81495 The World Bank Asia Sustainable and Alternative Energy Program E A S T A S I A A N D PA C I F I C C L E A N S T O V E I N I T I AT I V E S E R I E S China Accelerating Household Access to Clean Cooking and Heating September 2013 The World Bank The World Bank Group Asia Sustainable and Alternative Energy Program 1818 H Street, NW Washington, DC 20433 USA www.worldbank.org/astae The World Bank Asia Sustainable and Alternative Energy Program E A S T A S I A A N D PA C I F I C C L E A N S T O V E I N I T I AT I V E S E R I E S China Accelerating Household Access to Clean Cooking and Heating September 2013 Copyright © 2013 The International Bank for Reconstruction and Development / The World Bank Group 1818 H Street, NW Washington, DC 20433, USA All rights reserved First printing: September 2013 Manufactured in the United States of America Please cite this report as follows: World Bank. 2013. China: Accelerating Household Access to Clean Cooking and Heating. East Asia and Pacific Clean Stove Initiative Series. Washington, DC: World Bank. Photo credits: Front cover: Xiaofu Chen Back cover (left-to-right): Xiaofu Chen and Guangqing Liu Inside front cover: Xiaofu Chen Inside back cover (left-to-right): Laurent Durix and Guangqing Liu Chapter 2: China Alliance for Clean Stoves (table 2.4) Chapter 3: China Stoves Website (figure 3.7); China Alliance for Clean Stoves (figure 3.10) The findings, interpretations, and conclusions expressed in this report are entirely those of the authors and should not be attributed in any manner to the World Bank, or its affiliated organizations, or to members of its board of executive directors or the countries they represent. The World Bank does not guarantee the accuracy of the data included in this publication and accepts no responsibility whatsoever for any consequence of their use. The boundaries, colors, denominations, and other information shown on any map in this volume do not imply on the part of the World Bank Group any judgment on the legal status of any territory or the endorsement or acceptance of such boundaries. Contents Foreword.....................................................................................................................................vii Acknowledgments.......................................................................................................................ix Acronyms and Abbreviations......................................................................................................x Units of Measure.......................................................................................................................................................x Currency Equivalents.................................................................................................................................................x Main Messages............................................................................................................................xi Executive Summary..................................................................................................................xiii 1. Introduction.............................................................................................................................1 Overview of Program Context...................................................................................................................................1 China Clean Stove Initiative.......................................................................................................................................2 Study Purpose and Objectives..................................................................................................................................3 Methodology.............................................................................................................................................................3 Structure of This Report.............................................................................................................................................4 2. Household Cooking and Heating Demand...........................................................................5 Overview of Rural Household Energy.......................................................................................................................5 Mapping Rural Household Energy for Cooking.........................................................................................................6 Solid Fuel Use....................................................................................................................................................6 Biogas................................................................................................................................................................7 Solar Cookers.....................................................................................................................................................8 Household Heating Demand.....................................................................................................................................8 District Heating..................................................................................................................................................8 Options Outside District Heating Areas.............................................................................................................9 Drivers of Household Fuel and Stove Selection......................................................................................................10 Resource Availability and Accessibility.............................................................................................................10 Household Affordability....................................................................................................................................13 Cultural Acceptability........................................................................................................................................13 Suitable Biomass Stove Types by Region................................................................................................................13 Conclusion...............................................................................................................................................................15 iii iv Contents 3. Analysis of Household Stoves Supply................................................................................17 Biomass Stoves.......................................................................................................................................................17 Industry Overview............................................................................................................................................17 Survey Results.................................................................................................................................................18 Overcoming Barriers to Market Development.................................................................................................21 Coal-Burning Stoves................................................................................................................................................22 Stove Development..........................................................................................................................................22 Production and Sales........................................................................................................................................22 Overcoming Barriers to Market Development.................................................................................................23 Biogas......................................................................................................................................................................24 Promotion of Household Biodigesters.............................................................................................................24 Technology Trend..............................................................................................................................................24 Service System Development..........................................................................................................................24 Overcoming Barriers to Market Development.................................................................................................25 Solar Cookers..........................................................................................................................................................25 Production Scale..............................................................................................................................................25 Stove Types and Suitable Areas .......................................................................................................................26 Suppliers .........................................................................................................................................................26 Overcoming Barriers to Market Development ................................................................................................27 Conclusion...............................................................................................................................................................27 4. Policies, Programs, and Institutional Players.....................................................................29 Structure of Current Programs................................................................................................................................29 Ministry of Agriculture......................................................................................................................................30 State Forestry Administration..........................................................................................................................30 National Energy Administration........................................................................................................................31 Ministry of Health............................................................................................................................................32 Provincial and Local Programs.................................................................................................................................33 Institutional Arrangements......................................................................................................................................34 Technology Research and Development..........................................................................................................34 Standards and Testing......................................................................................................................................35 Program Implementation.................................................................................................................................35 Awareness Raising...........................................................................................................................................35 Monitoring and Evaluation................................................................................................................................35 Recent National Policies..........................................................................................................................................35 Stove Standards and Testing Protocols....................................................................................................................36 Addressing Key Challenges.....................................................................................................................................36 Conclusion...............................................................................................................................................................38 5. Key Policy Recommendations.............................................................................................39 Overall Program Strategy........................................................................................................................................40 Strengthening Institutions and Building a More Enabling Environment.............................................................................................................................40 Supporting Market and Business Development...............................................................................................41 Stimulating Household Demand......................................................................................................................42 A New Approach to Promoting Clean Stoves: Results-Based Financing.................................................................43 Chain of Results...............................................................................................................................................43 RBF Framework...............................................................................................................................................44 Next Steps...............................................................................................................................................................47 Contents v Annexes A Case Studies of Key Market Segments...........................................................................................................49 B Survey Method and Questionnaire..................................................................................................................57 References...................................................................................................................................63 Boxes 1.1 What Are the Health Impacts of Household Air Pollution in China?...................................................................1 1.2 EAP Clean Stove Initiative..................................................................................................................................2 1.3 Terminology Clarification....................................................................................................................................3 4.1 National Improved Stoves Program..................................................................................................................31 4.2 One Solar Cooker and One Biomass Stove Program.......................................................................................32 4.3 Green Energy Demonstration Counties...........................................................................................................33 4.4 De-Fluoridation and Stove Reforming Program................................................................................................34 5.1 China Association of Rural Energy Industry.....................................................................................................40 5.2 What Is Results-Based Financing?...................................................................................................................42 5.3 Biomass Stove Carbon Finance Project...........................................................................................................46 Figures 2.1  Structure of China’s Rural Household Energy, 2010...........................................................................................5 2.2 Primary Household Cooking Energy in Urban and Rural Areas, 2006................................................................6 2.3 Provincial Distribution of Solar Cookers among Rural Households, 2010...........................................................8 2.4 Heating Fuel Use by Urban and Rural Households in Northwest and Southwest China....................................9 2.5  Rural Household Reliance on Solid Fuels by Income Level..............................................................................13 3.1  Growth in Production and Stock of Clean Biomass Stoves, 2005–11..............................................................17 3.2  Biomass Stove Enterprises and Inventory.......................................................................................................19 3.3 Clean Biomass Stove Types Preferred by Producers, by Region......................................................................20 3.4  Typical Cost Compositions for Biomass Stoves...............................................................................................20 3.5 Main Stove Sales Models................................................................................................................................20 3.6  Main Production and Sales Concerns of Surveyed Clean Biomass Stove Enterprises....................................21 3.7 Main Types of Household Coal Stoves.............................................................................................................22 3.8  Production and Stock of Coal Heating Stoves, 2005–10..................................................................................23 3.9 Production and Stock of Solar Cookers, 2000–10............................................................................................26 3.10 Various Types of Solar Cookers........................................................................................................................26 4.1 China’s Clean Stove Programs Structure..........................................................................................................30 4.2 Institutional Coordination Mechanism for Clean Stoves Promotion.................................................................34 5.1 Overall Transformation Strategy for Scaling Up Clean Cookstoves in China.....................................................39 5.2 Sample Results Chain for Clean Stoves Promotion Program...........................................................................44 5.3 RBF Framework with Three Building Blocks and Two Supporting Pillars..........................................................44 5.4 Linking Results-Based Incentives to Monitoring and Verification Stages.........................................................45 A.1 Cumulative Solar Cooker Inventory, 2002–11...................................................................................................54 Maps 2.1 Distribution of Rural Households Using Solid Fuels as Primary Cooking Energy...............................................8 2.2 Distribution of Biogas-Using Rural Households, 2010........................................................................................9 2.3 Solid Fuels Distribution..................................................................................................................................... 11 2.4 China’s Solar Resource Distribution.................................................................................................................12 2.5 Regional Distribution of Recommended Stove Types......................................................................................15 3.1 Distribution of Biomass Stove Production and Sales, 2011..............................................................................19 vi Contents Tables 2.1 Rural Households’ Primary Cooking Fuel Use, by Economic Region.................................................................7 2.2 Top Six Provinces Exhibiting Reliance on Solid Fuels for Rural Household Cooking..........................................7 2.3 China’s Solar Resources, by Region.................................................................................................................12 2.4 Suitable Clean Biomass Stove Types, by Region..............................................................................................14 3.1 Performance Indicators of Clean Biomass Stoves...........................................................................................18 3.2 Comparison of Product Performance Indicators..............................................................................................23 4.1 Clean Stove Policies and Regulations That Came into Effect in 2011...............................................................35 4.2 China’s Household Stove Standards and Testing Protocols..............................................................................37 A.1 Biomass Stove Performance............................................................................................................................50 A.2 Parameter Requirements for Solar Cooker Performance in Gansu..................................................................54 Foreword Some 2.8 billion people around the world continue to rely The China Clean Stove Initiative (CSI), a collaborative on solid fuels, such as biomass and coal, to cook and effort of the Chinese government and the World Bank, heat their homes. Most of these households use primi- aims to scale up access to clean cooking and heating tive open fires or poorer-quality stoves that burn solid stoves for poor, primarily rural households, who are likely fuels inefficiently due to incomplete combustion, releas- to continue using solid fuels beyond 2030. Launched in ing toxic pollutants into the indoor or outdoor cooking 2012, the China CSI is part of the East Asia and Pacific environment. The Global Burden of Disease Study 2010 (EAP) CSI, which includes country-specific programs in estimates that household air pollution (HAP) resulting Indonesia, Mongolia, and Lao PDR, as well as China, and from the use of solid fuels for cooking and heating con- a regional forum for knowledge-sharing. The China CSI tributes to 4 million premature deaths each year. Unlike comprises four phases: (1) initial stocktaking and devel- malaria, tuberculosis, and HIV/AIDS, for which the death opment of the implementation strategy; (2) institutional toll is declining every year, the number of premature strengthening, capacity building, and piloting of the strat- deaths linked to HAP is on the rise. How can this trend egy; (3) scaled-up program implementation; and (4) eval- be reversed? uation and dissemination of lessons learned. This phase I report synthesizes the knowledge to date, emphasizes China is among the few countries that have long recog- the market-based approach to achieving sustainability, nized the seriousness of the issue, having implemented and proposes a way forward toward achieving universal a number of stove dissemination and household energy access to clean cooking and heating solutions. policies that aim to improve household cooking and heat- ing conditions. During the 1980s and 1990s, China’s It is our hope that this report will serve as a knowledge National Improved Stoves Program (NISP)—the world’s base and roadmap to encourage and engage all interested largest and most successful national improved stoves parties in working together on this important agenda. We program—distributed 180 million improved stoves. Today will continue to use the EAP CSI as a platform for shar- China represents the world’s largest biomass stove ing China’s experiences and promoting regional learning industry, accounts for the greatest number of installed and collaboration. We look forward to working together biogas digesters, and has the largest stock of solar cook- with all our partners in the next phase of the China CSI ers. However, the country also faces enormous chal- to implement the key policy recommendations offered lenges. More than half of its population, mostly in rural in the report and thus accelerate China’s journey toward areas, still relies on solid fuels for cooking and heating. universal access to clean cooking and heating solutions. Most of these households use traditional stoves, and The benefits are many, including better health, reduced helping them to access cleaner and more efficient cook- poverty, improved gender equality, and less pressure on ing and heating solutions is a daunting task. the local and global environment. Klaus Rohland Yanliang Wang Country Director Deputy Director General China, Mongolia, and Korea Department of Science, Technology, and Education East Asia and the Pacific Region Ministry of Agriculture The World Bank People’s Republic of China vii Acknowledgments This report summarizes the findings from phase I of the background report prepared by the CACS. Fangzhou Hao China Clean Stove Initiative (CSI), implemented in collab- and Zhenhang Jia of CAREI; Zhonghua Cai, Chunyu Xue, oration with China’s Department of Science, Technology, Xiao Xiao, and Weihao Zhang of Beijing University of and Education; Ministry of Agriculture. The World Bank Chemical Technology; and Yanbo Ren and Hao Wang of team especially thanks Shaohua Li, Director of the Divi- China Stoves Website assisted in the initial stocktaking sion of Energy and Ecology, Deputy Director Fang Fang, review and provided basic information and data analysis. and Senior Advisor Xiangrong Hao for their leadership Yunzhang Tu, Wenke Li, Xiaoren Pan, Yingxue Song, Fuy- and commitment to the China CSI. ong Li, and Yongshuang Tan from local rural energy offices provided useful case study information. The report was The China CSI is led by Yabei Zhang, with a core team edited by Norma Adams and typeset by Laura Johnson. including Wendao Cao and Yun Wu. The World Bank team is grateful for the support and inputs provided by The team wishes to thank peer reviewers Davis Broach the China Alliance for Clean Stoves (CACS) team, led by and Jichong Wu of the Global Alliance for Clean Cook- Guangqing Liu and Xiaofu Chen, and the China Asso- stoves (GACC) and Srilata Kammila of the World Bank. ciation of Rural Energy Industry (CAREI) team, led by Bert Hofman and Gailius Draugelis also provided useful Zhengyuan Wang. The team benefited greatly from two comments. Dejan Ostojic, Program Leader of the CSI national consultation workshops held in 2012: the first for the East Asia and the Pacific Region, provided over- in Gaobeidian city (April 24) and the second in Beijing all guidance. The team is also appreciative of the valu- (July 20). The team wishes to thank the workshops’ par- able guidance and support provided by the World Bank ticipants, who included a wide range of key stakeholders management throughout the process, particularly John from China’s central and provincial governments, non- Roome, Klaus Rohland, Mark Lundell, Charles Feinstein, governmental organizations, universities, and the private Vijay Jagannathan, and Paul Kriss. Finally, the team sector. gratefully acknowledges the generous funding support provided by the Australian Agency for International Devel- The report was authored by Yabei Zhang, Yun Wu, opment (AusAID), as well as the World Bank’s Asia Sus- Xiaofu Chen, and Guangqing Liu and benefited from a tainable and Alternative Energy Program (ASTAE). ix Acronyms and Abbreviations AQSIQ Administration of Quality Supervision, RBF Results-Based Financing Inspection, and Quarantine RMB Renminbi (currency) BUCT Beijing University of Chemical Technology SAC Standardization Administration of the CACS China Alliance for Clean Stoves People’s Republic of China CAREI China Association of Rural Energy Industry SEPA State Environmental Protection Agency CDM Clean Development Mechanism SFA State Forestry Administration CSI Clean Stove Initiative WBT Water Boiling Test GACC Global Alliance for Clean Cookstoves GFRC Glass-Fiber Reinforced Concrete Units of Measure GFRP Glass-Fiber Reinforced Plastic cm centimeter HAP Household Air Pollution kg kilogram IWA International Workshop