Use of Carbon Revenues
The sale of carbon credits can provide an ongoing source of revenue for seven to twenty one years. These revenues can be used to recover the up-front costs of registering the carbon project, as well as the ongoing operational costs, such as monitoring and data collection, record-keeping, and carbon credit issuance.
These revenues can also be deployed in a variety of ways across the clean cookstoves value chain, for example:
- For manufacturers – depending on the contractual arrangement, carbon revenues could be used to fund research and development to improve stove performance or reduce the costs of manufacturing, or invested to increase the scale of production.
- For distributers/retailers – depending on the contractual arrangement, carbon revenues could be used to finance marketing and awareness campaigns to increase demand for clean cookstoves and fuels.
- For end-users – carbon revenues may be used for training the end-user to adopt clean cooking practices and ongoing maintenance of the cookstoves to ensure long term adoption. Carbon revenues may also be used to subsidize the upfront cost of the improved cookstoves, making them more affordable to the poor.
For investors – carbon revenues can be used to repay investors and provide a return on their investment.