ISHANGO CAPITAL PARTNERS is an emerging energy solutions company dedicated to delivering clean, efficient and reliable electricity to areas of the world that lack this precious commodity on a multi-megawatt scale. Recognizing the incredible growth and profit opportunities of the green and alternative energy markets, ISHANGO CAPITAL PARTNERS has defined a sustainable deployment model with its first in class technology partners to take a leading position among alternative green energy solutions providers on the continent of Africa. . It is equally important to note ISHANGO CAPITAL PARTNERS provides “primary green energy solutions” in that its power generation capability is not of the traditional standards of energy generation, the Company primarily delivers its solution within a “distributed power” construct to its clients.

ISHANGO CAPITAL PARTNERS mandate is to build and own distributed green energy utilities worldwide, joining the ranks of some of the world’s largest and most well-known companies that are also looking to take advantage of the vast opportunities that have come about as the need for green electricity far exceeds the supply on a worldwide basis. ISHANGO CAPITAL PARTNERS’s model allows for profitable commercialization while meeting the ever-increasing demands of the world’s green energy market.

• Investment Highlights
• Green Energy Solution Provider
• Revolutionary RUBICON™ SOFC
• Sustainable Deployment Model
• Highly Experienced Management
• Venerable OEM Partners
• Supply Chain Management Expertise
• Capacity to Deploy High Volume Distributed Energy Power Platforms

Powering the Future through Innovation and Commercialization

The acceptance of ‘Climate Change’ and its impact around the globe are forcing many nations to reconsider their energy policies because of their growing populations, which is forcing ever-increasing energy use and demand for electricity. As a result, research, development and deployment of clean and renewable energy technologies that lead to a significantly reduced dependence on fossil fuels are urgently being sought and are sorely needed.

Global warming is defined as the increase in the average temperature of the Earth’s near surface and the ocean’s air. The greenhouse gases like carbon dioxide, methane, and nitrous oxide trap heat in the Earth’s atmosphere and, thus, result in increasing the temperature of the Earth. The Intergovernmental Panel on Climate Change (IPCC) states that anthropogenic greenhouse gases are responsible for most of the observed temperature increases since the middle of the 20th Century.

Power plants are a major source of carbon dioxide emissions. Power plants emit inordinate amounts of carbon dioxide as a direct result of burning fossil fuels for the purpose of electricity generation. Coal is the major fuel that is burned in these power plants.

ISHANGO CAPITAL PARTNERS focus is on providing a solution to the global energy and emissions challenges by commercializing cutting-edge technology that accelerates the transition to a solar and battery powered economy.

ISHANGO CAPITAL PARTNERS and the CARBON CREDIT MARKETS ADVISORY

Africa’s forests absorb 600 million tons of CO2 each year, more than any forest ecosystem on Earth!. Just 11% of carbon credits issued globally came from projects in Africa. Kenya president William Ruto sees carbon credits as his country’s “next significant export”. Various initiatives aim to produce over 500 million African carbon credits annually by 2030.

The great rainforests of central Africa are one of the lungs of the world. The dense jungles in the Congo Basin teem with tens of thousands of species of plants and animals and absorb 600 million metric tons of carbon each year on a net basis – more than any forest ecosystem on Earth. Yet while these forests deliver a significant service to the whole planet in mitigating climate change, the question of how their value can be recognized is yet to be adequately addressed.

Africa, as is often noted, is the continent that bears the least responsibility for climate change. Fewer than 4% of emissions come from Africa, while the continent sequesters vast quantities of carbon through its rainforests, peatlands, mangroves, grasslands, and other habitats. Efforts to monetize these nature-based carbon removal services – partly with the aim of funding the conservation of Africa’s most important ecosystems – are still very nascent. So far, Africa has been punching below its weight in the voluntary carbon market. Only 11% of carbon credits issued worldwide between 2016 and 2021 came from projects in Africa.

Financing Africa’s Climate Action

African countries and communities urgently require investment in development solutions including zero carbon energy, which ensures energy access across the continent. Resilient agriculture systems for food security, and efforts to conserve its nature and revitalize ecosystems which have been degraded are necessary for a country’s sustainability. ISHANGO CAPITAL PARTNERS recognize that African countries need to take agency of their own development and investment future and in recognizing this, we support this agency 100%.

ISHANGO CAPITAL PARTNERS is in support of, and in fact advises African governments to develop new ‘polluter pays’ funding mechanisms to incentivize cleaner production and enable polluting businesses to contribute towards African-defined climate mitigation and adaptation actions. The sums paid by companies for polluting should increase over time, so incentivizing real emissions reductions by the polluting companies to stay within the limits set by the Paris agreement.

