90274 Energy and Mining Sector Board D i s c u ss i o n P a pe r se r i es P a pe r No. 27 JULY 2013 Household Energy for Cooking Project Design Principles Koffi Ekouevi The World Bank, Washington, DC THE WORLD BANK GROUP The Energy and Mining Sector Board Copyright © 2013 The International Bank for Reconstruction and Development/The World Bank. All rights reserved ©2013 The International Bank for Reconstruction and Development / The World Bank 1818 H Street NW Washington DC 20433 Telephone: (202) 473-1000 Internet: www.worldbank.org This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. 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Contents Acronyms and Abbreviations����������������������������������������������������������������������������������������������������������������iv FOREWORD������������������������������������������������������������������������������������������������������������������������������������������������������ v Acknowledgments������������������������������������������������������������������������������������������������������������������������������������vi Executive Summary�����������������������������������������������������������������������������������������������������������������������������������vii 1. Introduction����������������������������������������������������������������������������������������������������������������������������������������� 1 Context and Background��������������������������������������������������������������������������������������������������������������������������� 1 Benefits for Health������������������������������������������������������������������������������������������������������������������������������������ 2 Benefits for the Protection of Forest Resources������������������������������������������������������������������������������������������� 3 Benefits for Climate Change���������������������������������������������������������������������������������������������������������������������� 3 2.  Project Design Principles������������������������������������������������������������������������������������������������������������������ 5 Interventions should be developed within strategic frameworks owned by the government in consultation with local communities including men and women.������������������������������ 6 Interventions should be designed and differentiated to target different market segments.�������������������������� 6 Designs should be sensitive to consumer preferences and behavior.���������������������������������������������������������� 7 Clean cooking technology choices should be made to ensure that expected benefits iii are effectively gained with sustained use.��������������������������������������������������������������������������������������������� 8 Testing, standard setting, and certification should be an integral part of interventions.������������������������������� 9 Business models should be context-specific and fully integrate producer, distributor, and user-financing issues.������������������������������������������������������������������������������������������������������������������ 10 Monitoring, evaluation and impact assessment frameworks should be developed starting with the initial stages of project design and adapted as needed.�������������������������������������������� 12 3. Conclusions����������������������������������������������������������������������������������������������������������������������������������������� 15 Appendix 1: World Bank–Funded Projects with Access to Fuelwood and Stove Components�������������������������������������������������������������������������������������������������������������������������� 17 Appendix 2: Sustainable Supply of Wood-Based Biomass Energy������������������������������������������� 19 Challenges and Barriers�������������������������������������������������������������������������������������������������������������������������� 19 Basic Design Principles for Sustainable Wood Production������������������������������������������������������������������������� 19 Basic Principles to Modernized Fuelwood Supply Chain���������������������������������������������������������������������������� 21 Appendix 3: Performance Monitoring Methodology����������������������������������������������������������������� 23 The Basics of Testing Methodology����������������������������������������������������������������������������������������������������������� 23 Metrics for Stove Performance����������������������������������������������������������������������������������������������������������������� 23 Comparison of Stove Performance����������������������������������������������������������������������������������������������������������� 24 Cookstove Testing Resources������������������������������������������������������������������������������������������������������������������� 24 Appendix 4: Supporting Household Energy Interventions with Carbon Finance����������� 27 Carbon Markets—The Basics������������������������������������������������������������������������������������������������������������������� 27 Feasibility of Using Carbon Finance��������������������������������������������������������������������������������������������������������� 27 Appendix 5: Examples of Options for Facilitating Household Use of LPG�������������������������� 33 Appendix 6: Typology of the Costs and Benefits of Cookstoves and the Equations Used for Their Calculations������������������������������������������������������������������������� 35 Bibliography��������������������������������������������������������������������������������������������������������������������������������������������� 36 Acronyms and Abbreviations ACR American Carbon Registry IEA International Energy Agency CAR Climate Action Reserve IPCC Intergovernmental Panel on Climate CBFM Community-based forest management Change CCT Controlled cooking test ISO International Organization for CDM Clean Development Mechanism Standardization CER Certified emission reduction KPT Kitchen performance test CO Carbon monoxide LNG Liquefied natural gas CO2 Carbon dioxide LPG Liquefied petroleum gas CO2eq CO2 equivalent MDG Millennium Development Goal DNA Designated national authority NCV Net calorific value EU European Union NGO Nongovernmental organization EUEI EU Energy Initiative NRB Nonrenewable biomass GACC Global Alliance for Clean Cookstoves ODA Overseas development aid GEF Global Environment Facility PDD Project Design Documentation GHG Greenhouse gas PFM Participatory forest management GIZ Deutsche Gesellschaft für Internationale PIN Project Idea Note iv Zusammenarbeit PM Particulate matter GPOBA Global Partnership on Output-Based Aid U.N. United Nations GPS Global positioning system UNDP United Nations Development Programme GS Gold Standard UNFCCC United Nations Framework Convention on GTF Global Tracking Framework, Sustainable Climate Change Energy for All VCS Verified Carbon Standard HH Household VER Verified emission reduction IAP Indoor air pollution WBT Water-boiling test IBRD International Bank for Reconstruction and WHO World Health Organization Development FOREWORD Energy for cooking is a critical dimension of the energy access agenda that has too often been overlooked by policy-makers and financiers alike. There are signs that this is beginning to change. The Sustainable Energy for All (SE4ALL) initiative has placed universal access to modern cooking solutions as a global objective for the year 2030 on an equal footing with the universal electrification goal for that same year. Efforts under the SE4ALL will be able to build upon a worldwide coalition already forged around this agenda by the Global Alliance for Clean Cookstoves. The World Bank and other international organizations are bringing out a growing number of publications and initiatives focused on energy for cooking. All this is good news, given the wide range of benefits that modern cooking solutions can bring encompassing improved health, v better living and working conditions for women, poverty reduction, environmental protection and climate change mitigation. This report on Household Energy for Cooking: Project Design Principles is timely as it provides a digest of some of the key operational design challenges that will aid operational teams in thinking through the issues and finding solutions that are appropriately tailored to local realities and constraints. We hope that these insights will help to translate the growing political momentum behind this important—and too often overlooked—aspect of energy access into operational interventions on the ground to the benefit of households in developing countries. Vivien Foster Sector Manager – Energy Unit Sustainable Energy Department World Bank Group Acknowledgments This report was prepared by a team led by Koffi Ekouevi, Senior Economist (Sustainable Energy Department) that included Klas Sander, Harikumar Gadde, Felicity Creighton Spors, Marco Van der Linden, Ruchi Soni, Mary Louise Gifford, Vanessa Lopes Janik, Jacqueline Devine, Gunjan Gautam, Janina Franco, and Alain Ouedraogo. The team benefitted from valuable insights from Vivien Foster, Rohit Khanna, Masami Kojima, Sudeshna Ghosh Banerjee, Mikul Bhatia, Richard Hosier, Doug Barnes, Awa Seck, Yabei Zhang, Venkata Ramana Putti, Jie Tang, Robert van der Plas, Nikhil Desai, Laurent Durix, Xiaoping Wang, Brice Jean Marie Quesnel, Klaus Oppermann, Heike Volkmer, Katie Kennedy Freeman, vi and Kate Steel. The report was co-funded by the Sustainable Energy Department and the Energy Sector Management Assistance Program (ESMAP). Executive Summary Interventions to improve energy access for the poor have focused mainly on electricity access and have often neglected nonelectricity household energy access. While 1.2 billion people lack access to electricity, more than double that number—about 2.8 billion people, mainly in Asia and Sub-Saharan Africa—still rely on solid fuels for cooking and heating (World Bank and IEA 2013). Projections indicate that the developing countries in Asia will make progress in providing clean cooking solutions to people, but the situation will worsen in Sub- Saharan Africa where the number of people without clean cooking facilities will increase. It is well documented that exposure to indoor air pollution (IAP) from the inefficient combustion of solid fuels in low-quality stoves is a significant public vii health hazard. Burning solid fuels in traditional stoves emits smoke composed of a mixture of particulate matter (PM), carbon monoxide (CO), hydrocarbons, formaldehyde, and benzene, which have been shown to significantly exceed safe levels (Smith and others 2000; Smith and others 2009; Venkataraman and others 2010). Recent data indicate that about 4 million people die prematurely every year from illness attributable to household air pollution from household solid fuel use (Lim and others 2012). The reliance on fuelwood for cooking and heating is increasingly drawing attention to the role in global warming of black carbon originating from incomplete combustion of fossil fuels, particularly diesel, and other sources including biomass. There is a growing body evidence that black carbon acting alone might be the second most important factor affecting the rise in global temperatures after carbon dioxide (CO2) (Ramanathan and Carmichael 2008; Gustafsson 2009; Bond and others 2013). However, the impact of co-emitted species (such as organic matter and sulfate aerosol precursors) in the combustion of biomass offsets the global warming impact of black carbon emissions, introducing large uncertainties in the net impact (Bond and others 2013). Recently, the realization that potential co-benefits in the areas of health, gender, environmental protection, poverty reduction, and climate change can be gained from household energy interventions has created a new momentum for action. This is driven by the realization that considerable health benefits in line with the Millennium Development Goals can be gained by improving IAP with the use of clean cookstoves and • “Wood-Based Biomass Energy Development for Sub- fuels. An important milestone of this mobilization is Saharan Africa.” the launch of a public-private initiative, the Global • “What Have We Learned about Household Biomass Alliance on Clean Cookstoves (GACC) led by the Cooking in Central America?” United Nations Foundation to help 100 million households adopt clean and efficient stoves and fuels It provides broad project design principles related to by 2020 (United Nations Foundation 2010). The GACC household energy for cooking with the understanding conducted consultations with more than 350 global that context-specific considerations should play cookstove experts and concluded that the creation of an important role in project design decisions. The a thriving global market for clean cookstoves and fuels overwhelming role of local institutions to undertake is the most viable way to achieve universal adoption project design and implementation is recognized. (GACC 2011a). The following broad principles are discussed: Another important milestone is the recognition by the • Interventions should be developed within U.N. Sustainable Energy for All Initiative that providing strategic frameworks owned by the government in efficient cook stoves and clean fuels to poor households consultation with local communities, including men should be part of the broader objective of energy and women. viii access for all by 2030 (United Nations 2012 ). The • Interventions should be designed and differentiated Global Energy Assessment has identified the diffusion to target different market segments. of clean and efficient cooking appliances as one of the • Designs should be sensitive to consumer preferences main pathways to improve energy access in developing and behavior. countries. It is estimated that, to provide clean cooking • Clean cooking technology choices should be made solutions, about $17–22 billion per year would be to ensure that expected co-benefits are effectively needed by Sub-Saharan Africa, South Asia, and Pacific gained with sustained use. Asia. These estimates include grants and microlending • Testing, standard setting, and certification should be to help address affordability issues at the level of an integral part of interventions. households (GEA 2012). • Business models should be context-specific and fully integrate producer, distributor, and user-financing This note builds on five main reports produced by the issues. World Bank Group on clean cooking solutions over the • Consumer fuel subsidies and direct subsidies to the last three years: acquisition to cookstoves should be avoided, and • “Household Cookstoves, Environment, Health, and indirect subsidies to support the scaling up of clean Climate Change: A New Look at an Old Problem.” cooking solutions should be carefully designed. • “Household Energy Access for Cooking and • Monitoring, evaluation, and impact assessment Heating: Lessons Learned and the Way Forward.” frameworks should be developed, starting with • “One Goal, Two Paths Achieving Universal Access to the initial stages of project design and adapted as Modern Energy in East Asia and Pacific.” needed. 