83265 Accelerating Household Access to Clean Cooking and Heating November 2013 E A P C L E A N S T O V E I N I T I AT I V E K N O W L E D G E E X C H A N G E S E R I E S Pervasive Household Use of Solid Fuels CH INA China’s achievements in reducing poverty and raising household living standards are impressive, particularly in urban areas where modern fuels—electricity and gas— Key Messages now account for nearly two-thirds of total household cooking energy. Yet more than half of the country’s residents, mainly in poorer rural areas, continue to rely on solid fuels for cooking and heating using traditional stoves. During the 1980s and 1990s, • Today more than half of China’s population China’s National Improved Stoves Program succeeded in distributing some 180 relies on solid fuels (biomass and coal) for million improved stoves. The private sector, which assumed responsibility for stove cooking and heating. Each year, household commercialization after the program ended, was producing about 2.6 million clean air pollution linked to solid fuel combustion coal heating stoves, 20 million honeycomb coal cooking stoves, and 1.6 million clean accounts for more than a million premature biomass stoves as of 2011. But stove development and production have not kept pace deaths in China. Many residents, mainly in with the multidimensional challenge of promoting clean stoves. At the current rate, it rural areas, are likely to continue using solid will take decades for clean stoves to reach all households. fuels in the near future. • Scaled-up access to clean-burning, fuel-effi- Mitigating the Health Risks cient stoves can mitigate the health risks to According to the Global Burden of Disease Study 2010, household air pollution (HAP) linked to the burning of solid fuels accounts for more than a million premature deaths households. It is also consistent with China’s each year in China. Although switching to such modern fuels as LPG, natural gas, strategy to promote energy conservation, emis- and electricity would be the most effective way to reduce HAP, these fuels are often sions reduction, and green energy in villages. unaffordable or unavailable to most poorer rural households. The International Energy • Now there is an opportunity to build on ear- Agency estimates that some 280 million people in China will still rely on solid fuels lier efforts to accelerate household access to for cooking and heating in 2030. Thus, in areas where solid fuel cooking and heating clean cooking and heating. In the 1980s and persists, the most effective way to mitigate HAP exposure is to promote better stoves that burn solid fuels in a cleaner, more efficient way. 1990s, China had the world’s most successful national stoves program, but recent policies and programs have tended to be fragmented. Household Energy Consumption and Demand Drivers Across China’s vast rural landscape, 90 percent of household energy use is for cooking • An integrated strategy is proposed. Key ele- and heating. Eighty-six percent of households—located mainly in Central and East ments are strengthening institutional capac- China—use solid fuels as their main cooking energy (map 1). In 22 provinces, reliance ity and building an enabling environment, on solid fuels for household cooking exceeds 90 percent. Biomass (wood and straw) developing a thriving market and household comprises more than three-fifths of rural household energy for cooking, while coal demand, and adopting a results-based financ- accounts for one-quarter. In Central China, coal accounts for nearly two-fifths of ing approach. household cooking energy, surpassed only by biomass. Less reliance on solid fuels for cooking is found in only a few more economically advanced eastern provinces. In northern-latitude regions, coal is the predominant fuel for rural households that lack central or electric heating, except in Southwest China, where wood is mainly used. The interdependent factors of fuel availability, accessibility, affordability, and cultural acceptability are the major drivers of households’ selection of energy sources and stove types for cooking and heating. In any specific area, fuel availability is a primary consideration. Also, households must select their fuels from those they can access. In THE WORLD BANK certain areas, they may be prevented from collecting available fuelwood or agricultural residue owing to natural physical limitations (e.g., difficult terrain) or environmental policies (e.g., nature reserve). Fuel affordability depends on both household budgets Photo credit: Xiaofu Chen and fuel and stove costs. Finally, fuels must be culturally acceptable, meaning they must Map 1. Distribution of Rural Households Using Solid Fuels as Primary Cooking Energy Biomass Coal Source: National Bureau of Statistics 2008. meet households’ preferences for food taste and fit local cooking solar cookers—offers valuable lessons that can inform the habits, cultural traditions, and climatic conditions. design and implementation of future programs. It is critical that stove promotion strategies be based on local conditions, Stoves fueled by biomass and coal exhibit the greatest demand, including fuel availability, climatic conditions, income level, with coal operating under a commercial market. There is also and lifestyle. To ensure sustainability, a market-based approach smaller, location-specific demand for biogas stoves and solar to stove promotion should be explored. Creating an enabling cookers, both of which depend on fuel availability. Poorer environment for market development requires product rural households, whose options for using advanced fuels and standardization and quality control. Sustainable development stoves are quite limited, use mainly biomass stoves. Meeting also requires strong government commitment, with carefully the household energy needs of this group is vital to achieving designed subsidy