Standard Chartered has announced the closing of a USD200 million outcome bond aimed at supporting clean cooking projects in Ghana. The bond’s returns are linked to carbon credits generated under Article 6.2 of the Paris Agreement, marking the first time an outcome bond’s coupon returns are tied to this mechanism. The World Bank (International Bank for Reconstruction and Development, IBRD) issued the bond, with Standard Chartered acting as the sole Lead Manager and Bookrunner.
The financing will enable the deployment of 415,000 cleaner cooking devices in Ghana between 2025 and 2028. These devices will be distributed by UpEnergy, a carbon project developer operating across Africa. The initiative targets households with both grid access and those still reliant on biomass for daily cooking needs by providing Electric Cookstoves (EC) and Improved Cookstoves (ICS), respectively.
According to Standard Chartered, about 2.1 billion people worldwide use traditional solid biomass fuels like wood and charcoal for household cooking, leading to significant household air pollution and environmental degradation. In Ghana, approximately 75 percent of the population relies on these fuels for cooking.
Henrik Raber, Global Head, Global Banking at Standard Chartered, said: “We’re proud to partner with the World Bank and UpEnergy to deliver the first Clean Cooking Outcome Bond. The bond underscores the power of our global network, alongside our capital markets, structuring, carbon and commodities markets expertise. The USD200 million size for the outcome bond and diverse investor base from four different regions across our footprint is testament to the success of this innovative transaction.”
Jorge Familiar, World Bank Vice President and Treasurer, World Bank Group, stated: “This outcome bond demonstrates strong investor demand for impact and leverages private capital directly into solutions that improve lives. By linking returns to verified project outcomes, we help mobilise finance at scale, and channel resources where they deliver immediate impact— clean cooking solutions for families in Ghana.”
Marisa Drew, Chief Sustainability Officer at Standard Chartered added: “Scaling private capital through Article 6.2 is critical across our markets—and especially Africa—because it transforms climate ambition into investable opportunity, unlocking the finance needed to build resilient and thriving communities and accelerate access to clean energy. We’re pleased to leverage our carbon market expertise to help deliver the full potential of the carbon market and support the long-term adoption of clean cooking technologies.”
Funding will be disbursed in four tranches linked to project milestones in order to ensure transparency throughout implementation. The emission reductions achieved by replacing inefficient stoves will be measured and verified as Internationally Transferred Mitigation Outcomes (ITMOs). These credits will be purchased by Switzerland’s KliK Foundation as part of its obligations under Swiss climate legislation.
Mitch Sauers, CEO of UpEnergy said: “This milestone demonstrates how outcome-based finance and Article 6 cooperation can accelerate and scale access to modern cooking that delivers measurable climate impact, better indoor air quality, and creates local jobs and economic activity. We value the partnership shown by the Governments of Ghana and Switzerland and the World Bank Group and appreciate Standard Chartered’s role in structuring the transaction and bringing it to market.”
The six-year Clean Cooking Outcome Bond offers full principal protection from IBRD with a fixed coupon component as well as a variable coupon linked to ITMO generation. This approach aims to attract private capital into projects delivering both environmental benefits through emissions reduction as well as social benefits such as improved health outcomes by reducing exposure to harmful household air pollution.