Agreements km kilometer M&E Monitoring and Evaluation kW kilowatt M&V Monitoring and Verification mg milligram MOA Ministry of Agriculture m2 square meter MOF Ministry of Finance m3 cubic meter MOH Ministry of Health tce tons of standard coal equivalent MOST Ministry of Science and Technology tCO2e tons of carbon dioxide equivalent NDRC National Development and Reform W watt Committee NEA National Energy Administration Currency Equivalents NISP National Improved Stoves Program Currency Unit = Renminbi R&D Research and Development RMB 6.25 = US$1 x Main Messages More than half of China’s population still relies on solid fuels fluoride and arsenic content is a major cause of endemic (coal and biomass) for cooking and heating; many of these fluorosis and arseniasis. households, located mainly in rural areas, are likely to con- tinue using solid fuels in the near future. Switching to mod- Scaled-up access to clean and efficient stoves is consistent ern energy alternatives would be the most effective with China’s strategy to promote energy conservation, reduced way to achieve clean cooking and heating solutions and carbon emissions, and green energy in villages. Achieving should be encouraged; yet such fuels are more expen- universal access to modern energy services by 2030 is sive than solid fuels, requiring more costly stoves and the goal set by the United Nations, which declared 2012 delivery infrastructure. Poorer rural households without as the Year of Sustainable Energy for All. With its large access to affordable modern fuels and improved stoves population lacking access to modern energy services, are unlikely to transition up the energy ladder on a large China will play a key role in achieving this global goal. scale and will likely continue to depend on solid fuels as their primary source of cooking and heating energy. The The China Clean Stove Initiative (CSI) reflects the World Bank’s International Energy Agency estimates that, by 2030, shared commitment with China’s government to bring clean some 280 million people in China will still rely on solid cooking and heating solutions to all of the country’s citizens fuels for cooking and heating. by 2030. In collaboration with the Ministry of Agriculture’s Department of Science, Technology, and Education, the Effective strategies to scale up the dissemination of clean- World Bank launched the China CSI in early 2012. The burning, fuel-efficient stoves for household cooking and initial CSI stocktaking exercise calls for a comprehensive heating can mitigate the health hazards associated with the strategy comprising institutional strengthening and build- burning of solid fuels. It is estimated that household air ing of an enabling policy and regulatory environment, pollution (HAP) from solid fuel use results in more than market and business development, and stimulation of a million premature deaths each year in China. In addi- household demand, supported by an innovative, results- tion, the combustion of locally-produced coal with high based financing approach. xi Executive Summary Despite China’s impressive achievements in economic growth Scaled-up access to clean and efficient stoves is consistent and poverty reduction, more than half of the country’s popu- with China’s strategy to promote energy conservation, reduced lation still relies on solid fuels for cooking and heating, and carbon emissions, and green energy in villages. Achieving many households are likely to continue using solid fuels in universal access to modern energy services by 2030 is the near future. Today, nearly half of China’s 263.8 mil- the goal set by the United Nations, which declared 2012 lion rural households use wood and agricultural residues as the Year of Sustainable Energy for All. With its large as their primary cooking fuels, while another 57 .6 mil- population lacking access to modern energy services, lion depend on coal. Transitioning up the energy ladder China will have an important role to play in achieving this to such modern alternatives as liquefied petroleum gas global goal. (LPG) and electricity would be the most effective way to achieve clean cooking and heating solutions and should The China Clean Stove Initiative (CSI) aims to scale up access be encouraged; yet such fuels are far more expensive to clean cooking and heating solutions for poorer, primarily than solid fuels, requiring more costly stoves and deliv- rural households who are likely to continue relying on solid ery infrastructure. By contrast, biomass resources, which fuels beyond 2030. The World Bank, in collaboration with are relatively abundant and accessible, can be freely col- the Ministry of Agriculture’s Department of Science, lected from the local environment or purchased for sig- Technology, and Education, launched the China CSI in nificantly less than other fuels. The International Energy early 2012. This initiative, one of four country-specific Agency estimates that, by 2030, some 280 million resi- programs under the East Asia and Pacific CSI, funded dents—including many poorer rural households—will still by the Australian Agency for International Development depend heavily on solid fuels for cooking and heating. (AusAID), focuses on capacity building, policy develop- ment, and support of selected government action plans. During the 1980s and 1990s, China’s National Improved Stoves The program consists of four phases: (1) initial stocktak- Program (NISP), one of the world’s most successful stoves ing and development of the proposed strategy; (2) insti- programs, distributed some 180 million improved stoves. tutional strengthening, capacity building, and piloting After the NISP ended in late 1990s, the private sector of the strategy; (3) scaled-up program implementation; assumed responsibility for stove commercialization. As and (4) program evaluation and dissemination of les- of 2011, it was producing about 2.6 million clean coal sons learned. This study reflects the findings of the initial heating stoves, 20 million honeycomb coal cooking stocktaking review, which included a stove supply survey stoves, and 1.6 million clean biomass stoves. Yet stove and stakeholder consultations. development and production have not kept pace with the multidimensional challenge of promoting clean stoves; at Across China’s vast rural landscape, most rural households’ the current pace, it will take decades for advanced stoves to energy consumption is for cooking and heating and the major- reach all households. ity rely on solid fuels to meet these needs. Cooking and heat- ing account for 90 percent of rural household energy use. Household burning of solid fuels is a major health hazard in Eighty-six percent of rural households use solid fuels as China. It is estimated that household air pollution (HAP) their primary cooking energy. Biomass (wood and straw) from solid fuel use results in more than a million pre- comprises more than three-fifths of rural household mature deaths each year in China. In addition, the com- energy for cooking, while coal accounts for one-quarter. bustion of locally-produced coal with high fluoride and In Central China, coal accounts for nearly two-fifths of arsenic content is a major cause of endemic fluorosis and household cooking energy, surpassed only by biomass. arseniasis. In 2000, for example, nearly 34 million people Less reliance on solid fuels for cooking is found only in a in 201 counties were affected by coal-burning endemic few more economically developed provinces in the East. fluorosis. Mitigating the health hazards associated with Demand for household heating, which accounts for more household burning of solid fuels will require developing than one-third of rural energy consumption, continues to and implementing strategies for scaling up the dissemi- rise, along with improving living standards and greater nation of clean-burning, fuel-efficient stoves for cooking demand for comfort. Coal is the predominant heat- and heating that rural households are willing to adopt. ing fuel for rural households without central or electric xiii xiv China: Accelerating Household Access to Clean Cooking and Heating heating, with the exception of Southwest China, where Development of China’s household biogas industry has been wood predominates. impressive; however, recent years have witnessed a diminish- ing enthusiasm among farming households for constructing Households’ selection of energy sources for cooking and and using biogas systems. Over the past decade (2000–10), heating depends, in large part, on the interdependent factors the number of farming households using biodigesters has of fuel availability, accessibility, affordability, and cultural risen sharply—from 8.5 million to 38.51 million—owing, acceptability. Availability of fuels is a primary consider- in large part, to government-supported efforts. At the ation for fuel and stove selection. For example, in agri- same time, the service system has lagged far behind the cultural areas, biomass straw is the primary cooking fuel, needs of biogas users. Decreased individual cultivation while animal dung predominates in pastureland and fire- of livestock has led to a decline in the raw materials used wood in mountainous regions. In addition, households for generating biogas and thus the number of qualifying must select their fuels from those that are accessible. households for installation. The required upfront invest- For example, they might be prevented from collecting ment is large, while the subsidy level cannot compen- firewood in certain areas owing to natural physical limita- sate for the increasing cost of system construction; and tions or policy and regulatory restrictions. Another key slow technological progress has restricted innovation. factor is fuel affordability, which depends on households’ income level and the cost of stoves and fuels. Finally, China has the largest stock of solar cookers in the world; how- fuels must be culturally acceptable, meaning that they ever, sales rely mainly on government procurement and sub- must meet households’ preferences for food taste and sidies. The purely commercial market for solar cookers fit well with local cooking habits, cultural traditions, and accounts for less than one-fifth of sales because demand climatic conditions. For example, the widespread use of is centered in poorer regions, where profitability is low. solar cookers in Tibet is driven not only by the region’s Also, the quality of solar cookers varies greatly, suggest- abundant availability of solar energy resources. Addi- ing a strong need for better production technology and tional drivers of fuel selection are the lack of other energy greater capacity in standardizing product performance. resources, such as coal and biomass, as well as the por- tability of solar cookers, which fits well with the nomadic Successful stove dissemination programs across these four lifestyle of Tibetan farmers. market segments—biomass, coal, biogas, and solar cook- ers—offer valuable lessons that can be applied to designing China has one of the world’s largest biomass stove industries; and implementing future interventions. Stove promotion yet reliance on subsidies is heavy, with little commercial- strategies must be based on local conditions, including ization. Some procurement programs have paid more fuel availability, climatic conditions, income level, and life- attention to stove price than quality. Delays in setting style. Also, a market-based approach to promoting stoves product standards have meant that some stove products should be explored to ensure sustainability. In addition, have been on the market for several years without hav- product standardization and quality control are needed ing national or industry standards. Also, the quality and to build an enabling environment for market develop- performance of stoves on the market vary significantly, ment. Furthermore, strong government commitment is and pirating of quality brand names is not uncommon. In required, while the subsidy scheme must be designed addition, after-sales service and training are insufficient, carefully to ensure sustainable development. Finally, by small enterprises often lack technological innovation, and integrating stove promotion into broader programs (e.g., some stove designs are inferior. A top concern among energy efficiency and conservation, poverty alleviation, producers is the lack of a biomass briquette supply chain, and health improvement) that include awareness-raising owing to high cost and a low technology level. campaigns, multiple issues can be targeted to generate co-benefits. China’s coal stove market is highly commercialized, having developed rapidly due to the large market potential; at the China’s stove dissemination and household energy poli- same time, product quality is patchy, performance varies con- cies have achieved numerous positive results, yet issues siderably, and household demand can be widely dispersed. remain that impede the potential for larger-scale success Since poorer families tend to prioritize stove price over and longer-term sustainability. Systematic programs with concerns of safety, efficiency, and pollution, demand a firm policy commitment are needed to achieve sus- is met with low-quality, lower-priced products. Since tainable development of the stove market. Also, since the market is insufficiently regulated, it is flooded with clean cooking and heating solutions involve cross-cutting shoddy imitation products. Simple, low-efficiency stoves issues, they require strengthened cooperation and col- still comprise about four-fifths of coal cookstoves in most laboration among relevant departments at all levels. In parts of China. addition, more flexible subsidy schemes that incorporate Executive Summary xv monitoring and evaluation (M&E) are needed to directly support of market interventions. The conceptual frame- link program results to subsidy disbursement. Further- work for using RBF in programs to promote clean stoves more, public-awareness campaigns that center on the could include three key building blocks—(1) defined clean benefits of clean stoves must be strengthened in order stoves, (2) results-based incentives, and (3) a monitoring to change household behavior and thus develop demand and verification (M&V) system—supported by two pil- for better products. Moreover, research is needed to lars—(1) institutional strengthening and capacity building obtain better data on the supply chain, stove market seg- and (2) awareness-raising campaigns. The RBF frame- ments, and stove technology. work not only integrates all of the strategy’s intervention priorities; it also helps to clarify the roles of government To scale up access to clean stoves, the CSI strategy calls and the private sector in delivering the results; that is, the for (1) strengthening institutional capacity and building an government plays a facilitating role, providing policy sup- enabling environment, (2) supporting supply-side market and port and financial incentives to motivate market develop- business development, and (3) stimulating household demand ment, while the private sector responds to the incentives for clean and efficient stoves. Key elements of institutional and delivers the results. strengthening and building an enabling environment include establishing/strengthening an institutional focal The next phase of the China CSI will focus on (1) improving the point; a cross-sectoral coordination mechanism and stove standards, testing, and certification system; (2) strength- platform for communication and cooperation; and stove ening institutions and building the capacity of key market standards, testing, and certification. Supply-side support players; (3) supporting pilots; and (4) supporting preparation includes providing financial incentives for delivering clean of China’s second national clean stoves program and pro- cooking and heating solutions to households and sup- vincial activities. Improving stove standards and testing porting market research and R&D on better stoves and will include strengthened coordination with the Global fuel-processing technologies; while demand-side sup- Alliance for Clean Cookstoves, building of a regionally port requires promoting broad-based awareness-raising recognized stove testing center, and developing compat- campaigns, along with engaging communities and civil ibility between China’s clean-stove standards and the society, motivating consumers, and providing suppliers international framework. Institutional strengthening will user feedback. focus on the cross-sectoral coordination mechanism and the platform for communication, learning, and coopera- To make government funding support more effective and effi- tion. The RBF approach will be piloted in areas identified cient, Results-Based Financing (RBF) is recommended. This as representative and scalable. Finally, the CSI will work innovative approach disburses public resources against closely with the Ministry of Agriculture to support prepa- demonstrated, independently verified outputs or out- ration of China’s second national clean stoves program comes instead of project inputs. This distinguishing fea- and provincial rural energy projects that target increased ture can mean better use of public funds and improved access to clean cooking and heating solutions. 1 Introduction Today more than 700 million people in China—nearly two- Overview of Program Context thirds of the country’s rural population and one-third of urban residents—rely heavily on solid fuels to meet their During the 1980s and 1990s, China’s National Improved daily cooking and heating needs. Although switching to Stoves Program (NISP) was one of the world’s most suc- clean modern fuels (e.g., natural gas, liquefied petroleum cessful stoves programs, distributing some 180 million gas [LPG], and electricity) would be the most direct and improved stoves countrywide. When the NISP ended in effective way to achieve clean cooking and heating solu- the late 1990s, the private sector assumed responsibility tions and should be encouraged, such fuels are usually for stove commercialization; as of 2011, the private sec- more expensive than solid fuels, requiring more costly tor produced approximately 2.6 million clean coal heating stoves and delivery infrastructure. By contrast, many stoves, 20 million honeycomb coal cooking stoves, and types of biomass can be freely collected from the local 1.6 million clean biomass stoves. Despite these achieve- environment or purchased for significantly less than other ments, the development and production of advanced bio- fuels. Thus, large-scale fuel switching, particularly in rural mass stoves has not kept pace with the multidimensional areas, is unlikely to occur until rural economies become challenge of promoting clean stoves. At the current pace, substantially more developed. Over the next decade, it is it will take many years for advanced stoves to reach all estimated that heavy reliance on solid fuels for cooking households. Clearly, China’s government needs to take and heating will continue, especially in rural areas. more proactive steps, building on its earlier successes. BOX 1.1 WHAT ARE THE HEALTH IMPACTS OF HOUSEHOLD AIR POLLUTION IN CHINA? Household burning of solid fuels is a major health-risk factor in China. The Global Burden of Disease Study 2010 esti- mates that each year about 1.04 million premature deaths in China can be attributed to HAP linked to smoke emitted from solid cooking fuels (Lim et al. 2012). The use of solid fuels for cooking and heating is linked to an increased risk of cardiovascular disease, acute respiratory infections, chronic obstructive pulmonary disease, cancer, and cataracts. Among all risk factors of ill health estimated globally, it ranks fourth, surpassed only by high blood pressure, tobacco use, and alcohol use (Lim et al. 2012). The combustion of locally-produced coal with high fluoride and arsenic content is a major cause of endemic fluorosis and arseniasis. In 2000, 201 counties, representing approximately 33.678 million people, were affected by coal- burning endemic fluorosis, with Guizhou and Shanxi provinces hardest hit. That same year, 8 counties, with some 330,000 residents, were affected by coal-burning endemic arseniasis (Jia 2011). Source: Lim et al. 2012; Zhang and Wu 2012. 1 2 China: Accelerating Household Access to Clean Cooking and Heating The pervasive use of solid fuels in China has significant emissions, as well as green energy in villages. Interna- negative impacts on health, gender equality, poverty tionally, achieving universal access to modern energy reduction, and the local ecology and global environment. services by 2030 is the goal set by the United Nations, Each year more than a million premature deaths in China which declared 2012 as the Year of Sustainable Energy are attributed to household air pollution (HAP) from cook- for All. With its large population lacking access to modern ing with solid fuels (Lim et al. 2012). The poor, women, energy services, China will have an important role to play and young children are disproportionately affected; that in achieving this global goal. is, the poor rely heavily on solid fuels for cooking and heating, women devote much of their day to household fuel collection and cooking, and young children spend China Clean Stove Initiative many hours indoors close to their mothers while they are cooking (box 1.1). Solid fuel use is also closely intertwined Against this backdrop, the World Bank, in collaboration with poverty. Time allocated to the collection and inef- with the Ministry of Agriculture’s Department of Sci- ficient utilization of biomass energy deprives household ence, Technology, and Education, launched the China members, particularly women, of the opportunity for edu- Clean Stove Initiative (CSI) in early 2012. As part of the cation, income generation, leisure, and other productive East Asia and Pacific (EAP) Clean Stove Initiative, the activities. Furthermore, extensive fuelwood collection for China CSI aims to scale up access to clean and efficient use with traditional biomass cookstoves is often linked cooking and heating solutions in China through capac- to local deforestation, and the household combustion of solid fuels using traditional technologies is a major source ity building, policy development, and support of selected of black carbon emissions, which have a comparatively government action plans (box 1.2). large impact on global warming (USAID 2010). The China CSI comprises four program phases. The first Now is an opportune time for the Government of China phase centers on initial stocktaking, which is critical for to take action. Recently, China raised its rural poverty line developing an effective strategy, designing subsequent from RMB 1,196 to RMB 2,300, meaning that those who program phases, and establishing policy dialogue with earn less than RMB 2,300 (US$368) per year—about 128 the country’s institutional focal point. The second phase million rural people—are now classified as poor, com- focuses on the institutional strengthening and capacity pared to only 26.9 million previously. Scaling up access building required for implementing the strategy and pilot to clean and efficient stoves would be an important step programs. The third phase scales up implementation of in reducing poverty and is consistent with China’s strat- the clean stoves program, while the fourth focuses on egy to promote energy conservation and reduced carbon program evaluation and dissemination of lessons learned. BOX 1.2 EAP CLEAN STOVE INITIATIVE The East Asia and Pacific (EAP) Clean Stove Initiative is a follow-up regional program to the energy flagship report, One Goal, Two Paths: Achieving Universal Access to Modern Energy in East Asia and the Pacific. It focuses on achiev- ing access to modern cooking and heating solutions in the EAP region, particularly scaled-up access to advanced cooking and heating stoves for poor, primarily rural households, who are likely to continue relying on solid fuels to meet most of their cooking and heating needs beyond 2030. With funding support from the Australian Agency for International Development (AusAID), the EAP CSI comprises four country-specific programs (China, Indonesia, Laos, and Mongolia) and a regional forum to promote regional col- laboration, learning, and knowledge-sharing on access to modern energy at the household level. The initiative takes a three-pronged approach, focusing on (1) strengthening institutional capacity and creating an enabling policy and regulatory environment for scaling up access to advanced stoves, (2) supporting supply-side market and business development, and (3) stimulating demand for clean and efficient stoves. Sources: World Bank 2011a, 2011b. Introduction 3 Study Purpose and Objectives socioeconomic conditions, the study conducted in-depth assessments of the existing stove market and review of This study is the key activity under the first phase of the the sector’s institutions, policies, and key stakeholders. China CSI. Its broad aim is to help households reliant on To obtain the required inputs from all key stakeholders solid fuel use to achieve clean cooking and heating solu- for development of the strategy, two major activities tions by 2030. Specific objectives are to gain a better were designed: (1) stocktaking review, including a stove understanding of the challenges facing China’s house- supply survey and (2) stakeholder consultations, includ- hold cooking and heating technologies and markets, ing two national consultation workshops. Clarification review the existing policy and institutional framework for of the terminology used in this report is provided below cooking and heating fuels, and identify lessons from suc- (box 1.3). cessful programs that can be applied to future programs promoting clean cooking and heating solutions. The stocktaking review used both primary and second- ary data sources. Primary data was collected through a survey of the biomass stove supply chain, including Methodology producers, wholesalers, and retailers throughout the country (Annex B). Conducted by the China Alliance for Because household use of cooking and heating stoves Clean Stoves (CACS) and China Stoves Website, the sur- in China is specific to each region’s unique level of devel- vey’s aim was to better understand the current status of opment, climate, fuel availability, cooking customs, and China’s stove market. Questionnaires were sent to both BOX 1.3 TERMINOLOGY CLARIFICATION Unless otherwise noted, the definitions used in this report are as follows: • Traditional stove refers to a rudimentary baseline stove (either open fire or constructed by artisans or household members) that is energy-inefficient with poor combustion features. • Clean stove refers to a stove that is either built in situ or mass produced that, with the benefit of laboratory research, performs better in fuel efficiency, emissions, durability, and safety than open fires or rudimentary tra- ditional cookstoves. While in-situ built clean stoves include improved in-situ stoves and improved Kangs (heating beds commonly used in northern China), mass-produced clean stoves, referred to as manufactured clean stoves, can be further grouped by use into cooking, heating, and combined cooking and heating (i.e., comprising both cooking and heating and cooking and water heating). (In this report, the term clean stove is broadly used; it is recommended that the stove standards/testing/certifica- tion system be strengthened to more clearly define the term.) • Improved stove refers to stoves installed in legacy programs and represents the lower segment of clean stoves. • Advanced stove refers to a higher segment of clean stoves with superior performance and often using processed biomass or coal if solid fuels are used. • Solid fuels refer to coal, charcoal, wood-based biomass fuels, agricultural residues, and dung. • Modern energy is used to distinguish ways of using energy rather than types of fuel; thus, modern or clean cook- ing and heating solutions refer to cooking or heating with modern fuels (e.g., electricity, natural gas, LPG, and biogas) or solid fuels used with clean and efficient stoves. Source: Authors. 