1. Introduction to modern energy services is essential for increasing productivity in agriculture and for increasing the The objective of this note is to assist task teams with potential of micro-enterprises to generate employment broad project design principles related to household opportunities that are likely to help eradicate extreme energy for cooking. It follows five main reports poverty and hunger (MDG1). Access to modern produced by the World Bank Group over the last three energy services can reduce women’s domestic burden years: of collecting fuelwood and allow them to pursue 1. “Household Cookstoves, Environment, Health, and educational, economic, and other employment Climate Change: A New Look at an Old Problem” opportunities that can empower them and promote 2. “Household Energy Access for Cooking and gender equality (MDG3). Similarly, the use of clean Heating: Lessons Learned and the Way Forward” cooking and heating fuels in efficient appliances can 3. “One Goal, Two Paths Achieving Universal Access to contribute to reducing child mortality (MDG4). Without Modern Energy in East Asia and Pacific” access to modern energy services, the likelihood of 4. “Wood-Based Biomass Energy Development for Sub- escaping poverty is very low. Saharan Africa” 5. “What Have We Learned about Household Biomass In most societies where solid fuels, and particularly Cooking in Central America?” fuelwood, are used for cooking and heating, women are generally the ones who devote most of their time to 1 These reports make the case for a re-engagement of collection and transport. In times of fuelwood scarcity, the World Bank Group in the household energy access the distance they have to go to find wood increases sector. This call is resonating well with operational units and requires more time. The literature has described within the energy practice through the launching of how fuelwood collection deprives women and girls of regional initiatives, such as the Africa Clean Cooking the opportunity for education, for engaging in income- Energy Solutions and the East Asia Clean Stove generating activities, and for having leisure time Initiative, and a growing interest on the part of task (Clancy, Skutch, and Batchelor 2004; Blackden and teams from South Asia and the Latin America and the Wodon 2006). Köhlin and others (2011) suggested that Caribbean regions to include household energy access energy interventions can have significant gender benefits components in operations. if they are carefully designed and targeted based on context-specific understanding of energy scarcity and This note is organized into two sections: (a) context household decision-making dynamics. and background, and (b) project design principles. A set of appendixes is attached to the note with specific Interventions to improve energy access to the poor have information. In particular, Appendix 1 provides a list of focused mainly on electricity access and have often World Bank–funded projects with fuelwood and stove neglected nonelectricity household energy access. While components. Appendix 2 is devoted to the sustainable 1.2 billion people lack access to electricity, more than supply of wood-based biomass energy. Appendix 3 double that number—about 2.8 billion people, mainly presents stove performance monitoring methodology. in South Asia and Sub-Saharan Africa—are still relying Appendix 4 provides a brief guide on how household on solid fuels for cooking and heating (GTF 2013). energy projects can be supported with carbon finance. Projections indicate that the developing countries in Asia Appendix 5 provides examples of options for facilitating will make progress in providing clean cooking solutions household use of LPG, and Appendix 6 presents an to people, but the situation will worsen in Sub-Saharan example of typology of the cost and benefit analysis of Africa where the number of people without clean cookstove interventions. cooking facilities will increase. Context and Background Household energy for cooking in particular has received little policy attention in the overall energy Reliance on solid fuels for cooking is an indicator of sector dialogue, and consequently its lending energy poverty. It is recognized that access to modern volume remains low in spite of the magnitude of the energy services—including electricity and clean fuels—is development challenge its represents. For example, important for achieving the Millennium Development a review of World Bank–financed energy projects Goals (MDGs) (UNDP 2005). For example, access between fiscal 2000 and fiscal 2008 revealed that only 4 percent of energy access lending—less than Benefits for Health 1 percent of World Bank’s total energy lending— was dedicated to increasing sustainable access to It is well documented that exposure to IAP from the cleaner cooking fuels and more energy-efficient inefficient combustion of solid fuels in low-quality stoves cookstoves (Barnes, Singh, and Shi 2010). According is a significant public health hazard. Burning solid to International Energy Agency (IEA) estimates, only fuels in traditional stoves emits smoke composed of a about US$3.8 billion per year is needed to achieve mixture of particulate matter (PM), carbon monoxide universal access to clean cooking facilities between (CO), hydrocarbons, formaldehyde, and benzene, 2011 and 2030 (IEA 2012). Facilitating the access to which have been shown to significantly exceed safe clean cooking solutions to households in developing levels (Smith and others 2000; Smith and others 2009; countries seems to be within the reach of governments Venkataraman and others 2010). Recent data indicate and development agencies tackling the eradication of that about 4 million people die prematurely every year poverty. from illness attributable to household air pollution from household solid fuel use (Lim and others 2012). This is Recently, there is a new and growing global mobilization double the number previously recorded by the World about household energy access issues. This is driven Health Organization (WHO 2006). Growing evidence by the realization that considerable health benefits suggests that exposure to IAP is also associated with 2 in line with the Millennium Development Goals can heart disease, stroke, and cataracts. There is evidence of be gained by improving IAP with the use of clean lung cancer in women cooking with open coal stoves in cookstoves and fuels. A important milestone of this China (Smith 2002). Women and children in developing mobilization is the launch of a public-private initiative, countries are particularly affected by these negative the Global Alliance on Clean Cookstoves (GACC) led health outcomes of IAP from the use of solid fuels (von by the United Nations Foundation to help 100 million Schirnding and others 2002; WHO 2006). Switching to households adopt clean and efficient stoves and fuels modern fuels, such as liquefied petroleum gas (LPG), is by 2020 (United Nations Foundation 2010). The GACC identified as the most effective way of reducing IAP , while conducted consultations with more than 350 global having a fuel-efficient stove and improving ventilation cookstove experts and concluded that the creation of conditions can reduce IAP considerably as well (Ezzati a thriving global market for clean cookstoves and fuels and Kammen 2002; Díaz and others 2008). Health- is the most viable way of achieving universal adoption damaging IAP exposures can be reduced by more than (GACC 2011a). 90 percent in comparison to solid fuels (Smith, Rogers, and Cowlin 2005; MacCarty and others 2010). Another important milestone is the recognition by the U.N. Sustainable Energy for All Initiative that Although there are many studies on solid fuels, IAP , providing efficient cook stoves and clean fuels to poor and their health outcomes, research gaps remain that households should be part of the broader objective of need to be filled to inform the design and monitoring energy access for all by 2030 (United Nations 2012 ). of interventions better. At the same time that strong Discussions in the climate change community on black evidence exists that links IAP to childhood pneumonia, carbon have also drawn significant attention to the chronic obstructive pulmonary disease, and lung cancer issues of clean cooking and cookstoves, although the (from coal) in adults, the evidence is weak on how net impact on global warming in the case of biomass inhaling wood smoke is associated with tuberculosis, combustion has large uncertainties (Bond and others low birth weight, and cataracts. What we do not know 2013). These recent developments have reinforced the is the exposure-response relationship between IAP and recognition that household energy access interventions different negative health outcomes. In other words, we have potentials to provide benefits in the areas of do not know what different dose levels of IAP cause health, gender, environmental protection, and climate different negative health outcomes. Evidence on the change. At the same time, there is also evidence exposure-response relationship is important in order to indicating that households in developing countries ensure to what level exposure should be reduced to start are following complex energy transition pathways in a gaining positive health outcomes. Three main areas of constantly changing context of markets, a situation that further research are generally acknowledged: (a) the dictates a realistic and context-specific approach to need for better exposure assessment to make more clean cooking solutions. direct measurement of exposure-response relationships; (b) the need to handle confounding better by using Benefits for Climate Change more adequate statistical methodology to control the effects of confounders, such as poverty, malnutrition, The reliance on fuelwood for cooking and heating is and the housing environment; and (c) the importance of increasingly drawing attention to the role in global intervention studies to complete findings of observational warming of black carbon originating from incomplete studies (von Schirnding and others 2002; Ezzati and combustion of fossil fuels, particularly diesel, and Kammen 2002; and Jaakkola and Jaakkola 2006). other sources including biomass. There is a growing body evidence that black carbon acting alone might Benefits for the Protection of Forest Resources be the second most important factor affecting the rise in global temperatures after carbon dioxide It is now widely accepted that the clearing of land for (CO2) (Ramanathan and Carmichael 2008; Gustafsson arable and pastoral agriculture is the main cause of 2009; Bond and others 2013). Black carbon is formed deforestation rather than the use of wood for energy, from the incomplete combustion of fossil fuels, biomass as was believed in the past. With the rapid urbanization fuels, and biomass burning. Black carbon warms the in many countries in Sub-Saharan Africa and South planet by absorbing heat from the atmosphere and by Asia, inefficient production of charcoal for growing reducing albedo, the ability to reflect sunlight, when urban populations might be threatening forest cover in deposited on snow and ice. Black carbon stays in the the neighboring catchment areas (Arnold and others atmosphere for only several days to weeks, whereas 3 2003). In these countries, in addition to households, CO2 has an atmospheric lifetime of more than 100 small and medium-sized enterprises, such as bakeries, years. Because black carbon remains in the atmosphere laundries, and restaurants, rely heavily on charcoal. The only for a few weeks, reducing black carbon emissions energy efficiency of charcoal production ranges from 25 may be the fastest means of slowing climate change percent in Africa, which uses mainly artisanal methods, in the near term. It is estimated that approximately 40 to 48 percent in Brazil, which uses industrial kilns with percent of black carbon comes from fossil fuels, 40 extensive energy and material recovery. A recent study percent from open biomass burning (such as natural conducted in Tanzania by the World Bank (2009) fires and slash and burn), and 20 percent from burning reveals that between 2001 and 2007, the proportion of biomass in stoves in the household and service sectors households in Dar es Salaam using charcoal climbed and from burning it in industrial processes, such as from 47 percent to 71 percent, and about half of crop drying, food manufacture, and brick and tile Tanzania’s annual consumption of charcoal takes production. However, the impact co-emitted species place in Dar es Salaam, amounting to approximately (such as organic matter and aerosol precursors) in 500,000 tons per year. Unsustainable production the combustion of biomass offsets the global warming and use of forest resources affect wildlife habitat impact of black carbon emissions, introducing large and watershed functions (Geist and Lambin 2001). uncertainties in the net impact (Bond and others 2013). Sustainable production and supply of fuelwood through Open burning of biomass may have a net cooling community forest management and a modernization of effect in many instances; closed combustion of biomass the charcoal supply chains to urban areas are likely to for cooking and heating may have a net warming reduce the pressure on forest resources for wood energy or cooling effect, depending on the specific local and generate revenues for households usually bypassed circumstances. by an illegal trading of fuelwood. 2.  