Despite this growing emphasis on sustainable business practices, many organizations still lack the financing needed to invest in energy efficiency. In response to this need, our team developed and implemented OCEF: the Ozarks Carbon Exchange Fund.
The mission of OCEF is to provide a carbon offset program that invests in local energy efficiency programs which benefit people and groups in the Ozarks region. Energy efficiency is one of the most attractive means to offset carbon dioxide (CO2) because it offsets cheaply and effectively while offering impressive financial returns with short paybacks. We developed a model in which our team would help these entities make efficiency improvements by replacing traditional light bulbs with compact fluorescent (CFL) light bulbs, replace weather stripping, and offer sustainability consultation services. Once these entities have realized energy cost savings, they pay us back for their efficiency upgrades, ensuring the financial perpetuation of this program. In November of 2008, our SIFE team presented our proposal to the Community Foundation of the Ozarks, and they were so impressed by the potential impact of this concept that they granted us $20,000 to fund OCEF’s operations.
Last year, seven organizations receive loans from OCEF and have begun to repay them. This year, with the return on investment from these seven businesses, we have been able to make loans to three more businesses for energy efficiency improvements. To increase our funding base and spread the word about environmental sustainability, we took the OCEF concept of micro-financing for energy efficiency improvements to a high school in Germany. We worked with 220 students to develop a plan for raising funds for OCEF. The students recognized the importance of OCEF, and were able to raise $800 to invest in energy efficiency upgrades for the Family Violence Center in Springfield. Once the upgrades are completed, the Family Violence Center will repay the students plus an additional return of 7.5%. OCEF began as a local effort to improve energy efficiency, but has expanded globally to motivate and educate people around the world.
So far through OCEF, our team has offset 13,000 pounds of carbon, and saved a significant amount of money in energy costs. As the number of participating institutions increases, we are experiencing a rising demand and enormous support for our carbon exchange fund. OCEF allows low-income individuals and non-profit organizations to assume their roles in sustaining the environment, all while saving them money. We see OCEF as an environmental stewardship program that will continue to increase energy efficiency while reducing costs, as well have a profoundly positive and measurable impact on the natural world.