78066 Pathways to Cleaner Household Cooking in Lao PDR May 2013 Key Messages Slow Transition to Modern Cooking Energy The Lao People’s Democratic Republic (PDR) has witnessed a steady rise in elec- • Today most households in Lao PDR still rely tricity service coverage over the past two decades, yet prospects for using modern on fuelwood—mainly firewood and char- fuels as alternative sources of household cooking energy remain limited. From 1995 to 2005, urban household use of electricity as the main source of cooking energy coal—as their main source of cooking energy, declined by 6.6 percent to just 3.8 percent, reflecting the rising retail electricity tariff highlighting the vital role that improved for cost recovery (NSC 2005). All liquefied petroleum gas (LPG) must be imported, and the distribution network is limited to major cities along the Thai and Vietnam stoves can play in mitigating the health risks borders. As a result, the price of LPG fuel is high relative to household income, lim- linked to household air pollution from bio- iting use to a small segment of financially better-off urban households. By contrast, firewood is abundant and can often be freely collected, suggesting that the switch to mass cooking smoke. modern forms of cooking energy may not be easily achieved. • Stocktaking activities under the Clean Stove Initiative indicate a technical potential for Commitment to Renewable Energy Development The 2011–25 roadmap of the Government of Lao PDR’s Renewable Energy improved stoves as high as 900,000 and Development Strategy identifies improved cookstoves as a specific area for promo- favorable conditions for promoting them, sug- tion and development (Lao PDR 2011). Given that biomass cooking fuels represent an estimated 70 percent of the country’s total energy consumption—with major gesting a high market potential among urban implications for human health, quality of life, and the global climate—the strat- and peri-urban households. egy calls for the development and market deployment of the most energy-efficient, culturally appropriate cookstoves. It also envisions promoting the scaled-up use of • Ensuring the ongoing availability of more biogas systems to further reduce the country’s heavy reliance on fuelwood, as well as and better stove choices at affordable mar- imported LPG, for household cooking (TABI 2011). ket prices that meet and maintain standards Clean Stove Initiative of technical specifications requires building The Clean Stove Initiative (CSI) for Lao PDR promotes clean, energy-effi- public-sector and supply-chain capacity and cient cooking solutions, contributing to achieving the goals of the government’s coordination among stakeholder institutions. Renewable Energy Development Strategy, including its related health concerns.1 Under phase one, initial stocktaking activities included a field survey, while devel- opment of the intervention strategy comprised stakeholder consultations and two consultation workshops. The CSI field survey, conducted in Vientiane capital and the provinces of Bolikhamsai, Khammouane, and Vientiane, consisted of (i) a household cooking energy survey conducted separately in peri-urban and rural areas and (ii) a market survey of biomass cookstoves and the supply chain. The household survey focused on demand for cooking fuels and cookstoves, including questions about the types of fuels and stoves used, cooking practices, and household members’ awareness of the 1. The CSI comprises four phases: (i) initial stocktaking review and market study, followed by development of the intervention strategy; (ii) strategy implementation; (iii) implementation of pilot programs; and (iv) impact evalua- Photo credit: Voravate Tuntivate, World Bank. tion and generation of lessons learned (World Bank 2011). Figure 1. Household Cooking Fuel Mix in Rural it in large fertilizer bags, each weighing about 25–30 kg. The and Peri-urban Areas of Lao PDR (percent)a average retail price per bag is only about LAK 25,000–30,000. Urban households in economically advanced areas are rap- Charcoal and Firewood idly switching from firewood to charcoal. Even in the northern Rural 50 27 15 6 Firewood provinces, urban households are slowly shifting from firewood Charcoal to charcoal. But the lowest-income households continue to use LPG, Firewood, and Charcoal firewood, along with charcoal, suggesting that most households in Lao PDR will continue to meet their cooking needs using a Peri-Urban 39 15 34 12 mix of fuelwood, supplemented by limited amounts of modern cooking energy, in the foreseeable future. All Areas 46 23 22 8 Indoor Pollution: Who’s At Risk? Continued reliance on fuelwood for household cooking 0 20 40 60 80 100 underscores the vital role of improved cookstoves in mitigating the health risks linked to indoor air pollution (IAP). Smoke Source: CSI field survey. Note: Results are from rural and peri-urban areas in Vientiane capital and Vientiane, resulting from the incomplete combustion of solid fuels using Bolikhamsai, and Khammouane provinces. low-quality stoves in poorly ventilated kitchens contributes to a. About 1 percent are unidentified, including some combination of firewood, charcoal, IAP, presenting a significant health risk to family members who biogas, electricity, and other fuel types. spend a disproportionate amount of time in the household cooking area—primarily women and their young children health risks from biomass cooking smoke. The market survey, (Ekouevi and Tuntivate 2011). A recent IAP study conducted which aimed to better understand the entire market supply in Lao PDR confirms the strong association between high lev- chain, was conducted among stove retailers, wholesalers and els of indoor air pollutants and respiratory illness in women and traders, and producers. children (Mengersen et al. 2007). In 98 percent of the households surveyed, women are respon- sible for preparing the daily meals. Typically, women who cook Cooking Fuel Profile for family members are about 38 years old and spend about The CSI survey results confirm data from the recent national 2.25 hours each day on meal preparation. While