CYNK registers landmark $25 (VER) forward trade with Ghana-based e-cooking credits and executes multiple carbon derivatives options trades on chain.

Nairobi, 29 November 2023. CYNK, Africa’s first verifiable emissions reduction platform, today announced a landmark trade with BURN Manufacturing (BURN), Africa’s leading clean cookstove manufacturer, distributor, and carbon offset project developer; as well as a large options contracts trade for the Tamuwa Renewable Biomass Project, in Kisumu, Kenya. 

The Ghana-based BURN e-cooking project trade comprised of a package of 10,000 forward contracts at US$25.00 p.c. and 50,000 call options traded over-the-counter, with a strike price of US$25.00 and a maturity of 7 years, for voluntary emission reduction (VER) carbon offset credits generated by project. The call options provide investors the right to buy credits as and when they are issued, as well as benefit from potential rising prices in the asset. The trade was crossed via HydraX, a Singapore-regulated digital assets custodian and settled via blockchain using digital tokens and USDC stablecoins.

The forward contract proceeds will support the distribution of BURN’s industry-leading ECOATM Electric Induction Cookers to low-income households across Ghana. By incorporating Internet of Things (IoT) sensors to track usage within the ECOATM Induction Cooker’s product design, BURN's e-cooking projects achieve greater carbon offset integrity.  In addition to the VERs generated, the project is currently seeking authorization from the Government of Ghana’s Carbon Market Office to qualify for “corresponding adjustments”, meaning the project’s carbon offsets could also be eligible for future compliance market schemes.

Following the announcement at the Africa Climate Summit in early September of a 2.2 million forward carbon credits trade representing the largest launch trade to-date, a further cross of options contracts trade based on the Tamuwa Renewable Biomass Project has been registered. 

800,000 call options at a strike price of $10.00 were transacted on-chain over CYNK’s over-the-counter crossing platform CarbonPort.

Sudhu Arumugam, CEO of CYNK commented: 

“We are delighted to report these two trades which demonstrate the renewed trust in the high-quality segment of the voluntary carbon markets. Ahead of the much-anticipated COP28 in Dubai, these transactions highlight both the Global South’s ability and its will to develop and sustain climate projects that answer the pressing need to unlock the financing gap for climate action. CYNK is proud to structure and execute these innovative transactions.     .” 

Peter Scott, CEO of BURN said: 

“Creating transparency around pricing and trades for the next generation of clean cooking, metered e-cooking solutions was very important to us. Executing this innovative trade via CYNK allows BURN and other players in the market to better price and execute financing to enable more impact and reach in this sector”.

Nils Razmilovic, CEO of Tamuwa added: 

“We are delighted to report a subsequent derivatives trade to the 2.2 million forward carbon credits executed over CYNK’s over-the-counter platform in early September 2023. This shows the confidence given to Tamuwa as the largest biomass producer in East Africa, and the faith in the integrity of the credits transacted on CYNK’s marketplace.”

About CYNK

CYNK is an end-to-end platform that covers the lifecycle of a carbon or biodiversity credit. From origination, financing and secondary trading of carbon, CYNK is a one-stop platform for the origination of high-integrity credits with fully immutable audit trails of dMRV via blockchains. 

https://www.CYNK.io

About BURN

Founded in 2011, BURN was created to save forests by revolutionizing the cookstove sector. While traditional, inefficient cookstoves can bankrupt families, damage their health, and destroy forests, BURN’s best-in-class stoves can save families money on fuel, limit indoor air pollution and protect forests. BURN is now Africa’s leading clean cooking company and one of the only carbon project developers to cover the full carbon value chain, from project design and in-house monitoring to credit issuance. Headquartered in Kenya and with direct operations in 9 African countries, BURN employs 2,500 people across Africa. The company has made and distributed nearly 4.2 million clean cookstoves, transforming the lives of over 20 million people and preventing over 14 million tons of CO2 from entering the atmosphere. 

https://www.burnstoves.com 

About Tamuwa

Tamuwa is Kenya and East Africa’s largest renewable biomass producer, specializing in technology that upcycles agri-waste, which would be otherwise be left to decompose and emit methane, into high-quality renewable fuels for key industries across the region, helping to prevent deforestation. Tamuwa’s emissions credits are in the process of attaining Gold Standard certification and are traceable and tradable on CYNK. 

https://www.tamuwa.com/