One of Rwanda’s clean cooking programmes that provides improved charcoal stoves is poised to bring in an estimated Rwf27.5 billion by 2026 through the sale of carbon credits, according to officials.

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The project, which distributed improved charcoal stoves to over 500,000 households, is transforming how Rwandans cook while also creating new financial opportunities from global carbon markets.

According to the Development Bank of Rwanda (BRD), the Clean Cooking Results-based Financing (CC-RBF) subsidy scheme is already yielding results.

To date, the program has generated Rwf309 million in its first phase, representing carbon credits earned for the 2021/2022 fiscal year and the verification process for the 2023/2024 period is currently underway.

"The project is expected to secure an additional Rwf3.7 billion in the coming year; ultimately, the goal is to reach Rwf27.5 billion by the time the project is fully implemented,” said Philbert Dusenge, the Energy Access and Quality Improvement Project Coordinator at BRD.

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The project primarily targeted low-income households, providing them with modern, energy-efficient cook stoves that use less charcoal and firewood. These improved stoves drastically reduce the amount of biomass needed for cooking; helping to curb deforestation, improve indoor air quality.

"These stoves significantly reduced the amount of biomass, such as firewood and charcoal, required for cooking. This not only curbs deforestation but also improves air quality and public health by reducing smoke inhalation, which is responsible for respiratory diseases in many Rwandan households,” Dusenge explained.

The success of the initiative lies in its innovative use of carbon finance, as households adopt clean cooking technologies, they reduce carbon emissions; and those reductions are quantified as carbon credits that can be sold internationally.

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"One carbon credit represents one tonne of reduced or avoided carbon emissions,” explained Innocent Gatete, Head of Strategic Projects and Implementation at BRD.

"As Rwanda positions itself as a leader in the carbon credit market in Africa, the sale of these credits promises to unlock significant financial resources for further expansion of the clean cooking programme.”

To ensure transparency and accountability, the programme applies the Standardized Crediting Framework (SCF), a methodology that standardizes how carbon credits are calculated and verified.

"Through this system, carbon credits are issued and then purchased by international buyers, such as countries or corporations, looking to offset their emissions,” Dusenge noted. "Each credit under this project is valued at approximately Rwf22,740, and we expect to generate more than 600,000 carbon credits, which will play a crucial role in financing the next phases of Rwanda’s clean cooking initiatives.”

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According to the State of Africa’s Environment Report by the Centre for Science and Environment, Rwanda ranks among the top five African countries investing in carbon credit projects; alongside Kenya, which has made significant progress in this field.

Across Sub-Saharan Africa, carbon credit initiatives have gained momentum. Between 2013 and 2023, about $5.9 billion was invested in carbon projects, primarily focusing on reforestation, sustainable land use, and community-based initiatives like improved cookstoves.

By 2029, Rwanda aims to cut the proportion of households that depend on biomass fuels for cooking, such as firewood and charcoal, from 79.9% to 42%.

At the same time, the government plans to increase the use of clean cooking technologies, including electric and liquefied petroleum gas (LPG) models, from 9% in 2024 to 22% by 2029.

To sustain these ambitions, Rwanda is mobilising $6.2 billion in climate finance between 2024 and 2030, as outlined in the newly adopted Climate and Nature Finance Strategy.

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This funding will support projects that reduce emissions, restore ecosystems, and promote sustainable livelihoods across the country.

According to the Rwanda Environment Management Authority (REMA), the global carbon market provides an important channel through which developed countries can fund emission reduction projects in developing nations, helping them meet international climate goals under the Paris Agreement.

Currently, 19 projects in Rwanda are ready to participate in international carbon markets. These include 12 focused on energy-efficient stoves, three on agroforestry and reforestation, and four on water purification.

REMA’s Deputy Director General, Faustin Munyazikwiye, underscored the environmental impact of improved stoves.

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"A person using a cleaner stove can reduce up to 90 percent of harmful gases that would otherwise be emitted by traditional three-stone firewood stoves," Munyazikwiye said. "These avoided emissions, or carbon credits, can then be sold to companies in developed countries seeking to balance their carbon footprint."