Public Commentary: The content below reflects FG Capital’s approach to Low-Emission Cookstove carbon projects. It is provided solely for informational purposes and does not constitute investment advice or a solicitation.
LEC Carbon Projects – Low Emission Cookstoves Development & Scaling
More than 2.4 billion people still prepare meals over open fires, driving deforestation and household air pollution. High-efficiency cookstoves reduce fuel demand by up to 60 percent and cut particulate emissions dramatically. When robustly monitored, these savings convert to verified emission reductions (VERs) while delivering measurable health and gender co-benefits. FG Capital provides comprehensive structuring, financing, and market-access solutions to expand clean-cooking programmes and monetise the resulting credits.
Programme Scope
• Improved Biomass Stoves:
Forced-draft and high-thermal-efficiency designs using sustainably harvested fuel.
• Liquefied Petroleum Gas (LPG) Transitions:
Creditable displacement of charcoal and firewood where infrastructure allows.
• Ethanol & Biogas Systems:
Household digesters and micro-distilleries supplying clean combustion fuel.
• After-Sales Support:
Maintenance networks ensuring sustained efficiency and adoption.
Advisory Framework
1 | Baseline & Additionality Assessment
• Household fuel-consumption surveys and kitchen-performance tests.
• Alignment with methodologies such as Verra AMS-II.G or Gold Standard TPDDTEC.
2 | Financial Structuring
• Results-based finance, revolving distributor credit lines, and working-capital facilities for inventory.
• Advance credit purchase agreements underpinning distributor cash-flow.
3 | Implementation Oversight
• Supply-chain diligence, quality-assurance protocols, and user-training campaigns.
• Digital tracking of serial-numbered stoves and geotagged installations.
4 | Monitoring, Reporting & Verification
• Periodic usage surveys, sensor-based temperature logging, and annual third-party audits.
5 | Credit Monetisation
• Multi-year offtake contracts with investment-grade corporates.
• Secondary-market support once credits are issued.
Indicative Financial Parameters
| Metric | Typical Range |
|---|---|
| Capital Cost per Stove (USD) | 15 – 40 |
| Annual Emission Reductions (tCO 2 e per stove) | 1.5 – 3.0 |
| Forward Credit Price (Year 0, USD / t) | 7 – 11 |
| Target Equity IRR | 14 % – 18 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Results-Based Grant / Concessional Loan | Delivery milestones verified by third party | N/A – 2 % | Development-finance institutions |
| Senior Inventory Facility | Pledge over stove stock and receivables | SOFR + 300 – 375 bps | Impact-lending platforms |
| Advance Credit Purchase | Delivery contract; make-good provisions | Fixed price USD 9 / t | Corporate sustainability desks |
| Programme Sponsor Equity | Residual cash flow | Target IRR 14 % – 18 % | Cookstove manufacturers, distributors |
Stakeholder Benefits
- Households: Lower fuel expenditure, reduced indoor-air pollution, and time savings on fuel collection.
- Local Communities: Deforestation pressure relief and employment in distribution networks.
- Credit Purchasers: Access to avoidance credits with strong social-impact credentials.
- Investors: Diversified cash flows backed by verifiable emissions data and donor support.
Engagement
Institutions considering a clean-cooking initiative are invited to engage with our advisory team. We would welcome a discussion regarding feasibility assessments, financing structures, and long-term programme governance.
This document is provided for informational purposes only. It does not constitute investment advice or an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is recommended before acting on any information contained herein.
