KEY POINTS
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Nearly 1 billion Africans still depend on charcoal or firewood for cooking.
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Carbon credit financing is helping companies subsidise cleaner cooking equipment.
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Experts warn that carbon finance alone cannot sustain the continent’s clean cooking transition.
Carbon credit financing is emerging as an important source of funding for Africa’s transition to cleaner cooking, helping companies make electric and fuel-efficient stoves more affordable for low-income households.
The approach allows businesses to raise investment against expected revenue from carbon credits generated when households reduce their consumption of polluting fuels. According to an Associated Press report by Allan Olingo, the financing model is helping millions of households access alternatives to charcoal and firewood, which remain widely used across the continent.
One beneficiary is Mary Kavutha, a Nairobi-based businesswoman who switched from a charcoal stove to an induction cooker. Kavutha previously spent about $1.15 daily on charcoal. However, she now spends approximately 80 cents on electricity tokens to prepare several meals.
She told the Associated Press that the electric cooker was faster, safer and more affordable, particularly because she has young children. Her experience reflects the economic and health considerations driving the adoption of cleaner cooking technologies.
Carbon credits make cleaner stoves affordable
Nearly 1 billion Africans still rely on charcoal and firewood for everyday cooking. The International Energy Agency estimates that household air pollution associated with these traditional fuels contributes to approximately 850,000 deaths annually across Africa.
Meanwhile, the transition to cleaner alternatives has faced a major obstacle: affordability. Companies are therefore using carbon finance to reduce the initial cost of cooking equipment and introduce flexible payment arrangements.
Peter Scott, founder and chief executive of Kenyan cookstove manufacturer BURN, said carbon project financing was essential to expanding access to clean cooking across the continent.
The company says it has distributed more than 7.3 million cookstoves across 11 African countries. Under its financing arrangements, investors provide capital to subsidise equipment. In return, they receive revenue generated from carbon credits associated with reduced emissions.
For example, an efficient biomass stove that would normally cost about $40 can be sold for as little as $5 after subsidies. In addition, some companies offer induction cookers through payment plans that spread costs over several months.
Funding challenges remain despite growing adoption
However, experts warn that relying heavily on carbon credits could create difficulties for companies trying to expand operations. Carbon financing generally generates revenue after companies have invested in manufacturing and distributing their products.
George Mwaniki of the World Resources Institute’s Africa programme said this timing creates a funding challenge because businesses need upfront capital before they can generate emissions reductions and earn carbon credits.
He cautioned that carbon financing should complement other sources of investment rather than serve as the foundation of the entire transition. The closure of Kenya’s Koko Networks in February, following its inability to secure government authorisation to sell carbon credits, has also highlighted the risks.
Nevertheless, companies continue to adapt their products to local conditions. BURN says electric cooking is more viable in Kenya and Tanzania, while biomass stoves are preferred in countries such as the Democratic Republic of Congo and Madagascar.
Other businesses are developing pellet stoves and fuels made from agricultural waste. Ultimately, the expansion of clean cooking across Africa will depend on affordable technologies, reliable financing and policies that support long-term access.
