Beyond carbon emissions, severe indoor air pollution, which the World Health Organisation links to hundreds of thousands of deaths annually, has become the order of the day.

Women and children bear the brunt, spending hours near smoke-filled kitchens while collecting firewood.

Interestingly, modern cookstoves were built as a solution to this appalling situation. They burn fuel more efficiently or replace it entirely, reducing emissions, saving time, and lowering health risks. 

But there’s still a huge challenge, which is price. For households living on just a few dollars a day, even a stove costing $30 can be unaffordable.

This brings us to carbon finance, where assigning financial value to the greenhouse gas reductions achieved by clean cooking technologies enables carbon markets to create a revenue stream that can subsidise the cost of stoves. 

For some households, this turns a $40 appliance into something closer to $5. The mechanics are solid, emissions reductions are verified, converted into carbon credits, and sold to buyers globally, usually corporations seeking to offset their own carbon footprint. The income flows back into the project, reducing retail prices and scaling adoption.

Carbon Markets are a Fast-Growing Financial Sector 

Carbon markets have expanded over the last decade and currently, 113 national and subnational carbon pricing mechanisms cover approximately 28% of global greenhouse gas emissions, raising over $100 billion annually. Voluntary markets add billions more.

Africa, however, still lags behind, currently accounting for less than 2% of global carbon credits, despite enormous potential in forestry, renewable energy, and land-use projects. 

To close that gap, initiatives like the African Carbon Markets Initiative, launched at COP27, aim to generate 300 million carbon credits annually by 2030 and 1.5 billion credits by 2050, bringing $120 billion in economic value and supporting 110 million jobs.

In Nigeria, the carbon finance sector is coming up. In January 2026, the country formally launched its Carbon Market Framework at Abu Dhabi Sustainability Week, projecting $30 billion in annual climate-related investments. 

The National Council on Climate Change will implement trading regulations, ESG disclosure reforms, and blended-finance structures, pointing to a more powerful ecosystem for carbon finance and green industrialisation.

Why Cooking is Indispensable to Climate Action

Clean cooking is rarely a topic of discussion, but it sits at the intersection of climate, health, and development.

Traditional biomass cooking is both a deforestation driver and a public health hazard. Households consume large amounts of wood and charcoal, increasing carbon emissions. 

Smoke-filled kitchens exacerbate respiratory diseases, cardiovascular issues, and child mortality. Again, families spend a substantial portion of their limited income on fuel, while women and girls spend hours collecting firewood.

Modern stoves reduce fuel consumption by 50–70%, drastically cut emissions, and save households time and money. For climate-conscious investors and governments, this creates a huge opportunity, supporting clean cooking, which addresses emissions and also improves livelihoods.

The Price of the Counter: How Carbon Finance Lowers Stove Costs

Manufacturing a modern cookstove involves expenses, including materials, design, safety features, and logistics. To households with minimal daily income, these costs are prohibitive, but carbon markets bridge the gap.

When a stove reduces emissions, project developers can certify those reductions as carbon credits. These credits are sold on international markets to buyers, companies or governments needing offsets. Revenue from these sales is then used to subsidise stove prices, sometimes reducing them by as much as 60–90%.

This model explains why a stove costing $40 at the factory might sell for $5 to a household in Kenya, Nigeria, or Malawi. It’s not charity, it’s finance applied to climate action, converting environmental impact into affordability.

BURN Manufacturing: Scaling Clean Cooking Across Africa

Among the companies leveraging this approach, BURN Manufacturing has a niche around inclusion, standing out in the space. 

Founded in 2011 and headquartered in Nairobi, BURN has become one of Africa’s largest manufacturers of clean cookstoves and a developer of carbon projects. The company has sold over five million stoves, reaching more than 27 million people across the continent.

BURN’s appliances include biomass stoves, LPG cookers, and electric induction stoves. The company goes beyond manufacturing to generate certified carbon credits from its projects. 

These credits lower the costs of the stove for households while ensuring emissions reductions are verifiable and reportable.

BURN’s model ascertains how climate finance can scale impact without depending solely on donor funding. In combining commercial operations with carbon credit revenue, the company ensures that clean cooking technologies reach communities that need them most. 

In total, BURN’s projects have avoided tens of millions of tonnes of carbon emissions and saved millions of tonnes of wood.

