How carbon credit financing is lowering the cost of clean cooking across Africa

# The basic story

# Why households switch

# How carbon finance changes prices Manufacturers and distributors say carbon finance effectively subsidises retail costs. BURN, a Nairobi-based maker of efficient stoves, reported distributing more than 7.3 million cookstoves in 11 countries and described the financing as its biggest innovation. An efficient biomass stove that would normally retail for around $40 can cost customers as little as $5 after carbon-backed subsidies. More expensive induction cookers are being offered via carbon credits combined with short-term pay-as-you-go plans.

# Scale and policy momentum IEA figures cited in the reporting indicate Africa secured $900 million in new commitments for clean cooking. More than 30 governments, representing roughly 80 percent of Africans without clean cooking access, have introduced 121 new clean-cooking policies since the 2015 Paris summit. The African Union's Dar es Salaam Declaration and an IEA conference in Dar es Salaam were recent policy milestones driving political attention.

# Credibility and monitoring The clean-cooking sector has responded to earlier criticism of carbon credits by tightening standards and adopting better measurement: Bluetooth monitoring, digital verification and real-time usage data are being used to measure emissions reductions more accurately.

# Risks and financing gaps Relying heavily on carbon credits poses risks. Carbon revenue only materialises after users adopt stoves and emissions fall, which means companies need other capital to manufacture and distribute equipment before credits exist. George Mwaniki of WRI Kenya said carbon financing is often a secondary source and cannot alone deliver the speed of transition needed. The model has also seen setbacks: Koko Networks in Kenya closed after failing to secure a government letter of authorisation to sell carbon credits.

# What this means now Carbon-credit-backed subsidies have already lowered prices and expanded access at scale in some markets. They solve the affordability barrier for many households, but they do not eliminate the need for upfront finance, reliable carbon markets, clear regulatory approvals, and diversified funding sources to sustain growth and manage risk.

# Practical implications for stakeholders

• For households: subsidised cleaner stoves can reduce daily fuel costs, indoor smoke, and safety risks.
• For companies: carbon finance can unlock demand but firms must secure upfront capital and regulatory clearances to survive until credits are issued.
• For policymakers: clear frameworks for carbon authorisation and stronger domestic financing channels will speed adoption beyond what carbon markets alone can deliver.