4 China: Accelerating Household Access to Clean Cooking and Heating manufacturers and dealers nationwide. Additional infor- Structure of This Report mation was collected through subsequent field trips, which included visits with selected stove manufacturers. This report is organized into five chapters. Chapter 2 Statistical yearbooks provided the main source of sec- presents an overview of household cooking and heating ondary data. fuels used in rural China and recommends stove types suitable for various regions, based on identified drivers As part of stakeholder consultations, two national work- of household fuel selection. Chapter 3 suggests how the shops brought together key stakeholders from China’s supply sector can overcome barriers to market develop- central and provincial governments, nongovernmental ment based on analyses of four stove market segments. organizations (NGOs), universities, and the private sec- Chapter 4 analyzes the current policy environment for tor. The first workshop, held on April 24, 2012, launched clean stoves development, identifying program and insti- the CSI during China’s 6th Clean Stove Expo and Inter- tutional gaps that future intervention programs will need national Forum in Gaobeidian city, Hebei province. At to fill. Finally, chapter 5 presents the proposed CSI strat- that event, more than 100 stove manufacturers exhibited egy, including an innovative financing approach, and the their products, while international and national experts proposed next steps in helping China scale up access to exchanged ideas and information on recent policy and clean cooking and heating solutions. technology developments. At the workshop, the team presented the study structure and initial findings and gathered comments and input toward improving results of the findings. The second workshop, held July 20, 2012 in Beijing, discussed the final stocktaking results and the proposed CSI program strategy and also generated ideas for the second program phase. 2 Household Cooking and Heating Demand The rapid growth of China’s rural economy in recent (figure 2.1). Traditional biomass (straw and wood) com- years has changed rural households’ concept of con- prised 63 percent of the total; while commercial energy sumption and quality of life. By 2010, household energy (coal, electricity, oil, and gas) contributed 28 percent, and consumption had reached 346 million tce,1 with cooking other renewable sources (biogas and solar) accounted and heating accounting for about 90 percent of all rural for the remaining 9 percent. household energy use (CACS 2012). As living standards have improved, rural households have begun diversifying the types of fuels they rely on to meet daily cooking and heating needs.  TRUCTURE OF CHINA’S RURAL HOUSEHOLD FIGURE 2.1 S ENERGY, 2010 Solar This chapter analyzes the energy used by China’s rural 2.09% households for cooking and heating. The next section Gas Oil 1.81% offers an overview of the main types of cooking and 2.47% heating fuels used by rural households. This is followed Biogas by analyses of the distribution of cooking and heating 7.04% Straw fuels across regions and a discussion of the key drivers 41.71% Electricity of rural households’ fuel selection. Based on these fac- 7.59% tors, broadly classified stove types are recommended as suitable for use in these various regions. Coal Overview of Rural Household Energy 16% In 2010, traditional, non-commercial biomass dominated the structure of China’s rural household energy; also evi- Wood dent was the rapid growth of other renewable energy 21.29% sources, along with a significant role for modern fuels Sources: China Agriculture Statistical Yearbook 2010; China Energy Statistical Yearbook 2011. 1. According to China’s National Bureau of Statistics, household energy use accounted for 10.65 percent of the country’s total energy consumption (i.e., 3.25 billion tce) in 2010 (http://www.stats.gov.cn/ tjgb/ ndtjgb/qgndtjgb/t20110228_402705692.htm). 5 6 China: Accelerating Household Access to Clean Cooking and Heating FIGURE 2.2 PRIMARY HOUSEHOLD COOKING ENERGY IN URBAN AND RURAL AREAS, 2006 Urban Electricity Gas Kerosene Biomass Coal Rural Other 0 25 50 75 100 Percent Sources: National Bureau of Statistics 2008; Carolina Population Center 2008. Mapping Rural Household Energy than 38 percent of household cooking energy, surpassed for Cooking only by biomass. Some 26.4 million rural households rely on liquefied petroleum gas (LPG) and natural gas; China’s household energy structure for cooking var- the East exhibits the greatest household use, at 27 .2 per- ies significantly between rural and urban areas. In rural cent. Finally, about 1.45 million rural households rely on China, households rely heavily on solid fuels for cooking. biogas and another 0.59 million on other forms of cook- More than 133 million rural households—over three-fifths ing energy. The West exhibits the largest share of biogas of all rural households—depend on wood and agricultural and electricity use, at 1.3 percent each (table 2.1). residues to meet their cooking demand; by contrast, only 4.3 percent of urban households use wood as their pri- Solid Fuel Use mary cooking fuel. Conversely, modern fuels (i.e., gas and electricity) comprise 64.3 percent of total household Eighty-six percent of China’s rural households—located cooking energy in urban areas, compared to only 12.7 mainly in provinces of Central and East China—use solid percent in rural areas. However, more than one-quarter of fuels (in the form of biomass or coal) as their primary households in both rural and urban areas depend on coal cooking energy. In six provinces—Henan, Hunan, and to meet their daily cooking needs (figure 2.2). Anhui (Central China); Hebei and Shandong (East China); and Sichuan (West China)—the vast majority of rural China’s broad variance in rural households’ use of cooking households rely on biomass and coal for cooking, with fuels and energy-consumption levels reflects the country’s Henan and Hunan exhibiting the highest proportions, at large variations in population density, energy resources, 97 percent each (20 million and 15 million households, economic development, living habits, climate, and hous- respectively). In terms of number of households, Sichuan ing structures. For example, in agricultural areas, biomass exhibits the highest reliance on biomass, at 15 million straw is the primary cooking fuel, while dung predomi- households, while the greatest reliance on coal is found nates in pastureland and wood in mountainous regions. in Henan, at 10 million households (table 2.2). The least Nationwide, biomass (wood and straw) comprises more reliance on solid fuels for household cooking is found in than 60 percent of rural household energy for cooking, the more developed municipalities, including Shanghai, and more than 88 percent in the Northeast, where the Tianjin, and Beijing. use of electricity is a meager 0.3 percent, 0.5 percentage points less than the national average (table 2.1). In 22 provinces, reliance on solid fuels for household cooking exceeds 90 percent. Even in the sparsely popu- After biomass, coal is the second most widely used lated provinces of Northwest China, solid fuels are widely cooking fuel, having been adopted by 57.6 million rural used for cooking, while a relatively lower utilization rate is households. In Central China, coal accounts for more found in southeastern coastal provinces. Household Cooking and Heating Demand 7 TABLE 2.1 RURAL HOUSEHOLDS’ PRIMARY COOKING FUEL USE, BY ECONOMIC REGION Percent households Energy type East Central West Northeast Nationwide Biomass (wood and straw) 53.1 56.9 66.2 88.2 60.2 Coal 18.5 38.4 27.1 7.4 26.1 LPG and natural gas 27.2 3.8 3.2 4.0 11.9 Biogas 0.2 0.7 1.3 0.1 0.7 Electricity 1.0 0.2 1.3 0.3 0.8 Source: National Bureau of Statistics 2008. Note: East = Beijing, Tianjin, Hebei, Shanghai, Jiangsu, Zhejiang, Fujian, Shandong, Guangdong, and Hainan. Central = Shanxi, Anhui, Jiangxi, Henan, Hubei, and Hunan. West = Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia, and Guangxi. Northeast = Liaoning, Jilin, and Heilongjiang. Biomass and Guizhou rely on coal as their primary source of cook- The use of biomass to meet rural households’ cook- ing energy. In the western province of Shaanxi, approxi- ing needs varies widely by province (map 2.1a). The mately 5.6 million households—more than four-fifths of least dependence on biomass cooking energy is gener- rural households—use coal as their main cooking fuel. ally found in the East; in the municipality of Beijing, for The lowest adoption rate for coal stoves (7 .4 percent) is example, only 15 percent of households rely on biomass found in the Northeast, where biomass use predomi- to meet their cooking needs, compared to 93 percent in nates (map 2.1b). Jilin. In the Northeast, the vast majority of households rely on biomass. In addition, the western province of Sichuan, the eastern province of Shandong, and the cen- Biogas tral province of Henan have significant numbers of rural China’s application of household biogas is continuously households that depend mainly on biomass for cooking. ranked first in the world and has the widest scope and most extensive impacts. In addition, the state has Coal strongly supported the construction of biogas units As previously mentioned, coal is rural China’s second using agricultural waste, which has accelerated develop- most common cooking fuel, used by more than one- ment and led to a new direction in system construction. quarter of households, with the highest adoption rate for According to the Ministry of Agriculture, total production coal stoves (38.4 percent) found in Central China. More in 2010 was 13.08 billion m3. That year witnessed 40.27 than half of rural households in the central provinces of million biogas users, including 38.51 million households Shanxi and Hunan and the western provinces of Ningxia and 1.76 million centralized users, with one-third of all TABLE 2.2 TOP SIX PROVINCES EXHIBITING RELIANCE ON SOLID FUELS FOR RURAL HOUSEHOLD COOKING Biomass Coal Solid fuel use Households Households Households Province Region (million) % (million) % (million) % Henan Central 10 47 10 50 20 97 Hunan Central 7 46 8 51 15 97 Sichuan West 15 73 4 21 19 94 Anhui Central 11 80 2 13 13 93 Hebei Central 7 49 7 44 14 93 Shandong East 14 65 5 24 19 89 Source: National Bureau of Statistics 2008. 8 China: Accelerating Household Access to Clean Cooking and Heating DISTRIBUTION OF RURAL HOUSEHOLDS USING SOLID FUELS AS PRIMARY COOKING ENERGY MAP 2.1  a. Biomass b. Coal Source: National Bureau of Statistics 2008. farming households for whom biodigester installations Solar Cookers would be suitable represented (map 2.2). By the end of 2010, the national stock of solar cookers in China had reached more than 1.6 million units, con- At the provincial level, the number of households with centrated mainly in the West. Gansu alone accounted for biodigester systems ranges widely, from under 1,000 nearly half of the solar cooker inventory that year, with units in Shanghai to more than 5 million in Sichuan.2 751,000 units. Ningxia followed with 326,000 units, less The western province of Guangxi has more than 3.5 mil- than half that of Gansu. In Northeast China, a limited lion biogas-using households, as does the central prov- number of households relied on solar energy for cook- ince of Henan; in 2010, each of these provinces produced ing, but at a lesser magnitude (figure 2.3). approximately 1.2 billion m3. Regions with the least num- bers of biogas users (i.e., fewer than 50,000) include the municipalities of Beijing, Shanghai, and Tianjin. Household Heating Demand  ROVINCIAL DISTRIBUTION OF SOLAR FIGURE 2.3 P In addition to demand for household cooking energy, COOKERS AMONG RURAL HOUSEHOLDS, 2010 household heating energy constitutes a substantial por- tion of China’s total energy consumption, especially in Gansu 751 colder climates. It is estimated that more than one-third Ningxia 326 of rural energy consumption is for heating (CACS 2012). Qinghai 230 Approximately half of China’s area requires winter heat- Sichuan 132 ing, particularly in northern-latitude regions, where tem- Shaanxi 86 peratures typically fall below the freezing point during the Inner Mongolia 40 colder season (October–March). Others 23 Shandong 16 District Heating Tibet 13 0 100 200 300 400 500 600 700 800 In the 1960s, working units first introduced urban areas Thousands of units to district heating as part of an urban welfare effort; a decade later, district heating was widely used. After the Source: China Agricultural Statistical Yearbook 2010. 1990s, working units changed the urban welfare heat- ing model to a social commodity one; and multi-energy, regional heating and new models gradually developed. 2. Sichuan accounted for 14 percent of total production in 2010. Household Cooking and Heating Demand 9 heating due to the political delineation between North  ISTRIBUTION OF BIOGAS-USING RURAL MAP 2.2 D and South. Their heating demand grows gradually with HOUSEHOLDS, 2010 improving living standards and request for more comfort. Although rural households have a diversified fuel mix for heating (e.g., coal, agricultural residues, wood, gas, LPG, and biogas), wood and coal remain their primary heating fuels. The promotion of coal briquettes in rural areas has resulted in the adoption of a variety of coal stove models. In mid- and small-sized towns, coal is used for heating in villages and non-central areas, especially those north of the Yangtze River, which previously had not relied on coal for heating. A large survey conducted by the National Research Cen- ter for Science and Technology for Development (NRC- STD) and the Fafo Institute for Applied International Studies (IAIS) in 2004–05 examined the heating and cook- ing fuels used by households in 11 western provinces of Source: China Agriculture Statistical Yearbook 2010. China. The findings showed that coal and wood are the respective dominant heating fuels in areas of the North- west and Southwest that lack access to district heating More recently, with further quality-of-life improvements, or electric heating facilities (e.g., electric heater and air district heating has rapidly developed into the primary conditioner). In the Northwest, more than 70 percent of heating method in urban areas. Out of the total 668 cities such households rely mainly on coal for heating, while in China, 286 have built district heating systems, mainly about 30 percent depend on agricultural residues. In the in the north (Xu et al. 2004). Southwest, by contrast, about half of such households rely on wood, while 34 percent use coal (figure 2.4). Options Outside District Heating Areas Among households that rely on primitive solid fuels While demand for heating is increasing, households liv- for heating, both the Northwest and Southwest exhibit ing south of the Huai River lack access to winter district urban-rural disparities, with the Southwest having the HEATING FUEL USE BY URBAN AND RURAL HOUSEHOLDS IN NORTHWEST AND SOUTHWEST CHINA FIGURE 2.4  100 75 Coal Percent households Charcoal Wood 50 Agricultural residue Animal dung Other 25 0 Urban Rural All Urban Rural All Northwest Southwest Source: NRCSTD and Fafo IAIS 2006. Note: At the time of the survey, all of the various fuels used were classified as primary fuels and more than one primary fuel was used; thus, the total proportion may exceed 100 percent. Northwest = Inner Mongolia, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang; Southwest = Yunnan, Guangxi, Chongqing, Sichuan, Guizhou. 10 China: Accelerating Household Access to Clean Cooking and Heating largest differences. In the Northwest, where urban China’s major agricultural production for 2010, the total households in particular, as well as rural ones, rely heavily straw output from crops that year was 834.65 million on coal, an appreciable portion of rural households also tons (map 2.3a). Straw resources are distributed through- depends on wood and agricultural residues. By contrast, out the central and northeastern agricultural regions, as in the Southwest, wood is the most common heating fuel well as some southwestern provinces and cities. Five among rural households, while urban residents depend provinces particularly rich in straw resources—Henan, primarily on coal. Rural households in the Southwest Heilongjiang, Shandong, Hebei, and Jilin—accounted rely less on agricultural residues than do their Northwest for more than two-fifths of the national total. The two counterparts, instead using more coal and charcoal. major types of straw were from main food crops (e.g., rice, corn stalk, and wheat) and oil crops, which together comprised about 90 percent of the national total. Drivers of Household Fuel and Stove Selection The types and quantities of residues in various areas are largely determined by the types of crops produced in Households’ selection of cooking and heating fuels these locales, which are ultimately determined by natural depends on the interdependent factors of the availability, climatic and socioeconomic conditions, local customs, accessibility, and affordability of energy resources and and culture. For example, rice straw is especially abun- their cultural acceptability. First, the availability of fuels in dant in South and Southwest China because rice is the any specific area is a primary consideration for fuel and main staple in these regions; however, wheat straw and stove selection. Second, households must select their corn stalk are more typical of Northeast and North China. fuels from those accessible. Households might be pre- vented from collecting fuelwood or agricultural residues Provinces with large amounts of straw resources also owing to natural physical limitations (e.g., difficult terrain exhibit high demand for biomass stoves. Henan, Shan- or topography) or environmental and other policies and dong, Sichuan, and Anhui each has more than 10 million regulations (e.g., protected nature reserve) that restrict households that rely on biomass for cooking; these four households’ access to available fuels. Third, fuel afford- provinces are also richly endowed with straw resources, ability depends on both household budgets and fuel and each having had more than 40 million tons in 2010. Inter- stove costs. Finally, fuels must be culturally acceptable, estingly, municipalities with quite limited agricultural resi- meaning that they must meet households’ preferences due (e.g., Shanghai, Beijing, and Tianjin) also exhibit low for food taste and must fit local cooking habits, cultural demand for biomass and biomass stoves. traditions, and climatic conditions. The subsections below discuss these key determining factors in more detail. Firewood From time immemorial, firewood has served as an energy source, with major applications for cooking, heating, and Resource Availability and Accessibility industry. Firewood resources include forest cutting wood China has an abundant variety of widely distributed and and processing residues, pruning of fuel forest, timber produced fuel resources. Biomass resources mainly forest, shelter forest, shrubbery, open forest, and “four- include agricultural and forest residues, firewood, and side tree.” In 2005, the Sixth National Inventory of For- animal dung. Agricultural and forestry resources (straw est Resources and Deforestation indicated that national and wood) provide a wealth of raw materials for the devel- firewood resources totaled 104.758 million tons. These opment and use of biomass and biomass stoves. Coal are distributed mainly in forested regions of Heilongjiang, resources are abundant, particularly in less developed Sichuan, Yunnan, Hunan, and Hubei provinces. Northeast provinces, and the country’s vast territory is quite rich in China, which is particularly rich in forest resources, has solar energy resources. The subsections below discuss the greatest abundance of firewood resources (map the availability and accessibility of these resources. 2.3b). Straw The availability of rich firewood resources in the North- Since straw is a natural byproduct of harvesting or pro- east has contributed to that region’s high demand for bio- cessing crops (e.g., food, oil, cotton, hemp, and sugar), mass and biomass stoves. It has the highest proportion its removal poses no threat to food security. As an of biomass users, with 90 percent of rural households organic resource, straw has multiple uses, such as agri- reliant on biomass to meet their daily cooking needs. cultural fertilizer, animal feed, and raw material for mak- Since this region is not as richly endowed with alternative ing paper, as well as providing a fuel source. Based on energy sources (e.g., coal, solar, and advanced fuels), the Household Cooking and Heating Demand 11 MAP 2.3 SOLID FUELS DISTRIBUTION a. Agricultural Residues, 2010 b. Firewood Resources, 2005 c. Animal Dung, 2010 d. Raw Coal Production, 2009 Sources: China Agriculture Statistical Yearbook 2010 (a); State Forestry Bureau 2005 (b); China Livestock Industry Yearbook 2011 (c); China Statistical Yearbook 2011 (d). comparatively easy access to wood resources accounts, Yearbook 2011). Dung resources are distributed mainly in in large part, for the high level of biomass use. the provinces of Henan, Sichuan, Shandong, Inner Mon- golia, and Hunan, where stockbreeding and the breeding Animal Dung industry are more developed (map 2.3c). In 2010, these In certain regions, animal dung is an important biomass five provinces accounted for 36.08 percent of all animal resource. It can be combusted directly after drying to pro- dung resources. The main types were produced from vide heating supply and can produce methane and fertil- pigs and cows, which accounted for 44.12 percent and izer through anaerobic digestion. Its production is related 27 .56 percent, respectively, of the total. to animal species, varieties, gender, and growth period. In 2010, China’s production of animal dung resources was As raw materials for household biodigesters, animal dung estimated at 3.28 billion tons (China Livestock Industry is closely related to the distribution of biogas. Provinces 12 China: Accelerating Household Access to Clean Cooking and Heating TABLE 2.3 CHINA’S SOLAR RESOURCES, BY REGION Annual solar radiation Share of Zone Level (kWh/m2) national total (%) Area I Most abundant >1,750 17.4 Tibet, South Xinjiang, Qinghai, Gansu, and west Inner Mongolia II Very abundant 1,400–1,750 42.7 North Xinjiang, Northeast China, East Inner Mongolia, Hubei, North Jiangsu, Huangtu Plateau, East Qinghai and Gansu, West Sichuan, Hengduan Mountain, Fujian, South Guangdong, and Hainan III Abundant 1,050–1,400 36.3 Hill areas in Southeast, Hanshui river basin, and West Guangxi IV Normal < 1,050 3.6 Sichuan and Guizhou Source: Li and Wang 2007. more abundant in animal dung resources are more likely Solar to use household biogas systems. For example, Henan China’s vast territory is quite rich in solar energy and Sichuan provinces, which in 2010 had 297 million and resources. Except for East Sichuan and Guizhou prov- 269 million tons of animal dung resources, respectively, inces, most areas are abundant in annual solar radia- each had more than 3.5 million household users of bio- tion. The country can be divided into four zones, ranked gas systems. Perhaps predictably, in municipalities with according to their level of solar resource availability (table scant animal dung resources (e.g., Beijing, Shanghai, and 2.3, map 2.4). Tianjin), the number of households using biodigesters totaled less than 0.05 million. The case of solar energy illustrates the importance of availability as a driver of household fuel selection. The Coal large number of solar cookers used in Gansu is due, in China has abundant, widely distributed coal resources. large part, to the province’s rich solar resources, com- In 2010, national basic reserves of coal totaled 279.39 bined with a severe shortage of biomass and conven- billion tons (China Statistical Yearbook 2011). These were tional energy sources owing to harsh natural conditions. concentrated mainly in such less developed provinces as Over the years, farmers have had to dig up vegetation Shanxi, Inner Mongolia, Xinjiang, Guizhou, and Henan. and roots and cut trees to compensate for the fuel deficit. In all provinces, distribution of raw coal production fol- lows the same pattern as that of basic reserves. In 2009, China’s coal production, which totaled 2.95 billion tons, CHINA’S SOLAR RESOURCE DISTRIBUTION MAP 2.4  was centered in Central China. Shanxi and Inner Mongo- lia were the largest producers of raw coal, with 600 and 590 million tons, respectively, accounting for more than two-fifths of the national total (map 2.3d). In Central China, coal is highly accessible, contributing to wide household adoption to meet cooking and heating demand. As the leader in coal production and reserves, Shanxi has approximately 5.6 million households that use coal as their main cooking fuel, representing more than four-fifths of the province’s total households. The ease of obtaining coal in Shanxi may explain, in part, its wide use in that province. But unlike biomass fuels, which house- holds can collect from the local environment or use free of charge, coal is a commodity with a market price, sug- gesting that affordability plays a relatively larger role in household fuel selection. Source: China Agriculture Statistical Yearbook 2010. Household Cooking and Heating Demand 13 Since the 1980s, solar cookers, which freely utilize abun- to or continue using modern energy fuels, whereas dant solar energy resources, have gained in popularity. poorer rural households are more inclined to continue using solid fuels, at least in the near term. Household Affordability Cultural Acceptability In rural China, affordability plays a critical role in house- holds’ choice of cooking fuels. In only three areas—Bei- Beyond resource availability, accessibility, and household jing, Zhejiang, and Shanghai—do less than half of rural affordability, cultural acceptability is a key factor in house- households use solid fuels for cooking. In Beijing, Shang- holds’ selection of cooking fuels and stoves. Acceptabil- hai, and Tianjin, where rural per capita income exceeds ity encompasses such considerations as local climate, RMB 8,000, the percentage of biomass-reliant house- food preferences, and cooking and heating habits. For holds is low and residents are more likely to switch to example, in Tibet, the widespread use of solar cookers is modern fuels. Shanghai has the lowest percentage of driven not only by the province’s abundant solar energy biomass-reliant households at 22 percent, which is attrib- and shortage of other energy resources, such as coal and uted to higher incomes and thus affordability levels. By biomass. Tibetan farmers and herdsmen lead a nomadic contrast, in western provinces (e.g., Guangxi, Guizhou, way of life and are dispersed across the province. They Yunnan, Shaanxi, Qinghai, Gansu, Ningxia, Xinjiang, and prefer cooking fuels that are portable and easily obtained. Tibet), where rural per capita income falls below RMB Thus, solar cookers fit well with their lifestyle. 