The projects that ISHANGO CAPITAL PARTNERS develops and support in concert with governments and their communities will support funds that will drive capacity within African countries for clean, resilient and affordable development which are defined and delivered directly by local communities aiming to reduce dependence on external funding over time.

Additionally, ISHANGO CAPITAL PARTNERS encourages African Leaders to look to other financial flows to implement their own zero-carbon sustainable development pathways, including:

• Demanding a fair share for Africa of climate finance.
• Scaling up sources from existing mechanisms and innovative sources.
• A redirection of fossil fuel subsidies and investments towards environmentally and socially sound renewable energy.
• Renewable Energy Partnerships – that truly benefits countries transition and are based on grants.
• The systematic cancellation of unfair, illegitimate, and odious debts.
• African countries to increasingly invest domestic means and currencies in renewables, agroecology, and sound industrialization, ensuring democratic sovereignty over their own development pathways.

What is Climate Change? Climate change typically refers to the threat to our ecosystems and climatic conditions stemming from the release of greenhouse gases (GHGs) into the upper atmosphere. Most of these releases are now considered by a majority of the scientific community to be produced by human activities such as emissions from the burning of fossil fuels.

The threat of climate change is the direct physical effects of climate change on human activities, such as scarcity of inputs due to decreased agricultural production, adverse weather conditions disrupting pipelines, reduced water supply due to droughts, or destruction of fixed assets due to flooding.

Response to Climate Change Threat The measures adopted by others in response to the threat of climate change — whether international, national, or local in origin — range from international treaties such as the Kyoto Protocol, to market measures such as increases in insurance premiums, to national government regulations forcing businesses to reduce their emissions of GHGs.

What Qualifies as a Greenhouse Gas (GHG)

• Carbon Dioxide (CO2): Mostly from the combustion of fossil fuels (electricity generation, industry, transport), comprising 70% of the total greenhouse effect.
• Methane (CH4): Emitted during waste management and agriculture, comprising 20% of the total greenhouse effect. Methane has an impact on global warming 21 times that of CO2.
• Nitrous Oxide (N2O): From burning fossil fuels, industrial processes and fertilizer production in particular, comprising 6% of the total greenhouse effect. Nitrous oxide has an impact on global warming 311 times that of CO2.

Understanding carbon markets, some key concepts: What are voluntary carbon markets, net zero, carbon offsetting, and carbon credits? This voluntary carbon market works in four stages:

• Projects in Africa generate carbon credits from projects in sectors including energy, waste management, agriculture, and nature conservation. One carbon credit is equivalent to one tonne of carbon dioxide equivalent (CO2e) stored, reduced or avoided by the project, which is commodified and used to justify the issuance of a financial asset called a “carbon credit”.
• A complex accreditation and verification process is used to validate that the tonnes of ‘carbon have actually been avoided (i.e. that they are “additional” and would not have been avoided, without the project’s effort to avoid them), which are sold on as voluntary carbon credits to the voluntary carbon market (VCM).
• These credits are traded by one or more VCM brokers, to be sold to foreign companies.
• These companies use the credits to ‘offset’ their own greenhouse gas emissions, to support the claim they are on track to meeting their internally set ‘net zero’ carbon reduction targets. Types of Carbon Markets: there are two types of carbon markets. In the compliance markets, governments set up for example an emissions trading scheme such as the European Emissions Trading Scheme (EU ETS) which has a cap on total emissions within the geographical area of the scheme.
• Polluting companies can buy unused emissions rights from other companies in the scheme to continue polluting beyond their pollution allocation. Corporations or countries can also buy ‘offset’ credits from entities in countries and jurisdictions that are not in the geographical area of the scheme. In the voluntary carbon markets, companies that do not fall under any legislation but opt to set their own carbon emissions reductions targets, and purchase carbon credits in the voluntary carbon market (VCM) to ‘offset’ when they fail to meet their target.

Net zero: Theoretically, net zero emissions are achieved when emissions of greenhouse gases (GHGs) from human activities to the atmosphere are balanced by carbon removals from the atmosphere, by nature or removal technologies. A number of companies have set ‘net zero’ targets for their emissions by mid-century. These targets are taken on a voluntary basis to show customers they are part of the climate solution.

