Key Carbon And Cartesian Enter Into $18M Deal For Clean Cookstoves Development

Key Carbon And Cartesian Enter Into $18M Deal For Clean Cookstoves Development - Carbon Herald

A major financial transaction is unlocking access to clean cookstoves across vulnerable communities. Key Carbon Ltd. – a permanent capital vehicle facilitating financing of high-integrity carbon credit streams and royalties, and Cartesian Sustainable Finance, LLC – a global private equity firm, announced on March 21st an $18 million transaction focused on funding the production and distribution of low-emission, affordable cookstoves across Africa via the generation of carbon credits. The deal comprises new funding through Key Carbon as well as the partial sale of an earlier Key Carbon investment.

“Key Carbon continues to attract institutional investors and corporations into the VCM through creating appealing investable products. The VCM has enormous potential to accelerate climate and biodiversity action and benefit some of the world’s most vulnerable communities, but requires more global asset managers and corporations to see carbon credits as an investable asset class. This latest transaction with Cartesian further endorses Key Carbon as a preferred route for investors to finance impactful decarbonization projects and access high quality carbon credits,” commented Luke Leslie, Co-Founder and CEO of Key Carbon.

Relevant: “We Work With Project Developers So They Can Attract Large-Scale Funding From Pension Funds,” Luke Leslie, CEO Carbon Neutral Royalty

Founded in 2021 as Carbon Neutral Royalty and rebranded as Key Carbon in 2023, the company is a permanent capital vehicle building a large, diversified portfolio of high-integrity carbon credit streams and royalties. It is a leading financier within the Voluntary Carbon Market, and one of the largest financiers of clean cookstoves globally. It partners with BURN Manufacturing (BURN), the industry-leading cookstove manufacturer and developer to help households in Africa and other developing countries reduce hazardous emissions from cooking.

Key Carbon creates strategic partnerships with high-quality project developers and provides them with direct financing and operational support. Investors acquire a stream of carbon credits and benefit from Key Carbon’s filtering of developers and projects within the VCM, rigorous diligence, and financing agreements with its strategic partners. Key Carbon also sells high-integrity carbon credits directly to end buyers and has a roster of blue-chip customers.

CSF, an affiliate of global private equity firm Cartesian Capital Group, provides capital to a wide range of innovative projects that are dedicated to long-term economic sustainability, including decarbonization and mitigation of the effects of climate change.

BURN produces some of the world’s most thermally efficient affordable cookstoves, a result of the company’s extensive R&D investment, and has recently launched one of the first large-scale electric cooking decarbonization programmes in Africa. BURN has established a technological lead in the sector which, when combined with its sophisticated manufacturing, distribution, and monitoring capabilities, allows BURN to operate high-impact carbon projects with integrity.

“BURN stoves improve our world in a myriad of ways: improving the quality of health, of life, and of our global environment. We are delighted to partner with Key Carbon to support BURN’s continued expansion across Africa,” said Peter Yu, Founder and Managing Partner of Cartesian.

Relevant: Carbon Neutral Royalty Raises Over $18M For Climate Projects

“Since 2014, BURN’s industry leading electric and biomass stoves have transformed the lives of over 24 million people. Now with funding from this transaction, we will bring our revolutionary appliances to an additional 1.5 million people. These products will avoid over 12 million tonnes of carbon emissions over the next 7 years. Last year, Key Carbon provided us with $25 million in financing to allow us to provide affordable cookstoves to customers and we are delighted to expand our partnership with Key Carbon, with the ultimate goal of raising $1 billion of carbon financing so that we can bring a clean cooking appliance to every household on the continent,” also commented Peter Scott, Founder and CEO of BURN.

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