Project Design Principles and the environment sectors. Task teams in the energy sector rely on specialists from these sectors to design World Bank projects have generally approached and supervise these interventions. Appendix 2 provides household energy for cooking projects from three main insights on challenges and barriers in developing dimensions: (a) institutional strengthening; (b) supply- supply-side interventions and basic principles to side interventions; and (c) demand-side interventions. modernize the fuelwood production and the fuelwood supply chains. The first dimension is about designing or strengthening institutions entrusted with missions that generally The project design principles builds on lessons learned include the following: (a) formulation of policies and described by the “Household Energy Access for Cooking strategies accounting for the multidimensional nature of and Heating: Lessons Learned and the Way Forward” household energy issues; (b) design and implementation paper (Ekouevi and Tuntivate 2012). This paper of massive awareness-raising campaigns on clean outlined the following lessons: (a) a holistic approach cooking solutions; (c) design and improvement of legal to household energy issues is necessary; (b) public and regulatory mechanisms to support interventions; awareness campaigns are prerequisites for successful and (d) creation of an enabling environment for interventions; (c) local participation is fundamental; (d) capacity reinforcement of private sector operators, consumer fuel subsidies are not a good way of helping research institutions, nongovernmental organizations the poor; (e) both market-based and public support are (NGOs), village associations, women’s groups, and relevant in the commercialization of improved stoves; consumers involved in the sector. (f) the needs and preferences of stoves users should be given priority; (g) durability of improved stoves is The second dimension is supply-side interventions. important for their successful dissemination; and (h) In general, interventions include (a) participative with microfinance the poor can gradually afford an community forest management activities; improved stove. (b) development and institutionalization of forestry-based geographical information systems; (c) promotion of Figure 1 shows the main areas from which project eco-friendly agro-forestry income-generation activities; design principles are drawn. and (d) reforms to improve the charcoal value chains to increase the sustainability of fuelwood production and supply. The third dimension is demand-side interventions. It includes production and dissemination Figure 1: Main Areas of Project Design of cookstoves, interfuel substitution activities, such as Principles the promotion of modern fuels (LPG, liquefied natural gas (LNG), biogas, and liquid fuels, such as ethanol Local and kerosene) with their appropriate stoves. Ekouevi Ownership and Tuntivate (2012) provide a detailed account of Monitoring Market Evaluation Segmentation these dimensions with a review of the performance of Impact projects that have included them. In Appendix 1, a list of the projects reviewed that have more or less included these dimensions is presented. Consumer Any of these dimensions can be adopted by a project Subsidies Institutions Preferences & Behavior team depending on the specific circumstances faced on the ground. The sector dialogue should, however, acknowledge the importance of all three dimensions and encourage government to eventually address them. This section mainly focuses on aspects of the Business Technology Models first dimension and of the third dimension mainly the Testing production and dissemination of cookstoves. The Standards second dimension is not covered, since it is in the Certification domain of forestry, natural resource management, Interventions should be developed within society organizations, local communities, and consumer strategic frameworks owned by the groups, that the rationale of the interventions is broadly government in consultation with local shared locally and adapted to local circumstances communities including men and women. and conditions. Usually, stakeholder consultations are conducted at the initial stages of project design, as Local ownership of interventions at the village, district, well as during project preparation and implementation, or province level is important from the early stages to ensure that local parameters are being sufficiently of project design to the implementation and impact integrated. In some cases, these consultations lead to assessment stages. A stocktaking and mapping exercise the design of national household energy or biomass is needed to identify key stakeholders involved in the energy strategy documents with formal validation and sector and to apprehend their roles and responsibilities. approval. The existence of a national strategy can The Bangladesh rural and renewable energy project is provide a framework to shape stakeholder interventions an example. The renewable energy strategy included and help avoid fragmented approaches to the sector. a rationale for household energy interventions, and consultations with different stakeholders were held to A household energy program with a strong institutional define the interventions. structure is the Chinese National Improved Stoves Program initiated in the early 1980s is a widely 6 Household energy access issues go beyond the energy cited program that has demonstrated features of sector. They cut across many sectors, such as health, local ownership in the implementation of cookstove the environment, climate change, gender, and forestry. interventions. Local artisans and entrepreneurs were Recently, household energy stocktaking and mapping very involved in the program. The European Union exercises were conducted as part of the GACC market Partnership Dialogue Facility and the Deutsche assessment studies in Bangladesh, Brazil, Colombia, Gesellschaft für Internationale Zusammenarbeit’s (GIZ’s) East Timor, Ethiopia, Ghana, Indonesia, Kenya, Mexico, Poverty-Oriented Basic Energy Services Programme Nigeria, Peru, Rwanda, South Africa, Tanzania, Uganda, have elaborated a detailed step-by-step Biomass Energy and Vietnam. Results of this work include, for each Strategy Guide for Policy-Makers and Energy Planners country, information on the overall macro-environment (EUEI and GIZ 2011). This guide provides guidelines sustaining the sector, IAP, cookstove consumer profiles, on how to conduct stakeholder analysis, baseline status of the cookstove industry, and the existence or not sector analysis, and the development of scenarios, of carbon finance initiatives in the sector. development of strategy, action planning, and adoption and implementation. This approach was used to Ad hoc interventions without local grounding tend to be develop biomass energy strategies for Botswana, sporadic experiences with little chance of sustainability. Lesotho, Malawi, and Rwanda. The challenge of providing clean cooking solutions to households requires an intensive awareness-raising on Interventions should be designed and the health hazards associated with IAP from the use of differentiated to target different market solid fuels in inefficient cookstoves. These awareness segments. campaigns should capitalize as much as possible on existing social networks that have proven track Market segments must be targeted for specific menus records for inducing change in social behavior in the of clean cooking solutions. Households, depending on targeted communities. Projects that have assumed that their residence—whether rural, peri-urban, or urban— households would adopt spontaneously alternative have access to different energy carriers and energy fuels and cookstoves have failed. Households need services. Project design should integrate the availability to perceive and to be convinced about the direct and of household energy fuels in targeted locations and indirect benefits associated with interventions aimed at structure interventions accordingly. In addition to helping them gradually adopt clean cooking solutions. availability issues, the affordability of modern fuels and cooking devices is an important issue to deal with. Many household energy interventions failed because Products and services aimed at market segments at the they were top-down and donor-driven with little local bottom of the pyramid, where affordability is an issue, ownership. Project designers should ensure, through may be different from those aimed at upper-income extensive consultations with government institutions, civil market segments. Similarly, while LPG promotion might make sense in an urban middle- to upper-class market the primary factors of adoption and use. Preferences, segment, it has lower chances of success in a poor rural tastes, habits, culture, and other nontechnical factors setting where affordability issues are more prominent; play an important role in the decision-making process consumer profiles are often different in rural, urban, or of households in fuel switching and in the acquisition peri-urban areas. Characteristics of market segments and sustained use of a new cookstove. Working with play an important role in technology choices and in households—and particularly women—to determine the design of business and financing models. Products energy for cooking solutions that responds to their and services for households may be different from those specific needs and preferences is critical. The fact directed to be used by institutions and commercial that women are the main users of cookstoves in many users. It is also important to factor in that adoption of settings dictates a dedicated effort to specifically new cooking technology may be different for female- reach out to them, bearing in mind the complexities headed households vs. male-headed households in of household decision making across cultures and the some settings (Köhlin and others 2011). Figure 2 shows particularly disadvantaged situation experienced by the results of a market segmentation of the cookstove female-headed households. market in Nigeria. In addition, households and institutions, such as boarding schools, universities, and A promising approach to help account for consumer commercial users, were identified. preferences and behavior is the use of human- centered design (HCD), which was pioneered 7 The market segmentation exercise paid attention to by the commercial sector but recently applied in consumers based on their area of residence and developing countries to achieve positive outcomes income levels. It also differentiated the needs of such as improved sanitation coverage. HCD is institutions, such as schools, small commercial, and an iterative design process that uncovers habits, large commercial users. The approach used is well preferences, aspirations and motivations and described in the GACC market segmentation report on builds on these insights to inform product design Nigeria (GACC 2011b). and the communications and business models that could support them. IDEO, a global leader in Designs should be sensitive to consumer HCD and GACC recently teamed up to understand preferences and behavior. the cookstove users and sellers in rural Tanzania (GACC and IDEO, 2012). Key research insights and The technical performance of fuels and cookstoves in recommendations include the following: fuel efficiency and emissions efficiency are usually not Figure 2: Results of Market Segmentation of the Cookstove Sector in Nigeria Rural survivor Rural high & medium Rural poor 8.2m HH 6.6m HH Rural low income income Rural Wood users Kerosene/Charcoal/ 0 HH 0 HH Wood users Urban survivor Urban low income Urban high & Urban poor 5.9m HH prof. 1.4m HH medium income Urban 7.3m HH Kerosene users Kerosene users 0.3m HH Wood/Charcol users LPG users Consumer $0–$1 $1–$10 $10–$50 $50+ Commercial Institutions Large Commercial Small Commercial ~4,000 Caterers, Food Processors, Shea “Mama-Puts”, Fish Smokers, Boarding School Universities Butter Coops, Palm Oil Coops Social Events “Bucas” Source: GACC 2011a. 1. From Acquisition to Use: People are purchasing Project designers should recognize that products offered cookstoves, but not always using them. We need to to consumers should be continuously improved with shift the focus from the point of purchase to a focus feedback received from users to guarantee sustained on frequency of use by enabling people to use the adoption and use. best technology available to them more often; 2. From Stove to Fuel: Fuel drives the decision making Fuel-efficient cookstoves, commonly called “improved process. In order to release people from the burden stoves,” are inspired by traditional cooking systems of fuel expenses, we need to shift the focus from a based on their configuration and use, although they single stove to an integrated solution that includes perform better in fuel efficiency. Traditional stoves the stove and the fuel; have an efficiency level between 5 and 15 percent, 3. From Status to Utility: Embrace the low margin, and some fuel-efficient cookstoves can reach a fuel high volume nature of low-cost cookstoves and efficiency level of about 30 percent. Fuel-efficient create innovative business models to increase cookstoves do not change people’s cooking habits, innovation. Alternatively, to support more advanced and they do not need to change the type of fuel used. cookstoves, redefine the product category and value They are designed and constructed with two primary proposition by radically shifting the functionality and technical considerations in mind. The stoves need to performance of the cookstove; simultaneously improve heat transfer to the pot and 8 4. From Saving Fuel to Cooking with Ease: Ensure improve combustion efficiency. Heat transfer efficiency that, at a minimum, fuel efficiency and emissions decreases fuel use, while combustion efficiency don’t undermine the ease of use of a cookstove. decreases harmful emissions. Furthermore, we need to increase the functionality of improved cookstoves to make them a convenient Advanced Combustion Stoves aim at maximizing the choice when compared to less efficient—but easier burning of solid fuels to minimize as much as possible to use—technologies; and the emission of pollutants. While fuel efficiency has 5. From Health to Comfort: Because people care more been the guiding factor for improvement in stove design about personal comfort and are focused on near and the focus of fuel-efficient cookstove programs, term realities, reframe the messaging around clean “cleanliness” is a central parameter