Clean cooking and carbon credits – transforming Africa’s future

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Clean cooking and carbon credits

Clean cooking and carbon credits present a unique opportunity for Africa to improve health, reduce emissions, and drive economic growth. Africa, a continent blessed with abundant natural resources, is home to many people reliant on traditional cooking methods.

According to the International Energy Agency (IEA), nearly four out of five Africans still use traditional cooking fuels. These fuels include wood and charcoal, which contribute to deforestation and carbon pollution.

The health implications of traditional cooking

The nexus between clean cooking, carbon emissions, and human health is undeniable. Indoor air pollution caused by traditional cooking kills approximately half a million people annually in Africa. This figure primarily includes women and children, according to an IEA report. The health implications of traditional cooking are staggering.

Women and children bear most of the cooking responsibilities. They are exposed to harmful smoke, which causes respiratory diseases, eye infections, and other health complications.

Indoor air pollution from cooking is a leading cause of premature deaths in many African countries. This health crisis, combined with environmental damage, makes a compelling case for transitioning to cleaner cooking solutions. Change is often difficult. People have cooked this way for generations, so it has perhaps been overlooked as a major health issue.

In Paris earlier this year, national presidents and CEOs of major energy companies attended a significant IEA summit. The summit addressed traditional cooking, related health issues, potential solutions, and the role of carbon finance. A commitment of over $2.2 billion was made to enable cleaner cooking in Africa. Contributors included the African Development Bank, Norway, the European Commission, and energy majors like Total and Shell.

Clean cooking and carbon credits

By investing in clean cooking infrastructure, Africa can improve citizens’ health and well-being.

Solutions such as liquefied petroleum gas (LPG), bioethanol, and electricity can significantly reduce indoor air pollution. They also contribute to climate change mitigation. However, all these solutions come with costs. This often makes it unaffordable for households to transition to cleaner cooking methods.

Collaboration between governments, international organizations, and private sector companies is essential to mobilize resources and expertise. Carbon credits can create revenue streams to subsidize the sale of clean cookstoves. This enables entrepreneurs to develop products and the infrastructure to deliver clean cooking solutions to households.

Africa has an opportunity to transition to cleaner fuels while generating revenue through carbon credit sales. Developed countries or companies seeking to offset their carbon footprint can purchase these credits. The transition to clean cooking can thus become a win-win situation.

Revenue from carbon credit sales

Revenue from carbon credit sales allows companies to expand operations further. Governments may receive a share of the proceeds to improve healthcare and support sustainable development. This creates a virtuous cycle where health improvements, environmental benefits, and economic growth reinforce each other.

As an example, this year we provided funding to KOKO, a climate tech company leading this transition. KOKO replaced demand for charcoal by supplying bioethanol clean cooking solutions to over 1.3 million homes. The resulting carbon revenues are shared with households as a non-government energy subsidy. This subsidy enables even the poorest households to switch to clean cooking solutions.

To capitalize on the carbon credit opportunity, some African countries are enabling carbon credit developments. They are also introducing clear governance frameworks. Governments can create supportive policies and incentives to attract investment in clean cooking infrastructure.

Investing in training and capacity building empowers local communities. It allows them to participate in the carbon market and benefit from its proceeds.

In conclusion

Africa’s transition to clean cooking is not just an environmental or health imperative. It is also a tremendous economic opportunity.

By embracing clean cooking solutions and leveraging the carbon market, Africa can improve the lives of millions. The continent can contribute to global climate action and build a sustainable future.

The potential for Africa to lead a global clean cooking revolution is immense. With supportive policies, investments, and partnerships, Africa can turn this challenge into a catalyst for progress and prosperity.


Toby Campbell-Colquhoun | Head | Carbon Markets | RMB | mail me |


 



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