schemes. Finally, stove programs, along universal access to modern energy services. with awareness-building campaigns, can be integrated into broader programs (e.g., energy efficiency and conservation, Lessons from Key Market Segments environmental protection, emissions reduction, poverty alleviation, and health improvement). China has one of the world’s largest biomass stove industries, yet it depends heavily on subsidies, with little commercialization. Problems remain in such areas as product quality, technology, and Policy Achievements and Challenges standardization. China’s large commercial market for coal stoves Since the early 1980s, China’s government has been involved has developed rapidly owing to substantial market potential. at all levels in issuing policies and implementing programs But product quality is patchy, performance varies considerably, related to clean stoves. A review of policies and regulations and household demand can be widely dispersed. Development issued in 2011 confirms that laws are in place at the national of the household biogas industry has been impressive; but level to promote and upgrade improved biomass stoves for rural farming households’ enthusiasm for building and using the households, along with biogas and other clean rural energy. systems has waned in recent years. The reasons include lack of These regulations have started to emphasize the benefits of a service system, decreased individual cultivation of livestock, using clean stoves, including improved indoor air quality, lower large upfront investment and insufficient subsidies, and slow carbon emissions, and better quality of life, along with the fuel technological progress. China has made great progress in solar savings benefits recognized in the past. cooker research and promotion and now has the world’s largest stock of solar cookers. Yet the industry’s progress in commercial At the same time, challenges that impede the potential for production and sales, including after-sales service, relies heavily larger-scale program success and longer-term sustainability on government procurement and subsidies. must be addressed. Systematic programs with a firm policy commitment are needed to achieve sustainable development Successful experience from past stove dissemination programs of the stove market. Because clean cooking and heating across these four market segments—biomass, coal, biogas, and solutions encompass cross-cutting issues—energy access, 2 C H I NA : Accelerating Household Access to Clean Cooking and Heating Figure 1. Overall Transformation Strategy for Scaling Up Clean Cooking and Heating in China How to scale up clean and efficient stoves • Establishing/strengthening institutional focal point, cross-sector coordination mechanism, and platform Strengthening institutions and for communication and cooperation. building a more enabling environment • Establishing/strengthening stoves standards, testing, and certification system. • Developing the M&E systems. Supporting market and business • Providing financial incentives for delivering clean cooking/heating solutions to households. development on the supply side • Supporting market research and R&D of better stoves and fuel-processing technologies. • Promoting household awareness-raising through broad-based public campaigns. Stimulating household demand for • Integrating public-health methods into awareness-raising campaigns. clean and efficient stoves • Engaging communities and civil society in better understanding, motivating consumers, and providing stove suppliers user feedback. Source: Authors. energy efficiency, renewable energy, rural development, of Health, National Energy Administration, State Forestry biomass utilization, and public health—stove projects should be Administration, and other relevant ministries and commissions. designed and implemented as an integrated program to achieve The role of the China Association of Rural Energy Industry multiple benefits across sectors. Flexible subsidy schemes that (CAREI), also known as the China Alliance for Clean Stoves incorporate monitoring and evaluation (M&E) are needed to (CACS), should be expanded as a platform for communication, directly link program results to subsidy disbursements. Public- learning, and cooperation, including the bridging of public and awareness campaigns centered on the benefits of clean stoves private sectors. Creating an enabling policy and regulatory must be strengthened to catalyze behavioral changes that environment requires establishing and strengthening sound can spur demand for better products. And further research is stove standards and testing protocols, testing centers, and a needed on the supply chain, stove market segments, and stove certification system. Also, a systematic approach is needed for technology. project planning, assessment, implementation, and M&E. Policy Recommendations Market Development and Demand China has taken proactive steps to overcome the fragmented Innovative subsidy schemes are needed to ensure delivery nature of government-supported programs implemented over of clean cooking and heating solutions in poorer rural areas the past decade, having joined the Global Alliance for Clean where the stove business is not profitable and may not be fully Cookstoves (GACC) and integrated clean stoves promotion commercialized. Market research is required to better design into its Twelfth Five-Year Plan. Now is an opportune time to government-supported programs and help stove suppliers build on these efforts to develop a comprehensive intervention adjust their products. Since China has large and diverse strategy to accelerate access to clean cooking and heating demand for various stoves and a high research and development solutions. The China Clean Stove Initiative (CSI), one of four (R&D) capacity, an international clean stoves research center country-specific programs under the