and major aspect cookstoves in terms of immediate comfort rather of advanced combustion stove design in addition to than long-term health. fuel efficiency issues. There is a range of advanced combustion stoves with varying level of combustion Clean cooking technology choices should be efficiency. Some examples are rocket stoves, natural made to ensure that expected benefits are draft gasifier stoves, forced draft gasifier stoves, effectively gained with sustained use. and fan-assisted biomass cookstoves. Each of these advanced types of combustion stoves have different A cookstove can provide expected performance requirements for fuel to operate. Some use unprocessed efficiency only when it burns an associated fuel. While fuelwood, and others require processed fuels in the selecting technology options for targeted market form of pellets or small cuttings. WHO (2011) has segments, it is important to offer a menu of solutions produced a classification of stoves by fuel with some for households and other users. Fuel efficiency and useful comments on performance and a ranking of emissions reduction efficiency are important factors the potential of the stoves to reduce health damaging in technology choices, but from the perspective of pollutants and reduce climate change pollutants, the users, durability and safety are equally important and the potential for renewability of the fuel supply. factors. In the design process project designers should Particular attention was paid to ranking stoves by their consider that the durability of cookstoves depends on potential for reducing health-reducing pollutants and the quality of the materials used in the production of the climate change pollutants. High emissions reductions stove, the resistance of the stove in the climatic context are defined as ≥ 90 percent, moderate as ≥ 30 percent where it is used, how it used, and the maintenance and < 90 percent, and low as < 30 percent. Many of that is needed. It is important to account for durability the advanced combustion stoves have shown excellent issues associated with the design and construction of performance at the laboratory. They need to be field cookstoves, in addition to technical considerations, such tested in order to see how real field conditions will as heat transfer efficiency and combustion efficiency. affect their performance. Testing, standard setting, and certification case of wood combustion, estimating thermodynamic should be an integral part of interventions. efficiency can be complicated—varying significantly with the duration of the fire, moisture content of the A considerable amount of research has been conducted fuelwood, and the power cycle. Additionally, prior on stove performance in the past 10 years, and stove programs would often only use a laboratory- significant advances in the ability to measure emissions based test—but would not account for performance that impact health, such as CO and fine PM, have been under “low” power (simmering food) or the possibility made. Research evidence has shown that laboratory of a well-tended fire in field conditions. Tradeoffs performance test results are often different from field in stove material production could cause breakage test results. Field tests that consider the variation of local over time and reduce performance. In some cases, cooking practices, building materials, and modification fuel-efficient stoves provided significantly lower of stove design are also needed. benefits than previously conceived and created little to no demand that drove further production. When Venkataraman (2010) indicated the following important considering program design, it is therefore imperative factors to consider in evaluating the performance of a that stoves be tested in field conditions, and that long- cookstove: term performance degradation be accounted for and • Combustion efficiency—how much of the energy accurate testing techniques be used. and carbon in the fuel is converted to heat and 9 CO2. A cookstove program can be successfully implemented, • Heat transfer efficiency—how much of the heat is but actually deliver few health benefits. There are absorbed by the pot. tradeoffs when it comes to stove design. For example, • Overall thermal efficiency—how much energy in the mud or sawdust stove frequently sold in Africa the fuel is absorbed by the pot (the product of is very cheap, and it can reduce fuel use by roughly multiplying the first two efficiencies together). 10 percent, but it nearly doubles the PM emissions compared to a three-stone fire. Additionally, improper MacCarty, Still, and Ogle (2010) assessed 50 use and maintenance or variations of stove design cookstoves in 7 categories: (a) simple stoves without can reduce health benefits accrued in women and a combustion chamber, (b) stoves with a rocket-type young children. Initial field tests, training of proper combustion chamber, (c) gasifier stoves, (d) fan-assisted use, and monitoring are essential to ensure that the stoves, (e) charcoal-burning stoves, (f) liquid or gas fuel stove is being properly used to accrue health benefits— stoves, and (g) wood-burning stoves with chimneys. particularly when testing for CO and small PM that is This categorization is based on basic geometry and invisible to the eye, yet often causes the most health operating principles of the stove rather than on damage. designers or manufacturers. This research finds that fuel use, a measure of how efficiently heat is transferred to In 2011, the PCIA and the GACC established an the pot, is dependent on geometry of the cookstove interim rating system and a testing methodology called and flow of hot gases around the bottom and sides of the Lima Consensus for evaluating stove models that, the pot. CO emission depends on the temperature in “reflects the varying tiers of performance in the areas the cookstove, the mixture of air in the cookstove, and of fuel efficiency, indoor air quality, emissions of PM flame above the charcoal bed. Similarly concentration and carbon monoxide, and safety.”1 This work was later of PM also depends on the mixture of air, flame in hot validated in February 2012 during an International spaces, and the characteristics of combustion chamber. Organization for Standardization (ISO) workshop where an International Workshop Agreement was developed. Many early cookstove programs overestimated the The methodology ranks stoves into four tiers based on potential of a fuel-efficient stove. As documented fuel use, overall emissions, indoor emissions, and safety. by Maniblog (1984), efficiency overestimation was These standards for clean cookstoves are intended to largely caused by inconsistent efficiency measurements, help manufacturers, distributors, and users sufficiently large discrepancies between laboratory and field assess their efficiency, quality, and safety in different performances, and degradation over time. In the operating environments. Work is still in progress within 1 For more information: http://www.pciaonline.org/files/Lima_Consensus_Signed.pdf. the leadership of the GACC to enable the institutional producer with multiple payment plans; and (b) the need environment to enhance testing protocols and capacity. to consider micro-credit options. Appendix 4 describes (a) the basics of testing With the recent development of technologies for methodology; (b) metrics for cookstove performance; advanced combustion stoves, some private sector (c) comparison of cookstove performance; and (d) some enterprises are entering the clean cooking sector with cookstove testing resource. Work is still on-going to purely commercial for-profit objectives. Their view is improve the metrics and testing methodology. While there based on the changing perception of the bottom of is progress on the setting of international standards, there the pyramid now considered to be financially viable is a need for national and regional standards since local markets. These enterprises are using marketing and climatic conditions, patterns of use, and characteristics of sales techniques to approach the scaling-up of clean fuel affect cookstove performance. Provisions should be cooking solutions by targeting market segments for their made by project designers to ensure that a testing facility products. They believe that scaling up is possible only if is closely associated with the design and implementation an entrepreneurial mindset is adopted with supply and of projects. Financing should be made available to distribution models operating on a commercial basis. strengthen testing, standard setting capacity at the national level and work should be encouraged on setting Two main innovative features are making inroads in 10 regional standards within the framework of internationally the clean cooking sector: (a) the involvement of social agreed protocols. enterprises and (b) the increasing use of carbon finance. Business models should be context-specific Social enterprises are also developing innovative and fully integrate producer, distributor, and business models to scale up clean cooking solutions. user-financing issues. Their approach is to apply market-based business solutions to social problems. Social enterprises Business models should be context-specific and fully include such nonprofit entities as NGOs and for-profit integrate producer, distributor, and user-financing organizations with an activity on clean cooking solutions issues. From a producer’s perspective, a challenge is as part of their corporate social responsibility. The to secure capital to establish a business and to ensure overarching objective pursued is to create sustainable cost recovery to maintain and eventually expand enterprises to provide the poor with clean cooking production. From a distributor’s perspective, an solutions by developing business models that provide objective is to create effective delivery channels, ensure cooking appliances to the poor in an affordable cost recovery, and eventually expand service coverage way. This process often entails an expectation of a and maintenance. Sustainability of projects suffers if lower return on investment as compared to a purely business models do not envisage the full enterprise commercial venture. A notable example of a successful development and expansion processes. From the enterprise in the delivery of energy products to the poor perspective of the user, financing issues also need to be is Grameen Shakti in Bangladesh. Grameen Shakti addressed to help solve the affordability problem. Some has developed an approach combining soft credit programs have integrated microfinance models as an for consumers, adaptive technology to lower costs, integral part of their business strategy to facilitate a maximization of income generation, and effective after- consumer’s acquisition of new cooking devices. (Zerriffi sales service, including consumer-friendly options, such 2011) summarized producer financing issues as follows: as a buy-back system (Barua 2007). (a) explore ways to improve access to credit from financial institutions; (b) facilitate the use of venture Carbon finance is increasingly being used to scale capital, since households without efficient and clean up the delivery of clean cooking solutions. The cookstoves represent significant markets; (c) determine dissemination of clean cookstoves results in efficient whether producers can be financed through cross- combustion and may lead to efficiency in fuel subsidization from high-income consumers from large consumption. Their dissemination therefore can result utilities; (d) explore how to extend and involve NGOs in reduced greenhouse gas (GHG) emissions, assuming and social enterprises; and (e) consider the use of the fuels (including biomass) are nonrenewable. If this carbon finance. For consumer financing he noted activity is combined with afforestation and reforestation (a) the need to consider direct financing options by activities even more, GHG reductions can be achieved. Clean and more energy-efficient cookstoves can cooking are high and where reliable infrastructure for conservatively save at least 1 metric ton of CO2 reliable delivery of LPG delivery exists. Otherwise, if emissions per year under the right conditions. Many the uptake of LPG is not occurring in urban middle- advanced combustion stoves are believe to save twice class households, it is unlikely that such LPG promotion that amount. In carbon markets, a value is given for program will be successful with poor or rural households. each ton of CO2 reduced. Therefore, revenues from carbon credits could be used to support the financing It should be noted that in many urban communities, even (upfront or repayment costs, or both) and dissemination when households can afford LPG, they are concerned of clean cookstoves. With the growing interest in the about safety and reliability of supply issues. Explosions use of carbon finance, a special appendix is devoted to of LPG cylinders and the casualties they provoke are household energy and carbon finance to help project serious barriers to LPG uptake. Some middle and upper designers identify the eligibility of their interventions income household would simply not adopt LPG because (Appendix 5). It covers both demand-side interventions of safety issues. The frequent supply shortages of LPG and supply-side interventions. It describes the are also a barrier preventing systematic uptake in some methodology for estimating emissions reductions and cases. The promotion of LPG needs to be integrated into additionality; and it provides the general nontechnical a household energy policy that is intended to address requirements of carbon finance–supported interventions, both supply side and macro stakeholder barriers as well including the requirements of monitoring, validation, as demand side user barriers of accessibility, affordability, 11 and verification. Three examples of registered cookstove and acceptability. Appendix 5 shows examples of options programs financed through carbon finance as part of for facilitating household use of LPG extracted from the CDM Programmes of Activities are the Bangladesh, Kojima (2011). They are articulated around five main Guatemala, and Nigeria and programs. Consumer goals: (a) lower the costs to consumers; (b) enhance fuel subsidies and direct subsidies to the acquisition to safety; (c) target financial assistance; (d) minimize cookstoves should be avoided, and indirect subsidies shortages; (e) raise