cooking, they census, showing that most households in Lao PDR use a com- also tend to their young children (i.e., under 6 years of age). plex mix of cooking fuels. These consist primarily of firewood Thirty percent of rural households, compared to 16 percent and charcoal, supplemented by LPG and electricity. In rural of peri-urban ones, reported the presence of young children areas, firewood predominates, while charcoal has become in the cooking area when women are cooking. This finding, increasingly popular in peri-urban areas. Sixty-nine percent of combined with rural households’ greater use of firewood for survey respondents agreed that electricity is too expensive for cooking—which emits more smoke than charcoal—suggests cooking, and less than half of the 6–12 percent of households that rural children are more vulnerable to IAP exposure than that cook with LPG said they use it regularly, owing to its high their peri-urban counterparts. price. In line with the national census results, the CSI survey findings confirm that about 92 percent of rural households rely Cooking Environment Deficiencies on firewood, charcoal, or a combination of the two as their main source of cooking fuel, compared to about 88 percent of Contributing IAP risk factors include whether the cookstove peri-urban households (figure 1). has a chimney or hood, household cooking practices, kitchen ventilation, and family members’ awareness of the link between IAP and cooking smoke. One-fifth of the CSI survey respon- Drivers of Cooking Fuel Choices dents had deficiencies in both their cookstoves (lacking a chim- The key determinants of households’ choice of cooking energy ney and/or hood) and physical cooking area (lacking a window are resource availability and fuel pricing, along with ease of use, and/or vent). Only 8 percent had both a chimney and/or hood convenience, and cleanliness. About 96 percent of rural house- and a window and/or vent. In addition, a relatively large per- holds and 79 percent of peri-urban ones indicated that fire- centage did not clearly recognize the harmful effects of breath- wood is freely available. About 5 percent of rural households ing smoke emitted from the incomplete combustion of solid make their own charcoal. Those that purchase it, typically buy fuels used for cooking. These findings highlight the need for a 2 Pathways to Cleaner Household Cooking in Lao PDR Box 1. Evidence of Potential Demand for Better Stoves When introduced to Lao PDR in the 1990s, the tao prayat, the Lao version of the Thai bucket stove, had a durability of up to two years. Today, however, most types and models sold on the commercial market in Lao PDR last only about six months. Faced with stiff market competition and low profit margins, stove producers have cut costs in recent years by reducing the tao prayat’s needed insulation, grate thickness, and number of grate holes, thus compromising the stove’s durability. Despite this market failure to conform to original specifica- tions to ensure quality and durability, the tao prayat remains quite popular among buyers, reflecting their willingness to pay for what they perceive to be a better stove. Producers continue to make the tao prayat, albeit in small quantities, while retail shop owners lack sufficient supply to meet customer orders, suggesting a large potential market for truly improved cookstoves. Sources: CSI market survey and interviews with stove producers in Vientiane capital and Bolikhamsai, Khammouane, and Vientiane provinces. well-targeted awareness-building campaign to educate family producers lack access to user feedback—wholesalers/traders members on the health hazards of IAP and the importance of (middlemen) usually screen this information—which would changing their current cooking practices. give them a better idea of how to improve their stoves to satisfy customers’ needs and preferences. Potential Demand for Better Stoves Current patterns and trends of cookstove ownership reveal Scaling Up: Market-Based Strategy favorable conditions for promoting better stove alternatives To correct for market deficiencies in both supply and demand, (box 1). In the CSI survey areas, most households purchase their the proposed intervention strategy uses a market-based mecha- cookstoves. More than half own and use more than one cook- nism, which is widely considered the most efficient way to stove, and household income is positively associated with the sustainably promote improved cookstoves. Ensuring the ongo- total number owned. Most households could afford improved ing availability of improved cookstoves at affordable prices in cookstoves, even if the prices doubled. the market requires building public-sector and supply-chain capacity and ensuring multisector cooperation. Supply-Side Issues Building Public-Sector Capacity The CSI market survey reveals key deficiencies in cookstove This includes advising staff of national and local governments production, including slow processes and weak quality control. and academic institutions on establishing and enforcing cook- Commercially available stove types and models are individu- stove standards, labeling, and certification; setting up a national ally made by local artisans in small family-owned businesses. cookstove testing laboratory; and educating consumers on the Production processes are slow and labor-intensive, with weak fuel-efficiency and durability standards they should expect quality control. Producers have a thin profit margin and rely on from stove types and models and offering better stove choices quick turnover; thus, they may not be interested in stove dura- to meet all segments of market demand. bility. Most lack appropriate training and technological know- how, relying instead on trial-and-error methods. Many lack Building Supply-Chain Capacity capital and access to credit, yet virtually all are keenly interested This includes training stove producers in new technologies, in learning how to improve their stove production techniques techniques, and processes; ensuring producers’ access to financ- and processes. ing; improving efficiency of the market chain, including helping