4,245—about half that of rural residents in East China and about 30 percent less than the average net rural house- hold income per capita—households are more likely to Suitable Biomass Stove Types rely heavily on solid fuels for cooking and are less likely to by Region switch to modern fuels. A simple plot of the percentage of rural households reliant on solid fuels by income level Among the four types of stoves and fuels, stoves fueled demonstrates the likely negative correlation between the by biomass and coal exhibit the greatest demand, with two variables, as evidenced by the nearly horizontal line coal stoves operating under a commercialized market. for most lower-income levels, followed by a sharp decline Demand is much smaller for biogas stoves and solar cook- when income levels rise above RMB 4,369 (figure 2.5). ers; because their use depends more on fuel availability, it is location specific. Biomass stoves are used mainly by Far more households in the eastern regions, compared relatively poorer rural households, whose options for using to all other regions, use gas and natural gas. In Shanghai, advanced fuels and stoves are quite limited. To achieve Zhejiang, Beijing, Tianjin, and Guangdong, the share of universal access to modern energy services, meeting the modern fuels among rural households exceeds 40 per- energy needs of these rural households is key. Under con- cent, which corresponds to the highest income group. ditions of sustainable production and more efficient fuel Thus, higher-income households are more likely to switch use, biomass is a renewable resource, suggesting the potential of biomass used for cooking and heating to bring about environmental benefits and generate income from  URAL HOUSEHOLD RELIANCE ON FIGURE 2.5 R carbon credits. Therefore, this study gives special focus SOLID FUELS BY INCOME LEVEL to biomass stoves, while also recognizing the need to remain open to other technology options. 100 90 80 Based on the major factors that drive households to select fuels and stoves, this section broadly classifies those Percent households 70 60 potentially suitable for five regions of China. Clean bio- 50 mass stoves can either be built in situ or mass-produced. 40 30 The former include improved in-situ stoves and improved 20 Kangs, while the latter, referred to as manufactured clean 10 stoves, can be further grouped by use into cooking, heat- 0 ing, and combined cooking and heating; combined cook- 1,500 2,500 3,500 4,500 5,500 6,500 7,500 8,500 9,500 ing and heating comprise both cooking and heating and Per capita household income (RMB per year) cooking and water heating. Table 2.4 shows key features Sources: National Bureau of Statistics 2008; China Statistical Year- and potentially suitable clean biomass stoves by region, book 2007. with illustrative pictures of representative stove models. 14 China: Accelerating Household Access to Clean Cooking and Heating TABLE 2.4 SUITABLE CLEAN BIOMASS STOVE TYPES, BY REGION Households that Millions of use solid fuels Suitable Region/provinces Heating months Fuel situation households for cooking (%) stove types Northwest 4–5 Poor in biomass 26.97 97.28 1, 2, and 4 Shaanxi, Gansu, Inner Mongolia, Ningxia, resources Qinghai, Xinjiang Northeast >5 Rich in agricultural 16.43 95.68 1, 2, 4, Liaoning, Jilin, Heilongjiang and forestry residue and 6 North 3–4 Rich in agricultural 60.79 90.70 1, 2, 3, 4, Beijing, Tianjin, Hebei, Shanxi, Shandong, residue and 6 Henan Southwest Vary; but Tibet Rich in agricultural 56.67 92.93 1, 3, and 5 Yunnan, Guizhou, Sichuan, Chongqing, and other high- and forestry residue Guangxi, Tibet elevation areas require heating Southeast 1–3 Rich in agricultural 102.99 74.24 3, and 5 Shanghai, Jiangsu, Zhejiang, Anhui, Fujian, residue Jiangxi, Hunan, Hubei, Guangdong, Hainan Stove number/type 4/Clean Cooking 5/Clean Cooking 1/Improved 2/Improved 3/Clean Cooking and Water and Heating 6/Clean Heating Description In-Situ Stovea Kang Stove Heating Stove Stove Stove Picture Price (RMB) 500–1,000 2,000–2,500 500–800 1,000–2,000 600–1,000 > 2,000 Thermal efficiency (%) >30 >70 >35 >65 >70 >70 Source: CACS 2012. a. Dust (mg/m3) = <50; SO2 (mg/m3) = <30; NOx (mg/m3) = <150; CO (%) = <0.2; Ringelmann black degree = 1. Northwest and Northeast China, characterized by cold suitable. Also, considering the higher price, clean heating or severely cold winters, require heating more than 4 stoves are more likely to be accepted in North and North- months out of the year. Residents there have been using east China, where rural households’ heating demand Kangs or water heating for decades. Given the climatic and affordability are higher. In Southwest and Southeast conditions, households’ affordability, biomass availabil- China, where heating is generally not required and water ity, cultural customs, and expert opinions, the types of heating is not commonly practiced by households, clean stoves recommended for these two regions include cooking stoves and clean cooking and heating stoves are improved in-situ stoves, improved Kangs, and clean cook- more likely to be adopted. In some areas of Southwest ing and water heating stoves. In addition, for households China where rural households are accustomed to using in North China, clean cooking stoves, which are sold Kangs for heating, improved in-situ stoves can also be on the market at a relatively lower cost, are potentially promoted (map 2.5). Household Cooking and Heating Demand 15 central or electric heating; in the Southwest, however,  EGIONAL DISTRIBUTION OF RECOMMENDED MAP 2.5 R rural households also commonly use wood for heating. STOVE TYPES This chapter has demonstrated that heavy reliance on solid fuels for cooking and heating is the result of multiple factors, which can be grouped into four interdependent categories: (1) availability, (2) accessibility, (3) affordabil- ity, and (4) acceptability. The urban-rural disparity in fuel and stove usage illustrates how these factors interact. Urban households with higher incomes who have access to modern fuel supplies and service networks can afford and are thus more likely to choose high-efficiency, clean- burning modern fuels and improved stoves. Conversely, low-income rural households without access to afford- able modern energy and improved stoves are more likely to collect wood and agricultural residues to meet their daily cooking and heating needs. In addition, the rela- tive abundance of and access to existing local resources Source: Authors. play a key role in households’ fuel decision-making. The difference between Southwest and Northwest China in terms of households’ choice of the most common primi- Conclusion tive heating fuel may be attributed to abundance of the respective natural resources in these regions. Results from the demand analysis indicate that more than half of China’s population still relies on solid fuels It is expected that solid fuels will continue being widely for cooking and heating. Most of these households used in rural China in the near future. Such clean modern are located in rural areas and will likely continue using fuels as natural gas, LPG, and electricity are usually more solid fuels to meet their cooking and heating needs expensive than solid fuels, require more costly stoves in the foreseeable future. With the exception of a few and delivery infrastructure, and are harder for rural house- provinces in the Southeast, nearly all rural households holds to access. By contrast, rural households tradition- in each province use solid fuels for cooking, especially ally collect many forms of biomass on a non-commercial residents in West and North China. In terms of number basis. Therefore, fuel switching on a large scale will not of households using solid fuels for cooking, the most occur in rural areas unless rural economies become sub- concentrated areas are Central and East China, owing stantially more developed. By 2030, an estimated 280 to large population densities and access to solid fuels. million people in China will still rely on solid fuels for cook- The provinces of Henan, Sichuan, Shandong, Hunan, and ing and heating (IEA 2010). Thus, mitigating the negative Hebei feature the most rural households using solid fuels health effects of HAP and reducing the poverty of this for cooking. In Henan, some 20 million rural households segment of the national population require developing use solid fuels for cooking, while in Sichuan, about 15 effective strategies for scaling up the dissemination of million rely on biomass cooking. In addition, coal is the clean-burning, fuel-efficient stoves that rural households predominant heating fuel for China’s households without are willing to adopt. 3 Analysis of Household Stoves Supply Given rural China’s heavy reliance on solid fuels and the biomass stoves reached 0.85 million in 2010, 11 times key factors that drive household fuel selection, discussed greater than in 2005. The production of clean biomass in the previous chapter, what are the major challenges stoves is becoming industrialized and commercialized, and opportunities for the stove supply sector? To answer particularly in poorer areas of the countryside with abun- this question, this chapter examines four stove market dant biomass resources (e.g., Sichuan, Guizhou, and segments—biomass, coal, biogas, and solar—from a Chongqing). By 2011, more than 300 biomass stove man- variety of perspectives (e.g., production, distribution, ufacturers were producing 1.6 million stoves each year sales, and cost) and, based on these analyses, suggests (figure 3.1). This sharp increase can be attributed to the ways to overcome barriers to market development. government’s substantial efforts to invest in the industry, along with the rise in fossil-fuel prices and technology improvements observed in recent years. Biomass Stoves The rapid growth in China’s biomass stove industry is China has one of the largest biomass stove industries in largely attributed to the government’s strong support and the world, with a substantial supply of improved stoves stove promotion programs. As early as the 1980s, “Stoves currently in use. As of 2007, more than two-thirds of the Revolution and Energy Conservation” was codified in Chi- 828 million people in developing countries with access to na’s Sixth Five-Year Plan. The National Improved Stoves improved cookstoves using solid fuels resided in China Program (NISP), which by the late 1990s had installed (WHO and UNDP 2009). However, the biomass stove some 180 million improved stoves in rural households, market is not sufficiently commercialized to thrive with- out government support. Also, problems remain in such areas as quality, technology, and standardization, all of  ROWTH IN PRODUCTION AND STOCK FIGURE 3.1 G which impede the scale-up of more advanced biomass OF CLEAN BIOMASS STOVES, 2005–11 stoves. The subsections that follow examine China’s bio- 2.5 mass stove industry and results of a large-scale survey conducted among stove manufacturers to better under- 2.0 Production Stock stand current market conditions. Millions of units 1.5 Industry Overview 1.0 Both the production and stock of high-efficiency, low- 0.5 emission biomass stoves, also called clean biomass stoves, have increased rapidly since 2005. Despite this 0 2005 2006 2007 2008 2009 2010 2011 late starting point, biomass stove production increased eightfold within five years, reaching 0.5 million by Sources: CAREI 2011a; China CSI survey data. the end of 2010. Similarly, the national stock of clean 17 18 China: Accelerating Household Access to Clean Cooking and Heating TABLE 3.1 PERFORMANCE INDICATORS OF CLEAN BIOMASS STOVES Cooking and water Indicator Cooking heating Cooking and heating Heating Thermal efficiency (%) >35 >65 >70 >70 Average PM emissions (mg/m3) <50 <50 <50 <50 Average CO concentration (mg/m3) <0.2 <0.2 <0.2 <0.2 Source: CACS 2012. is the world’s most successful national improved stoves water heating stoves selling at RMB 1,000–2,000 and program. Since 2005, the biomass stove industry has cooking and heating stoves at RMB 600–1,000. The price entered a fast-growth stage under the global advocacy of difference is largely attributable to the stove size and energy savings and emissions reduction. function, transport distance, and distribution approach. Both biomass stove technologies and product quality have greatly improved as a result of continuous research Survey Results and development (R&D) efforts. Stove manufacturers, To understand the current status of China’s biomass particularly coal stoves companies, have been dedicated stove market, the first-ever large-scale survey of the to developing clean biomass stoves, with substantial biomass stove industry, combined with field visits, was support from the government, and developing countries conducted in March–May 2012. Respondents included have recognized this technology as a leader. In addition, 89 biomass stove manufacturers throughout the country, industrial organizations have played an important role in who together accounted for 72 percent of total produc- developing China’s biomass stove industry. For example, tion in 2011 (i.e., 1.15 million stoves). The stoves covered in 2010, the China Association of Rural Energy Industry by the survey were mostly mass-produced, referred to as (CAREI) launched a voluntary activity that labels high-effi- clean biomass stoves (box 1.3). ciency, low-emissions stove products or small and atmos- pheric pressure hot-water boilers of premium quality Production and Enterprise Distribution with after-sales service as “double commitment” prod- Provinces with larger stove production levels are dis- ucts. Currently, 22 enterprises nationwide are producing tributed throughout the south (especially South Central 40 types of products labeled as double commitment. China). Guizhou and Hunan provinces have the highest levels, each producing more than 181,000 units each Prior to the NISP, the thermal efficiency of cooking stoves year, followed by Yunnan. The large stove output in these was only about 10 percent and that of improved stoves poorer provinces, with the exception of Hunan, is linked promoted in the mid-1990s was about 25 percent. Today, to preferable government policies that include large sub- however, thermal efficiency can exceed 35 percent, with sidies. In 2011, the Guizhou government disseminated significant reductions in particulate matter (PM) and car- at least 120,000 biomass cooking and heating stoves as bon monoxide (CO) emissions (table 3.1). part of China’s Grain for Green Program, while the Yun- nan provincial government disseminates at least 100,000 Technology improvements, in turn, have led to stove fuel-saving stoves each year. In addition, the Hubei gov- enterprises designing and developing a more diversified ernment has included biomass stoves in its Agricultural line of stove products that target a broad range of cus- Machinery Subsidy List (map 3.1a). tomer needs, geographic and socioeconomic conditions, fuel structures, and living/cooking habits. These products Clean stove enterprises are located mainly in East China, include multi-functional ones (e.g., cooking and heat- with the largest number found in Hebei province, fol- ing or cooking, heating, and water heating) with high, lowed by Beijing and Shandong. Hebei tops the num- medium, and low pricing (table 2.4). ber of biomass stove enterprises among all provinces. By contrast, the western provinces of Xinjiang, Xizang, The prices of biomass stoves vary greatly by type, rang- and Qinghai and such municipalities as Shanghai and ing from RMB 500–800 for a clean cooking stove to RMB Tianjin have no biomass stove enterprises. China’s 2,000–2,500 for an improved Kang. Stoves that include smallest-sized clean stove enterprises are located mainly a heating function fall into a higher price category, with in the North and Northeast, while mid-sized ones (i.e., Analysis of Household Stoves Supply 19 DISTRIBUTION OF BIOMASS STOVE PRODUCTION AND SALES, 2011 MAP 3.1  a. Production b. Sales Source: China CSI survey. producing 5,000–15,000 units in 2011) are found mostly market, whereby the decision to produce stoves is based in the North. Although more enterprises are found in the on government purchase orders. North, the largest ones, and thus most production, are centered in the Southwest and Southeast (figure 3.2a). Sales of cooking and heating stoves vary widely by prov- ince, with 1.34 million and 0.26 million, respectively, sold Stove Sales in 2011. Combining data from the China CSI survey with Stove enterprises’ inventory is generally low, reflecting statistical information obtained from local government a sales level comparable to production. For nearly half of agencies, sales of biomass stoves for 2011 were esti- enterprises, more than 99 percent of production is sold mated by region. Consistent with the geographic distri- the same year, while only about 1 percent sells less than bution of production, it was found that most products 60 percent of its products (figure 3.2b). Such low inven- were sold to the Southwest and Southeast (map 3.1b). tory can be attributed, in large part, to the planned stove BIOMASS STOVE ENTERPRISES AND INVENTORY FIGURE 3.2  a. Regional Distribution of Enterprises, by Production Scale Sales-to-Production Proportion as Percentage of b.  Surveyed Enterprises 45 Units per year 1.1% 9.2% 47.1% > 20,000 15,000~20,000 Sales/production (%) Number of enterprises 30 10,000~15,000 > 60 5,000~10,000 12.6% 60–80 < 5,000 80–90 15 90–95 11.5% 95–99 > 99 0 Northwest Northeast North Southwest Southeast 18.4% Source: China CSI survey. 20 China: Accelerating Household Access to Clean Cooking and Heating FIGURE 3.3 CLEAN BIOMASS STOVE TYPES PREFERRED BY PRODUCERS, BY REGION 100 90 Cooking and heating stove 80 Cooking and water heating stove 70 Heating stove Percent 60 50 Cooking stove 40 30 20 10 0 Northwest Northeast North Southwest Southeast Source: China CSI survey. Furthermore, the types of clean biomass stoves pre- C, which sells cookstoves at RMB 650 per stove. While ferred by producers differ by region (figure 3.3). In the the share of cost components varies by company, pro- Northeast and Northwest, cooking and heating stoves duction cost constitutes the largest portion of the price are the major stove types produced. In the North and and profit comprises 10–15 percent of the stove price, Southwest, manufacturing focuses primarily on cooking followed by marketing expenses and tax. and water heating stoves. Cooking stoves are more pop- ular among producers in the Southeast and Northeast, Sales Models and Market Barriers while heating stoves are mainly produced in North China. As previously mentioned, the region of concentrated stove production overlaps heavily with the sales region Production Cost and Sales Price owing to producers’ customary practice of limiting sales Generally, profit margin is low for producers in that pro- to within or just outside their respective provinces. The duction cost comprises about 70–90 percent of the sales exceptions are a few large-scale producers who serve price that stove companies charge for all types of manu- multiple provinces or even the entire country. factured, clean biomass stoves. The four types of bio- mass stoves are quite similar in terms of the cost share Stove producers can reach end users through wholesal- in the sales price, whereas cooking and water heating ers, government procurement, their own sales network, stoves and heating-only stoves have a wider range of or retailers. Wholesalers account for 42 percent of pro- cost share. However, the sales price can differ from the ducer sales. Government procurement—the model that purchase price by end users for subsidized stoves sold to uses subsidies, with enterprises directly participating poor regions supported by the government. in government tenders—accounts for 28 percent, own sales network comprises 19 percent, and retailers only To further illustrate, we use three stove companies (A, 11 percent. It should be noted that most sales to whole- B, and C) as examples (figure 3.4). Companies A and B, salers and using own sales network also fall under the which sell cooking and heating stoves, have a slightly government procurement program, meaning that public higher sales price for their stoves, compared to Company procurement, whether direct or indirect, accounts for more than 80 percent of all producer sales (figure 3.5).  YPICAL COST COMPOSITIONS FOR FIGURE 3.4 T BIOMASS STOVES 800 FIGURE 3.5 MAIN STOVE SALES MODELS 600 Tax Directly to Government RMB 400 Profit consumers procurement Sale fee (19%) (28%) 200 Production cost 0 Company Company Company Wholesalers (42%) Retailers (11%) A_Cooking and B_Cooking and C_Cookstove Stove heating stove heating stove producers Source: China CSI survey. Source: China CSI survey. Analysis of Household Stoves Supply 21 MAIN PRODUCTION AND SALES CONCERNS OF SURVEYED CLEAN BIOMASS STOVE ENTERPRISES FIGURE 3.6   bstacle: Finance > Selling Network > Fuel > a. O Main Obstacles by Production Scale b.  Price > Technology 100 Finance 27 Selling network Selling network 23 75 Fuel Percent producers Technology Fuel 21 Price 50 Finance Price 21 Technology 8 25 0 5 10 15 20 25 30 Percent 0 < 1,000 1,000–10,000 10,000–20,000 > 20,000 Units produced per year Source: China CSI survey. Under the government procurement scheme, there are Funding Source three subsidy levels. For extremely poor regions, which Nearly all stove enterprises in China are privately owned. account for about one-third of cases, nearly 100 percent When the enterprises were set up, capital investment of the sales price is subsidized by the government. For depended solely on their own assets, and obtaining relatively poorer regions, which represent another one- business loans from banks was difficult. For small- and third of cases, 50–80 percent of the sales price is sub- medium-sized enterprises, access to financing has been sidized. Finally, other poor regions receive a 50 percent a major bottleneck to scaling up and making technologi- subsidy. In addition, the source of subsidies varies, with cal advancements. However, in recent years, some prog- a 2:3 average ratio of central government to other levels ress has been made owing to rapid sector development. of government. According to the CSI survey results, 26 out of 120 enter- prises have received small loans from banks, which is The enterprises surveyed considered access to financ- undoubtedly a good start for the biomass stove industry. ing as their main market barrier, closely followed by sales network, availability of fuel biomass briquette, and stove price. Due to the low technology and high price of bio- Overcoming Barriers to Market Development mass briquette, no supply chain for briquettes has been China’s biomass stove industry is growing rapidly, and established. Only 8 percent of respondents considered many enterprises prioritize the development of new producers’ low technological level a major barrier (figure types of biomass stoves, leading to great progress in 3.6a). Furthermore, enterprises at different scales vary stove production and sales, as well as product quality. significantly in their main production and sales concerns Nevertheless, various issues remain unresolved. First, (figure 3.6b). there is little commercialization and heavy reliance on government subsidies, with some procurement pro- Small-scale enterprises, which account for 62 percent of grams having paid more attention to stove pricing than the enterprises surveyed, pay more attention to access- quality. Delayed setting of product standards has meant ing financing and building or expanding their sales net- that some stove products, such as the heating stove or work. However, enterprises with production levels above Tibetan Stove, have been on the market for several years 10,000 units focus mainly on expanding the scale of without having national or industry standards. Resolv- financing and tackling stove pricing, rather than dealing ing this issue will require setting up product standards with technical issues. For large-scale enterprises with and a testing system, improving the performance of annual production above 20,000 units, financing pres- government-supported stove programs, and introducing sure is small and technical issues have been resolved; a market-based approach. More detailed recommenda- thus, they are more concerned about expanding their tions are presented in chapter 5. sales network and cutting prices, as well as ensuring fuel availability. 