awareness and involve consumers in to support the scaling up of clean cooking solutions improving market conditions. should be carefully designed. Direct subsidies to the acquisition of cookstoves should Consumer fuel subsidies should be avoided as they tend be avoided as they do not necessarily translate into to benefits middle to upper income households and not adoption and sustained use. Experiences from some the poor. Policies to promote the use of modern fuels improved stoves programs, such as the National such as kerosene and LPG rely heavily on price subsidies Program for Improved Chulhas (NPIC) in India showed that are fiscally unsustainable. Kerosene subsidies that the high subsidies on improved stoves resulted are generally viewed as having the most pro-poor in poor maintenance by households. And households distribution effect. However, there is evidence of leakages simply switched to traditional stoves when improved to the transport sector as kerosene can be diverted to stoves were broken. be used as an automotive fuel. In cases of LPG price subsidies, evidence suggests that middle to upper income Indirect subsidies to support the scaling up of clean households who could afford LPG at market price tend cooking solutions should be carefully designed and to be the ones to benefit from these subsidies (Clements include a phasing out strategy. A market based and many others 2013; Vagliasindi 2012). approach in the commercialization of clean cooking solutions is often viewed as the best way to ensure their The price competitiveness of household fuels is an sustainability. Evidence also indicates that a certain level important factor in the transition to the use of modern of public funding is necessary at the initial program fuels. Where cleaner fuels and especially petroleum stages for their takeoff. This is particularly true in settings fuels like LPG are highly priced compared to fuelwood, where the business environment is not well developed; the likelihood of their use by the poor is low. In settings basically most of the settings where clean cooking where prices of fuelwood have substantially increased solutions need to be developed. Public financing mostly in urban areas, the adoption of modern fuels is required to support research and development such as LPG becomes a viable possibility. Kojima activities, standard setting, certification, quality control, (2011) indicated that substitution of biomass with LPG training related to stove design and maintenance, and is more likely in areas where the costs of biomass for monitoring and evaluation. The health, environment, and climate benefits associated with clean cooking simple user interfaces, unlike the traditional means, make the case for public investment in research and which are very often too resource-intensive to be development for technical innovative solutions. The performed continuously or on a large scale. commercialized Anagi stove in Sri Lanka, which has reached over 3 million households, benefited from Mobile technology presents an unexplored, but donor funds in product development and testing over relatively easy medium for monitoring cookstoves. two decades (GVEP , 2009). The success of the Chinese In a project in the rural highlands in Honduras, the National Improved Stove Program is partly due to a Proyecto Mirador LLC, a nonprofit that has built strong support from the central and county government more than 25,000 fuel-efficient cookstoves, used a funds to set standards and to enforce certification to new monitoring system based on mobile technology. gain consumer confidence (Bailis and others 2009). Each household stove installation is recorded using a global positioning system (GPS) mapped by a Public financing is also needed to support awareness monitoring system. GPS maps are generated that work raising and the removal of the barrier pertaining to with Proyecto Mirador equipment and a platform to the poor access to clean cooking solutions by the track installations using interactive, high-resolution implementation of policy, legal and regulatory reforms satellite and aerial imagery that covers the entire to improve the business environment. This includes project area. Maps and installation and household 12 working in partnership with private operators to expand data are available from the office or the field enabling distribution networks to reach remote locations. project management to easily track installations and locate households for follow-up supervisory visits. Monitoring, evaluation and impact assessment The implementation of the system has required the frameworks should be developed starting transfer of the technology of handheld smart phones with the initial stages of project design and and computerized record-keeping to Hondurans who adapted as needed. have previously known only paper records and hand- generated solutions for deploying field workers and From the standpoints of project implementers, donors, monitoring installations. government, and beneficiaries, monitoring and evaluation systems are able to account for performance, Cost-benefit analyses should be conducted to assess results, and outcomes of interventions. It is necessary the net benefits associated with interventions. In to tackle their conception upfront from the project order to determine the levels of the expected benefits design stages and to budget their associated activities associated with health, local environmental protection, accordingly. and climate change, the appropriate methodology needs to be used. GTZ (1999) elaborated a detailed Monitoring and evaluation are important activities guide to micro- and macroeconomic analysis and to measure progress in the number of households data assessment on the economics of fuel-efficient adopting and using efficient cookstoves and fuels. In the cookstoves. This guide shows, through examples, the context of a project with a carbon finance component, calculation of simple key figures and ratios for the monitoring and evaluation are even more important, economic assessment of fuelwood savings with the since the granting of carbon finance requires verification adoption of fuel-efficient cookstoves in a language of the effective use of cookstoves. The traditional for noneconomists. The microeconomic calculations methods of monitoring include observation, household are intended to show the economic benefits of the surveys, questionnaires, and interviews. However, use of fuelwood- and charcoal-saving stoves. The monitoring and evaluation can now also be undertaken macroeconomic calculations are intended to show through more sophisticated information technology- the impacts of fuelwood savings in targeted areas of based means, most notably through mobile monitoring interventions. In 2006, WHO (2006) prepared an and an emerging generation of sensor-based tools, evaluation of the costs and benefits of household energy such as microchips. These new advanced technologies and health interventions at global and regional levels. allow continuous and objective monitoring of the stove- This work included a methodology to assess the costs adoption and use processes. In general, the advantages and benefits of interventions aimed at demonstrating of using these advanced monitoring schemes include the benefits of investments to improve access to clean scalability, offline data entry, data visualization, and cooking solutions. These benefits include time savings because of less illness and a reduced need for fuel wood-burning stoves to six alternatives, including collection and shorter cooking times. fuel-efficient, wood-burning stoves, charcoal-burning stoves, kerosene stoves, LPG stoves, and electric stoves. Recently, Jeuland and Pattanayak (2012) developed The results confirmed that time efficiency and the a modeling framework for the systematic accounting opportunity cost of time are critical factors in affecting of the costs and benefits of improved cookstoves with the relative private returns of the use of fuel-efficient simulations aiming at showing the impacts on health, cooking technologies compared to traditional stoves forest, and climate from both the household and using solid fuels. Appendix 6 shows the typology of social welfare perspectives. They compared the costs costs and benefits of cookstoves and equations used and benefits of households switching from traditional for their calculations. 13 3. Conclusions on the context, some principles might be more relevant than others. The growing mobilization on clean cooking solutions is a unique opportunity that should be seized to produce The recent development of cookstove technologies and results on the ground. This note draws some broad the emergence of innovative business models to support principles that could inspire the design of interventions. their dissemination are encouraging factors. Efforts These principles are not meant to be exhaustive, since it should build on these developments, bearing in mind the is recognized that contextual conditions and constraints fundamental principle of accounting for the cookstove are fundamental in project design decisions. Depending user’s preferences for adoption and sustained use. 15 Appendix 1 World Bank–Funded Projects with Access to Fuelwood and Stove Components (US$ million) Total IBRD, HH energy % of total Project project IDA, GEF, access project closing Project Year cost GPOBA component costs date 1 Niger: Energy Project 1989 65.9 30.4 16.2 25 12/31/96 2 Mali: Household Energy 1995 11.20 11.20 11.20 100 12/31/00 3 Madagascar: Energy Sector 1996 102.60 44.20 2.90 3 12/31/05 Development 4 Senegal: Sustainable and 1997 19.93 19.93 19.93 100 12/31/04 Participatory Energy Management (PRODEGE I) 5 Chad: Household Energy 1998 6.30 5.27 6.30 100 6/30/04 17 6 Mongolia: Urban Stove 2001 0.75 0.75 0.75 100 3/31/07 Improvement (GEF) 7 Ethiopia: Energy Access Project 2002 199.12 132.70 5.44 3 6/30/13 8 Mali: Household Energy and 2003 53.35 35.65 13.47 25 6/30/12 Universal Access 9 Madagascar: Environment 2004 148.90 40.00 2.50 2 6/30/11 Program 10 Senegal: Electricity Services for 2004 71.70 29.90 4.60 6 12/31/12 Rural Area 11 Benin: Energy Services Delivery 2004 95.70 45.00 6.20 6 12/31/11 12 Rwanda: Urgent Electricity 2004 31.30 25.00 0.90 3 4/30/10 Rehabilitation 13 Chad: Community-Based 2005 94.45 39.76 2.50 3 3/30/11 Ecosystem Management 14 Benin: Forests and Adjacent Lands 2006 22.35 22.35 22.35 100 11/30/11 Management (GEF) 15 Burkina Faso: Energy Access 2008 41.00 41.00 6.70 16 4/30/13 16 Benin: Increase Access to modern 2009 178.50 72.00 5.50 3 6/30/15 Energy 17 Rwanda: Sustainable Energy 2009 8.30 8.30 8.30 100 N/A Development (GEF) 18 Mozambique: APL for Energy 2010 80.00 80.00 6.30 8 6/30/15 Development and Access 19 Senegal:2nd Sustainable and 2010 19.37 15.00 19.37 100 11/30/16 Participatory Energy Management (PRODEGE II) Total 1,250.72 698.41 161.41 13 Average loan/credit 65.83 36.76 8.50 Source: Ekouevi and Tuntivate 2012. Appendix 2: Sustainable Supply of material (wood), and that licenses and levies are largely Wood-Based Biomass Energy evaded, the cost of charcoal to the consumer does not reflect its real value. The impact of these lower costs is In most developing countries, access to firewood to undermine any efforts made by producers or traders and charcoal is not regulated in practice, much less to comply with the law by paying all licenses and levies, managed in a sustainable manner. Where firewood or to invest in efficiency savings, such as improved and charcoal are sold, market prices almost entirely conversion technology, long-term sustainable forest reflect extraction costs. Landless domestic migrants and management, or the establishment of plantations and the poorest segments of urban populations typically woodlots. Without improving the regulatory and fiscal spearhead the commercialization of firewood and frameworks of the sector, the market price of legal and charcoal, because they have few other choices left. sustainably produced charcoal will always be undercut Middlemen and retailers play a catalyst role, mostly in by unregulated and unsustainable products. larger cities. Under such conditions, the only limit to firewood “production” is the existence of trees within a In contrast to its economic potential, environmental physically or economically tolerable distance from the implications, and importance for the energy security of place of consumption. a majority of the Sub-Saharan African population, the wood-based biomass sector is currently viewed almost Challenges and Barriers entirely negatively in most countries. Prevailing policies 19 and laws tend to focus on regulations, enforcement, Overall, the wood energy sector is characterized by restrictions and, where possible, moving from the sector very weak governance, law enforcement, and other altogether to other energy sources. However, if the regulatory capacity. Low capacity to enforce regulations sector was formalized, and involved modern, supportive and effectively collect revenues is often undermined policies, this could create employment opportunities by corruption at checkpoints along charcoal transport and further broaden the revenue base for national and routes. In many Sub-Saharan African countries, regional governments. for example, the charcoal trade is dominated by a small number of powerful and politically connected Basic Design Principles for Sustainable Wood entrepreneurs who are able to use their influence to Production further avoid and evade payments of fees and obtaining of licenses. The tight control of the sector by a small Raising prices of sustainably produced fuelwood number of people has two important implications.2 has opportunities, but requires the introduction of First, it means that efforts to reform and regularize efficiency measures at the consumption level. As in the sector will be intensely resisted and will require any country, raising fuel prices is strongly opposed—it significant political support. Second, it means that would be a politically challenging consequence of the bulk of charcoal profits are concentrated within a reform of the production and consumption segments narrow band along the production-marketing chain. of the fuelwood value chain. However, raising price of Producers, small-scale transporters, and retailers (who fuelwood would create two important opportunities. far outnumber the more powerful wholesalers and First, it would provide a more