Our founder and several of our current staff were part of the Carbon Finance team in the World Bank that pioneered the developing country trade in carbon emissions reductions in the 1990’s. Carbon finance was the first large scale example of a development finance program based on payment on delivery, or results based financing. We are now developing new forward markets for development impacts building on the core elements of carbon finance. These include improved health outcomes (as ADALYs) and a range of other quantifiable social and environmental attributes at the households and community level.
We design and manage results-based financing initiatives to accelerate market penetration of best-in-class energy technologies to improve clean energy access for the poor in the developing countries. In collaboration with the World Bank, we helped design stove market transformation programs and incentive structures in Haiti and Uganda.

The Cambodia Stove Auction

Recently, the Dutch NGO, SNV Netherlands Development Organisation and our Cambodian subsidiary, C-Quest Capital Cambodia Co. Ltd., signed an agreement for the administration of The Stove Auction trading platform in Cambodia. The concept is a first of its kind in the clean cookstove sector and is an extremely innovative way to accelerate market penetration for the cleanest burning most efficient biomass stoves using results based financing. The business model is highly replicable and scalable in other developing country markets stuck in a rut of unhealthy, environmentally destructive cooking practices.
The Stove Auction focuses on facilitating the vital connection between international suppliers of high performance stoves, and local distributors and retailers through the establishment of a trading platform. The trading platform aggregates a number of distributors and retailers to buy stoves, replacing the initial need and costs for stove suppliers to make these relationships with local partners themselves, thereby reducing their market entry risk. Suppliers of stoves consign them to The Stove Auction at their own cost (including shipping and import). The Stove Auction is then able to provide a guarantee price to them for their stoves sold at auction.  The difference between the guarantee price and the auction price, if less, is covered by a results based financing scheme funded by the Energising Development (EnDev) Programme.
The Stove Auction stimulates interest from local distributors and retailers by giving them opportunity to bid on small volumes of stoves at competitive prices in an auction format, and providing them a results based cash incentive for each stove they sell to a consumer that can be verified. Without such a scheme, the majority of local distributors and retailers would not be able to afford purchasing directly from international stove producers due to their lack of working capital as well as perceived high risk to invest large sums of money when the market for advanced biomass cookstoves is still quite new and uncertain to them.
For The Stove Auction, the market hypothesis is that local demand for these new products will increase over time leading to increased willingness of local distributors to pay higher prices at the auctions. Less and less results based financing incentives will be then be required to eventually reach a situation where the market is operating at full commercial prices.
For further information on The Stove Auction, please visit