22 China: Accelerating Household Access to Clean Cooking and Heating Second, the quality and performance of biomass stoves on the market vary significantly, pirating of quality brand FIGURE 3.7 MAIN TYPES OF HOUSEHOLD COAL STOVES names is not uncommon, and there is insufficient after- sales service and technical training. Furthermore, many small enterprises lack technological innovation, and some stove designs are inferior. Therefore, the priority for the enterprise is to improve the stove’s quality and level through investing in technology innovation and tech- nical training. Cooking Cooking Cooking Heating and and Water Heating Third, the lack of a biomass briquette supply chain due to Heating high cost and a low technology level is a main concern Source: China Stoves Website. among producers. Resolving this issue requires coopera- tion and coordination among various players in the sup- ply chain. Large biomass enterprises can also consider Coal-burning stove types vary significantly by region. securing a reliable fuel supply or collecting and process- North of the Yangtze River, households mainly use cook- ing biomass themselves to receive a subsidy. ing and water heating or heating stoves during the cold winter months. Stoves with combined cooking and heat- ing purposes are mainly used in the Southwest, North- Coal-Burning Stoves east, alpine cold region, and pastoral areas. China has abundant coal resources and a large coal stove The performance of improved coal stoves has improved market for heating and other household uses. House- in terms of thermal efficiency and emissions. Currently, holds north of the Yangtze River utilize coal stoves mainly there are no national standards for nitrogen oxides (NOx) for cooking and water heating, while those in the south or carbon monoxide (CO) emissions from coal stoves, use them for heating. The coal stove industry started but new regulations are under way. It can be observed early and developed fast due to the large market poten- that each type of advanced stove has a thermal effi- tial. However, product quality is patchy, performance may ciency at least 5 percentage points better than that of vary considerably, and household demand can be widely common stoves. In fact, advanced heating stoves can dispersed. This section characterizes China’s coal stove reach a thermal efficiency of up to 70 percent. For all industry, identifies market barriers, and suggests ways types of advanced stoves, the level of released smoke in which to promote the industry’s sustainable devel- is below 80 mg per m3 and the level of sulfur dioxide opment. The data presented here are based on survey (SO2) is within 500 mg per m3, compared to 120 mg per samples, visits, discussions, telephone interviews, and m3 and 900 mg per m3, respectively, for common stoves expert consultations with producers nationwide. (table 3.2). Stove Development Production and Sales There are four major types of coal stoves: (1) cooking, (2) In 2011, some 1,500 enterprises produced 20 million cooking and water heating, (3) cooking and heating, and honeycomb coal cooking stoves, of which 16 million (4) heating (figure 3.7). Cooking coal stoves are installed were sold, while another 800 enterprises produced 2.6 with or without chimneys and mainly use coal briquettes million clean coal heating stoves, of which 2.2 million for fuel. Most cooking and water heating coal stoves are were sold (CAREI 2011a). Of the 18.2 million coal stoves installed with chimneys and mainly use lump coal and promoted that year, Hubei led (2.4 million), followed by briquettes as fuel; these stoves can be connected to Hunan (2.0 million) and Jiangsu (1.53 million). Production heating pipes, heated Kangs, or hot walls. They are pri- and stock of coal heating stoves were fairly stable over marily used for water heating and secondarily for cook- the 2005–10 period, with production declining slightly in ing. Cooking and heating coal stoves mainly use lump 2006–08 and subsequently rising (figure 3.8). Over the coal and briquettes as fuel, and are utilized primarily to five-year period, production grew by 21 percent, while provide heat, with cooking a secondary use. Finally, heat- stock rose by just 12 percent. ing coal stoves, whose primary purpose is for winter heating, are installed with chimneys; they mainly use Prices and sales differ by stove type. Similar to bio- lump coal for fuel and can be connected to heating pipes. mass stoves, coal stove prices range from hundreds to Analysis of Household Stoves Supply 23 TABLE 3.2 COMPARISON OF PRODUCT PERFORMANCE INDICATORS Cooking stove Cooking and heating stovec Heating stoved Indicator Commona Advancedb Commona Advancedb Commona Advancedb Efficiency >35 >45 >60 >65 >60 >70 Released smoke (mg/m ) 3 <120 <80 <120 <80 <120 <80 SO2 (mg/m ) 3 <900 <500 <900 <500 <900 <500 Ringelmann shade (level) 1 1 1 1 1 1 Source: CACS 2012. Note: The coal fuel used is in the form of briquettes. a. Common stove types meet GB16154 technical specifications and GB13271 emission standards. b. Advanced stove types represent the leading stoves in the clean and efficient stove industry. c. Cooking and heating stoves comprise both cooking and heating and cooking and water heating uses. d. All heating stoves are of the water heating type. thousands of RMB per stove. In addition, sales of coal a number of barriers that have hindered the promotion stoves are completely market based, with no national and sale of high-quality stoves. For example, four-fifths or local supportive policies. Thus, the stove industry has of the coal stoves in most regions are obsolete. In addi- been largely commercialized, and the market is stable tion, since relatively poorer families prioritize stove price to a certain extent. However, most production is from over concerns of safety, efficiency, and pollution, their microenterprises operating under rudimentary condi- demand is met with low-quality, low-priced products. Fur- tions. Nationwide, only 40 enterprises, all of which are thermore, the market is insufficiently regulated and thus located in Hebei, Shandong, and Guizhou provinces, have is flooded with shoddy imitation products. an annual production exceeding 10,000 stoves. Thus, production and sales usually occur locally or within the To enhance market stability, the government should respective provinces. One exception is Hebei, which has strengthen its efforts to phase out low-quality, traditional the largest number of stove manufacturing companies coal stoves. In addition, relevant national law enforce- and established infrastructure, exporting 70 percent of ment agencies should step up their supervision of the its products outside the province. At the other extreme stoves market and crack down on infringements, includ- is the Northeast, which lacks sizeable stove enterprises ing counterfeit products and cheap dumping practices, to and imports 60 percent of its stoves from provinces in ensure product quality and safe use. other regions.  RODUCTION AND STOCK OF COAL HEATING FIGURE 3.8 P Overcoming Barriers to Market Development STOVES, 2005–10 Unlike biomass stoves, which rely heavily on government 25 support, China’s coal stove market is highly commercial- ized without substantial government support, which 20 Production Millions of stoves Stock accounts for the stable supply in past years. In addition, 15 some improvements have been made in stove perfor- mance. Owing to the small production capacity of most 10 enterprises, their business model, with few exceptions, 5 focuses on producing and selling within their respective provinces. 0 2005 2006 2007 2008 2009 2010 Beyond volatility in weather, coal prices, and the cost Source: CAREI 2011a. of materials and labor, China’s coal stove market faces 24 China: Accelerating Household Access to Clean Cooking and Heating Biogas made a leap forward. From 2008 to 2011, both the cen- tral and local governments continued to increase support In rural China, biogas plays a key role in household energy, of biogas construction, with a total of RMB 26.96 billion accounting for 7 .04 percent of rural household energy invested, further accelerating the industry’s growth. consumption in 2010. Over the past decade (2000–10), the number of farming households using biogas systems Technology Trend increased sharply—from 8.5 million to 38.51 million— owing, in large part, to government-supported efforts. Currently, most of rural China’s household biodigesters This section examines the history and current status of are made of brick and concrete and are constructed on China’s biogas industry and suggests ways to overcome site. Over the years, construction materials and technol- barriers to further scale-up. ogy and system structure have gradually improved. How- ever, certain problems remain (e.g., the time required for system construction and higher technology require- Promotion of Household Biodigesters ments). Even so, the commercial biogas industry—fea- Large-scale construction of household biogas systems in turing new technologies, materials, and techniques, rural China began in the late 1950s, but fell off quickly known as the “three news”—has made significant prog- due to lack of technology, low income levels, and lack of ress. With support from all levels of government, com- training and after-sales service. It took several decades mercial household biogas has made important strides; for construction to return to peak levels. The 1980s to the by the end of 2010, nearly 1 million units had been year 2000 marked a period of stable development. Since installed, accounting for 2.5 percent of all rural household 2000, owing to substantial government support, the biodigesters. industry has entered a new phase of rapid development. The “three news” mainly include glass-fiber reinforced By the end of 2010, biogas users (both household and plastic (GRP), other plastics, and software, all of which centralized levels) exceeded 40.27 million, represent- are lightweight, using chemicals as raw input. Such mate- ing one-third of all potential users nationwide. Energy rials have structural advantages over conventional ones savings are estimated at more than 24 million tons of and thus are more economical, durable, and adaptable standard coal each year, with annual reductions in emis- to local conditions. Currently, hundreds of enterprises sions and chemical oxygen demand (COD) amounting are engaged in production and research on the “three to 50 million tons of carbon dioxide equivalent (tCO2e) news” products, having scaled up innovation, quality reli- and 0.76 million tons, respectively. In 2010, the various ability, and after-sales service to medium- and large-sized types of biogas and sewage biogas projects numbered enterprises. 72,700 and 191,600, respectively, reflecting a 20 percent increase from 2005, benefiting 0.15 billion people. Cur- Service System Development rently, a new biogas growth pattern has been established for household, medium- and large-scale projects, and In recent years, China has begun to strengthen construc- sewage purification projects being developed concur- tion of the household biogas service system. Through rently (CAREI 2011b). state funding, 6 provincial training bases, 536 country- level service stations, and 64,756 rural service networks The rapid growth in China’s rural household biogas indus- have been built. Also, basic service models have been try since 2001 is attributable, in large part, to the govern- created for county building centers, township building ment’s continuous and generous support. According to stations, and village building service points. Existing ser- incomplete statistics, the Ministry of Agriculture invested vice modes include production worker contracts, rural RMB 8.62 billion in rural energy construction during biogas associations, and biogas cooperatives. The num- 2001–07 (CACS 2012). Of this amount, RMB 270 million ber of staff working on biodigester construction, installa- came from a special finance fund, RMB 350 million from tion, and follow-up services totals more than 0.3 million. a construction fund, and RMB 8 billion from a govern- The entire supply system has been established, with ment bond fund. Of the 8.62 billion invested, 8.3 billion thousands of sector enterprises, including some large was allocated to household biodigester systems and 125 ones that can achieve sales revenue exceeding RMB 100 million directed to medium- and large-scale biogas proj- million. ects. As the result of strong government support, the development of China’s household biogas construction Analysis of Household Stoves Supply 25 Overcoming Barriers to Market Development Tackling these problems is vital to increasing biodigester use among qualified rural farming households and their Despite the impressive development of rural China’s full realization of the benefits of biogas systems. For household biogas industry, some obstacles must be example, the byproducts of biogas fermentation have overcome to further scale up biogas supply. The substan- high nutrient value and can be used as a fertilizer. Once tial changes in rural socioeconomic conditions in recent the above-mentioned barriers are removed, households’ decades present new challenges, with new lessons to motivation to use biogas more efficiently and effectively be learned along the way. The foremost issue is rural will increase as their awareness of the many benefits of households’ low utilization rate and thus lack of enthu- biogas grows. siasm for using or constructing the biogas systems. The reasons for their reluctance are multifaceted, including One suggested recommendation is to focus on contin- lack of a service system, decreased individual cultivation ued government support for improving or reforming cur- of livestock, large upfront investment and insufficient rent supporting mechanisms to motivate households in subsidy level, and slow technological progress. biogas use. It is possible to subsidize biogas equipment, as done under the agricultural equipment subsidy policy, Specifically, the service system has lagged far behind the to alleviate the burden on equipment enterprises and needs of biogas users, thus restricting household utiliza- users alike. Germany’s successful biogas experience, tion. Although China has invested more than RMB 1.4 which expands the subsidy to various stages along the billion in the past two years to fund the rural biogas and supply chain from enterprise input to output, could be service system and has actively explored service models adapted to China’s situation. Or perhaps new policies and for local development, many service outlets face difficul- approaches based on rewards rather than subsidies could ties due to a lack of running costs and fee sources. In be introduced, leading to a more efficient and effective areas without effective service systems, low utilization use of public funds for improved biogas utilization. of biodigesters has become a common problem, espe- cially among families lacking raw materials and labor. Finally, piloting and demonstrating commercial biodi- gesters should be implemented to accelerate industri- In addition, with the structural change in rural produc- alization. In addition, various types of public-awareness tion in recent years, the livestock and poultry industry campaigns are needed on the co-benefits of biogas and has become more industrialized, leading to a decline in best practices, especially related to energy conservation, individual cultivation of livestock. Reduced household to raise farmers’ enthusiasm for using biogas systems. cultivation of livestock, in turn, has led to a decline in the raw materials used for generating biogas and thus the number of qualifying farming households for biogas sys- tem installation. Solar Cookers Furthermore, owing to higher prices for materials, acces- Over the past several decades, China has made great sories, and labor, the subsidy level is insufficient to com- progress in solar cooker research and promotion and pensate for the increased cost of system construction. now has the largest stock of solar cookers in the world. Also, due to tight local budgets, county-level matching The solar cooker industry has made significant strides funds for rural biogas projects are difficult to obtain, lead- in commercial production and sales, including after-sales ing to project delays and farmers’ unwillingness to invest service. This section examines the history and current more in construction. status of solar cooker production, identifies areas suit- able for promotion, and characterizes suppliers. It then Moreover, lack of investment in R&D activities has suggests how to overcome identified barriers in order to restricted biogas industry innovation; over the past accelerate industry development. decade, such investment has been minimal. Many research institutes and production enterprises are reluc- Production Scale tant to engage in biogas-related R&D due to lack of funding from all sources. Most of the technology and During the early 1980s, China’s government invested products remain the same as years ago. The slow prog- considerably in solar cooker development, which led ress in technology and frequently required repairs and to a rapid rate of growth. However, in 1985, subsidies maintenance can further reduce farmers’ enthusiasm for were substantially reduced, causing development to utilizing biodigesters. slow, and the industry started to explore commercialized 26 China: Accelerating Household Access to Clean Cooking and Heating FIGURE 3.9 PRODUCTION AND STOCK OF SOLAR COOKERS, 2000–10 1.8 1.6 1.4 Millions of solar cookers 1.2 1.0 Stock 0.8 Production 0.6 0.4 0.2 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: China Agriculture Statistical Yearbook 2010. production. In recent years, with the government’s 2. China uses three main types of solar cookers: (1) emphasis on energy conservation, the industry has heat box, (2) box focusing, and (3) focusing (figure 3.10). regained significant support for developing and promot- Heat box solar cookers are easy to produce, with materi- ing solar cookers, especially in poorer regions. als easy to obtain at low cost. However, disadvantages include low temperature, low heat capacity, and limited Over the 2000–10 period, solar cooker stock increased cooking functions, leading to a low development level. more than fourfold, while production experienced ups The box focusing solar cooker is more compact and can and downs (figure 3.9). By 2010, stock totaled 1.6 mil- be folded into a box for convenience of carrying, which lion units. In 2003, production dipped to only 54,500 can prolong the life of the reflective material. But due units, but soon bounced back, peaking at 0.30 million to its complex structure, inconvenient maintenance, units in 2008. Since then, annual production levels have and higher cost, it is not widely used. The focusing solar remained above 0.20 million units. cooker is the most popular type. It is simple in structure and easy to operate, and has reliable performance, low China’s solar cooker manufacturers generally take two cost, and multiple functions. forms: specialized and local. Specialized manufacturers refer to the industrial production of certain manufactur- ers with technical strength and equipment. These are Suppliers located mainly in Jiangsu, Shandong, Gansu, and Bei- Currently, China has more than 20 enterprises that jing. Most products are made of cast iron, glass-fiber produce solar cookers distributed throughout Gansu, reinforced concrete (GRC), GRP , and composite material Ningxia, Qinghai, Sichuan, Jiangsu, and Shandong. The and are sold over a wide geographic area. The price range first four provinces are noted for their high levels of solar is RMB 400–500 per cooker. Local manufacturers are cooker stock. In addition, most companies are either pri- located mainly in Gansu, Ningxia, and Qinghai; their prod- vate or joint-ownership types, with annual sales of more ucts generally consist of thick cement shell stoves with than 200,000 units. a waste glass lens as reflective material. These products are popular among local residents due to their lower pro- duction cost and sales price (about RMB 200–300 per cooker) and emphasis on quality and reputation, which FIGURE 3.10 VARIOUS TYPES OF SOLAR COOKERS are key to small business models. Stove Types and Suitable Areas Suitable promotion areas for solar cookers are mainly concentrated in Gansu, Qinghai, Ningxia, Tibet, Sichuan, Heat box Box focusing Focusing and Yunnan Tibetan areas, where solar energy resources are rich and biomass is scarce, as discussed in chapter Source: CACS 2012. Analysis of Household Stoves Supply 27 Despite large production, sales rely mainly on govern- To guarantee stove quality, it is essential to standardize ment procurement and subsidies. The market accounts solar cooker products through a unified, consistent sys- for less than one-fifth of sales because demand is cen- tem. A testing center should be established to test and tered in poorer regions, where profitability is low. Thus, monitor the quality and performance of solar cookers government support will continue to play a major role under the same standards. Also, technical cooperation, in promotion. The quality of solar cookers varies greatly, technical exchanges, and product trade should be estab- suggesting a strong need for better production tech- lished among countries, especially developing countries nology and greater capacity in standardizing product that face similar fuel challenges, which call for strength- performance. ened coordination among relevant departments. Overcoming Barriers to Market Development Conclusion The application of solar cookers can ease China’s energy shortage and improve the ecological environment in Among the four market segments considered in this some regions. To effectively promote solar cookers, chapter, biomass stoves have the largest demand, espe- various strategies should be used. For example, in low- cially in poorer rural areas, but supply relies on govern- income regions, it is advisable to integrate the promo- ment procurement. The coal stove market has reached tion of solar cookers with poverty-reduction planning and a certain level of commercialization and currently does continue to provide subsidies, given the difficulty of com- not require government support; but most suppliers’ pro- mercialization due to households’ low affordability and duction capacity is small and, with few exceptions, busi- producers’ low profitability. One might consider financial nesses are limited to the respective provinces. Biogas and material resources and tax relief for qualified produc- faces the challenge of low household utilization and lack ers and users. However, households in middle-income of farmer enthusiasm. Although China has the world’s regions rich in solar resources should be encouraged to largest stock of solar cookers and its commercial market purchase solar cookers through diversified sales methods is under way, it still relies on government subsidy. with improved after-sales services, such as consignment and installment. At the same time, public-awareness For market segments that rely heavily on government campaigns should be conducted to publicize the benefits support, it is necessary to continue such support while of solar cookers. However, in most high-income regions, exploring the possibility of creating market incentives use of solar cookers is rare unless there is an extreme for households to use stoves and suppliers to produce lack of conventional energy. them based on market signals. All four market segments require increased access to financing and standardization To improve existing technology, R&D activities should of stove products against technical specifications with be conducted by a highly qualified team with sufficient strengthened institutions. Annex A further examines research funding. Special focus should center on devel- these market segments, characterizing the interactions oping stable and durable reflective material, a tracking of stove supply, demand, and market policies in specific system that enables solar cookers to adjust automati- local contexts. Valuable lessons from these four cases cally to the sun, and lightweight box-type cookers that can be applied to designing and implementing future are environmentally friendly. stove promotion programs. 4 Policies, Programs, and Institutional Players This chapter reviews China’s policies, programs, and energy development, utilization of crop residues, rural major institutional players that promote clean household energy development, and poverty reduction to improving energy solutions. Specifically, it explores the extent to rural households’ quality of life and health and preventing which China’s policies have been engaged in the house- deforestation. hold energy solution, identifies program and institutional gaps that future interventions will need to fill, and offers For example, in 2007 , the General Office of the State lessons and insights from past and current policies and Council released a guidance document for ministries and programs that can be applied to future efforts to ensure local government on the central government’s views on their sustainability. modernizing agriculture as part of its push for the new rural construction of socialism.3 The next year, the Coun- The chapter begins with an overview of the current struc- cil issued its views on accelerating the comprehensive ture of China’s stoves policies, including their administra- utilization of crop straw in order to reduce open field tion, the projects and programs implemented, and the burning of crop residues.4 This document encouraged the responsibilities of the various ministries involved. Next, it accelerated utilization of biomass with biogas, pyrolysis illustrates how these institutions are coordinated within gasification, briquetting, and carbonization technologies, China’s clean stove promotion mechanism, followed and called for providing financial support to apply these by a review of recent national policies and regulations technologies and loan credits to enterprises and agri- related to clean stoves. The chapter then turns to China’s cultural machinery service organizations to spur capital standardization system for clean stoves, presenting the investment. results of a gap analysis on policies, programs, and stan- dards. Finally, suggestions are offered for more effective Various ministries have invested in such efforts, with interventions. each project/program having its core objectives. Figure 4.1 provides examples of major projects/programs, for which, in addition to the lead implementing ministries, Structure of Current Programs the National Development and Reform Commission (NDRC), successor to the State Planning Commission, Since the early 1980s, China’s government has been and the Ministry of Finance (MOF) assume overall coor- involved at various levels (i.e., national, provincial, and dination and financing. local) in issuing policies and implementing programs related to clean stoves. These policies and programs have 3. Detailed information is available at www.gov.cn/gongbao/con- covered a wide array of topics, ranging from renewable tent/2007/content_548921.htm. 4. General Office of the State Council opinion (2008, No.105) (http:// code.fabao365.com/law_16716.html). 29 30 China: Accelerating Household Access to Clean Cooking and Heating FIGURE 4.1 CHINA’S CLEAN STOVE PROGRAMS STRUCTURE Lead Administration Project/Program Core Objective MOA Green Energy Demonstration Counties Energy Saving National Improved Stoves Program Environmental Protection SFA Consolidating the Achievement of Returning Famland to Forest Defluoridation and Stove Reforming Program Poverty Reduction NEA Agricultural Machinery Subsidy Program Industrialization Eco-Farming Project MOH One Solar Cooker and One Biomass Stove Program Health Source: Authors. Ministry of Agriculture During the Eleventh Five-Year Plan (2006–10), the MOA created the National Program for Rural Biogas, whose As administrator for rural production and living, China’s main objectives are to optimize the structure of rural Ministry of Agriculture (MOA) has previously introduced energy, increase farmers’ income, and improve the eco- numerous policies related to clean stoves. For example, logical environment. The program uses a county-based, in the 1980s, it initiated the National Improved Stoves multi-level approach to implementation. Program (NISP), with the dual objectives of energy conservation and environmental protection. The NISP In 2004, the MOA initiated the Agricultural Machinery developed pilot counties for fuel-saving stoves and incor- Subsidy Program, which aims to strengthen financial sup- porated upgraded stoves and wood savings into the Sixth port for agricultural development. The program responds Five-Year Plan, marking a new wave of stove promotion to the central government’s incorporation of the agricul- (box 4.1). tural machinery purchase subsidy into its national policy of three subsidies and two exemptions.5 In 2011, the The MOA also initiated the One Solar Cooker and One government further increased the subsidy level to RMB Biomass Stove Program in 2007 , targeting energy con- 17.5 billion for agricultural machinery purchases (including servation and poverty reduction in the Tibet Autonomous both biomass stoves and biomass briquetting machines) Region and neighboring provinces. The program has suc- to promote rural industrialization of the agriculture sector. ceeded in improving the quality of herdsmen’s lives, pro- tecting the local ecology, and promoting construction of the new countryside (box 4.2). State Forestry Administration The Eco-Farming Project, another MOA initiative, has In 2002, the State Forestry Administration (SFA) initiated poverty reduction as its core objective. The MOA imple- Consolidating the Achievement of Returning Farmland ments the project under its strategy to promote sustain- to Forest, a program whose threefold goal was conserv- able agricultural development, as set forth in its national ing energy, protecting the environment, and alleviating ecological farming and livelihood improvement plan. In poverty. With thermal efficiencies of stoves as low as early 2000, the project launched 10 eco-farming demon- 10–12 percent, the continued use of traditional stoves stration villages in 7 western provinces. 