Mitigating climate change, providing clean cookstoves and safe drinking water, and supporting local communities with carbon credits.

Vita Green Impact Fund

The Challenge

Across Africa, 300 million people are deprived of reliable cooking methods, while 341 million cannot access clean drinking water. The absence of these fundamental resources forces individuals to dedicate significant portions of their lives, hundreds of hours each year, to the arduous task of gathering fuelwood. This necessity is not just time-consuming but also deeply burdensome.

Disproportionately, it is the women and girls who bear the brunt of this labor, severely limiting their opportunities for education and economic growth. They are caught in a seemingly endless cycle of lost opportunities, a scenario that echoes the stark reality of gender inequality.

The crisis is further exacerbated by the environmental impact of these practices. The continual cutting down of trees for fuelwood not only emits harmful air pollutants but also adds to an increasingly critical environmental dilemma. This activity is responsible for a staggering 80% of CO2 emissions in countries such as Ethiopia and Eritrea. With the intensification of climate change, this issue grows more severe, especially exacerbating water shortages in rural areas. These cumulative challenges present an urgent and daunting problem that necessitates immediate, strategic intervention.

The Solution

In addressing the challenging environmental and socio-economic issues prevalent in Ethiopia and Eritrea, the Green Impact Fund (GIF) funds Vita, an Irish development agency, to bring a transformative solution to the fore. Recognizing that conventional fuelwood use is not only detrimental to the environment but also places a time-consuming burden on women and girls, Vita and GIF champion the provision of fuel-efficient cookstoves and clean water to the region.

These cookstoves not only drastically reduce deforestation by limiting the amount of trees cut for fuel but also lower greenhouse gas (GHG) emissions. Given these significant environmental benefits, the GIF creates and sells carbon credits, accredited by the Gold Standard Foundation, that are derived from the negative emissions associated with replacing traditional fuelwood collection methods with these fuel-efficient cookstoves. Sovereign entities and businesses eager to voluntarily minimize their GHG footprint purchase these carbon credits, thereby supporting the financial sustainability of GIF. The majority of the profits (about 90%) are reinvested into the communities served, providing further assistance, while the remaining profit offers a return to investors at a fixed rate dependent on the overall profit.

In addition to the environmental gains, the initiative brings significant community benefits. Vita's project has received substantial support from both Ethiopia and Eritrea, facilitating the adoption of clean cookstoves. More profoundly, the manufacturing of the cookstoves is orchestrated by local women-led associations. This not only empowers the women involved but also helps alleviate the time spent on chores, liberating more time for education and economic opportunities.

Integral to the success of the GIF is the critical role played by Total Impact Capital. Applying its proficiency in blended finance structures, Total Impact Capital structured the GIF and served as the agent in raising debt capital through Senior Notes. This area of Total Impact Capital's expertise greatly facilitated the initial phase of the initiative. Successfully closing the first tranche in May 2023, Total Impact Capital has paved the way for future funding rounds.

Vita, an innovative and successful Irish development partner, has been strengthening African farmers and communities for over 32 years. With the ambition to cultivate thriving, climate-smart rural economies in Africa, Vita ensures comprehensive access to services, markets, and livelihoods. The organization's multifaceted approach combines knowledge-driven collaborations, community-led initiatives, transformational technology, and innovative financing models to counter the harsh effects of climate change experienced in East Africa. Partnering with rural communities in Ethiopia and Eritrea, Vita is dedicated to fostering sustainable, climate-smart livelihoods.

Emphasizing sustainability and adaptability, Vita is committed to not only mitigating climate change but also equipping its partners, communities, and families with the skills, training, and resources required to thrive. All its programs are community-led and stress the importance of gender and social equality. Ground-up initiatives range from climate-smart agriculture, such as the innovative Irish Potato Coalition, to the female-driven fuel-efficient cookstoves program, and even the award-winning community water point repair program.

The Impact

  • Expanding Access to Clean Energy and Safe Drinking Water

    Vita is on track to deliver clean energy and safe drinking water to over eight million people through the dissemination of two million fuel-efficient cookstoves and the repair of 7,750 community water points. By accomplishing these tasks, Vita will significantly enhance the quality of life for countless individuals, alleviating daily burdens and health risks while fostering a more sustainable future.

  • Reducing Deforestation


    By reducing fuelwood use, Vita plans to save an estimated 40 million trees from deforestation while simultaneously embarking on an initiative to plant 10 million new trees. This concerted effort will not only counteract detrimental environmental impacts but also foster a more sustainable ecosystem, significantly benefiting local communities and global biodiversity.

  • Mitigating Climate Change


    Vita is making significant strides in mitigating climate change by securing purchase contracts with companies and national governments for averting four million tons of CO2 each year. This substantial reduction in greenhouse gas emissions will directly contribute to global efforts in combating climate change, safeguarding our planet for future generations.

The Future

Looking toward the future, the Green Impact Fund (GIF) is set to expand its scale and impact significantly. By 2028, the fund aims to grow into a $30 million initiative. As the fund prepares to scale, Total Impact Capital will continue to play a vital role in its evolution. Retaining its position as the agent of the fund, Total Impact Capital will leverage its expertise in blended finance to drive future fundraising rounds. This robust model positions GIF favorably with investors, enabling it to enlarge its operations and thereby extend its essential work, furthering its contribution to community prosperity and broader sustainability goals.