favorable environment transporters) receive a very small share of the final for small-scale entrepreneurs to invest in efficient market price. This provides a strong disincentive toward production and conversion measures, such as tree sustainable forest management and afforestation and planting, participatory forest management, and reforestation investments by charcoal producers. kilns. Second, it would deliver greater incentives to consumers to invest in simple technology (such Obviously, such extraction regimes may hardly be called as fuel-efficient stoves) designed to reduce the sustainable. They usually result in rapid depletion of consumption of wood for energy, and hence cost. forest resources and tend to cut off society’s poorest An increased demand for energy-saving technology and most vulnerable segments from much needed would also act as a powerful stimulus for urban basic energy services first. Given that most charcoal is entrepreneurs to develop and market energy-efficient harvested without any payments being made for the raw stoves. Supporting measures are proposed that would 2 For a formal analysis of the political economy of the charcoal sector in Tanzania, see, for example, World Bank 2010. reinforce moves to make the wood-based biomass energy, it is likely that other farmers would engage energy sector more sustainable and inclusive, and in similar activities. In this context, the potential to achieve greater impacts on poverty reduction, if carbon finance opportunities need to be further implemented alongside the policy reforms mentioned explored. above. These are as follows: • Effective pricing policies of raw material by • Harvesting plans need to be developed for forest charcoal producers could provide an incentive areas administered by central or local governments. to adopt technologies that improve the efficiency Taking into account the lack of reliable data on of charcoal production. Considering that the forest resources in many countries, harvesting raw material has no cost, charcoal producers and licensing decisions are currently driven by currently have no incentive to invest in more inaccurate estimates of standing stock or resource efficient technologies. When raw materials carry a availability. To address this issue, it will be critical price—that is, the investment costs for sustainable that more accurate assessments are undertaken. forest management or plantation establishment— Once assessments are made and harvesting plans producers would be provided with an incentive are implemented, it is crucial that compliance with to invest in relatively simple though effective harvesting plans is closely monitored. technologies that improve the efficiency of turning • Scaling up community-based forest management wood into charcoal. While semi-industrial charcoal 20 (CBFM) will help secure tenure for rural producers. kilns may achieve significant efficiencies, they may The most devolved form of participatory forest only be a viable option for large-scale production management (PFM)—community-based forest enterprises. However, small-scale producers management—offers communities the opportunity should be provided with simple training on how to declare forest reserves on village lands, which are efficiencies of traditional charcoal production managed in line with local development priorities. (earth kilns) can be improved. These efficiency While this would require continuous engagement improvements would help producers offset initial from external sources, since establishing community- investments costs. based forest management arrangements incur • The promotion of fuel-efficient stoves can substantial initial costs, fiscal reforms as proposed compensate for expected increases in sustainable earlier would ultimately increase revenue collection fuelwood prices. With fuelwood prices likely to at local government levels, which has the potential increase as fiscal incentives are implemented to cover the support costs of community-based forest that favor sustainably produced fuelwood, fuel- management in the long term. efficient stoves must be further promoted in order • Small-scale plantations and woodlots could to compensate for increased consumer prices. increase supplies of wood for charcoal and trigger By improving the availability of high-quality, fuel- economic opportunities and land use planning in efficient stoves, consumers would have the possibility rural areas. Although natural forests are expected to offset increased prices. However, price premiums to continue supplying much of the raw material on fuel-efficient stoves need to be smaller than the for charcoal production, considering the projected monetary savings expected through reduced wood increase in charcoal demand, natural forests will and charcoal quantities in order to provide a true not be able to meet these demands in a sustainable incentive. manner. Consequently, the establishment of private • Designing successful policies also entails giving or group-based woodlots or plantations could, in attention to the views and opinions of the various the long term, complement supplies outside forest actors involved in and affected by the policy reserves. Subsidies and incentive payments might at different levels, the roles they play, the ways be necessary in the early stages to trigger local- they relate to each other, and their networks of level investments in establishing planted woodlots. information exchange and learning. Under such Complementary measures to improve the overall a process, it is acknowledged that a policy in regulation and formalization of the fuelwood general is not only formulated and implemented, sector must be introduced to gradually replace but also interpreted, contested and resisted, subsidies with more market-based credit provision repelled, and potentially modified. This underlines in the medium to long term. As farmers begin to the characteristics of a policy process rather than a secure financial benefits from the sale of wood for single-standing, one-time intervention. Basic Principles to Modernized Fuelwood to flourish within the sector. Recommendations to Supply Chain formalize the sector—changing the regulatory, fiscal, and pricing frameworks—include, but are not limited to, The measurable impact on the ground depends just as the following: much on how a wood-based biomass energy policy is • Ensuring that the revenue collection responsibilities implemented as it does on the issues raised above. In of local governments associated with wood-based this sense, shaping such policies means to deliberately biomass energy use are matched with an ability to promote adequate selection and use of governance retain a larger share of revenue collected. instruments (laws and regulations, incentives, planning, • Supporting local governments in reinvesting income and information). As policies change over time, shaping derived from fuelwood trade and consumption, with wood-energy policies must be regarded as a learning the objective of further improving revenue collection process. This calls for flexibility in implementation, and promoting sustainable forest management. continuous observation of changing circumstances, • Introducing fiscal incentives that reward sustainably and impact monitoring. It likewise requires capitalizing produced wood-based biomass energy and place on experience and the lessons learned, including those additional costs on whatever is illegally produced. from other countries. • Governments need to strengthen their capacity for monitoring and enforcing rules and regulations on As a first step, significant changes need to be introduced the production, transport, and trade of fuelwood. 21 to regularize and legalize the currently informal sector. This would require a major shift both inside and outside Given the current political economy in many countries, government with regard to how wood energy is viewed bringing the fuelwood trade into the tax-based economy and managed from a policy perspective. Currently, is a significant challenge that needs to be tackled head- the sector is viewed almost entirely negatively, and as on. It requires strong political support if the vested and a result, prevailing policies and laws tend to focus on powerful interests that currently control the sector are regulation, enforcement, restriction and, where possible, to be confronted. Furthermore, as reforms gather pace, moving away from the sector altogether to other energy increasing amounts of traded charcoal would enter the sources. This perception will need to be changed and formal economy, reflecting the true costs of production instead a more enabling environment created that allows (including raw material costs and all fees and taxes). As for responsible, sustainable, and profitable enterprises a result, the end price to consumers is expected to rise. Appendix 3: Performance Monitoring including fuelwood not just used for cooking, but Methodology also when it is used to cook animal feed or heat bathwater, or used for a variety of meals under A considerable amount of research has been conducted varying conditions. The test, however, has very little on stove performance in the past 10 years, as well control and can require more resources. as on significant advances in the ability to measure • The controlled cooking test (CCT) serves as a emissions that impact health, such as CO and fine bridge between the KPT and WBT. It is a field test PM. Research evidence has shown that, in addition to that measures stove performance in comparison standard laboratory tests, field tests that consider the to traditional cooking methods. The test essentially variation of local cooking practices, building materials trains a number of local beneficiaries to prepare the and modification of stove design are also needed. exact, same local meal both under normal cooking conditions and with a fuel-efficient cookstove. The The Basics of Testing Methodology CCT is designed to assess stove performance in a controlled setting using local fuels, pots, and The descriptions below detail the most common practice. It reveals what is possible in households cookstove testing methodologies. under ideal conditions, but not necessarily what is • The water-boiling test (WBT) is the most basic actually achieved by households during daily use. technique, and it provides a standardized, easy The test can serve on a stand-alone basis or be used 23 method of comparing stove efficiencies under to double-check the results from a WBT. controlled laboratory conditions. There are a number of standard tests, including the VITA 85 Metrics for Stove Performance International Testing Standard protocol, Indian and • There are a number of ways to measure performance Chinese Standard WTA, comparative WBT and of a cookstove, depending on the overall project now, as of 2012, the WBT 4.12.3 The VITA test was objective or the community’s needs. For example, originally the most commonly used, although now programs focused on reducing overall fuel the WBT 4.12 addresses efficiency measurement consumption in charcoal would value fuel saved, inconsistencies.4 Water boiling tests are the while health-focused projects would measure PM or only tests that can determine an actual physical CO emissions. Those projects with a gender focus efficiency. The standard water boiling test should might focus on variables, such as time saved, giving be done under high power (water quickly brought wood or increased productive income. Ultimately, to a boil) and low power (water kept at steady choosing an appropriate stove requires an iterative temperature while simmering) to more accurately process between stove designers, laboratory results predict fuel use for different cooking tasks. There and, most importantly, the local cooks that will use are some drawbacks in water boiling tests when the stoves. In some cases, programs can adapt an testing fuelwood, which often has varying moisture efficient stove chamber, such as the rocket design, content and can run through various burn cycles, into a locally adaptable design, while in others, a depending upon their char/pyrolizing solid ratios. standardized manufactured stove is more appropriate. Additionally, water boiling tests are often void of The list below briefly describes relevant metrics. cultural variables, such as specific woods used for • Time to boil: Often an important factor when cooking, methods by which fire is created and food considering consumer demand. Past field studies is cooked. have shown that women prefer less time to boil and • The kitchen performance test (KPT) is a field- an adjustable stove heat to cook various meals (for based test that measures how much fuel is used in example, to simmer or boil, or to cook tortillas). The actual households when cooking normally over a standard test boils 5 L with both cold and hot start few days. The amount of wood the family used per phases of the WBT. Cookstoves that boil water faster day is calculated in this test. The KPT is an excellent than a three-stone fire often have narrow channels way to observe real world energy consumption— around the pot to force hot gases to flow against the it measures all household energy consumption, surface of the heating container. 3 Up-to-date testing protocol can be found here: http://www.pciaonline.org/testing. 