Kenya’s BURN has achieved a historic milestone by successfully trading the inaugural carbon credit futures linked to emissions reductions from efficient cookstoves in Africa.
Renowned for distributing over four million environmentally friendly cook-stoves, the company executed the sale of 10,000 forward contracts and 50,000 call options at $25 each via the Nairobi-based platform CYNK.
“These financial instruments are intricately connected to the deployment of electric induction cookers in Ghana, playing a pivotal role in sustainability efforts by diminishing dependence on firewood or charcoal. This approach aids in mitigating deforestation and curtailing greenhouse gas emissions.
Each carbon credit issued by BURN signifies the prevention or removal of one ton of carbon dioxide (CO2), demonstrating a tangible impact on reducing the carbon footprint, aligning with global climate change mitigation endeavours.
BURN’s initiative underscores a dedication to incorporating sustainability into its business model and leveraging financial instruments to amplify its environmental influence.
In a related development facilitated by CYNK, the Tamuwa Renewable Biomass Project achieved significant progress in the carbon credit market, with the sale of 800,000 call options and 2.2 million forward contracts in September.
These endeavours mark Africa’s pioneering steps in adopting carbon credit futures, illustrating the burgeoning intersection of environmental consciousness and financial innovation.
BURN and Tamuwa’s endeavours emphasize the potential for businesses to propel positive environmental change while generating economic value through inventive approaches to carbon credit trading.
The triumph of these ventures serves as a source of inspiration for businesses throughout the continent to explore similar sustainable practices and contribute to forging a greener, more resilient future.
