduates qualified for a Nedamco scholarship to follow a master program on Artificial Intelligence and Machine Learning at Carnegie Mellon global University.
Furthermore, Nedamco has facilitated the certification of the first 13 Ethiopians as Microsoft Certified Educators. These educators play a vital role in internal capacity building, working with the governments of Ethiopia and Rwanda to train government staff and talented individuals. This collaboration aims to equip these stakeholders with the necessary skills to effectively implement and sustain climate technology solutions.
The Nedamco Academy is supported by Microsoft through the Microsoft Tech for Social impact program. Through this program students in Ethiopia and Rwanda received laptops and discounted licenses. Through the EY Ripples Green Skills Passport, EY also is actively supporting the Nedamco Academy. With these collaborations we have taken a step forward in our joined commitments to enhance digital skills and fostering innovation.