4 As addressed by the 2003 Still, Ogle, and Bailis paper asserting that efficiency tests can vary widely in low- and high-power situations. • Efficiency: Specific fuel consumption and energy • U.S. EPA, North Carolina: The EPA is now required for cooking. While the amount of fuel is considered the foremost independent stove-testing a direct weight-based measurement, the energy facility. Website: http://www.epa.gov/nrmrl/appcd/ required takes into account the energy density of index.html alternative fuels, such as kerosene or alcohol. In • The Aprovecho Research Center has conducted measuring the amount of fuel, it is important to 30 designing and implementing cookstove projects. establish consistent fuel types and moisture content. The center provides research, consulting, and Typically stoves that significantly reduce the fuelwood training to stove projects and testing of cookstoves. needed often incorporate a fan,5 or use “natural Website: http://www.aprovecho.org draft” to increase the velocity of the flame and hot • Zamorano University is a university in Tegucigalpa, gases surrounding the pot. Honduras, that assists NGOs and government • CO and particulate matter (PM) emissions: CO agencies in training, testing, and certification and PM emissions cause a host of health impacts. of cookstoves. Website: http://www.zamorano. Another common metric employed is the ratio of edu/english/campus/laboratories/natural-and- CO to CO2. Stoves that produce less CO increase environmental-resources-laboratories/cookimproved- the time in which flames burn, increase the fire stove-certification-center/ temperature, and turbulence to increase mixing with • Colorado State University: The Engines and Energy 24 oxygen. Conversion Laboratory originally spun off Envirofit • Cost: Overall costs and availability of materials are International cookstoves. The group also analyzes an important factor, particularly when deciding on household air quality conditions, performs baseline the project budget and the cash constraints of the and cookstove performance testing (in both the project beneficiaries. Often the most effective stoves laboratory and the field), performs in field KPTs, and in preventing IAP can be more expensive, and they provide cookstove design services. It can also design, will need to be partially subsidized. Other factors, implement, and manage in-field market studies and such as willingness to pay, can also be a factor. customer feedback studies. Website: http://www.eecl. Some stove programs have begun including “add- colostate.edu/research/household.php ons,” such as a thermoelectric generator to charge a • Organismo Público Descentralizado del Sector cell phone, to increase consumer demand. Vivienda, Construcción y Saneamiento (SENCICO), • Monthly fuel use: This is a measurement that is is an organization set up by the Peruvian government found through field tests; it accounts for variations of that offers evaluation and certification of cookstoves. cooking and consumption habits. Website: http://www.cocinasmejoradasperu.org. pe/documentacion/brochure/BROCHURE%20 Comparison of Stove Performance SENCICO.pdf • The Centre for Integrated Research and Table 1 shows the results from a 2010 test using a WBT Community Development (CIRCODU) is a protocol in the Aprovecho test kitchen. The following Ugandan NGO that provides services such as third- chart may be used as a guide for project designers. party independent evaluation for carbon projects, However, it should be used in conjunction with field tests KPTs, water boiling, and durability tests. It also offers and iterative sampling. consumer market research and is involved with a domestic biogas program. Website: http://www. Cookstove Testing Resources circodu.org • Lawrence Berkeley Laboratory (LBL) is a U.S. Sometimes cookstove programs use a series of national laboratory based in Berkeley, California, partnerships between academic institutions or national that provides research and cookstove testing research laboratories to help design, measure, and resources. Website: http://cookstoves.lbl.gov compare cookstoves. The following list is a set of • The Partnership for Indoor Air (PCIA) maintains resources available to project designers and programs a website that posts research and testing resources in need of more information or consulting services in for cookstove programs. Website: http://www. cookstove testing technology. pciaonline.org 5 Currently fans are being tested in cookstoves that either operate by power from a battery, electricity (if available), or thermoelectric generator. Table 1: Results from a 2010 Test Using a WBT Protocol in the Aprovecho Test Kitchen Time to Fuel used Energy used CO PM Safety Cost to Monthly fuel boil to cook to cook emissions emissions ratings purchase use (min) (g) (kJ) (g) (mg) (out of 40) (US$) (kg/ month) Wood-burning stoves without chimneys 3-stone fire 26.7 1,118 19,496 55.7 2,363 21 0.0 67.1 Ghana wood 21.8 996 15,190 50.4 4,287 32 5.0 59.8 20 L can 22.3 733 12,579 15.3 1,289 33 0.0 44.0 rocket Mud or 16.0 793 13,107 48.5 2,352 33 0.0 47.6 sawdust VITA stove 14.0 689 11,553 42.8 2,150 29 2.0 41.4 Wood-burning stoves with chimneys Justa stove 46.7 1,367 23,573 24.1 792 38 75.0 82.0 Uganda 16.2 720 11,380 22.3 678 37 40.0 43.2 25 2-pot Patsari 34.8 1,277 21,324 19.4 879 36 35.0 76.6 prototype Onil stove 28.0 1,386 21,503 31.5 1,343 39 72.0 83.2 Ecostove 38.6 2,014 37,395 48.0 5,102 34 67.0 120.8 Wood-burning stoves with electric fans Wood flame 19.5 626 10,510 9.2 48 35 229.0 37.6 fan Wood gas fan 23.7 459 9,434 6.9 27 33 99.0 27.5 Charcoal stoves Mali charcoal 38.6 674 19,801 112.8 260 33 2.4 — Gyapa 28.4 694 18,013 135.2 587 32 5.9 — charcoal Solar cooker Parabolic 70.0 0 0 0 0 32 55.0 — solar cooker Liquid fuel stoves Propane 23.0 139 6,670 0.5 5 33 18.0 — Alcohol— 31.6 317 6,766 5.3 4 37 25.0 — clean cook Kerosene 41.9 247 9,623 7.8 10 35 9.5 — Source: Aprovecho Research Center 2011. Appendix 4: Supporting Household The voluntary market is not governed by regulations. Energy Interventions with Carbon Demand for VERs is driven by (a) companies and Finance individuals who neutralize their GHG emissions through investment in reductions elsewhere (referred to as Since cookstove projects result in more efficient offsetting) and (b) entities that purchase emissions combustion, they also achieve reduced fuel reductions that they hope will be recognized by future consumption (demand-side activities). Therefore, cap and trade regulations (precompliance offsets). The their dissemination can result in reduced GHG prices for VERs have to date been more constant than emissions, assuming the fuels (including biomass) in the regulated market, which is currently suffering are nonrenewable. If this activity is combined with from lack of demand. Although not regulated, it afforestation and reforestation activities (supply- is important to buyers in the voluntary market that side activities), even more GHG reductions can be real emissions reductions are achieved from their achieved. Clean and more energy-efficient cookstoves investments. Therefore, different organizations have can conservatively save at least 1 metric ton of CO2 developed standards for VERs. These standards basically emissions per year under the right conditions. Many operate as a label recognized as a sign that projects modern, efficient models can even save twice the are achieving “real” GHG mitigation. Over the last amount of GHGs compared to traditional cooking five years, the voluntary market has developed multiple stoves. Since in carbon markets a value is given to standards, registries, and project types (Peters-Stanley 27 each ton of CO2 reduced, revenues from carbon 2012). The top four standard-setting agencies in 2011 credits could be used to support the financing (upfront included the following: and/or repayment costs) and dissemination of • The Verified Carbon Standard (VCS). cookstoves. This guide is intended to enable readers • The Climate Action Reserve (CAR). to identify whether their projects would benefit from • The Gold Standard (GS). carbon finance. • The American Carbon Registry (ACR). Carbon Markets—The Basics Although different, there are some similarities between the regulated and the voluntary carbon markets in the Carbon markets are either regulated or voluntary. end users or buyers, suppliers, intermediaries, types Regulated and voluntary markets exist side by side. The of transaction, and project risks and financing. Key commodity traded in all carbon markets is a ton of CO2 differences exist in the eligibility and methodological equivalent (CO2eq). In regulated markets, this is usually application. referred to as a certified emission reduction (CER). In voluntary markets, it is a verified emission reduction Feasibility of Using Carbon Finance (VER). All GHGs are converted into CO2eq by referring to the global warming potential (IPCC 2007) of each Host Country gas. The location of a project or activity is critical. The Regulated markets are almost twice the size of voluntary project or activity must be located in a “non–annex markets in the volume of tons of CO2eq exchanged. I country,” as defined in the Kyoto Protocol, to be Regulated markets are generally formed following a eligible for regulated carbon markets. Furthermore, government decision to implement either a cap and the host country must have an established, designated trade scheme or a carbon tax to limit the amount of national authority (DNA). Under the CDM, the DNA is GHGs that may be emitted by specific industrial or responsible for ensuring that a project contributes to a economic sectors. To ensure cost-effective reductions, countries sustainable development. the companies targeted by the cap and trade or tax regime can comply with their obligations by purchasing The voluntary market has no restrictions on which GHG emissions reductions from projects that follow country is a host country. However, the GS requires predefined rules. The Clean Development Mechanism the host country to retire a number of emissions (CDM) governs the largest share of existing carbon allowances if the host country has an emissions markets. In this guide, we will refer to the CDM when cap. The GS requires the project proponent to discussing regulated markets. assess whether a project contributes to sustainable development. Other voluntary standards, such as the for leakage where the main sources of leakage involve VCS, do not require this. biomass loss outside the project boundary because of displacement of activities. (For example, if trees are Can My Project Activity Be Supported with Carbon planted on agricultural land and these agricultural Finance? activities are moved to a different location, and if biomass is removed at this location to make room for Once it is clear that the location of the project is the agriculture, this is considered leakage.) Project appropriate, it is useful to assess the economic value examples can be found on the UNFCCC website at of pursuing carbon finance for a project or activity http://cdm.unfccc.int/Projects/projsearch.html. by undertaking a basic cost-benefit analysis. Such an analysis requires the identification of the costs Estimating Emissions Reductions and Additionality of disseminating fuel-efficient stoves or advanced What Key Data Are Needed to Determine Emissions combustion stoves and then and evaluation of the Reductions? potential GHG savings from the project. The GHG emissions reductions are calculated by referring to either The monitoring methodologies and standards define the a CDM methodology or voluntary standards defined data requirements that need to be provided ex ante and by the standard-setting agencies. Methodologies and during monitoring, usually each year, that is, ex post. In 28 standards exist for both demand-side activities and general terms, the emissions reductions are calculated supply-side activities. CDM methodologies are found thus: on the United Nations Framework Convention on Climate Change (UNFCCC) website, and the voluntary Baseline Emission – (Project Emissions + Leakage standards are found on the website of each of the Emissions). separate standard-setting agencies. In general for the GHG emissions generated from the demand side, the baseline scenario is the use NOTE: CDM methodologies are summarized of fossil fuel for meeting similar thermal energy in a booklet found at : http://cdm.unfccc.int/ needs. According to the applicable CDM small-scale methodologies/documentation/meth_booklet.pdf methodology entitled “AMS-II.G,” the amount of wood biomass that is substituted is calculated as the product Demand-Side Interventions of the number of appliances multiplied by the estimate of average annual consumption of woody biomass per For demand-side cooking stove projects, the assumption appliance (tons per year). This can be derived from is that new stoves reduce the amount of nonrenewable historical data or estimated using survey methods, or it fuelwood used for combustion compared to previous can be calculated from the thermal energy generated in cooking approaches. The applicable methodologies the project activity using the efficiency of the appliance ensure that the projects or activities increase end- and the net calorific value (NCV) of the fuel used. user energy efficiencies of fossil fuel–based stove technologies at the household level. However, other The emissions reductions are calculated as the product stove types, such as biogas or fossil fuel cookstoves, are of the amount of woody biomass that is saved, the also eligible, since they can apply methodologies for fraction of woody biomass used, the NCV of the (a) fuel switches from fossil fuels or (b) nonrenewable nonrenewable woody biomass, and the emission factor biomass to renewable energy sources in thermal of the nonrenewable woody biomass. Default values applications (such as biogas stoves and solar cookers). can be used for the NCV and the emission factor of the nonrenewable woody biomass. Supply-Side Interventions The amount of woody biomass saved and the fraction On the supply side, the basic calculation is based of woody biomass are two critical parameters. Woody on biomass growth used to fuel the stoves. Credits biomass that is saved can be estimated using one of the are based on the difference between the amount of following methods: biomass or carbon estimated under the baseline and • Option 1: The difference between the quantity actually observed under the project. This is corrected of woody biomass consumed in project and the baseline scenario measured according to the KPT repan22.pdf?t=SU98bWFuNTZrfDBcvhFBwGw8ZzwPa protocol. uJ3MHMO • Option 2: Based on the efficiencies of the appliance in the baseline and project case. The efficiency The demonstrably renewable biomass variable is of the baseline system can be measured using defined as the woody biomass from either forest or representative sampling methods or based on nonforest land that is sustainably managed and where referenced literature values. Alternatively, default the conservation regulations are complied with. On a values can be used based on the type of system project-specific basis, this is typically addressed by using replaced. The efficiency of the project system must inventory data from the forest area that is protected be established using the WBT protocol. or sustainably managed. Additionally, by requesting evidence for increasing fuelwood scarcity, AMS-II.G Option 3: Based on the specific fuel consumption or requires field studies that are often costly and