The company achieved the certification under The CarbonNeutral Protocol, one of the world’s leading frameworks for carbon neutrality.
To offset their emissions, Planet42 has chosen to support a wind farm in South Africa’s Northern Cape province near the town of De Aar, a project that aims to reduce South Africa’s dependency on coal and other fossil fuels via wind turbines.
For the past decade, South Africa has been during an energy crisis with a recent statement by national power utility Eskom warning that blackouts could continue for another five years as South Africa’s energy demand increases.
However, ensuring future power stability requires a concerted effort by the public and private sectors, including businesses of all sizes.
The urgency and scale of climate change require robust and widespread action, especially the case for South Africa, where per capita emission of greenhouse gas (GHG) is higher than the global average, and fossil fuels dominate the energy sector.
Presently, coal generates more than 90% of the country’s energy and the government aims to reduce this figure to 45% by 2030 and aspires to achieve a carbon neutral economy by 2050 with plans already afoot to shut and repurpose older coal power stations.
“The Northern Cape Wind project comprises 96 turbines with an installed capacity of 144MW and supplies approximately 440k MWh/year”
The past year’s challenges saw many South African businesses battle for survival and for most, sustainability has not been a priority. However, as it becomes more accessible, carbon neutrality can no longer be considered an afterthought.
Eerik Oja, CEO of Planet42, said: “Few people would argue that becoming carbon neutral is not a sensible goal, but it seems to us that the world is not moving towards this goal fast enough. So instead of introducing a vacuous grand plan of becoming carbon neutral by 2040 or something similarly vague, we decided to act now.”
By financing projects to reduce, avoid or remove greenhouse gas emissions, initiatives like the CarbonNeutral certification play a critical role in accelerating the transition towards net-zero.
The Northern Cape Wind project comprises 96 turbines with an installed capacity of 144MW and supplies approximately 440k MWh/year. The generated electricity is fed into the national grid, which is integrated with the Southern African Power Pool (SAPP).
By calculating an emission factor that tells how much CO2 is released per kilowatt-hour of electricity from fossil fuels, one can determine the reduction in CO2 emissions delivered by the wind power plant.
Oja concluded: “Our car subscription product has a highly positive social impact as we rent cars to people who otherwise would not have access to safe, reliable transport. But, of course, the emissions produced by our cars result in a limited negative environmental impact. We’re counteracting this impact by investing in carbon offset projects in the markets we operate. To put it another way, the investments we make into carbon neutrality represent a self-imposed tax. We’re leading by example and hope that companies in South Africa and beyond will follow.”
Planet42 is a South African start-up that buys cars and let’s its users access them on a subscription basis. It mostly targets people who would otherwise not access car loans from banks due to a variety of factors including credit scores.
The start-up has scoring algorithms that determine the risk factor of each customer.