Stove producers rely on two channels to market their stoves: producers develop business plans and a network to gain access (i) direct delivery to retail shop owners and (ii) wholesalers/ to market information and intelligence; establishing an alliance traders. Using the first channel requires that producers own a for clean cookstoves whose members can share knowledge and truck to transport their stoves to the shop; however, they receive experience with other alliances in the region and globally (e.g., a better price. Using the second channel, wholesalers/traders through the Global Alliance for Clean Cookstoves); and foster- purchase the stoves in bulk from the producers and transport ing partnerships and cooperation to develop and implement them to the retail shops, where they are sold. The supply-chain public-awareness campaigns on the links between cookstove analysis confirms that producers require assistance in learn- use and the health impacts of IAP and marketing campaigns for ing how to better market and sell their products. Currently, retailers of improved cookstoves. Pathways to Cleaner Household Cooking in Lao PDR 3 EAP Clean Stove Initiative The East Asia and Pacific (EAP) Clean Stove Initiative is a follow-up regional program to the Flagship Energy Report, One Goal, Two Paths: Achieving Universal Access to Modern Energy in East Asia and the Pacific (1G2P). The EAP CSI focuses on achieving access to modern cooking and heating solutions in the EAP region, particularly through scaled-up access to advanced cooking and heating stoves for poor, primarily rural households, who are likely to continue using solid fuels to meet their cooking and heating needs beyond 2030. The EAP CSI is a multicountry, multiphase program, with funding support provided by the Australian Agency for International Development (AusAID). The initiative includes four country-specific programs (China, Indonesia, Mongolia, and Laos) and a regional forum to promote collaboration, learning, and knowledge-sharing on access to modern energy at the household level. A three-pronged approach is used, focusing on (1) strengthening institutional capacity and creating an enabling policy and regulatory environment for scaling up access to clean stoves, (2) supporting supply-side market and business development, and (3) stimulating demand for clean and efficient stoves. Ensuring Multisector Cooperation This entails close coordination among multiple stakeholder CSI Update: Geographic Focus of Phase Two institutions with clearly defined roles and responsibilities. In recent months, various local and international nongovern- Through stakeholder consultations, the inter-ministerial CSI mental organizations (NGOs), funded through the European task force was established by the Ministry of Energy and Mines Commission’s SWITCH-Asia program, have begun accelerating (MEM). The task force is headed by the Director General of their efforts to promote improved cookstoves in Lao PDR; their the MEM’s Institute of Renewable Energy Promotion (IREP), work targets selected central and southern provinces, including which serves as the CSI focal point and coordinating agency. several covered by the CSI field survey. In addition, the Asian The task force ensures that CSI policy and strategic directives Development Bank has stepped up efforts to promote improved are in line with national policy and the country’s Renewable cookstoves in the country. To complement these ongoing activi- Energy Development Strategy. Task force members include ties, the CSI strategy implementation (phase two) will focus on key representatives of the following ministries, educational Lao PDR’s northern provinces. institutions, and organizations with grassroots-level support: Ministries of Agriculture and Forestry, Science and Technology, Health, Finance, Industry and Commerce, Natural Resources and Environment, and Information, Culture, and Tourism; National University of Laos; and Lao Women’s Union. References Ekouevi, K., and V. Tuntivate. 2011. Household Energy Access for Cooking Pathways to Cleaner Cooking and Heating: Lessons Learned and the Way Forward. Energy and Mining Sector Board Discussion Paper No. 23. Washington, DC: World Bank. Summing up, achieving universal access to clean household Lao PDR (Lao People’s Democratic Republic). 2011. Renewable Energy Development Strategy in Lao PDR. Vientiane: Government of Lao PDR. cooking solutions in Lao PDR requires a holistic approach. Mengersen, K., Lidia Morawska, Hao Wang, Fengthong Tayphasavanh, The results of this assessment indicate that a small propor- Kongkeo Darasavong, and Nicholas Holmes. 2007. Investigation of tion of wealthier households will be able to access LPG and Indoor Air Pollution and Relationship to Housing Characteristics and increasingly more urban households will transition to purchas- Health Effects Observed by Occupants in Lao PDR. Executive Summary, Project for World Health Organization, International Laboratory for Air ing charcoal as their incomes rise. There is also a niche mar- Quality and Health and Queensland University of Technology. ket for biogas systems among qualified farming households. NSC (National Statistics Center). 2005. Population and Housing Census However, for most households—including those in the low- 2005. Vientiane: National Statistics Center. TABI (The Agrobiodiversity Initiative). 2011. Info Sheet, Biogas Facilities est income groups—who will continue to rely on firewood Development, Lao PDR. to meet their daily cooking needs, the proposed approach to World Bank. 2011. “Clean Stove Initiative in the East Asia and Pacific creating a thriving stove market offers an important pathway Region.� Concept Note. World Bank, Washington, DC. to cleaner cooking. The benefits are fewer premature deaths, healthier and more productive lives, less drudgery for women, and less pressure on the environment. ABOUT THIS NOTE: This note summarizes the 2013 report, Pathways to Cleaner Household Cooking in Lao PDR: An Intervention Strategy, 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 or those of the Australian Agency for International Development.