Beyond Affordability: Economic and Environmental Impacts

The function of carbon finance in clean cooking is far beyond lowering stove prices. In providing reliable revenue streams, it enables companies to:

• Expand production capacity and build industrial-scale manufacturing facilities.
• Invest in research and development for next-generation stoves.
• Create jobs across manufacturing, distribution, and project monitoring.

BURN, for instance, produces stoves at a scale that can reach thousands of households daily. Digital monitoring and mobile payment technologies now track stove use and verify emissions reductions, ensuring the integrity of carbon credits and maintaining buyer trust.

At the household level, modern stoves reduce time spent collecting fuel, lower monthly expenditures on charcoal or wood, and improve indoor air quality. 

Communities experience less deforestation, while women and children benefit most directly from safer kitchens and reduced workload.

Challenges in Carbon Markets

Despite the benefits, we can’t ignore the challenges in carbon markets. Verification accuracy, especially in voluntary markets, is one issue highly talked about. Some projects have been accused of overstating emissions reductions, creating “phantom credits.”

In response, standards are getting tougher. High-integrity credits now require robust monitoring, reporting, and verification systems, including real-time sensors and independent audits. 

Companies that adapt to these standards, like BURN, gain credibility in the global market while ensuring tangible local impact.

Africa’s Growing Carbon Market

Africa’s role in global carbon finance is already expanding. Beyond clean cooking, carbon markets support renewable energy, forestry, and land-use projects.

Nigeria’s Carbon Market Framework and regional initiatives like ACMI are creating infrastructure for transparent, scalable carbon trading. Investors are starting to see Africa as a viable source of carbon credits, capable of attracting billions in climate finance.

If implemented effectively, these frameworks can transform clean cooking into a commercially sustainable industry, rather than a donor-dependent initiative. Companies that align with these policies will help in connecting climate finance to households.

The Human Impact

All the policy documents, frameworks, and market statistics are important, but the ultimate impact is human. 

Cleaner stoves mean fewer hours collecting firewood, less smoke in kitchens, and improved household health. Children breathe cleaner air, women spend more time on income-generating activities, and families spend less on fuel.

In some communities, switching to modern stoves reduces wood consumption by tons per year, helping protect local forests. In aggregate, these changes add up to essential climate and development results.

The Sustainability of Clean Cooking

The clean cooking sector is highly dynamic, with innovations like electric induction stoves, powered by renewable energy, that could eventually eliminate cooking emissions in regions with reliable electricity. 

Carbon markets will likely remain a key enabler, providing financial incentives to scale adoption.

Across Africa, governments, companies, and international buyers need to work together to maintain transparency, ensure accountability, and channel capital efficiently. 

The sustainability of this sector depends on strong regulation, accurate measurement, and reliable reporting systems.

BURN’s success has shown that this is possible. Having integrated manufacturing, distribution, and carbon finance, the company offers a model for how clean cooking can be scaled effectively.

So why do some stoves cost less?

It can’t be called luck or charity, because it is climate finance in action. Carbon markets convert emissions reductions into revenue that subsidises clean technology. 

We see the impact with companies like BURN Manufacturing, millions of stoves distributed, emissions avoided, and households benefiting.

However, clean cooking is a test case for whether climate finance can improve everyday life while addressing a global challenge. In millions of African homes, that difference is tangible, cleaner kitchens, safer children, and a small but significant step toward a sustainable environment.

Sometimes, the most impactful climate solution is not a massive solar farm or a battery factory, but a better stove, and a market willing to pay for the difference.

These changes threaten not only Nigeria’s environment but also its economic growth, social development, and overall well-being.

There was a time when we could reasonably predict the weather in Nigeria. Rainy and dry seasons arrived at specific periods in the year, allowing for preparation, especially among rural farmers.

By monitoring the seasons, farmers could cultivate crops and achieve bountiful harvests.

Nigeria’s rainy seasons have changed. Once a land of consistent rain, the country now experiences more intense downpours followed by longer dry periods. This disrupts agricultural production, leading to food insecurity.

Floods caused by heavy rains destroy crops and infrastructure, displacing communities. Since September 2022, the worst floods in a decade have affected 3.2 million people across Nigeria, of whom an estimated 60 percent are children.

