The World Bank (International Bank for Reconstruction and Development, IBRD) has issued a USD 200 million outcome bond whose returns are linked to carbon credits generated under Article 6.2 of the Paris Agreement. Standard Chartered acted as the sole lead manager and bookrunner for the transaction.
The instrument is the first bond to tie coupon payments to Article 6.2-aligned credits. It is intended to channel private capital into emission-reduction projects that also deliver social and health benefits.
Financing clean cooking in Ghana
Proceeds from the bond—totalling USD 30.5 million—will fund the deployment of 415,000 cleaner cooking devices in Ghana between 2025 and 2028. The devices, distributed by UpEnergy, include electric cookstoves for households connected to the grid and improved biomass stoves for those reliant on firewood and charcoal.
The programme aims to reduce emissions associated with traditional cooking methods and to lower exposure to household air pollution, a major public-health concern in Ghana. The stoves are also expected to reduce household energy expenditure and the time spent collecting fuel.
Article 6.2 credits to be purchased by KliK Foundation
Emissions reductions from the project will be verified and converted into carbon credits known as Internationally Transferred Mitigation Outcomes (ITMOs). These will be issued under Article 6.2 and purchased by the KliK Foundation. After Switzerland’s mandatory Overall Mitigation in Global Emissions (OMGE) deduction, the ITMOs will be recorded in Switzerland’s emissions trading registry. They will contribute towards Switzerland’s nationally determined contribution under the Paris Agreement.
Structure of the bond
The six-year bond offers full principal protection from IBRD. It combines a fixed coupon from IBRD with a variable coupon linked to the volume of verified ITMOs generated and sold. Funding will be released in four milestone-based tranches. UpEnergy will oversee distribution and implementation.
Henrik Raber, Global Head of 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 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, commented: “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, noted: “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.”
Mitch Sauers, CEO of UpEnergy, added: “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.”
Globally, about 2.1 billion people continue to rely on solid biomass fuels such as wood and charcoal for cooking, contributing to household air pollution and environmental degradation. In Ghana, an estimated 75% of the population depends on such fuels.
Officials from Standard Chartered, the World Bank and UpEnergy noted that the transaction reflects growing investor interest in outcome-based finance and government-to-government cooperation under Article 6.2, although their remarks emphasised the broader policy context rather than promotional claims.
