Standard Chartered has arranged a $200 million outcome bond aimed at expanding access to clean cooking in Ghana, marking the first time coupon returns have been tied to carbon credits generated under Article 6.2 of the Paris Agreement.
The instrument, issued by the World Bank’s International Bank for Reconstruction and Development (IBRD), is designed to channel private capital into projects that cut emissions while addressing public health and social challenges linked to traditional cooking fuels.
Proceeds from the bond will unlock $30.5 million to support the rollout of 415,000 clean cooking devices across Ghana between 2025 and 2028.
UpEnergy, which develops carbon projects across Africa, will distribute electric cookstoves to homes with grid access and improved biomass cookstoves to households still reliant on wood and charcoal.
The switch is expected to reduce emissions, ease pressure on household budgets, and curb hazardous indoor air pollution, which contributes to an estimated 28,000 premature deaths annually in the country.
Emissions reductions from the project will be verified and converted into Internationally Transferred Mitigation Outcomes, or ITMOs, under Article 6.2.
The KliK Foundation will purchase the credits, which—after Switzerland’s Overall Mitigation in Global Emissions deduction—will be transferred to its account in the Swiss Emissions Trading Registry.
Then Switzerland will retire the credits toward its nationally determined contributions (NDCs) under the Paris Agreement.
Henrik Raber, Standard Chartered’s global head of global banking, said the transaction reflects “the power of our global network” and the bank’s structuring and carbon market expertise.
In turn, World Bank vice president and treasurer Jorge Familiar noted the deal “demonstrates strong investor demand for impact” by linking returns to verified outcomes.
The six-year bond is principal-protected and combines a fixed IBRD coupon with a variable component tied to ITMO generation and sale.
Funding will be released in four milestone-based tranches to ensure oversight and transparency.
According to Standard Chartered, this instrument provides a scalable model for mobilizing private capital into climate-aligned development, as well as health and social outcomes.
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