Carbon Credit Financing for Qualified StoveTec Distributors

There has been a lot of interest in carbon credit financing for improved stove projects. Since 2006, stove organizations have been receiving funding from carbon credits. The Gold Standard has just published a set of protocols formalizing how stove projects can prove the lowering of emissions. Large financial institutions, like JP Morgan/Climate Care, are now participating in this new market.

Many people and organizations have asked us to explain how carbon credit financing works. We summarized the Gold Standard protocols to try to help the stove community to better understand this new and exciting opportunity that we hope will result in the dissemination of millions of improved cooking stoves. The Gold Standard is a set of protocols to help verify carbon credits for the voluntary market.

Carbon credit funding began with the Kyoto Protocol, an international agreement between 170 countries, that created an emissions trading market intended to reduce global warming. Stoves can be funded by the voluntary market where buyers purchase carbon credits from brokers.   The worth of the voluntary credit is based on the validation process. Voluntary credits have been worth less than the credits sold through the more rigorously validated Clean Development Mechanism.

Carbon credits are traded in units of one metric ton of carbon dioxide or other equivalent green house gases not emitted or made. The international transfer of credits is regulated by the United Nations Framework Convention on Climate Change (UNFCCC). Selling carbon credits is designed to make available a cost effective way of reducing emissions globally, either by more efficient practices (using less wood for cooking in any manner) and/or investing in a cleaner technology (an improved cook stove).

StoveTec cooking stoves can save approximately one to two tons of CO2 per year. The cost of a stove may well be covered by the carbon credit financing. Carbon credit brokers usually assist with the costs of testing to prove lowered emissions. The financing can include up-front funding or a higher amount can be paid to the project after the emissions reduction is proved by the in-field testing.

JP Morgan/Climate Care is interested in carbon credit financing for large scale qualified distributors of the StoveTec rocket stoves. If your organization is ready to distribute container loads of stoves, please contact us for further details concerning this exciting funding source.

The Gold Standard published a set of protocols formalizing how stove projects can prove the lowering of emissions. Download An Introduction to the Carbon Credit Protocols, which is a simplified version of the full Gold Standard publication.

Check out A laboratory comparison of the global warming impact of five major types of biomass cooking stoves, drafted at the Aprovecho Research Center.