Carbon credit financing is emerging as a primary driver for expanding clean cooking solutions across Africa, enabling millions of low-income households to transition from traditional fuels like charcoal and firewood. This financial model allows clean cooking companies to raise capital by leveraging future revenues from emission reductions.
Nearly 1 billion Africans still depend on biomass fuels for cooking, a practice that the International Energy Agency (IEA) estimates contributes to approximately 850,000 deaths annually due to household air pollution. For many, the switch to cleaner alternatives is motivated by affordability, which is increasingly facilitated by carbon credit schemes.
In June, the IEA reported that Africa had secured $900 million in new financial commitments for clean cooking technologies. This funding surge follows increased policy support, with over 30 governments implementing 121 new clean cooking policies since the 2015 Paris climate summit. Tanzanian President Samia Suluhu has highlighted clean cooking as an essential necessity, not a luxury, underscoring its impact on every household. The African Union's Dar es Salaam Declaration on Clean Cooking, adopted by 30 governments last year, further emphasizes this commitment.
Companies like BURN, which manufactures eco-friendly cookstoves, have found that carbon finance transforms previously expensive clean energy products into accessible options. Peter Scott, founder and CEO of BURN, stated that scaling clean cooking on the continent hinges on carbon project finance, which provides revenue for governments and makes products affordable for customers who could not otherwise afford them.
BURN has distributed over 7.3 million cookstoves across 11 African countries, with its primary innovation being the financing model behind the stoves. An efficient biomass stove that might normally cost $40 can be purchased by customers for as little as $5 after carbon subsidies. More advanced induction cookers are made available through carbon credits and pay-as-you-go plans. Investors provide upfront capital to subsidize retail prices in exchange for revenue from carbon credits generated by reduced use of polluting fuels.
To address past criticisms regarding the credibility of carbon credit projects, the industry has implemented stricter standards, including advanced emissions measurement technologies like Bluetooth monitoring, digital verification, and real-time usage data.
However, concerns remain about the risks associated with an over-reliance on carbon credits. The Kenyan firm Koko Networks, once seen as a model for Africa's green transition, ceased operations in February after failing to secure authorization to sell carbon credits. George Mwaniki, WRI Kenya representative, suggested that while carbon money can assist, it should not be the sole foundation for the transition. He pointed out that carbon finance typically materializes after the initial investment in cleaner cooking equipment is made, creating a cash flow challenge for companies needing to manufacture and distribute stoves before generating emissions reductions.
Mwaniki warned that a complete dependence on carbon credits could significantly slow down the transition, potentially preventing it from happening at the required pace. Companies are adapting their strategies to local conditions, with BURN finding electric cooking more viable in Kenya and Tanzania, while prioritizing biomass stoves in countries like the Democratic Republic of Congo and Madagascar. Other companies, such as Eco Safi and BioMassters, are developing innovative solutions using agricultural waste and solar power.
For consumers like Mary Kavutha in Nairobi, who now uses an induction cooker instead of a charcoal stove, the financial and health benefits are paramount. Her daily fuel costs have decreased, her kitchen is free of smoke, and she feels her children are safer. "My kitchen is cleaner, my children are safer, and I spend less," Kavutha said. "That is all that matters."