New Report: Clean Cooking Sector Reaches Inflection Point Amid Record Growth and Rising Carbon Revenues
Washington, D.C., 25 July 2025 – The Clean Cooking Alliance (CCA) has released its latest Clean Cooking Industry Snapshot, revealing that the sector is undergoing pivotal financial changes. Among the enterprises tracked by CCA, revenues have grown eightfold since 2018 and capital raised has grown fivefold, driven by a surge in debt financing. The report highlights the critical role of carbon markets in fueling growth, while also highlighting the potential structural imbalances that could undermine future progress.
Drawing on self-reported data from for-profit enterprises operating across Africa, Asia, and Latin America, as well as carbon market data from MSCI and AlliedOffsets, the report analyzes trends in capital flows, revenue performance, and carbon finance for 2023. Among its key findings:
- Total capital investment in clean cooking reached $218 million in 2023 — a fivefold increase since 2018 — driven by a 238% surge in debt financing. However, equity investment fell to a five-year low, and grant funding remained flat outside of one large award.
- Enterprise revenues reached $166.7 million, up 79% from 2022. Sales of products and fuels accounted for 61% of total revenue, with carbon credit income contributing 35%. Despite strong growth, grants and results-based financing made up just 4%.
- Carbon-linked business models are accelerating, with companies active in carbon markets growing their revenues from product and fuel sales by nearly 400% since 2021. In contrast, enterprises without carbon programs experienced declining sales.
- The carbon market is evolving, with integrity initiatives like the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles, the forthcoming Clean Cooking Code of Conduct, as well as the CLEAR Methodology, raising standards. Issuances grew by 168% in 2023, outpacing retirements and adding to a growing oversupply that has contributed to a near-60% drop in average carbon credit prices since early 2022.
In parallel with these advances, the report identifies important challenges. The dominance of debt financing raises questions about the sector’s long-term sustainability, especially for smaller or earlier-stage enterprises that lack access to equity and grant capital. Carbon revenues, while transformative, offer delayed feedback and are increasingly concentrated among a few large players.
CCA is actively working to address these challenges by exploring aggregation platforms that could support smaller companies’ participation in carbon markets, reduce transaction costs, and broaden investor confidence.
“This latest Industry Snapshot shows just how far the clean cooking sector has come,” said CCA Senior Director of Innovative Finance, Feisal Hussain. “Enterprises are raising more capital, reaching more customers, and delivering greater impact than ever before. With the right support, we can build on this momentum to drive inclusive, resilient growth across the entire industry.”
The full report is available here.
Previous editions of the Industry Snapshot are available at: https://cleancooking.org/industry-snapshot/
