🤑 Making Millions by Doing Good?

Core CarbonX Solutions is elevating the lives of millions of people and making money at the same time. Here's how! ReadOn!

What if we told you that giving stuff for free could make you money?

Sounds insane?

Well, a Hyderabad-based carbon trading company, Core CarbonX Solutions, has figured out a way to do this!

How?

ReadOn!

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🤑 Making Millions by Doing Good

Core CarbonX Solutions is doing a good deed for the world.

It is saving the world.

It plans to distribute 20 lakh energy-efficient stoves to rural Odisha, where people can’t afford these stoves.

In rural areas, people use wood-fired stoves which release poisonous emissions.

Core CarbonX’s energy-efficient stoves will help reduce these emissions by 25%-50%!

What’s in it for Core CarbonX, though? How is it earning money?

Through carbon credits.

Carbon credits are reward points that a company gets for reducing pollution.

What will they do with these reward points?

Simple, sell them!

You see, there are a lot of companies that are polluting the air. But now, they want to go net-zero.

There are two reasons for this:

• Many countries are now taxing companies for releasing emissions above a certain level

• Being green attracts ESG-focused (environmental, social, and governance) investors

So, these companies can buy carbon credits to nullify their harmful impact on the environment.

Fun fact: This carbon credit strategy is what made Tesla profitable. The EV maker has excess regulatory credits, which it sells at a profit. Tesla made $518 million from these credits alone in the first quarter of 2021.

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💰 The Carbon Credits Business

Now, how much does a carbon credit sell for?

Approximately $8 to $10 (Rs. 656 to Rs. 820) at the moment.

And you can get one carbon credit by preventing one metric tonne of emissions from being released into the air.

So, let's see how much Core CarbonX can earn from its mission.

According to estimates, one stove can earn around 2 to 4 carbon credits, which means around Rs. 1,300 to Rs. 2,600.

The stoves that it is distributing cost approximately Rs. 1,200 to Rs. 1,600.

So, it earns at least a minimum profit of Rs. 100 per stove.

Now, it's distributing 20 lakh stoves.

That’s a profit of Rs. 20 crores, minimum. 

Last year, it earned $11 million (Rs. 85.8 Cr, taking the average dollar rate of Rs. 78 in 2022) in commitment, just by distributing 90,000 stoves!

It's a win-win-win model.

The company earns money.

Rural India gets free stoves. This also saves them from inhaling the poisonous fumes of wood stoves.

And the world becomes more breathable to live in.

But this is not it. 

More such win-win situations could be created.

We’ve identified a few use cases:

Sustainable agriculture: Farmlands can act like carbon sinks if we practise sustainable agriculture and reduce emissions. Now, farmers can’t do this on their own. Here’s where companies can step in and help. 

Carbon credit developers like Core CarbonX could help farmers reduce agricultural emissions and earn carbon credits. This could also give farmers additional income. 

Nurture.farm, an Indian startup, is actively working on this problem. 

Solar pumps: Many farmers still use diesel pumps to pump water. This is not only bad for the environment but also for farmers who have to keep paying for diesel. Companies could help them transition to solar pumps and earn credits.

Reforestation: India’s current forest cover is 21.7%. We need at least a 33% forest cover to maintain ecological stability. 

Companies could focus on increasing this cover to earn credits. This could be done by companies that chop wood. For every tree they chop, they could plant 5 more. 

There’s a lot that can be done in this space.

The carbon credits market is booming.

This is a great opportunity for India to build sustainable businesses and solve India’s problems at the same time.

If you know any other startups working in this space, let us know in the comments!

Food for thought: What more can companies do to help India become greener?

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