Financial backing boosts decarbonisation initiative

An African Stove Company cookstove which is helping rural areas reduce their emissions

NOW WE ARE COOKING The new improved cookstove uses even less fuel, subsequently reducing emissions

1st December 2023


Font size: - +

Financial institution Standard Bank announced last month that it had finalised an agreement to support global carbon project developer The African Stove Company (TASC) with funding for what is believed to be the first carbon credit project of its kind in South Africa.

The carbon credit project has been designed to combat climate change and simultaneously drive positive social outcomes in rural areas.

The facility will provide TASC with funding to support its socially orientated projects.

“The company’s revenue stream is derived from selling carbon credits issued in respect of emission reductions that will result from rural communities using about 680 000 cookstoves already donated by the company to South African communities,” says Standard Bank Carbon Credit Trading lead Lawrence Cole-Morgan.

He adds the efficient stoves significantly reduce the wood required to fuel the stoves.

“This has immediate benefits for the emission of greenhouse gases, particularly carbon dioxide, combats climate change and helps preserve biodiversity.”

Additionally, the tangible advantages for the communities involved are reduced costs and less time spent sourcing cooking fuel from surrounding environments.

Owing to the stoves burning much cleaner than traditional cooking methods, they also offer health benefits and avoid the dangers of cooking on open fires to users and the community, Cole-Morgan adds.

TASC generates carbon credits as a result of the reduction in carbon emissions from the use of the cookstoves and the distribution of cookstoves is funded by the sale of carbon credits to companies that need to contribute to combatting climate change and want to do so by offsetting their emissions.

However, these sales can occur months or even years after a project is established and the development of carbon credit projects requires upfront capital to execute the project.

Standard Bank is providing TASC finance against the future sale price of the carbon credits and thereby assisting TASC in reaching its goal to distribute 750 000 efficient cookstoves to rural communities.

“Through this deal, Standard Bank has demonstrated that it can fund against carbon credits as a commodity,” says Standard Bank Energy and Infrastructure Finance executive George Kotsovos.

The TASC project differentiates Standard Bank’s Corporate and Investment Bank by displaying its key competencies and highlighting its ability to provide complex, sustainable green and social loans on the African continent, Kotsovos adds.

“Further enabling our capabilities is the African footprint of the Standard Bank Group and our reputation for providing our clients with bespoke solutions for their specific needs,” he says.

“Our African presence is a competitive advantage as we provide clients access to various markets and back this strength with locally-based expertise to offer market insights.”

“Carbon credits enable companies to offset their carbon emissions and contribute to a more sustainable future,” says TASC Africa CEO Shelley Estcourt.

“We are delighted to have Standard Bank as a partner in fighting climate change and improving the lives of rural communities. We look forward to a long, mutually rewarding association in the future,” she concludes.

Edited by Nadine James
Features Deputy Editor



Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

Universal Storage Systems (SA)
Universal Storage Systems (SA)

South African leader in Steel -Racking, -Shelving, and -Mezzanine flooring. Universal has innovated an approach which encompasses conceptualising,...


Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.203 0.251s - 167pq - 2rq
Subscribe Now