Standard Chartered Unlocks $30.5m for Ghana Clean Cooking Projects

Standard Chartered has announced its role as the sole Lead Manager and Bookrunner for a groundbreaking USD200 million outcome bond. The bond’s returns are uniquely linked to carbon credits generated under Article 6.2 of the Paris Agreement, and it is issued by the World Bank (International Bank for Reconstruction and Development, IBRD).

This marks the first instance of an outcome bond with coupon returns tied to Article 6.2, supporting carbon mitigation efforts and representing a significant step in mobilizing private capital for projects that deliver both environmental and social benefits.

The bond will unlock USD30.5 million to finance the distribution of 415,000 cleaner cooking devices across Ghana between 2025 and 2028. UpEnergy will handle the distribution, providing both Electric Cookstoves (EC) for households with electricity access and Improved Cookstoves (ICS) for those still reliant on biomass.

The initiative aims to address the severe issue of household air pollution (HAP) in Ghana, which contributes to approximately 28,000 premature deaths annually, disproportionately affecting women and children. Beyond health benefits, the project is expected to reduce household energy costs and the time spent collecting firewood and charcoal.

Emissions reductions achieved through the project will be rigorously quantified and verified, generating carbon credits known as Internationally Transferred Mitigation Outcomes (ITMOs). These credits will be purchased by the KliK Foundation, with the revenue subsidizing the cost of the efficient cookstoves for Ghanaian households. After Switzerland levies its Overall Mitigation in Global Emissions (OMGE) contribution, the ITMOs will be issued to the KliK Foundation’s account in the Swiss Emissions Trading Registry, helping Switzerland meet its Paris Agreement commitments.

“We’re proud to partner with the World Bank and UpEnergy to deliver the first Clean Cooking Outcome Bond,” said Henrik Raber, Global Head, Global Banking at Standard Chartered. “The bond underscores the power of our global network, alongside our capital markets, structuring, carbon and commodities markets expertise. The USD200 million size and diverse investor base is testament to the success of this innovative transaction.”

Jorge Familiar, World Bank Vice President and Treasurer, World Bank Group, added: “This outcome bond demonstrates strong investor demand for impact and leverages private capital directly into solutions that improve lives. By linking returns to verified project outcomes, we help mobilise finance at scale, and channel resources where they deliver immediate impact— clean cooking solutions for families in Ghana.”

Marisa Drew, Chief Sustainability Officer at Standard Chartered, emphasized the importance of scaling private capital through Article 6.2, stating: “It transforms climate ambition into investable opportunity, unlocking the finance needed to build resilient and thriving communities and accelerate access to clean energy. We’re pleased to leverage our carbon market expertise to support the long-term adoption of clean cooking technologies.”

Funding will be released in four tranches, tied to specific project milestones, ensuring transparency and accountability. UpEnergy, a carbon project developer with a strong presence across Africa, will oversee the cookstove distribution, tailoring solutions to meet the affordability and electricity access needs of various households.

“This milestone demonstrates how outcome-based finance and Article 6 cooperation can accelerate access to modern cooking that delivers measurable climate impact, better indoor air quality, and creates local jobs,” said Mitch Sauers, CEO of UpEnergy. “We value the partnership with the Governments of Ghana and Switzerland and the World Bank Group, and appreciate Standard Chartered’s role in structuring this transaction.”

The 6-year bond offers full principal protection from IBRD and combines a fixed coupon with a variable coupon linked to the generation and sale of ITMOs. This innovative structure effectively mobilizes private capital for strategic projects in Ghana by linking investor returns to verified emissions reductions.

Globally, 2.1 billion people still rely on traditional solid biomass fuels for cooking, leading to significant health and environmental problems. In Ghana, approximately 75 per cent of the population, or around 26 million people, primarily in rural and low-income urban areas, use wood and charcoal for cooking, with 31.1 per cent and 23.3 per cent of households using these fuels respectively.

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