Anambra, Bayelsa, Cross River, and Jigawa States have seen the highest numbers of displaced persons.In Northern Nigeria, conflict may have continued to drive population displacement, disrupt livelihood activities, and restrict market access.

However, the region’s suffering intensifies due to its particular vulnerability to droughts caused by rising temperatures and reduced rainfall.

Lake Chad, a vital source of water for millions, is shrinking at an alarming rate. Since the 1960s, the lake has shrunk by around 90%.

This recession of water is a result of both reduced precipitation induced by climate change and the development of modern irrigation systems for agriculture, alongside the increasing human demand for freshwater.

Coastal cities like Lagos face the risk of inundation due to rising sea levels. This saltwater intrusion contaminates freshwater sources and threatens coastal ecosystems.

Erosion caused by rising sea levels destroys infrastructure and can displace populations. If global warming exceeds 2°C, Lagos State is predicted to see a 90cm rise in sea level by 2100.

Some other current climate change issues in Nigeria include frequent and intense heat waves, deforestation, overgrazing, and extreme weather events that contribute to land degradation.

There is no doubt that Nigeria faces a real climate change challenge. It is imperative that the government and other stakeholders put in place mitigation and adaptation projects, such as developing renewable energy sources and reducing emissions, as well as adaptation efforts, including building resilient infrastructure and fostering community resilience, to curb climate change challenges in Nigeria.

A solution to Nigeria’s rising climate change challenge is climate finance. Climate finance refers to local, national and transnational financing that is drawn from public, private and alternative sources of financing that seeks to support mitigation and adaptation actions that will address climate change.

Climate finance plays a critical role in empowering developing nations like Nigeria to combat climate change. It provides the much-needed resources to implement mitigation and adaptation strategies that safeguard the environment and bolster climate resilience.

While Nigeria has ambitious climate goals enshrined in its Nationally Determined Contributions (NDCs) – a pledge under the Paris Agreement to reduce greenhouse gas emissions –  achieving them hinges on a crucial factor: climate finance.

Climate finance serves as a crucial instrument for Nigeria to confront its climate change challenges. It encompasses various funding sources, that includes, multilateral aid in form of grants and concessional loans provided by developed countries and international organizations.

Investments from banks, insurers, and asset managers in climate-smart projects that emanate as private sector investment and carbon pricing mechanisms which are revenue generated from carbon taxes or emissions trading schemes.

By effectively deploying climate finance, Nigeria can invest in renewable energy sources like solar and wind power which can lessen reliance on fossil fuels and reduce greenhouse gas emissions.

Funds can be directed towards strengthening infrastructure to withstand extreme weather events, developing climate-resistant crop varieties, and improving early warning systems.

Support for the adoption of sustainable agricultural practices that enhance food security and reduce deforestation can also be achieved.

The Funding Gap and the Urgency for Action

Nigeria’s current climate finance scenario paints a concerning picture. Estimates suggest the country receives around $1.9 billion annually, a far cry from the estimated $17.7 billion required to meet its NDC targets by 2030. This significant funding gap translates to a lack of resources for crucial climate action initiatives.

The consequences of inaction are dire. Studies by the Department for International Development (DFID) indicate that climate change could cost Nigeria between 6% and 30% of its GDP by 2050. This economic strain, coupled with environmental degradation and social upheaval, could significantly destabilize the nation.

Bridging the climate finance gap necessitates a multi-pronged approach involving various stakeholders:

• Public Sector: The Nigerian government must prioritize climate finance allocation within its budget. Innovative mechanisms like carbon taxes and green bonds can be explored to generate additional revenue for climate projects.
• Private Sector: The private sector has a vital role to play. Banks and financial institutions need to develop financial products that incentivize investments in low-carbon and climate-resilient technologies. Additionally, corporations should factor climate risk into their decision-making processes and invest in sustainable practices.
• International Community: Developed nations have a responsibility to support developing countries like Nigeria in their climate efforts. Fulfilling pledges made under international agreements like the Green Climate Fund is crucial.

Despite the challenges, there are positive developments on the Nigerian climate finance landscape. In November 2021, The Climate Change bill was signed into law by President Buhari in order to provide Nigeria with a legal framework for climate action, fostering transparency and accountability in climate finance management. Nigeria also issued sovereign green bonds to finance renewable energy projects, demonstrating a commitment to sustainable development.

