Carbon credit financing expands clean cooking in Africa

Carbon credit financing is becoming a primary mechanism for expanding clean cooking technologies across Africa. This financial model allows companies to raise capital against future revenues generated from emission reductions, making cleaner appliances more affordable for households.

Nearly 1 billion Africans currently rely on charcoal or firewood for cooking. The International Energy Agency (IEA) estimates that household air pollution from these traditional fuels contributes to approximately 850,000 deaths annually on the continent. Transitioning to technologies like induction cookers can reduce smoke exposure and lower daily fuel costs for users.

In June, the IEA reported that Africa secured $900 million in new financial commitments for clean cooking technologies. Additionally, more than 30 governments have introduced 121 new clean cooking policies since the 2015 Paris climate summit. The African Union also recently adopted the Dar es Salaam Declaration on Clean Cooking to support these efforts.