Back 03.11.2016

Prize-winning sustainable business

Gaia’s and ARTI’s sustainable charcoal business was today awarded the TOP Climate Action prize by Climate Partners (Ilmastokumppanit) in Helsinki.

The jury underlined that the sustainable charcoal business offers a no-cost environmentally friendly solution potentially to millions of charcoal users. Whereas the business is based on a sound business model, and presents very significant positive social and environmental impacts, the business is also upscalable and replicable.

In Tanzania, 94% of urban dwellers depend on wood charcoal as their primary source of energy for cooking. The annual charcoal consumption reaches 500 000 tons In Dar es Salaam and its suburbs only, and it is expected to grow in the future. Hundreds of thousands of people are dependent on the charcoal value chain, and the sector is estimated to contribute approximately $650 million per year to the Tanzanian economy. The huge demand for wood charcoal is resulting in rapid deforestation causing problems in watershed management and loss of biodiversity. Sustainable options for household energy solutions are desperately needed to to offer sustainable income for the rural people currently dependent on the often illegal wood charcoal production.

Charcoal Briquettes Tanzania Limited (ltd), the joint venture by Gaia and ARTI Energy, produces and sells non-wood based charcoal briquettes. The business contributes to reduction of deforestation and greenhouse gas emissions and to support local livelihoods in creating sustainable energy business in Tanzania through decreasing the need for unsustainable wood in energy production.

Mkaa Mkombozi, the sustainable charcoal brand of Charcoal Briquettes Tanzania Ltd (CBTL) sells the briquettes in Tanzania, with a clear focus in private organizations, public institutions, as well as selected retail outlets. CBTL has doubled the production this year, and has a growing and expanding client base. Towards end of 2016, the company is very well positioned for further expansion.

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