RUIFENG RENEW plans to deploy approximately 340,000 improved clean stoves in Laos, expecting a total emission reduction of about 2.7 million tons of carbon dioxide equivalent over a ten-year period

According to the announcement from Ruifeng New Energy (00527), on October 31, 2025 (after trading hours), Carbon Dimension Technology Co., Ltd. (Carbon Dimension, a subsidiary jointly owned by the company and Shanghai Baocarbon New Energy Environmental Technology Co., Ltd.) signed a clean stove carbon credit project terms list with an independent third-party supplier. Accordingly, Carbon Dimension, as the leading investor, initiated a clean stove carbon credit project (the project) in collaboration with partners in Laos. The project plans to deploy approximately 340,000 improved clean stoves in rural and underdeveloped areas of Laos, benefiting about 170,000 households, with distribution expected to be completed between 2026 and 2027. The carbon credit generation cycle is approximately ten years, with a total expected reduction of about 2.7 million tons of carbon dioxide equivalent (CO2e) over the ten-year period.

This project is one of the flagship projects for clean energy transition and carbon reduction in Southeast Asia, aiming to reduce greenhouse gas emissions and health hazards from household wood burning by distributing efficient, low-emission improved stoves. The project aligns with the United Nations Sustainable Development Goals (SDG 3, 5, 7, 13) and will bring employment and manufacturing capacity building to the local area. The project will be implemented in Laos, covering 10 provinces and approximately 200 villages. Each household will receive 2 stoves and usage training, forming a closed-loop monitoring system.

The total investment for the project is approximately $8 million, with carbon credit revenue as the primary source of income. The improved stoves can achieve a reduction of about 2–3 tons of CO2e per household per year. The project will be registered through the Verra VM0050 methodology to obtain carbon credits (VCUs), which will be sold to the international voluntary carbon market or the compliance market for the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

According to data from the World Bank, International Energy Agency, and Clean Cooking Alliance, approximately 2.6 billion people worldwide still rely on traditional biomass fuels (wood, charcoal, agricultural residues, etc.) for cooking. This method of burning emits about 1 billion tons of carbon dioxide equivalent (tCO2e) annually, leading to severe air pollution and public health issues.

The Improved Cook Stoves (ICS) project is one of the important pathways for global emission reduction and health improvement and has been incorporated into the United Nations Sustainable Development Goals (SDG 3, 5, 7, 13). As of the end of 2024, there are over 400 carbon reduction projects related to clean stoves globally, mainly distributed in Southeast Asia, South Asia, and Africa. According to Verra registration data, the average annual reduction per household for ICS projects is 2–3 tons of CO2e, demonstrating quantifiable carbon credit generation potential. Given the current carbon price levels in the voluntary carbon market (VCM), clean stove projects have become a core allocation for institutional investors in the dual return areas of climate and social benefits.

Southeast Asia is one of the fastest-growing regions for the clean stove market globally. According to reports from the Asian Development Bank and World Resources Institute, there are over 300 million rural residents in Southeast Asia, with about half still using traditional stoves. Governments in various countries are promoting the adoption of clean stoves through clean energy funds and carbon trading mechanisms. Laos, as a landlocked country in the Indochinese Peninsula, has a rural population ratio as high as 65%, with a very high reliance on traditional wood burning The Department of Climate Change (DCC) of Laos launched the "Low Carbon Development Strategy" in 2024 and collaborated with the United Nations Development Programme (UNDP) to establish the framework for the International Transfer Mechanism (ITMO) 6.2.

The project has been approved by the DCC of Laos, covering 250,000 households, qualifying them to participate in international carbon trading and the CORSIA market, and providing policy certainty and a compliance basis for cross-border transactions. In addition, Laos maintains a high degree of political stability in the region, with the government adopting an open attitude towards foreign investment, offering tax incentives and fast-track approval processes for clean energy and emission reduction projects, creating a favorable environment for the long-term operation of the project.

The board believes that the terms of the term sheet are fair and reasonable, established on normal commercial terms, and in the overall interest of the company and its shareholders