The Challenge: Climate Action Meets Humanitarian Need
In Bangladesh, a critical environmental and humanitarian crisis unfolds daily. With 81% of the population—approximately 130 million people—relying on solid fuels for cooking and 39.5% specifically dependent on wood, people face severe environmental degradation and public health challenges. This situation is particularly acute in Rohingya refugee communities, where limited resources and harsh living conditions exacerbate deforestation and health risks from indoor air pollution and open-air fires.

A Community-Driven Solution
Against this backdrop, Klima Foundation has taken decisive action. Through a community governance vote that achieved 95% approval, the organization has allocated $250,000 to finance the Improved Cookstoves for Rohingya Refugees project. This initiative aims to revolutionize cooking practices by replacing traditional wood-fuel cookstoves and three-stone fires with high-efficiency, biomass-fired Improved Cooking Stoves, known locally as 'Chula.'

The Technology: Engineering for Impact
The improved cookstove technology represents a significant advancement in biomass cooking solutions. Each unit features:
An insulated metallic combustion chamber enclosed in stainless steel,
Optimized chamber dimensions for maximum efficiency,
Rock-wool layer insulation between outer and inner casings,
Enhanced airflow system with an integrated grate.
These engineering improvements deliver impressive results: thermal efficiency exceeding 20% and fuel consumption reduced by over 50%. The technology addresses two critical issues: the reduction of wood collection from surrounding forests and the decrease in open-air fires used for cooking.

Carbon Market Integration: Measuring and Verifying Impact
Carbon finance has traditionally focused on large-scale, industrial solutions, but projects like Improved Cookstoves for Rohingya Refugees in Bangladesh signal a shift to impactful community-scale environmental projects coming to market. The project aligns with the Gold Standard "Technologies and Practices to Displace Decentralized Thermal Energy Consumption" (TPDDTEC) methodology, enabling precise measurement of environmental benefits. The initial funding secures forward delivery of 31,250 carbon credits, with each credit representing one metric ton of CO2 equivalent emissions reduced. This reduction is achieved through:
Decreased non-renewable biomass consumption,
Optimized combustion processes reducing CO2, methane, and black carbon emissions,
Verified monitoring and reporting systems.
Implementation and Impact
The project has already demonstrated a significant scale, with approximately 100,000Â cookstoves distributed throughout 2022 and 2023. The impact extends across multiple dimensions, including social and environmental benefits.

Beyond GHG reductions, this project contributes to Sustainable Development Goals (SDGs) such as poverty reduction, gender equality, clean energy, economic growth, sustainable cities and communities, and climate action. Women, often responsible for fuel collection and cooking, benefit from the time and effort saved, enabling them to participate in education and economic activities. At the same time, job opportunities in the production and maintenance of cookstoves support community resilience.

The Power of Blockchain in Climate Action
This project marks an important step for Klima Foundation as it deepens its presence in the carbon market and demonstrates its capacity to channel reserves toward impactful climate initiatives. By strategically supporting impactful projects like Improved Cookstoves for Rohingya Refugees, Klima Foundation reinforces its commitment to scaling climate action and secures future Total Value Locked (TVL) for the $KLIMA index. Klima Foundation leverages blockchain technology to bring transparency and efficiency to carbon project financing. Through partnerships with platforms like Carbonmark, the project enables:
Real-time carbon credit tracking and trading,
Programmatic offset integrations,
Innovative financing mechanisms,
Enhanced market accessibility.
Carbon credits from Improved Cookstoves for Rohingya Refugees are available on Carbonmark marketplace.Â
A Model for Future Climate Solutions
Andrew Bonneau of Klima Foundation emphasizes: "The carbon markets are becoming an increasingly important mechanism for directing capital to projects across the globe, and increased community involvement can help raise the scrutiny, scale, and profile of project financing. The Improved Cookstoves for Rohingya Refugees in Bangladesh project, with its strong environmental and social co-benefits, now serves as a blueprint for future decentralized carbon project initiatives."
Looking Forward
This initiative demonstrates how decentralized climate finance can effectively address both environmental and humanitarian challenges. By combining community governance, blockchain technology, and verified carbon reduction methodologies, Klima Foundation is creating a replicable model for scaling climate action.
The success of the Improved Cookstoves project provides a clear pathway for future initiatives that seek to leverage carbon markets for social impact. Through continued innovation in sustainable decentralized finance (sDeFi) and community-driven governance, Klima Foundation remains committed to scaling climate solutions that deliver measurable environmental benefits while supporting vulnerable communities.
Together, we're building a sustainable, climate-resilient future—one cookstove at a time.