East Asia and Pacific should be established to provide a platform for research and CSI (box 1), proposes an integrated strategy, focused on (i) innovation, as well as knowledge exchange with international strengthening institutional capacity and creating and enabling experts. Propelling growth in market demand requires raising policy and regulatory environment for scaling up access to households’ awareness of the health risks of HAP and the advanced stoves, (ii) supporting supply-side market and business benefits of clean stoves. The clean stove delivery mechanism development, and (iii) stimulating household demand for clean should also include user training and after-sales maintenance and efficient stoves (figure 1). service. Concurrently, communities and civil society should be engaged in broad outreach activities that provide stove suppliers It is recommended that the Ministry of Agriculture (MOA), a user feedback. long-time supporter of stoves promotion, continue in its role as institutional champion and focal point. It is also recommended Innovative Financing Approach that the National Development and Reform Committee The Results-Based Financing (RBF) proposed by the China (NDRC) establish and co-chair with the MOA a national clean CSI, unlike public procurement, disburses public resources stoves development steering committee comprising the Ministry against demonstrated, independently verified outputs or of Finance, Ministry of Science and Technology, Ministry outcomes instead of project inputs. The conceptual framework CHINA: Accelerating Household Access to Clean Cooking and Heating 3 Figure 2. RBF Framework with Three Building Blocks and Two Supporting Pillars Results-based incentives • Establish clean stove standards/rating • Number of stoves delivered system • Level of subsidies is linked to stove • Number of stoves used performance • Establish testing and certification • Actual performance of stoves used protocols • Disbursement of subsidies is linked to monitoring and verification of results • Establish testing centers Monitoring and Defined clean stoves verification system Institutional strengthening Awareness-raising & capacity building campaign Source: Authors. for using RBF in programs to promote clean stoves could the stove standards, testing, and certification system; (ii) include three key building blocks—(i) defined clean stoves, (ii) strengthening institutions and building the capacity of key results-based incentives, and (iii) a monitoring and verification market players; (iii) supporting pilots; and (iv) supporting (M&V) system—supported by two pillars—(i) institutional preparation of China’s second national clean stoves program and strengthening and capacity building and (ii) awareness-raising provincial activities. Improving stove standards and testing will campaigns (figure 2). The government plays a facilitating role, include strengthening coordination with the GACC, building providing policy support and financial incentives to motivate a regionally recognized stove testing center, and developing market development, while the private sector responds to the compatibility between China’s clean stove standards and the incentives and delivers the results. Stove suppliers can innovate international framework. Institutional strengthening will focus in designing, producing, and selling defined clean stoves eligible on the cross-sector coordination mechanism and platform for for targeted incentives. This flexibility is vital to market communication, learning, and cooperation. The RBF approach development since stoves must fit well with local cooking will be piloted in areas identified as representative and scalable. practices, affordability, resource availability, and after-sales service. Finally, the CSI will work closely with the MOA to support preparation of China’s second national clean stoves program and Next Steps provincial rural energy projects that target increased access to clean cooking and heating solutions. The next phase of the China CSI will focus on (i) improving Box 1. China Clean Stove Initiative In collaboration with China’s Ministry of Agriculture, Department of Science, Technology, and Education, the World Bank launched the China Clean Stove Initiative (CSI) in early 2012. The aim is to accelerate China’s access to clean cooking and heating solutions through capacity building, policy development, and support of selected government action plans. The China CSI comprises four program phases: (i) initial stocktaking and development of the proposed strategy; (ii) institutional strengthening, capacity building, and piloting of the strategy; (iii) scaled-up program implementation; and (iv) program evaluation and dissemination of lessons learned. Phase I activities have centered on stocktaking review and stakeholder consultations. The stocktaking exercise included in-depth assessments of four market segments (biomass, coal, biogas, and solar cooker), review of the sector’s policy and institutional framework, and lessons from national and provincial stove promotion programs. Data collection for the phase I study included the first-ever large- scale survey of the biomass stove supply chain. Stakeholder consultations included two national workshops held in 2012; these brought together representatives of central and provincial governments, nongovernmental organizations, universities, and the private sector. In addition, detailed case studies were prepared on the four market segments. This note summarizes the 2013 report, China: Accelerating Household Access to Clean Cooking and Heating, published by the World Bank’s Asia Sustainable and Alternative Energy Program (ASTAE). The findings, interpretations, and conclusions expressed in this summary note are those of the authors and do not necessarily reflect the views of the Executive Directors of the World Bank, the Australian Government or ASTAE.