Nigeria’s climate action journey will require sustained efforts and strategic partnerships. Some key areas for focus are:

• Enhancing Transparency and Accountability: Clear reporting mechanisms and robust governance structures are essential to ensure that climate funds are used effectively and efficiently.
• Capacity Building: Building domestic expertise in climate finance management is crucial. Training programs and knowledge-sharing initiatives can equip stakeholders with the necessary skills to navigate the complexities of climate finance.
• Unlocking Private Sector Investment: Creating an attractive environment for private sector investment in climate solutions, through policy incentives and de-risking mechanisms, is essential.

Climate change is an existential threat to Nigeria, but it also presents an opportunity for transformation. By mobilizing adequate climate finance, Nigeria can build a low-carbon and climate-resilient future.

This will require a collective effort from the government, private sector, and international community.

With decisive action and innovative solutions, Nigeria can not only safeguard its environment but also  secure a sustainable and prosperous future for its citizens.

The reason for this message of conscious recycling habits by individuals, organisations and governments is not far-fetched, as every corner of the city could do with an improvement in waste management. One of the suggestions, which remains prominent in conversations about climate change, is the need to reduce carbon emissions in the planet’s atmosphere.

Pledging to the cause, over 130 countries have vowed to reduce carbon emission to zero by the year 2050.

The Boston Consulting Group (BCG), in a report titled, ‘Education as a catalyst for climate progress’, cited proper education as a major factor in ensuring a sharp drop in carbon emission.

It noted that education, or what it described as “climate literacy“, was key to driving awareness among individuals across the globe. Through this education, people could learn “green skills” that would help nations make a “just transition” to sustainable economies.

BCG, in its report, advocates for the centering of education in discussions about climate change, as it holds tremendous power in re-tooling the minds of individuals and collective groups to help speed up the attainment of climate goals, as “there is no time to waste”, the report said.

Climate Literacy

Individual behavioural changes also play a major role in the push for climate justice. What to eat. What to drink. What mode of travel to choose. These play vital roles in either drastically bringing down global temperature levels or spiking it further.

Early education, especially of students who can become agents of change in their respective communities, will go a long way in ensuring that the message of the extant dangers is widely communicated. These young ones will serve as educators to their relatives, spurring a “multiplier effect”.

To cover this knowledge gap, the report suggests a robust awareness drive spearheaded by educators, governments and educational institutions, with a view to devising educational frameworks that put on the front burner the message of climate change.

Giving practical examples, the report cited countries such as Italy and New Zealand, with Mexico soon joining the ranks, taking the message of climate change to schools by incorporating climate literacy into their curriculums.

In other countries such as the United States and the United Kingdom, educational institutions are being encouraged to choose environmentally friendly infrastructure, with the hope that the message will spread to a macro level.

The report brings to focus the point that as countries transition to greener systems, there would be a need to pay attention to workers in the existing “brown” system. It projects that nearly 77 million jobs face redundancy if employees in sectors that would take serious hits during the transition phase are not paid any attention.

To forestall this grim outlook, the report offers those workers need to be reskilled to be armed with the needed knowledge to enable them make occupational transitions along changing times, so as not to be left behind and undermine the work done. 

Again, climate justice will create opportunities for a more inclusive economy, so long as governments take the right steps in carrying along every member of its working population.

BCG’s Call to Action

For the transition to be a just one, governments and educational bodies need to approach climate change from a wider perspective and ramp up climate literacy. One way this can be done is to tap into the benefits that lie in using data to estimate the skills needed in a green economy and gear its educational systems to delivering individuals capable of providing relevant skills.

According to the report, every member of the society, coordinated by governments, need to sit at the table to discuss the way forward for a rapid transition and doubly slow down the rate of global warming.

At the root of climate literacy is girl and women education. These demographics were identified as the bedrock of improved climate conditions. The report clearly defined the relationship between the education of girls and women and bettering climate action.

It said that “women are often closest to many of the key levers for climate-related behavioural changes, such as in water usage, farming techniques, and cooking and heating habits.”

The transformative power of education cannot and should not be ignored, as it bears its weight on the future of climate actions globally. Education and economic opportunities empower individuals to take actions that will positively impact the movement to change the narrative around global climate conditions.