5. More information is available at http://www.gov.cn/test/2006-02/ 22/content_207406.htm. Policies, Programs, and Institutional Players 31 BOX 4.1 NATIONAL IMPROVED STOVES PROGRAM China’s National Improved Stoves Program (NISP), the world’s largest such program, was initiated by the Ministry of Agriculture and the National Development and Reform Commission in the 1980s. At that time, the General Office of the State Council had begun to promote fuel-saving stove technology to reduce rural energy shortages and inef- ficiencies and address related ecological and economic concerns. The Sixth Five-Year Plan incorporated the work of the State Council, and soon the program of promoting wood- and coal-saving stoves was launched. Achievements. The NISP successfully promoted some 180 million improved stoves by the end of 1990s, benefit- ing more than 500 million farmers. The thermal efficiency of improved stoves is 15 percentage points higher than that of traditional stoves, resulting in fuel savings of 33–50 percent on average. It is estimated that annual energy savings could reach 73 million tons of standard coal, thus contributing to solving rural energy shortage and security problems. Lessons in success. Four major principles contributed to the success of the NISP . First, China’s government was firmly committed to stoves promotion, having incorporated it into its Sixth Five-Year Plan and listed it on the govern- ment’s agenda. Second, national stoves competitions were organized and unified standards and testing methods were adopted. Third, the program was integrated into rural development planning, which led to more effective and appropriate program design. Finally, related departments and research institutes invested in the research and devel- opment (R&D) of stove technology and formation of a specialized technical team. Challenges. Despite the NISP’s success, a number of problems remain. The low technology level of stove products has resulted in a low level of commercialization and durability. In addition, more than 70 percent of the stoves pro- moted have been damaged or broken due to a lack of repair and maintenance services. Furthermore, 20 percent of farmers are still using traditional stoves. Moreover, lack of funding has impeded further promotion. Finally, manage- ment cannot keep pace with program implementation. Looking ahead. Work on promoting improved and advanced stoves and Kangs to improve indoor air quality and qual- ity of life for rural households has been included as key components of the Twelfth Five-Year Plan’s outline of national economic and social development and action plan for implementing energy conservation and emissions reduction.a,b Under the regulatory framework, this work will further contribute to improving rural energy efficiency, health, emis- sions reduction, and quality of life as plans move forward to launch the second national improved stoves program. Source: CACS 2012. a. Details on the outline of national economic and social development are available at www.gov.cn/2011lh/content_1825838.htm. b. Details on the action plan for implementing energy conservation and emissions reduction are available at www.gov.cn/zwgk/2012-02/07/ content_2059923.htm. led to a significant waste in biomass resources and even National Energy Administration deforestation in fuel-shortage regions. Thus, many local The National Energy Administration (NEA), along with the governments procured improved stoves and promoted MOF and the MOA, implements the Green Energy Dem- subsidized ones in regions with reclaimed forestland onstration Counties program, whose dual objectives are from agriculture. The program significantly reduced energy conservation and industrialization (box 4.3). energy consumption and enhanced the achievement of returning farmland to forest. 32 China: Accelerating Household Access to Clean Cooking and Heating BOX 4.2 ONE SOLAR COOKER AND ONE BIOMASS STOVE PROGRAM China’s One Solar Cooker and One Biomass Stove Program, initiated by the Ministry of Agriculture (MOA) in 2007 , is designed to solve the household energy problems of herdsmen and farmers living in the Tibet Autonomous Region and neighboring provinces of Sichuan, Qinghai, Gansu, and Yunnan. Under the program, rural households in targeted areas receive one energy-efficient (clean) biomass stove and one solar cooker. Implementation. Stove products are entered into a unified bidding process and are purchased from the stove enterprises by the provinces. The MOA’s agricultural engineering construction center tenders the contracts. The stove enterprises transport their products to the counties and provide technical assistance on installation. Specific responsibilities are assigned at all levels of government. At the provincial and county levels, committees are set up to manage projects. The provincial-level government handles product procurement and quality control. At the prefecture level, the agriculture department is responsible for project coordination and inspection. The county-level government receives products and organizes transport and installation, while the village-level government conducts public-awareness campaigns and ensures households’ timely use of the products. Achievements. In just four years, the program successfully promoted 79,833 biomass stoves and 244,474 solar cookers. Tibetans have welcomed the clean biomass stoves and solar cookers since the products are of good qual- ity and perform well. As a result, rural sanitary conditions have improved, the incomes of herdsmen and farmers have risen, and overall quality of life for ethnic minorities is improving, helping to build a more stable and prosperous region. Lessons in success. Multiple factors have accounted for the program’s success. Local conditions, energy consump- tion, and lifestyle were carefully integrated into the program design, following consultations with local business departments, experts, and enterprises. These groups provided counties technical assistance to ensure high-quality and timely project implementation. The provincial agricultural department sent representatives to monitor enter- prises to strengthen quality control, while the rural energy office invited experts from the China Association of Rural Energy Industry (CAREI) and stove professional committee to provide county technicians training. In addition, by raising households’ awareness of stove performance levels, public-awareness campaigns ensured project imple- mentation. Bilingual manuals and pamphlets on the installation and safe use of biomass stoves were distributed to all targeted rural households. Finally, stove enterprises set up an after-sales service network in the project counties to encourage product maintenance and thus ensure safe and sustainable use. Source: CACS 2012. Ministry of Health which outlined the industrial development of biomass bri- quette. The plan aims to meet basic rural energy needs, The De-fluoridation and Stove Reforming Program was upgrade the structure of energy consumption, and pro- implemented nationwide in the mid-1980s to prevent mote biomass pellets demonstration sites. The annual and control coal-related endemic fluorosis, as well as pro- consumption target is 5 million tons of biomass pellets, tect the environment and alleviate poverty. Great efforts substituting 3 million tons of coal. During the Eleventh were invested in upgrading stoves to reduce the use of Five-Year Plan (2006–10), the government invested sig- poisonous coal, especially in the Three Gorges mountain- nificantly to promote biomass utilization technologies ous region (box 4.4). nationwide. In addition to these line ministries–led programs, the In 2008, the MOF formulated the Subsidies Manage- NDRC and the MOF also issue the supporting policies ment Provisional Measures for Straw Energy Utilization to provide sector guidance and financing incentives. (2008, No. 735) to accelerate use of agricultural resi- For example, in 2007, the NDRC released the Medium- dues and develop a market for biomass products.7 The and Long-Term Renewable Energy Development Plan,6 6. Details are available at www.gov.cn/zwgk/2007-09/05/content_ 7. Additional information is available at www.ccgp.gov.cn/site13/gysh/ 738243.htm. qtlb/zcfg/765150.shtml. Policies, Programs, and Institutional Players 33 BOX 4.3 GREEN ENERGY DEMONSTRATION COUNTIES Since 2000, the National Energy Administration (NEA), together with the Ministry of Finance (MOF) and the Ministry of Agriculture (MOA), has implemented the Green Energy Demonstration Counties program, which works to solve or mitigate rural household energy problems using green energy. The range of renewable energy sources includes biomass, solar, wind, geothermal, and hydropower. Implementation. Biomass energy is applied through three projects: (1) biomass briquetting, (2) centralized biogas, and (3) biomass gasification. Biomass briquettes, made of agricultural and forest residues—annual production for each product can reach or exceed 5,000 tons—can meet the cooking and heating demands of more than 1,000 rural households, as well as the heating needs for public buildings (e.g., hospitals, schools, government offices, and nurs- ing homes). Subsidies are used to support the purchase of biomass stoves and reconstruct biomass boilers, Kangs, and stoves. Under the centralized biogas project, livestock manure and crop straw are used to generate biogas. The fermenta- tion pit of each unit has a capacity of more than 350 m3, with an annual output of more than 100,000 m3—enough to provide energy to at least 150 households. Subsidies support the construction of biogas purification treatment facilities, gas storage, and the transport pipeline and network. Under the biomass gasification project, gas produced from agricultural and processing residues and forest waste is used to generate carbon products and electricity. Each application is designed to meet the energy demands of at least 200 households. Like the centralized biogas project, subsidies target the construction of purification treatment facilities, gas storage, and the transport pipeline and network. Subsidy eligibility and approach. Qualification criteria include a green-energy production capacity of more than 50,000 tce and more than 20,000 newly added household users. The energy utilization rate of livestock manure and agricultural and forestry residues should be increased by at least 10 percentage points, while the comprehensive utilization rate of crop straw resources should exceed 80 percent. The central government subsidizes demonstration counties through direct subsidies, rewards, and low-interest loans, while local government arranges matching funds for strengthened program sustainability and scaled-up impact. Achievement and long-term goal. In November 2011, the first group of 26 green energy demonstration counties each received RMB 25 million in subsidies. By 2015, 200 such counties are to be established. Source: CACS 2012. measures specify the eligibility and subsidy criteria for fuel- provincial, city, and county levels, accompanied by a cor- producing enterprises in the straw business of briquet- responding series of supporting policies in accordance ting, gasification, and dry distillation. To qualify, enterprises with those of the central government. The most repre- must consume more than 10,000 tons of straw per year, sentative programs include the biomass stove promo- with more than RMB 10 million in registered capital. The tion program in Shanxi province, Enshi city’s exploration subsidy level, currently RMB 140 per ton of straw, depends of a new path for rural development, and Anshun city’s on the type and quantity of straw consumed, estimated by utilization and reduction in open-field burning of agri- the enterprise’s sale of biomass products. cultural residues. The provincial-level Bureau of Finance funds the Shanxi program, while the Anshun program draws on a specialized fund under the Consolidating the Provincial and Local Programs Achievement of Returning Farmland to Forest program. The Enshi program is subsidized under both the Return- In addition to centralized stove-related policies and pro- ing Farmland to Forest and Agricultural Machinery Sub- grams, less comprehensive ones are implemented at sidy programs. 34 China: Accelerating Household Access to Clean Cooking and Heating BOX 4.4 DE-FLUORIDATION AND STOVE REFORMING PROGRAM By the mid-1980s, coal-related fluorosis had become a serious health issue in 13 provinces of China, affecting more than 40 million people in 90 counties. In response, the Ministry of Health (MOH), together with the State Develop- ment Planning Commission, MOF , MOA, SFA, and Ministry of Water Resources, took comprehensive measures to reduce fluorine nationwide, with a focus on upgrading stoves. Achievements. Over the years, 15 types of stoves suited to various altitudes, coal types, and end uses were devel- oped and promoted, which resulted in significant prevention of fluorine-related diseases. In the Three Gorges pilot project area, for example, where more than 100,000 rural households upgraded their stoves, more than 600,000 residents avoided endemic fluorosis. Lessons learned. Owing to the low incomes of the targeted rural households, many upgraded stoves were not replaced when they fell into disrepair or broke, and a number of households reverted to using conventional coal stoves. This outcome highlights the importance of designing programs that target long-term sustainability. Source: CACS 2012. Institutional Arrangements Technology Research and Development Currently, the development of clean biomass stove In the previously described programs and projects, vari- technology relies heavily on research and development ous ministries and departments are responsible for key (R&D) conducted independently by enterprises. Few if functions that can affect program/project processes, any special funds are available to support research on progress, and sustainability, such as technology research stoves-emissions testing and equipment or the impacts and development, standards testing, program implemen- on pollutant emissions, health, and climate change. tation, awareness raising, and monitoring and evaluation However, following the Fourth China-U.S. Strategic Eco- (figure 4.2). nomic Dialogue, held May 3, 2012, and China’s official announcement to join the Global Alliance for Clean Cook- stoves (GACC), the Ministry of Science and Technology FIGURE 4.2 INSTITUTIONAL COORDINATION MECHANISM FOR CLEAN STOVES PROMOTION NDRC MOF MOST MOA SFA MOH NEA Technology Research Standards and Program Awareness Monitoring and and Development Testing Implementation Raising Evaluation Source: Authors. Policies, Programs, and Institutional Players 35 TABLE 4.1 CLEAN STOVE POLICIES AND REGULATIONS THAT CAME INTO EFFECT IN 2011 Institution Policy/regulatory document Description General Office of the Twelfth Five-Year Plan (2011–15) Main areas of focus are promoting biogas and State Council agricultural straw and forestry residue; utilizing biomass, solar, and wind energy; and upgrading fuel-saving stoves. NDRC, MOA, and MOF Notification of implementing multipurpose use of Household program includes promotion of high- agricultural straw, Twelfth Five-Year Plan (NDRC efficiency, low-emission biomass stoves. [2011] 2615) MOF, NEA, and MOA Interim Measures for Administration of Subsidy Support is provided for the purchase of biomass Funding for Construction of Green Energy Dem- cooking and heating stoves and upgrading of onstration County ([2011] 113) biomass boilers and stoves. General Office of the Notice of comprehensive work on energy conser- Promotion of clean stoves is included under the State Council vation and emissions reduction, Twelfth Five-Year rural energy conservation plan. Plan (State Council [2011] 26). NDRC and 17 ministries Notice of implementing action plan for energy CAREI supports implementation of the action conservation and emissions reduction. plan for rural areas. Main activities include upgrading stoves, promoting efficient stoves, and improving rural indoor air quality and rural people’s quality of life. Source: CACS 2012. (MOST) plans to build an Alliance Research Platform to been substantially raised, suggesting the need to better promote R&D and international cooperation. design and implement awareness campaigns that have impacts of greater breadth and depth. Standards and Testing Monitoring and Evaluation The MOA and the NEA have approved a number of gen- eral technical conditions and testing standards related to In the programs implemented by the MOA, MOH, and clean stoves. Also, there are testing centers for agricul- SFA, the number of promoted stoves were evaluated tural machinery and environmental protection products and verified; however, monitoring and evaluation (M&E) at various locations. However, these are not specialized was missing for households’ use of the stoves and was in national-level stove testing and thus lack authority and incomplete for the program implementation process. The reliability.8 biomass stove promotion project in Shanxi province has adopted an internationally accepted verification method under the carbon trade program, but the method has not Program Implementation been applied to any other project owing to the high cost The MOA, SFA, NEA, and MOH are experienced in imple- and complexity of M&E and verification. menting clean stove promotion programs. The approach is a direct subsidy mechanism, whereby the government tenders and procures stoves before promotion and then Recent National Policies disseminates the subsidized stoves to pilot regions. In addition to the above-mentioned policies and programs implemented in the past, a series of related policies and Awareness Raising regulations were issued in 2011 (table 4.1). All ministries, as part of their programs/projects, have conducted public-awareness activities, including train- A review of these policies confirmed that laws are in place ing and dissemination of manuals and information hand- at the national level to promote and upgrade stoves for outs. Yet people’s awareness of clean stoves has not rural households, especially improved biomass stoves, as well as biogas and other clean rural energy. Moreover, 8. At the time of this writing, China had no national-level specialized these regulations have started to emphasize the benefits center for clean stoves testing. of improved indoor air quality, low carbon emissions, and 36 China: Accelerating Household Access to Clean Cooking and Heating better quality of life from using clean stoves, along with strictly, meaning that some inferior stoves may enter the fuel savings and rural energy solutions recognized in the market or government-supported programs, hin- the past. dering development of the stoves sector and program implementation. Stove Standards and Testing Protocols Thus, the goal toward which progress is being made is to improve the current standards, testing, and certification To control product quality and guide development of system in terms of methodology, scope, implementa- the stove industry, clean stove standards have been tion, and enforcement. As the formulation of international issued and applied at various scales by the correspond- stove standards and testing protocols progresses, China ing authorities. Stove standards can be grouped into four needs to actively participate in the process and consider levels: national, industry, regional, and enterprise. Asso- the compatibility of its national standards with the inter- ciated with stove standards are testing protocols that national framework so that certified national clean stoves specify how the testing should be conducted to evaluate can be recognized internationally. stove performance. Stoves entering the market or pub- lic bidding above the provincial level are required to be tested at legitimate testing centers to certify that they Addressing Key Challenges meet certain standards. Those that fail the tests are con- sidered inferior products and are denied market entry. China’s stove dissemination and household energy policies have achieved a number of positive results, yet Any government agency, industry association, enterprise, issues remain that impede the potential for larger-scale or individual can propose the development of standards. success and longer-term sustainability. Below are sug- After receiving such a proposal, the standardization tech- gested ways that future programs can meet these key nical committee audits and submits it to the departments challenges. in charge of national or industry standards for approval.9 Once approval is received, the technical committee orga- Systematic programs with a firm policy commitment to achiev- nizes the drafting and validating of the standards. ing sustainable development of the stove market are needed. Too often past intervention policies were one-off and China’s existing household stove standards and testing fragmented. While some programs successfully dissemi- protocols, which encompass a broad array of stove types nated the expected number of stoves, little effort was and technologies, form the foundation for clean stove made to ensure their long-term utilization. Rural house- R&D, production, promotion, and utilization (table 4.2). holds’ low income levels, high maintenance and repair These standards and protocols are the government’s costs, lack of after-sales service and training, and diffi- technical means for guiding and regulating the house- culty in obtaining fuel have all contributed to low house- hold stove industry; yet they are not systematic, requir- hold utilization rates and poor durability of products. ing improvements in both methodology and coverage. Thus, future programs should target the sustainable use In addition, they lag in relation to technology improve- of improved and advanced stoves. ments and the emergence of new products. A number of required standards and testing protocols are not yet Clean cooking solutions involve cross-cutting issues, requir- in place. For example, emission standards, design and ing strengthened cooperation and collaboration among rel- safety guidelines, and the rating of thermal efficiency and evant departments at all levels. Clean cooking solutions emissions levels for both biomass and coal stoves are encompass the themes of energy access, energy effi- missing at every level of the standards system. Further- ciency, renewable energy, rural development, biomass more, standards are seldom implemented or enforced utilization, and public health. The core objectives of past programs that focused on these respective areas 9. Relevant administrations under the General Office of the State sometimes overlapped at the project or regional level, Council, together with the industry association authorized by the which led to inefficiencies and ineffectiveness. More- State Council, are responsible for the management of standardization over, responsibility for M&E, testing, and technology in the corresponding departments and industries. At the provincial level (including provinces, autonomous regions, and municipalities), R&D were not specified or assigned. By enhancing the management is centralized in the provincial standardization adminis- cooperation and collaboration among key departments tration, with respective management duties shared by the provincial at all levels, stove projects can be designed and imple- People’s Government. The standardization administration manages mented as an integrated program to achieve benefits in standards at the corresponding city and county levels, in keeping with the duties specified by the People’s Government. all associated fields. Thus, synergies among programs/ Policies, Programs, and Institutional Players 37 TABLE 4.2 CHINA’S HOUSEHOLD STOVE STANDARDS AND TESTING PROTOCOLS Standard number Standard name Type Proposing institution Issuing institution GB6412-2009 Testing protocol for domestic coal use and National China National Coal SAC household stove Association GB16154-2005 General technical specification for household National MOA SAC water heating coal stove GB/T16155-2005 Testing protocol for heating performance of National MOA SAC household heating coal stove NY/T1001-2006 Technical specification for household improved Industry MOA MOA stove and Kang NY/T8-2006 Testing protocol for thermal performance of Industry MOA MOA firewood stove NY/T1703-2009 Specification for installation and acceptance of Industry MOA MOA water heating stove of heating system NB/T34006-2011 General specifications for household densified Industry CAREI NEA biofuel heating stove NB/T34005-2011 Testing protocol for household densified biofuel Industry CAREI NEA heating stove NB/T34007-2012 General specification for biomass cooking and Industry CAREI NEA heating stoves NB/T34008-2012 Testing protocol for biomass cooking and heat- Industry CAREI NEA ing stoves NB/T34009-2012 General specification for biomass cooking and Industry CAREI NEA radiant heating stoves NB/T34010-2012 Testing protocol for biomass cooking and radi- Industry CAREI NEA ant heating stoves To be approved General technical specification for household Industry MOA MOA biofuel cookstove To be approved Testing protocol for household biomass Industry MOA MOA cookstove DB11/T540-2008 General technical specification for household Regional Beijing Bureau of Beijing Bureau of biomass stove (Beijing) Quality and Technical Quality and Technical Supervision Supervision Source: CACS 2012. Note: GB = national standards, NY = agricultural industry standards, NB = energy industry standards, DB = regional standards. projects should be explored to increase efficiency and is essential to set up M&E to assess program results, effectiveness. which can be used to trigger the subsidy disbursement. More flexible subsidy schemes that incorporate monitoring Strengthened public-awareness campaigns, particularly and evaluation (M&E) are needed to directly link program those that center on the benefits of clean stoves, are vital results to subsidy disbursement. Currently, most stove pro- to changing household behavior and developing product grams lack flexible, diverse subsidy systems. The sub- demand. To date, intervention policies and programs have sidy is not directly linked to performance or results, and focused on informing households about the economic its level does not differentiate by region or stove type. An subsidies rather than the benefits of better stoves and alternative, results-based scheme could be more effec- the negative impacts of conventional ones, which have tive. Also, past programs failed to conduct M&E dur- resulted in households’ lack of willingness to use the ing project implementation and after project closure. It stoves. Increasing the likelihood that households adopt 38 China: Accelerating Household Access to Clean Cooking and Heating improved and advanced stoves requires public-aware- Conclusion ness campaigns that inform household members of the stoves’ multiple benefits (i.e., health, cost reduction, This chapter’s review of China’s stove-related policies, time savings, and environmental quality). programs, and institutional arrangements demonstrates the significant strides that have been made at national Research is needed to obtain better market data on the supply and regional levels in promoting clean rural-energy solu- chain, stove market segments, and stove technology. Due to a tions. At the same time, most such programs are not lack of in-depth research on stove supply and demand, lit- sustainable; in some cases, households have reverted tle attention has been paid to household energy demand to using conventional stoves once funding for programs in various regions and suppliers’ economic profit. In addi- ended. Although various national, industrial, and regional tion, a lack of coordination between upstream and down- standards for stove products exist, the system lags stream supply-chain players often increases production behind the rapidly developing stove industry and lacks and operating costs and hinders scaled-up production. an integrated system. The institutional setup of past Along with insufficient investment in R&D, stove produc- programs did not specify stove testing centers, stove ers and others along the supply chain often lack inter- R&D, or M&E during and after programs, which has led est in stove production, dissemination, and innovation. to inefficiencies in program implementation. Thus, it is Designing better programs requires that the government strongly recommended that strategies for future govern- and market players conduct further studies to gain a bet- ment programs target sustainable development using a ter understanding of the market. results-based approach with an improved standards and rating system and strengthened institutional capacity, supported by awareness-raising campaigns and market research. The next chapter elaborates on how such a pro- gram might be designed. 