Some companies have chosen internal definitions and strategies which are often less rigorous or transparent. In other cases, companies are under legal obligations to reduce emissions and can if their country is part of an emissions trading scheme ‘offset’ reductions by buying certified carbon credits from entities in other geographical areas. In all these cases, carbon offsets deliver part of their targets. The concept of net-zero has been widely criticized as enabling continued climate pollution, as have the claims made by companies seeking to use carbon credits to claim they are net-zero, while continuing polluting activities.

Carbon offsetting: Carbon offsetting is a way to outsource your carbon reduction to someone and somewhere else. It is a means of paying someone else to carry out the emissions reduction on your behalf, to compensate for the emissions you as a company or country have not yet eliminated. A country or business can buy carbon credits on the understanding that these credits represent commensurate carbon reduction actions elsewhere in the world. Each credit represents an ‘offset’ emission of one tonne of CO2 equivalent. These are purchased through publicly accessible emission registries held by international standards and global exchanges (brokers). Once purchased the credit is supposed to be retired so it cannot be used again.

Credit Verification and Certification: The project producing the credit has to be certified by internationally recognized standards. These projects are subject to (and pay for) auditing processes that ensure that the project adheres to the criteria set by the certifying body such as ensuring: additionality, permanence, measurability, no negative impact on local populations, and no double counting. Verification applies different ‘methodologies’ for accounting carbon savings. Verification and certification involve additional costs that reduce payments to project developers and communities.

Types of voluntary carbon credits: There are different types of credits in the voluntary carbon market. Avoidance credits for external projects that avoid or reduce emissions production, such as building a wind or solar farm. Removal credits for projects that somehow removes carbon dioxide from the atmosphere. Removal projects deploy either nature-based approaches such as afforestation (introducing trees to a previously unforested area), or involve more speculative new technologies such as Direct Air Capture (DAC) of CO₂. Replacement credits are new emerging products which e.g. claim to shift from fossil energy to renewables such as ‘diesel replacement credits’, or a new proposal for the ACMI of ‘coal to clean’ credits to help re-train coal sector workers to new clean jobs.

VOLUNTARY CARBON MARKET (VCM) Brokers: The VCM has been criticized as opaque and non-transparent. The market is managed by brokers who buy and sell credits with little or no transparency. They can add transaction costs and the mark-up cost they take before selling to offsetting companies. Credits can be bought and sold many times by different VCM brokers before selling to the final purchasing companies. Many big companies are becoming brokers, with Commodities giants Vitol, Glencore, and Trafigura all opened carbon trading desks last year.

As Carbon credits are an example of financialization of nature, where the credits can in turn be used in financial markets for derivatives trading in futures and options, with risks of speculative bubbles and new financial instruments, ISHANGO CAPITAL PARTNERS is well positioned to advise governments and their communities on the best way to minimize risks and to maximize financial potential with regard to carbon credits.

ISHANGO CAPITAL PARTNERS supports countries, companies and communities across the African continent that are looking to put in place the policies needed to catalyze a transition to a Green economy—an economy that can realize development for all but in a way that keeps humanity’s footprint within planetary boundaries while delivering significant social benefits from eradicating poverty to generating decent jobs. As the continent arguably most affected by climate change, it is heartening to see that there is an opportunity, by tapping into Africa’s abundant natural or renewable sources for more sustainable energy, to derive economic and developmental benefit from the global drivers behind it.

By placing a market value on activities that can reduce GHG emissions, the carbon market is increasingly being used as a tool to finance this transformation. Climate change is a driver for change through which new value can be realized for businesses or institutions in Africa—thus benefitting local economies and people. For those that contribute to climate change through the direct or indirect emission of GHGs, they can act to reduce these emissions and pay for the costs in part by generating emissions reduction credits that are tradable assets.

Reducing the carbon footprint for businesses is of course part of good corporate citizenship, but if non-obligatory reductions can be monetized at the same time, it is more likely that such actions can be realized more quickly and scaled-up.

To what end? ISHANGO CAPITAL PARTNERS knows that carbon market vehicles can be a mechanism to channel new investment into Energy Security in Africa. They can also help African countries to meet their voluntary greenhouse gas reduction targets as well as their national renewable energy targets. In order to achieve financially a viable carbon credit “return”, Africa’s GDP needs to be

invested in the power sector to achieve energy security. Additionally, viable green energy projects are necessary to attract and leverage new sources of both foreign and domestic investment to help developing countries green their industries and infrastructure. As an additional source of revenue, carbon credits can, in some cases, improve the bankability of various projects, principally in the energy, waste, and infrastructure sectors.