time- the fuel consumption rate of the systems replaced and demanding to project developers. deployed. These values are to be determined using the CCT protocol. The basic calculation for emissions reductions generated as a result of changes in the supply side of For these three options, the amount of woody biomass biomass for cookstoves is based on biomass growth. that would have been used in the project case is Biomass can be determined using fairly standard 29 determined as following: forest inventory methods where trees are measured in • Calculating the product of the number of systems sample plots and their volume or mass calculated using multiplied by the estimated average annual species-specific defaults. This biomass consists partly consumption of woody biomass per appliance (tons of carbon and partly of other things (like water), so the per year). biomass is converted to tons of carbon using default • Calculated from the thermal energy generated in the values that make this conversion. The defaults are project. provided in the methodologies. The second critical parameters in demand-driven Credits are based on the difference between the amount cooking stove projects are the fraction of nonrenewable of biomass or carbon estimated under the baseline and biomass. In the small-scale CDM methodology, “AMS- actually observed under the project. This is corrected II.G” is derived from the demonstrably renewable for leakage where the main sources of leakage involve biomass and the nonrenewable biomass (NRB). The biomass loss outside the project boundary because of following link can provide additional information: the displacement of activities. http://cdm.unfccc.int/filestorage/H/2/9/ H29X6EKQMJU7RY85DIT4ZPFAL3O1GW/eb67_ Checklist to Assess Whether Key Data Are Available Demand-Side Methodologies Box 1: Emissions Reductions per Household per Stove per Year Is default nonrenewable woody biomass Yes  No  available? If not, is it possible to calculate ERy = By,savings * fNRB,y * NCVbiomass * Eprojected_fossilfuel the fraction of nonrenewable woody biomass (NRB). Typical values: Is it possible to calculate the fraction of Yes  No  fNRB = 0.5 to 0.96 (see the link on the next page designated renewable biomass used? for the value of each country) Is it possible to calculate the amount of Yes  No  NCV = 0.0156 TJ/ton (can vary) woody biomass saved? EF = 81.6 tCO2/TJ (can vary depending on the Can the emissions from the fuel used Yes  No  baseline fuel) prior to the project for cooking be calculated? Biomass savings (By): Varies from household to Can the efficiency of the new cookstove Yes  No  household; could be in the range of 40–60 percent be measured? of the consumption and on the efficiency of old and new stoves. Has leakage been accounted for? Yes  No  Supply-Side Methodologies also attend the stakeholder consultation, as well as a local GS expert or regional representatives of the Can the baseline biomass be determined Yes  No  relevant international NGOs supporting the GS. (using standard forestry methods)? The GS requirements for reporting on planning, Can leakage be accounted for? Yes  No  calling, conducting, and responding to stakeholder consultations are more detailed than those of the CDM EB or the other voluntary standards ACR, VCR, General Nontechnical Requirements of Carbon and CAR. Finance • Environmental Impact Assessment Early Consideration • All projects seeking carbon finance must comply with the host country’s requirements for environmental The aim of carbon finance is to trigger GHG emissions sustainability. An ex ante assessment of possible reductions that would not have happened without the environmental impacts of the project must be carbon finance. Therefore, it is necessary to prove that included the project design documentation. The CDM carbon credits have been an integral component of the regulations in the regulated market and the voluntary project since before the investment decision was made standards defined by VCR, ACR, and CAR require to implement. A number of proofs that are accepted in Environmental Impact Assessments if they are part of 30 the regulated CDM market by the CDM executive board the host country’s DNA requirements. The GS requests include the following: a detailed assessment of the project’s impacts on • A public announcement that states that the project will sustainable development, including environmental go ahead thanks to the inclusion of carbon credits. impact assessment. • Correspondence with either the host country DNA, • Sustainability Assessment the GS or the UNFCCC. • Under CDM, VCR, ACR, and CAR standards, • Inclusion of carbon revenues in the feasibility study. the host country approves the sustainability of • A record of a board decision to implement the project a project. The DNA has the right to withdraw a as a result of the inclusion of carbon revenues. letter of approval in the event that a project fails to contribute to national sustainable development Under voluntary markets, early consideration is also requirements. The project developer is not required necessary. The GS requires the same evidence as to monitor the impact of a project on sustainable under the CDM. The VCR, CAR, and ACR also accept development once the project is registered. business meeting minutes as justification of early • The GS requires more detailed assessment of a consideration. project’s impact on sustainability. It is necessary to undertake a “no harm assessment,” which Stakeholder Consultation assesses a project’s impacts on human rights, • It is mandatory for any planner of a project activity labor standards, and environmental protection and in the carbon market to conduct a Local Stakeholder anticorruption. Furthermore, the GS requires the Consultation in order to ensure the general completion of a sustainable development metric acceptance of the project activity, as well as the in which clear environmental, social, economic, willingness to participate (that is, the monitoring and technological development indicators must process) on the part of the target group and the be assessed. Finally, the impacts on sustainable neighboring population. The consultation is to be development must be monitored. based on either a detailed, substantive PIN or a • Clarifying Overseas Development AID and Carbon draft Project Design Documentation (PDD). Finance • The recommended participants for a local • Overseas development aid (ODA) is a category of stakeholder consultation include (a) local finance from developed countries to developing people affected by the project and their official countries with the aim of promoting economic representatives, (b) local policy makers and development and welfare. ODA funding can be representatives of local authorities, and (c) local used to cover the transaction costs associated with NGOs working on topics relevant to the cookstove project identification and PDD development, but not projects. For CDM projects under the GS, an official for the purchase of credits that will be used to meet representative of the DNA of the host country must emissions reduction obligations. As a result, public funding for CDM projects and voluntary projects they have reached their projected life span—it must must be disclosed. be ensured that the replacement stove has a similar • Nontechnical Issues Checklist efficiency as the stove being replaced) or an incentive • Check that all the nontechnical issues have been scheme is in place to replace the old stove. considered. If there is a negative response to the questions below, your project may not be eligible for Key parameters to be monitored include the following: carbon finance. • Disposal of old appliances and/or halting fuelwood • CDM, VCR, ACR, CAR Standards consumption with old stoves that are still in use Leakage factors. Early consideration: Is there evidence Yes  No  • Fraction of nonrenewable biomass. of early consideration of carbon finance prior to the investment decision? Every stove distributed must have a number (that is, it Stakeholder consultation (SC): Will the SC Yes  No  should be labeled), so that it can be clearly identified. review a detailed project design? Additionally, a customer database is required in Environmental impact assessment: If the Yes  No  which the address and telephone number of the stove country requires an EIA has this or will purchaser are included. It is recommended that project this be implemented prior to operations? developers planning a CDM stove project or voluntary Impact on sustainable development: Has Yes  No  standard other than the GS take the much more detailed 31 the DNA approved the project complies monitoring requirements of the GS methodologies into with national sustainable development account. Monitoring under the GS standards requires objectives in the form of a letter of approval? the maintenance of a total sales record, a detailed customer database and, a project database. The following must be monitored from the project: GS Standard • The efficiency of the project appliances and their continuation of operation (such as by representative Are the DNA representative and a local Yes  No  sample)—a biannual check. GS representative attending the local stakeholder consultation? • The amount of woody biomass saved under the project—annual monitoring. Are the sustainable development Yes  No  assessment and matrix complete? • The amount of thermal energy generated by the new renewable energy technology under the project. • The amount of woody biomass saved under the Monitoring, Validation and Verification (MRV) project (based on surveys) that is used by nonproject Monitoring households and users (who previously used renewable energy sources). Monitoring involves the repeated observation of factors • Ensuring that old equipment is disposed of. and procedures on which baseline, project, and leakage emissions are based. The GS standards provide In addition, the GS methodology requires conducting the most detailed requirements for monitoring. a survey every three months. The sample size for the kitchen surveys must be 10 percent of the number of In general, monitoring is to consist of an annual check customers, but a minimum of 25 randomly selected of all appliances in use or a representative sample customers. It is advisable to train additional staff to be thereof. The EB has issued “Draft General Guidelines solely responsible for the annual monitoring surveys and on Sampling and Surveys—Efficiencies of Stoves in Use” observations. A detailed monitoring plan and manual (if stoves are being replaced—for example, because should help the monitoring staff with their surveys. Appendix 5 Examples of Options for Facilitating Household Use of LPG Goal Option Lower costs to Exploit economies Hospitality arrangements, third-party access consumers of scale Bulk purchase, joint purchase, large import parcels Large refineries Lower barrier to Hospitality arrangements, third-party access entry Minimize Rapid customs clearance demurrage charges Reduced port congestion Round-the-clock staffing by port authorities Adequate port receiving capacity Minimize short- Clear marking of cylinder tare weight 33 selling Enforcement of scale calibration and date of last scale calibration visible to customers Customer’s right to check cylinder weight Industry association’s (voluntary) seal of quality or certification Publication of names of companies found short-selling Increase price Posting of prices by company, location, and cylinder size on government website competition Competition policy Improve auxiliary Improved road conditions infrastructure Improved port infrastructure in importing countries Enhance safety Establish clear Formal adoption of international standards by reference regulations All regulations posted in one place on the Internet in reverse chronological order Training of supply personnel legally required Education of consumers about safe handling of LPG legally required Enforce safety Where there is a ban on cross-filling, ban effectively enforced regulations Small fee levied to finance monitoring and enforcement Registry of certified installers Clearly marked date of last cylinder recertification Registry of certified private inspectors operating under government supervision Training workshops organized by LPG industry association Publication of names of companies violating safety rules Educate Pictorial guides in local languages, newspaper/radio/TV advertisements, Internet consumers posting of safety information Neighborhood demonstrations by retailers, industry association, and consumer groups In-house demonstration of proper cylinder and stove handling by installers (continued on next page) Examples of Options for Facilitating Household Use of LPG (continued) Goal Option Target financial Move away from Expansion of social safety net program to help pay for LPG, such as cash assistance universal price transfers or vouchers subsidies Spread or reduce Dealer incentives for cylinder deposit fee and stove upfront adoption cost Dealer-financed installment plan Microfinance scheme Small cylinders in niche market Minimize Require minimum commercial and/or strategic stockholding in regulations shortages Ensure reasonable returns (through, for example, removal of universal price subsidies) to efficient operators to build capital for construction of storage facility Encourage hospitality and third-party access Raise awareness Government: Publish price information, industry statistics, frequently asked questions, safety tips, 34 and involve and names of companies violating rules that directly affect consumers on the Internet and in reports; consumers establish a simple mechanism for registering complaints in improving market Industry association: Publish information, frequently asked questions, and safety tips on the Internet; conditions publish brochures; take out newspaper/radio/TV advertisements; publicize information on retailer location and contact details; establish quality control and issue seals of quality for companies in compliance; establish a simple mechanism for registering complaints against members Companies: Disseminate information on proper handling of LPG cylinders, frequently asked questions, and safety tips; have installers show new customers in their homes how to handle an LPG cylinder and stove properly; establish a simple mechanism for registering complaints Source: Kojima 2011. 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