Carbon finance is beginning to open new possibilities for the sanitation sector. Our latest lessons learnt paper explores what’s been achieved so far – and what’s still to come – drawing lessons from Sanergy’s landmark carbon credit certification and SOIL’s innovative direct-sale approach.
Strong data and clear impact helped CBS providers unlock climate finance
Sanitation is starting to make its mark in carbon markets. The Sanergy Collaborative, through Fresh Life and its treatment operations, earned the first carbon credits for container-based sanitation (CBS) and related treatment. Meanwhile, SOIL’s model in Haiti demonstrates an alternative path for smaller implementers – selling verified climate impacts directly to buyers outside formal markets.
Both providers succeeded by demonstrating clear, measurable emission reductions and strong monitoring systems – proving sanitation’s potential to deliver tangible climate benefits. Yet their experiences also underline the steep challenges smaller providers face in navigating complex, costly certification processes.
Aligning carbon projects with core operations is key
The CBSA paper highlights practical lessons from these early pioneers. Carbon finance can provide an important supplementary revenue stream, but it is not a full-cost recovery solution. Success depends on early planning, aligning projects with treatment operations or service expansion, and ensuring robust data systems from the outset.
Emerging tools – from digital MRV platforms and the forthcoming Gold Standard sanitation methodology to new finance instruments such as carbon streaming agreements – could make participation more feasible for a wider range of sanitation providers.
Future potential lies in better data, smarter aggregation, and innovative finance
Sanitation’s role in climate mitigation is only beginning to be recognised. Strengthening the evidence base on emission reductions, developing aggregation models that allow smaller providers to reach viable scale, and testing innovative finance tools – such as advance purchase commitments and results-based payments – could help unlock new opportunities for carbon revenue. Over time, greater recognition of sanitation’s mitigation potential within national and global climate frameworks could further support investment.
Explore more in our lessons learnt paper, Securing carbon revenue for sanitation, in English (PDF, 2Mb) and French (PDF, 2Mb):
Spanish version available soon.
