(Bloomberg) -- Africa’s first carbon credit futures based on emissions reductions related to the use of efficient cook-stoves have been sold by Kenya’s BURN.
The company sold 10,000 forward contracts at $25 each and 50,000 call options, which can be exercised at the same price during the next seven years, over CYNK, a Nairobi-based platform, the two companies said in a statement on Monday.
The contracts sold by BURN, which has made and sold more than four million efficient cook-stoves in Africa, are based upon the distribution of electric induction cookers to low-income households in Ghana.
The stoves eliminate or reduce the use of firewood or charcoal for cooking, resulting in less deforestation and emissions of greenhouse gases and health-damaging soot. The company mainly makes clean-burning wood and charcoal stoves.
Each carbon credit represents a ton of climate-warming carbon dioxide or its equivalent, either removed from the atmosphere or prevented from entering it in the first place.
Separately, also over CYNK, the Tamuwa Renewable Biomass Project sold 800,000 call options at a strike price of $10. That adds to the 2.2 million forward contracts based on Tamuwa’s project sold in September.
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