One million refugees to benefit from sh8.5b clean cooking, reforestation project

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The United Nations Refugee Agency-UNHCR, has launched a shillings 8.55 billion carbon finance initiative that is set to benefit one million refugees with clean cooking solutions and drive massive reforestation in degraded areas.

The groundbreaking climate initiative aims to link refugee protection with carbon finance to transform environmental restoration and energy access across Uganda and Rwanda.

Uganda is set to receive the largest share of the $2.25 million (about shillings 8.55 billion) fund earmarked for the initiative, taking $1.5 million (approximately shillings 5.7 billion), while Rwanda will receive $750,000 (about shillings 2.85 billion).

Partners in the initiative, including BB Energy, Hamerkop, Fairventures, Farm Africa, Tree Aid and ICRAF, the Refugee Environmental Protection Fund are calling it a major shift in how displacement crises are funded and managed.

The United Nations High Commissioner for Refugees (UNHCR) said the initiative will initially target refugee-hosting areas, including Bidibidi and Kyangwali settlements in Uganda, as well as Kigeme camp in Rwanda, with a pilot phase expected to reach more than 50,000 families.

According to UNHCR, the programme will also restore over 7,000 hectares of degraded land through agroforestry, assisted natural regeneration and community-led tree planting.

However, over the next decade, the refugee agency said its ambitions are far more expansive, aiming to restore more than 100,000 hectares, extend clean cooking access to over one million refugees and host community members, and cut carbon emissions by up to six million tonnes annually.

Voluntary carbon markets

At the heart of the programme is an innovative financing model that leverages voluntary carbon markets to attract private investment into refugee settings, a space traditionally dependent on donor funding.

Siddhartha Sinha, the head of innovative financing at UNHCR, described the initiative as a turning point.

“This marks a structural shift in how we finance environmental and protection responses in displacement settings,” Sinha said.

Sinha added that by mobilising high-integrity carbon markets for clean energy and ecosystem restoration, they are demonstrating that refugee-hosting areas can attract private climate capital while delivering measurable protection, livelihood and resilience outcomes.

“The model is designed to generate verified voluntary carbon credits from 2027 onward, creating a sustainable revenue stream to fund long-term environmental and social interventions,” he said.

Implementation

Implementation will be delivered through two specialised consortia. One, led by BB Energy and supported by Hamerkop and Fairventures, will spearhead clean cooking solutions in Bidibidi and manage the same component in Kigeme camp.

The other consortium, comprising Farm Africa, Tree Aid and ICRAF, will focus on reforestation and ecosystem restoration in Kyangwali and co-lead activities in Rwanda.

Mohamed Bassatne, the chief executive officer of BB Energy, said the initiative demonstrates how private sector innovation can drive humanitarian impact.

“This pioneering partnership harnesses the power of carbon markets and private sector businesses to support UNHCR’s mission to provide protection and assistance to refugees,” Bassatne said.

He added that the 10-year commitment to forest restoration and clean cooking will restore degraded habitats, improve health and well-being and advance the fight against climate change.

At a time when public funding for such initiatives is increasingly constrained, he said BB Energy is proud of its role in this highly innovative scheme, and further noted that the clean cooking component is expected to significantly reduce reliance on firewood, which is a major driver of deforestation in refugee-hosting areas.

This, he said, will also improve household air quality and reduce health risks associated with indoor pollution in the long run.

Meanwhile, he said restoration efforts will prioritise biodiversity and long-term carbon sequestration, with strong involvement from local communities.

Samuel Arop, the Uganda country representative at Farm Africa, emphasised the importance of grassroots participation. “Community-led restoration is central to long-term success. Together with Tree Aid and ICRAF, we will work closely with refugees and host communities to restore degraded landscapes and ensure that environmental gains translate into tangible local benefits,” Arop said.

In Kigeme camp, the two consortia will operate under a joint governance framework, integrating clean cooking and reforestation interventions to maximise environmental and social outcomes.

Green Jobs

The programme is also expected to create green jobs, ease pressure on surrounding woodlands, and establish benefit-sharing mechanisms for both refugees and host communities, a critical factor in reducing tensions over natural resources.

To ensure credibility, UNHCR said the initiative will adopt internationally recognised Monitoring, Reporting and Verification systems aligned with voluntary carbon standards, alongside independent third-party validation.

Additionally, the refugee agency, Uganda and Rwanda pilots are expected to serve as a blueprint for expansion into other displacement-affected regions globally, as stakeholders look to replicate a model that merges climate action with humanitarian response.