5 Key Policy Recommendations Since the National Improved Stoves Program (NISP) This chapter presents recommended actions for China to ended in the late 1990s, the various government- accelerate the progress toward universal access to clean supported stoves programs that have been implemented cooking and heating solutions, building on results from have tended to be fragmented and lacking in coordina- the China CSI stocktaking review, as well as the two tion, as previously discussed. More recently, however, national consultation workshops with key stakeholders China has begun taking proactive steps, having joined from central government, provincial governments, stove the Global Alliance for Clean Cookstoves (GACC) and hav- enterprises, nongovernmental organizations (NGOs), and ing integrated clean stoves promotion into its action plan academia. The sections that follow provide the overall CSI for energy conservation and emissions reduction as part program strategy and details on its three priority areas; of its Twelfth Five-Year Plan. Now there is a window of an innovative financing approach that integrates the iden- opportunity for China to build on these efforts to develop tified priorities and focuses on delivery of results; and a comprehensive intervention strategy to promote clean the CSI’s proposed next steps in preparing for scaled-up cooking and heating solutions, primarily for the rural access to clean cooking and heating solutions. households that are likely to continue using solid fuels for cooking and heating beyond 2030. FIGURE 5.1 OVERALL TRANSFORMATION STRATEGY FOR SCALING UP CLEAN COOKSTOVES IN CHINA • Establishing/strengthening institutional focal point, cross-sector coordination mechanism, and platform How to scale up clean and efficient stoves Strengthening institutions and for communication and cooperation. building a more enabling environment • Establishing/strengthening stoves standards, testing, and certification system. • Developing the M&E systems. Supporting market and business • Providing financial incentives for delivering clean cooking/heating solutions to households. development on the supply side • Supporting market research and R&D of better stoves and fuel-processing technologies. • Promoting broad-based awareness-raising campaign. Stimulating household demand for • Integrating public-health methods into the campaign. clean and efficient stoves • Engaging communities and civil society in better understanding and motivating consumers, as well as providing feedback to suppliers. Source: Authors. 39 40 China: Accelerating Household Access to Clean Cooking and Heating Overall Program Strategy Institutional Strengthening Several key actions are suggested for strengthening insti- The proposed CSI program strategy comprises three tutions. First, an institutional champion and focal point main components: (1) strengthening institutional capac- are needed. Given that the Ministry of Agriculture (MOA) ity and creating an enabling policy and regulatory envi- has been a long-time champion of the stoves issue and ronment for scaling up access to advanced stoves, (2) has served as the main implementing institution for the supporting supply-side market and business develop- NISP and other past stoves promotion programs, it is ment, and (3) stimulating household demand for clean recommended that the MOA continue as institutional and efficient stoves (figure 5.1). This strategy builds on champion and focal point. Further support will be needed and is consistent with the sector transformation strategy to strengthen its technical and implementation capacity, developed by the GACC and the World Bank’s “one goal, particularly with regard to its role as lead implementing two paths” approach to achieving universal access to agency for the second national clean stoves program cur- modern energy in the East Asia and Pacific region (World rently being planned. Bank 2011a). Second, given that the clean stoves agenda involves issues that cut across multiple sectors, a cross-sectoral Strengthening Institutions and Building a coordination mechanism is needed. It is recommended More Enabling Environment that the National Development and Reform Committee (NDRC) establish and co-chair with the MOA a national Overcoming the fragmented nature of current stoves pro- clean stoves development steering committee compris- grams and policies calls for strengthening institutions. In ing the Ministry of Finance, Ministry of Science and addition, an enabling policy and regulatory environment Technology, Ministry of Health, National Energy Admin- requires establishing and strengthening stove standards, istration (NEA), State Forestry Administration, and other testing, and certification, as well as developing a system- relevant ministries and commissions. Such a steering atic approach for project planning, assessment, imple- committee will coordinate various sectors and provide mentation, and monitoring and evaluation (M&E). strategic direction for their development. BOX 5.1 CHINA ASSOCIATION OF RURAL ENERGY INDUSTRY The China Association of Rural Energy Industry (CAREI), also known as the China Alliance for Clean Stoves (CACS), which it initiated, has played a critical role in developing China’s stove industry. Founded in 1992 when the country’s national stoves program was under way, CAREI is the country’s only national-level organization focused on the rural energy industry. Affiliated with the Ministry of Agriculture, CAREI has 1,076 members, representing enterprises, research institutes, universities, and societies engaged in technology R&D, manufacturing and processing, construc- tion, and marketing and sales. In addition to an editorial office that publishes news and reports, the association has six specialized committees across various rural energy–related fields, including solar thermal utilization, energy- saving stoves, biogas, bioenergy conversion technology, small-scale electricity power, and novel liquid fuels and associated burners. CAREI’s main functions are to safeguard the legitimate rights and common interests of its members, reflect the aspi- rations and demands of enterprises, implement national policies and regulations, play a bridging role between gov- ernment departments and its members, and assist the government in carrying out industry management. Through advancing industrial technology, improving product quality, and strengthening technical and economic cooperation domestically and internationally, the association comprehensively improves the quality and economic benefits of the entire industry; realizes rural energy services with a focus on energy conservation, renewable energy development, and comprehensive utilization of resources; improves the ecological environment; and promotes the country’s sus- tainable development. Sources: CAREI 2012; CAREI Platform 2012. Key Policy Recommendations 41 Third, a platform for communication, learning, and coop- or companies, but they lack authority and are not spe- eration is needed. The China Association of Rural Energy cialized in stove testing. Therefore, improving capacity, Industry (CAREI), also known as the China Alliance for cross-learning, and coordination among the testing cen- Clean Stoves (CACS), has played an instrumental role in ters will be important priorities. stove industry development, having provided a commu- nication platform for key stakeholders, including the gov- To ensure stove quality, an open, fair, and transparent ernment, users, producers, the research community, and certification system needs to be established. Testing international partners (box 5.1). Thus, it is recommended centers qualified to conduct stove certification need to that CAREI’s role be expanded as a platform for commu- be accredited, and the accreditation process should be nication, learning, and cooperation, including the bridging open, fair, and transparent. This will be particularly impor- of public and private sectors. tant when stove certification is linked with government incentives. Enabling Policy and Regulatory Environment Creating an enabling policy and regulatory environment As discussed in chapter 4, a comprehensive system to for clean stoves promotion requires establishing and promote clean stoves calls for an integrated program strengthening sound stove standards and testing pro- and thus a systematic approach from project outset tocols, testing centers, and a certification system. In through project closure and beyond to ensure efficiency addition, a systematic approach is needed for project and effectiveness. A review of completed and ongoing planning, assessment, implementation, and monitoring intervention programs reveals that most have lacked sys- and evaluation (M&E). tematic M&E, which is required for making adjustments, as needed, to design and implementation and providing As discussed in chapter 4, China’s current stove stan- important implementation feedback. Systematic M&E is dards and testing protocols lag behind the rapidly devel- also critical for designing follow-up and scale-up activi- oping stove industry and lack an integrated system. ties. Thus, future intervention programs should develop International stove standards and testing protocols are and institutionalize such a system. currently in the process of being formulated. For exam- ple, the International Workshop Agreement issued in June 2012 provides an intermediate rating framework, Supporting Market and Business Development which includes four performance indicators (efficiency, On the supply side, two main challenges are (1) ensur- indoor emissions, emissions, and safety) and five tiers ing the delivery of clean cooking and heating solutions to (0–4). China needs to actively participate in formulating primarily poor households in rural areas, where the stove the international standards and consider the compatibility business is not profitable and may not be fully commer- of its national standards with the international framework cialized and (2) supporting market research and R&D for so that certified national clean stoves can be recognized better stoves and fuel-processing technologies. internationally. It is recommended that the Standardiza- tion Administration of the People’s Republic of China Financial Incentives for Delivery of Better Stoves (SAC) work with the MOA and NEA to improve national As discussed in chapter 3, about four-fifths of biomass standards and testing protocols and actively participate stoves are subsidized by government funding; however, in discussion and formulation of international standards. as mentioned in chapter 4, the traditional government procurement process on which the subsidy scheme is Establishing testing centers will be necessary for evalu- based has a number of problems. It is suggested that ating stove performance and providing recommenda- more innovative subsidy schemes be piloted in order tions for making continuous improvements. Testing to increase the efficiency and effectiveness of govern- centers can be hosted by research centers or universi- ment funding support. One such scheme is Results- ties with multiple functions (e.g., testing, education, Based Financing (RBF), which disburses public resources research and development [R&D], and advisory service against demonstrated, independently verified outputs or for design development). Competitions can be organized outcomes instead of project inputs. This distinguishing to identify top-performance stoves. Currently, China has feature can mean more effective and efficient use of pub- a small number of testing centers for agricultural machin- lic funds and improved support of market interventions ery and environmental products hosted by universities (box 5.2). 42 China: Accelerating Household Access to Clean Cooking and Heating BOX 5.2 WHAT IS RESULTS-BASED FINANCING? Results-Based Financing (RBF) is a concept comprising a range of public policy instruments, whereby incentives, rewards, or subsidies are linked to the verified delivery of pre-defined results. RBF is often used to enhance access to and delivery of basic infrastructure and social services, such as improved access to water and sanitation, energy, and health care. In most cases, the funding entity— Distinguishing RBF from Traditional Public Procurement typically a government, de- velopment agency, or other Traditional approach RBF approach agent—deals directly with the service provider (e.g., Inputs Inputs (stoves) Private (stoves) private firm, public utility, finance civil society organization, or financial institution). Some of the better-known RBF Service provider Service provider Public approaches include output- (e.g. stove distributor) (e.g. stove distributor) finance based aid (OBA), condition- Reimbursement al cash transfers, carbon for results finance, and advance mar- delivered Service recipient Service recipient ket commitments. (stove user) (stove user) Unlike traditional public pro- curement, which uses public resources to purchase the inputs and contract service providers to deliver them to users, the RBF approach uses private-sector resources to finance the inputs and service delivery and public resources to reimburse the service provider upon delivery of the pre-defined results. This key difference gives RBF the potential to improve the efficiency and effectiveness of disbursing public resources and support of market-based interventions (see figure above). Source: Zhang and Knight 2012. Market Research and R&D Support stoves research center be established to provide a plat- Promoting clean cooking and heating solutions should form for research and innovation, as well as knowledge understand market segmentation, adapt to local condi- exchange with international experts. Since China has tions, and be consistent with and adjust to long-term large and diverse demand for various stoves and a high development patterns. Market research should be sup- R&D capacity, such a center should aim to be a first-class ported to better understand market needs, which can leader in innovation. be used to design government-supported programs and help stove suppliers adjust their products. Stimulating Household Demand China’s clean stoves research groups are limited in num- In the long run, any market-based clean stoves interven- ber, dispersed, and generally lacking in funding support. tion will only be sustainable if consumer demand can In addition, stove manufacturers are not motivated to come to permanently influence better stoves supply invest in innovation as new designs are often copied. in the market. As previously discussed, various factors Furthermore, biomass fuel processing still faces tech- account for households’ lack of enthusiasm in investing nological barriers. Thus, it is recommended that R&D in and using clean stoves, including limited funds, low funding be provided for better stoves and fuel-process- product quality and durability, and lack of an after-sales ing technologies. Since stove performance relates to service system. Propelling growth in market demand cross-cutting factors covering multiple fields (i.e., envi- requires raising households’ awareness of the health ronmental science, mechanical manufacturing, biomass risks of household air pollution (HAP) and the benefits of energy, and social science), a multidisciplinary team may clean stoves. The clean stove delivery mechanism should be needed. Internationally, there is growing interest in also include user training and after-sales maintenance this area. It is recommended that an international clean Key Policy Recommendations 43 service. At the same time, communities and civil society A New Approach to Promoting Clean should be engaged in broad outreach activities that feed Stoves: Results-Based Financing users’ requests and comments back to suppliers. Past stoves programs have followed public procurement Comprehensive Awareness-Raising Campaign procedures, meaning that public entities have been As previously discussed, survey results and past pro- responsible for making stove technical specifications and grams reveal inadequate public knowledge about the identifying eligible service providers, delivery methods, damaging health effects of indoor use of fuel-inefficient and end users to receive subsidized stoves. Payments stoves, how clean cooking/heating technology can com- have been made against the stoves purchased and bat these health hazards, and the multiple benefits of associated delivery service. By contrast, using the RBF clean stoves. Given the current low level of public aware- approach, public entities specify the intended results, ver- ness, a campaign promoting clean stoves must be a ification methods, and associated subsidies; while pay- far-reaching, comprehensive effort involving multiple sec- ments are made to the service provider against verified tors. Such methods as road shows and public campaigns delivery of the stoves and their operational performance. released through various media channels can draw con- sumer awareness to the existence of clean cooking/ The RBF approach focuses on results that the public heating technologies and the many advantages of clean sector cares about and rewards private-sector suppli- stoves over traditional methods. Such a campaign would ers who can deliver them. Investment and performance be further enhanced by increased R&D on new clean risks shift from the public to the private sector. In turn, stove designs and standardization. private-sector suppliers have the flexibility to innovate in designing, producing, and selling defined clean stoves One key component of educating the public about clean that are eligible for targeted incentives. This flexibility is cooking/heating technology is emphasizing the consis- vital to stoves market development since stoves must fit tent use of quality stoves. If the public can be convinced local conditions, including customary cooking practices, of the beneficial features of using modern, high-quality affordability, and availability of local resources and after- stoves over inefficient traditional technologies, they can sales service. The success of stove suppliers depends on be influenced to demand quality stoves from their sup- understanding such local conditions. pliers. In turn, this will create public control over quality, which will help to solidify the presence of quality clean stoves in the national stoves market. Chain of Results Promoting clean stoves can contribute to the broader Integrating Public-Health Methods development objectives of reducing poverty, improv- Awareness-raising campaigns on clean cooking technol- ing health and gender equality, and mitigating climate ogy should integrate public-health methods that educate change (figure 5.2). Replacing fuel-inefficient, polluting households about the risks of inefficient fuel technolo- stoves with those that have better energy-combustion gies on family health, and thus help influence them to properties can help poor households climb out of pov- reject dangerous traditional cooking/heating methods in erty by reducing their fuel expenses. The health of fam- favor of modern, cleaner options. A public-health cam- ily members who spend long hours in the household paign on this scale will require cooperation among com- cooking environment—primarily women and their young munity and civil-society officials and representatives. children—benefit from reduced HAP . Women’s freed-up Possible venues for a public-health intervention include time from collecting fuelwood and preparing meals with local health clinics, with the participation of physicians traditional cookstoves can be spent on more productive and other medical authorities who play a daily role in activities. The local ecosystem and global environment the public health of their communities. Also, training also benefit as a result of reduced carbon emissions and should be designed in the local communities’ language less black carbon due to the burning of solid fuels. or dialect at the appropriate literacy level. Furthermore, women’s groups, the primary users of household cook- To achieve these impacts, the RBF incentive would be ing technology, should be involved or targeted since they linked to the verifiable output: certified clean stoves sold often influence the types of technology used. Any public to and used by households. Also critical to success would campaign should be aware of the gender implications of be technical assistance activities for strategy and policy its messages in order to maximize the effects on users’ development, capacity building, institutional strengthen- behavioral change. ing, and awareness-raising campaigns (figure 5.2). 44 China: Accelerating Household Access to Clean Cooking and Heating FIGURE 5.2 SAMPLE RESULTS CHAIN FOR CLEAN STOVES PROMOTION PROGRAM Results level Objectives Funding Improved health and Climate change Impact Poverty reduction gender equality mitigation Increased access to modern energy Reduced carbon/particulate emissions Outcome Improved fuel efficiency Increased use of renewable energy Results-based Output Certified clean stoves sold to and used by households financing Strategy/policy development Capacity building Technical Activities Institutional strengthening assistance Awareness-raising campaign Domestic public funding Inputs Concessional lending Grants Source: Authors. RBF Framework Building Blocks Defined clean stoves. Defining a clean stove requires estab- The conceptual framework for using RBF in programs lishing a standards/rating system, testing and certification to promote clean stoves could include three key build- protocols, and testing centers. The standards/rating system ing blocks—(1) defined clean stoves, (2) results-based should consider its compatibility with the rating frame- incentives, and (3) a monitoring and verification (M&V) work provided by the International Workshop Agreement, system—supported by two pillars—(1) institutional which includes four performance indicators (efficiency, strengthening and capacity building and (2) awareness- indoor emissions, emissions, and safety) and five tiers raising campaigns (figure 5.3). RBF FRAMEWORK WITH THREE BUILDING BLOCKS AND TWO SUPPORTING PILLARS FIGURE 5.3  Results-based incentives • Establish clean stove standards/rating • Number of stoves delivered system • Level of subsidies is linked to stove • Number of stoves used performance • Establish testing and certification • Verify actual performance of stoves protocols • Disbursement of subsidies is linked used to monitoring and verification of results • Establish testing centers Monitoring and Defined clean stoves verification system Institutional strengthening Awareness-raising & capacity building campaign Source: Authors. Key Policy Recommendations 45 (0–4). Laboratory and field testing might be included, incentive provided. Advance disbursements could be and the certification process should be open, fair, and designed to help finance stove suppliers. The incentives transparent. A research center or university with multiple could be implemented through a financial institution to functions (e.g., testing, education, R&D, and advisory leverage the existing network and traditional financing service for design development) could host the testing instruments. centers to ensure their sustainability. Competitions could also be organized to identify top-performance stoves. Monitoring and verification system. A critical part of the RBF design is monitoring and verification (M&V), which triggers Results-based incentives. The level of incentive (subsidy) payments. The M&V system could combine self-reporting should be linked to stove performance and its disbursement and third-party verification, using sampling methods to to monitoring and verification of results. Eligibility crite- balance the trade-offs between accuracy and costs. To ria should be clearly outlined and the amount adjusted incentivize efforts to achieve sustainable clean cook- according to the level of stove performance and geo- ing, results-based incentives could be linked to specific graphic preferences. Those who apply for incentives (the stages of M&V results, including stove installation, oper- market aggregators) are those willing to take investment ation, and performance (figure 5.4). The detailed design and performance risks. These may include producers, of the M&V system could also incorporate lessons wholesalers, retailers, and project sponsors. To receive learned from the carbon finance methodology for clean payment, they must produce stoves that can be certified stoves projects. China has been particularly successful as “clean,” design according to customer preferences, in developing carbon finance projects to promote clean and convince customers to buy and use the stoves. stoves dissemination (box 5.3). However, since carbon finance focuses exclusively on carbon emission reduc- Design of an incentive payment system requires a thor- tions while clean stoves are linked to other benefits (fig- ough understanding of the cost structure and profit ure 5.2), the RBF can be designed more flexibly to fit margin (supply side) and consumers’ willingness to pay program objectives. (demand side), as well as the economic benefits of the FIGURE 5.4 LINKING RESULTS-BASED INCENTIVES TO MONITORING AND VERIFICATION STAGES • Sales report/installation record (user details, stove details, date of installation, baseline stove/fuel). • Third-party verification of the sales report using simple Stove Installation random samples. $$ • After-sales service report (1st–6th month) (whether stove is being used and functions well). Results-Based • Third-party verification of the after-sales service report Incentives Stove Operation using simple random samples. $$ • Third-party verification through on-site tests and surveys using simple random samples. Stove Performance • Feedback also sent to the testing and certification system. $$ Source: Authors. 46 China: Accelerating Household Access to Clean Cooking and Heating BOX 5.3 BIOMASS STOVE CARBON FINANCE PROJECT In 2009, the China Association of Rural Energy Industry (CAREI), Beijing University of Chemical Technology (BUCT), Impact Carbon and Jinqilin Energy Technology Company, Ltd. together developed the Biomass Stove Carbon Project. Two years later, the project was validated and issued by the Gold Standard Foundation, the first issuance of which was 49,308 tCO2e. The enterprises used most of the credit to promote biomass stoves. The project used the earlier government subsidy, combined with later carbon credit funds, to sustain the dissemination of clean biomass stoves. From March 2009 to September 2010, the Yangquan government subsidized 13,403 stoves; by the end of 2011, Jinqilin had sold 3,577 stoves with the carbon funds. Even without the government subsidy, it is expected that the project could continue subsidizing farmers using the carbon credit fund, thereby achieving large-scale, sustainable dissemination of biomass stoves. The project monitors rural households’ stove use by administering the kitchen and test-kitchen performance sur- veys, which cover farmers’ basic family situation, comparison of old and new stoves, service life of stoves, and the baseline change and fuel consumption. According to the Gold Standard Baseline and the Monitoring Methodology for Improved Cook-Stoves and Kitchen Regimes V.02-08/02/2010, the project needs to conduct continuous, quarterly, and biennial monitoring for the following variables. Continuous monitoring. Variables are total sales record (date of sale, location, model, number sold, and contact information [as complete as possible]); a detailed customer database that records results of the monitoring surveys; and a project database that calculates emission reductions based on total sales and results of the monitoring sur- veys, including adjustments for clusters and other influencing factors. Quarterly monitoring. To reassess kitchen regimes, a kitchen survey is conducted each quarter; 25 households are randomly selected from the relevant period, not less than half of which are contacted in their homes. The data collected includes contact information, seasonal stove/fuel combinations used for cooking, domestic versus institu- tional use, number of people cooked for, and number of meals cooked per day. Biennial monitoring. Twice a year, the kitchen performance of older stoves and new stove models is tested. For older stoves, fuel-reduction performance and other factors related to successive years of aging are measured; for new stove models, fuel consumption is measured. The utilization rate is surveyed to establish the drop-off rates in stove usage from year-1 sales, and is applied to each relevant stove vintage in the project databases. A monitoring team is established to ensure that the monitoring of project activities is in accordance with GS VER Methodology guidelines (see figure below). Organizational Structure of the Monitoring Process VRE Director Manufacture and Sales Training and Maintenance Monitoring Implemented by Implemented by Surveys Fuel Use Monitoring Local Manufacturer CAREI and Local Stove Manufacturer Implemented by Implemented by Third Party Expert Third Party Expert Sources: CACS 2012; CDM-PDD 2011. Key Policy Recommendations 47 Supporting Pillars Next Steps Institutional strengthening and capacity building. Institution- alizing clean stoves would be an important step toward The overall intervention strategy and the RBF implemen- providing an enabling environment. Key elements could tation approach were discussed at the second national include an institutional champion; a cross-sector coordi- consultation workshop held in Beijing in July 2012. The nation mechanism; and a platform for communication, public and private sectors agreed with the strategy and learning, and cooperation. Technical assistance in capac- also expressed great interest in the RBF approach, which ity building is also needed to improve the performance of they agreed to pilot in selected areas. Under phase II of all market players, ranging from designers and producers the China CSI, four major areas of activity are proposed to market aggregators, financiers/investors, testing pro- for supporting strategy implementation to scale up fessionals, and M&V specialists. access to clean stoves: (1) improving stove standards, testing, and verification system; (2) strengthening institu- Awareness-raising campaigns. To motivate both supply tions and building the capacity of key market players; (3) and demand, awareness-raising campaigns should be supporting pilot activities; and (4) supporting preparation conducted at all relevant levels. Campaigns could focus of the second national clean stoves program and provin- on informing the public about the program and the avail- cial activities. ability of results-based subsidies and other associated program benefits and raising awareness about the nega- Since defining “clean stoves” is a priority for promot- tive health impacts of HAP linked to biomass cooking ing them, a thorough review of China’s current system smoke. Using a celebrity ambassador could be an effec- and international experience in this area will be con- tive way to raise such public awareness. ducted to identify gaps and opportunities for improve- ment. In addition, coordination with the GACC, which The RBF framework can not only integrate all of the currently supports the establishment of regional testing identified priorities described under the overall interven- and knowledge centers, will be strengthened to ensure tion strategy. More importantly, it can help to clarify the China’s participation in the process, help it build a region- roles of the government and private sector in delivering ally recognized stove-testing center, and contribute to the results. That is, the government plays a facilitating regional knowledge-sharing. Furthermore, as interna- role to provide policy support and financial incentives to tional standards for clean stoves are being formulated, motivate market development, while the private sector efforts will be made to encourage China to actively par- responds to the incentives and delivers the results. ticipate in the process and consider the compatibility of its national standards with the international framework It should be noted that, under certain circumstances, the so that certified national clean stoves can be recognized RBF approach may not be the most effective or efficient internationally. way to achieve results. For example, in more remote and poorer areas, which cannot attract the private sector China has already established a good institutional setup, owing to scant market activities, high delivery costs, and having selected the MOA as the institutional focal point, low affordability, traditional government procurement is with the NDRC taking the lead on cross-sectoral coordi- probably a better approach. It has the advantages of easy nation and the CAREI (CACS) serving as a platform for demand aggregation and fast implementation, and can communication, learning, and cooperation. The next step be integrated into poverty alleviation, social programs, is to further strengthen these institutional arrangements. and post-disaster relief programs. If this approach is As the RBF approach relies on market players to deliver selected, it is recommended that bidding documents and the results, training activities will be provided to build the contract arrangements be carefully designed in terms capacity of key market players through the CAREI (CACS) of technology selection, delivery method, and post- platform. In addition, activities for international knowl- delivery service. It is also important to keep options and edge exchange and learning will be planned. approaches open. Promoting clean cooking and heating solutions should understand market segmentation, be The CSI will identify areas that are representative and able to adapt to local conditions, and be consistent with scalable for piloting the RBF approach to promote clean and adjust to long-term development patterns. stoves. All of the key elements discussed under the RBF approach will be included in the pilot program. Prepara- tions are under way to identify pilot areas and develop the program’s implementation plan. 48 China: Accelerating Household Access to Clean Cooking and Heating Finally, the second national clean stoves program, cur- energy project that will provide rural households clean rently being planned, represents a significant step toward cooking and heating solutions, has requested US$100 achieving universal access to clean cooking and heating million in IBRD loan support. The CSI will support prepa- solutions. The China CSI will work closely with the MOA, ration activities and provide a learning platform for provin- the lead agency, to provide needed support. In addition, cial rural energy projects that target increased access to Hebei province, which is preparing a large-scale rural clean cooking and heating solutions. ANNEX A Case Studies of Key Market Segments Learning from the successful experiences of past stove forest resources are limited. An estimated 20 million tons dissemination programs across key market segments in of residue resources, derived from crop straw, pruning of various provinces can inform the design and implemen- fruit trees, and forest waste, remain untapped each year. tation of future programs. This chapter presents four such cases that characterize the stoves supply, demand, The province has two common winter heating options in and policy interactions in the biomass, coal, biogas, and rural households: (1) smaller consumption of coal (2 tons solar cookers markets in specific local contexts. Each per year on average) to heat a limited area with heat- case begins by introducing the study site, followed by ing stoves and (2) larger consumption of coal (4 tons per a description of program design, implementation, and year on average) to heat a larger area with water heat- achievements, as well as lessons learned. ing stoves. The first option entails a hygiene problem and the likelihood of gas poisoning. Using the second option heats a larger space, but most farmers cannot afford the Biomass Stoves in Shanxi Province high cost, and the ash contaminates the environment. Located in central China, Shanxi province has a popula- Stoves Promotion Pilot Program tion of more than 337 million, more than three-fifths of whom reside in agricultural areas. The province relies To address the heating needs of poorer rural households, heavily on coal, especially for heating, which accounts a promotional pilot program was designed to provide for three-fifths of household energy consumption in rural such customers alternative heating-energy solutions areas. Furthermore, during the characteristically cold using clean biomass stoves. The aim of the pilot program winter months (i.e., five months per year), coal is the was to demonstrate that such stoves could offer rural dominant fuel used for household heating. Each year, households a suitable heating alternative during the win- the average rural household consumes 2–4 tons of coal ter months. In 2007 , Shanxi province’s finance and agri- for winter heating and cooking throughout the year, with culture departments selected 15 representative villages total rural coal consumption amounting to 18–20 million in 11 cities to participate in program implementation. tons. Each village has 200 pilot users, each of whom receives a subsidy of RMB 1,000 from the provincial government. Shanxi boasts China’s largest coal reserve and is among the country’s leaders in coal production. Such a high level The pilot program promotes three types of biomass of availability contributes greatly to the resource’s wide- stoves: (1) combined cooking and heating, (2) heating, spread use for heating. However, for low-income rural and (3) cooking. The combined cooking and heating households, with a monthly expenditure range of RMB stoves are used for both heating and cooking purposes 1,800–2,400 (2011 figures), the per-ton price of coal, in winter, and the available models of cooking and water RMB 600–800, is not so affordable. Beyond coal, Shanxi heating stoves can heat an area 60–120 m2 in size while is abundant in agricultural and forest residues, although those of cooking and heating stoves heat a smaller area 49 50 China: Accelerating Household Access to Clean Cooking and Heating TABLE A.1 BIOMASS STOVE PERFORMANCE Cooking Heating Combined thermal thermal thermal Ringelmann power power efficiency Dust SO2 NOx CO black Stove type (kW) (kW) (%) (mg/m3) (mg/m3) (mg/m3) (%) degree CNK-80 Cooking and 2.1 9.8 79.9 9 0 132 0.06 1 water heating CK-II Cooking and heating 3.1 - 88.6 29 13 138 0.09 1 Source: CACS 2012. Note: SO2 = sulfur dioxide; NOx = nitrogen oxides; CO = carbon monoxide. (10 m2). With a higher thermal efficiency and price, vari- Achievements and Outcomes ous heating stove models can heat an area 150–300 m2 The pilot program, which now is expanding its scale, in size. Most stoves, identified as “double commitment” demonstrates that high-efficiency, low-emissions bio- products by the China Association of Rural Energy Indus- mass stoves can offer rural households a suitable option try (CAREI), are procured from two main manufactur- for winter heating. Since the program was initiated in ers in Shanxi province. These stoves are mainly fueled 2007 , 100 model villages have been established, with by agricultural and forest residues (e.g., crop stalks and nearly 20,000 farmers using the stoves. Also, farmers tree branches from harvesting, trimming, pruning, and have become more aware of the program’s benefits and processing) (table A.1). thus are now more willing to participate. For example, in Xiqi village, which features 120 households with 4 Implementation Arrangements fruit trees per household, 100 households adopted the improved stoves in 2008, and obtained three branch- The biomass pilot program is implemented by the agri- cutting machines that year. A year later, all 120 house- culture department at all levels, with distinct responsi- holds were using clean cooking and heating stoves that bilities for each. At the county level, the department is in burn biomass. charge of project proposal submission and implementa- tion at the grassroots level; at the city level, it is mainly In addition, the pilot program has demonstrated the responsible for monitoring implementation through field broader benefits of energy savings, cost savings, envi- surveys and other measures. The provincial-level govern- ronmental protection, and improving rural households’ ment selects pilot locations and designs implementation quality of life. The consumption of agricultural and for- plans, based on information gathered from county- and estry waste as fuel can save each household 2–4 tons city-level offices. of coal each year on average. Also, given the rise in coal prices, the cost savings from replacing coal for heating Procurement follows local government regulations and and cooking becomes larger, estimated at more than must be approved by the finance department at the RMB 1,500 per household per year. The utilization of county or district level. In addition, manufacturers are waste meets rural households’ demand for water heat- responsible for equipment installation and testing, train- ing, cooking, and space heating, thereby improving their ing farmers in use of the technology, and after-sales ser- quality of life. vice. After the equipment installation, the county-level department verifies the equipment performance based on testing results and keeps track of inventory in a stan- What Was Learned dard way. At the provincial level, the department regu- The pilot biomass promotion program has achieved the larly organizes the supervisory field visits of technical objective of providing a suitable and sustainable heating experts to make inspections, ensuring sound program solution for targeted rural households in Shanxi province. implementation. Although certain issues still must be resolved before program scale-up, the program offers valuable lessons in success that can be applied to future stove programs. Annex A. Case Studies of Key Market Segments 51 First, programs must be designed to cater to customer medium-sized resources. Supplies are especially inad- needs and local conditions. Compared to agricultural equate during the winter, when households in small residues, fruit-tree residues can be processed at a much towns and rural areas, typically without central heating, lower cost due to their higher density. In this pilot pro- burn coal for heating. The annual household consumption gram, the processing cost can run less than RMB 10 of coal for both cooking and heating purposes can reach per ton, versus RMB 200 per ton for crop straw. Thus, it 1.8 tons for coal briquettes and 2.5 tons for lump coal. makes more economic sense to promote high-efficiency, low-emissions biomass stoves in fruit-tree growing With the increasing price of coal, ranging from RMB regions for easier fuel collection and simpler, lower-cost 800 to 1,600 per ton, households can no longer afford processing. to consume as much coal for winter heating as in the past. Also, households increasingly recognize the nega- Second, it is advisable to combine the use of clean tive health effects associated with the smoke emitted biomass stoves together with other rural energy tech- from burning coal in traditional stoves. There is an urgent nologies. In accordance with local conditions, various need to conserve coal resources and improve household combinations can be applied, such as stove and solar members’ health and quality of life by improving the effi- energy, stove and hanging Kang, or stove and biogas. ciency of coal stoves. As rural households’ incomes and With a focus on demonstration, households can begin to living standards have risen, coal stoves have been re- recognize and appreciate the convenience and benefits designed and produced to better suit household needs. that available energy sources bring to their lives. As the Today, under the guidance of national policy, the energy- program outcome demonstrates, broader utilization of saving stoves industry exhibits a strongly diversified clean energy types, such as solar and biogas, occurred development trend. Coal stoves burning firewood, bio- in the targeted area. mass briquettes, forestry processing waste, and other multifunction products are being developed to cater to Third, technology must be improved to cut produc- various consumer needs. tion cost. Although the participating villages have rich corn straws, the straw briquetting technology has not improved much. Along with the rising cost of electricity Stove Industry and labor, a top priority is to have a strong R&D input In Hebei province, coal stoves for household use are to advance technology, thereby reducing production cost categorized according to end use. These include heat- and, in turn, making the supply of high-quality biomass ing stove or boiler and cooking and heating stove. Also, more affordable and sustainable. three models of briquette stoves are promoted to meet rural households’ various cooking and heating demands. The high upfront costs faced by users and producers Priced at about RMB 700–800, small-sized stoves can require continued government support and public- provide a family of two cooking and heating of a 20–60 awareness campaigns to stimulate demand and willing- m2 area, while saving coal and reducing emissions. Mid- ness to pay. Even with the subsidy, the village and each sized coal stoves, which can serve a family of 3–5, cover- household still need to raise RMB 100,000 and RMB ing an area of 80–180 m2, are widely adopted due to the 2,000, respectively. Public-awareness campaigns that common household size. Large stoves for heating areas help households realize the benefits of biomass stoves 200 m2 in size, priced at RMB 2,200–2,600, are suitable and thus increase their willingness to pay for the stoves for multi-generational households (e.g., three genera- and fuel are key to sustainable utilization of improved tions living together), which are not uncommon in China. stoves. Stoves that heat spaces larger than 300 m2 are appropri- ate for villas. Coal Stoves in Hebei Province Hebei province features one of the country’s largest coal stove manufacturing industries. The province has about Located in North China, Hebei province has a population 500 coal stove enterprises, with production totaling of more than 68 million. Coal is a main heating fuel for more than 1.5 million units per year. Since the economy rural households; however, the province has scant coal recovered in 2009, sales have revived, having reached resources, and shortages exacerbate during the winter more than 1.5 million units. months, along with coal price increases. Three out of a total of 11 cities have no coal resources, while 5 have The business models for small-, medium-, and large- some low-quality coal resources and 3 have small- and sized enterprises are similar, with the exception of some 52 China: Accelerating Household Access to Clean Cooking and Heating small companies. The sales model commonly adopted is Supermarket Service System a three-level network version, whereby the general man- To standardize and formalize biogas after-sales service ager or sales vice-president takes responsibility for sales in the mountainous area, Enshi city proposed the con- at the enterprise level; distributors assume responsibil- cept of a “supermarket service system. ” The overall goal ity at the city, county, or district level; and sub-agents, is to provide service to all household customers, while occasionally assisted by the enterprises to establish out- extending the useful life of biodigesters to more than lets, at the township level. However, a handful of small 15 years and that of associated equipment to more than enterprises conduct sales horizontally (e.g., at outlets in 10 years. The specific objective is to contribute to rural townships), with the advantages of quick response and energy development by establishing a standard service flexibility. Moreover, to facilitate knowledge- and experi- system, consisting of town or township service stations ence-sharing, sales staff meetings are usually held once connected by a village-level network staffed by local or twice a year. personnel. Although the service model of larger enterprises is simi- The supermarket service system refers to a replicable lar to that of smaller ones, it features more comprehen- service module equipped with a service store, a man- sive and complete services. Both types are staffed by ager in charge of operations and organization, an energy maintenance personnel and have regulations on after- association, a skilled service team, a set of service equip- sales service. Whether the enterprise is large or small, ment, and a set of association and service regulations a five-year warranty is common for all products. At the and protocols. The concept applies to both the stan- same time, larger enterprises are capable of providing dard service approach and the standard service station better services, such as on-the-spot technical assistance construction. and follow-up services. The standard service approach comprises four integral What Was Learned components: (1) site radiation, (2) association manage- ment, (3) supermarket-style operation, and (4) circular The coal stove market has reached a certain level of economy. Site radiation means that the town-level ser- commercialization without the government’s support. vice station manages village-level service stations within This lack of favorable policy is likely leading to a lack of its jurisdiction and provides service to them and other motivation among stove enterprises. However, it is pos- towns not eligible for setting up town-level stations. sible to regain momentum by integrating the promotion Association management refers to management of the of efficient, clean coal stoves into the broader context system by the rural energy association at the city, town, of energy conservation and rural energy development and village levels under guidance of the Enshi State Eco- under the government’s strategic planning. The market Energy Bureau. The association management approach has called for product standardization and quality con- provides a platform for coordination between commer- trol, accompanied by greater R&D efforts and after-sales cial and non-commercial services and motivates farmers service. Despite stable stove production and market to participate. Supermarket-style operation refers to the sales, quality-related problems are common. Establish- combination of commercial store, service station, and ing a standard monitoring, inspection, and quality control association office, where non-commercial and commer- system is key to a regulated market. In addition, R&D cial services complement each other. Thus, the opera- efforts on product innovation and quality improvement, tional approach leads to sustained economic benefits involving both producers and consumers, are desirable. and material recycling, defined as circular economy. Also, reliable, complete, and timely after-sales service is important to stimulating household demand. The construction of service stations is formalized to fol- low standards for (1) town- or township-level service sta- tions and (2) village-level service stations. For the former, Biogas in Enshi City requirements include a comprehensive store, land phone hotline, energy association, carrier vehicle for biogas Enshi city, the capital of Enshi Tujia and Miao Autono- slurry, water pump, professional operator, skilled service mous Prefecture in Hubei province, has a population of team, set of maintenance tools per person, set of gas- 0.78 million, which is widely dispersed over a mountain- detecting devices, and set of association regulations and ous area of 4,000 m2. The city consists of 10 towns, 3 protocols. Although the standards for village-level service townships, and 172 administrative villages. Annex A. Case Studies of Key Market Segments 53 stations are relatively lower, they guarantee the capac- What Was Learned ity to perform maintenance and repair when needed or The standard supermarket model is an innovative way requested. to solve rural households’ energy problems, especially when populations are dispersed. Several key lessons Implementation result from this experience. First, after-sales service is critical for biogas promotion and sustainable use. Prior to Under guidance of Enshi city’s Eco-Energy Department, this program, farmers were not enthusiastic about using town-level service stations are set up based on agricul- biogas, mainly because of inadequate after-sales ser- tural service centers, whereas the construction of village- vice and financial support. With the supermarket service level service stations is based on population density, system, farmers’ requests for maintenance and repair number of biodigesters, and service radius. Staff at town- services can be responded to in a timely manner, which or township-level service stations are in charge of operat- motivates farmers to use the biodigesters. ing the network and organizing and managing the service team. All service stations follow a standardized system Second, standardization and quality control are key for of delivery, fees, and assessment and management. scaling up. Low-quality construction of biodigester units contributed to farmers’ reluctance to invest in and use Achievements biogas. Through standardization and quality control, household biogas systems have become more reliable The supermarket service system model has been highly than previously and are thus welcomed by farmers. successful, as indicated by the increasing number of service stations and growing interest among farmers in Third, a market-based approach provides a feasible path- adopting household biogas systems. Since 2008, Enshi way to sustainable development of the biogas industry. city has set up 163 rural energy follow-up service outlets Currently, the high cost of installing and using biogas (1 at the town level, 17 at the township level, and 145 at systems requires government support; however, a mar- the village level), based on which a city-township-village ket-based approach should be considered to ensure service system is also built. By late 2011, there were households’ sustainable use of biogas. The supermar- more than 0.1 million biogas-generating pits, comprising ket model combines commercial and non-commercial 68 percent of all eligible households. In addition, there services to enable sustained operation of the service were 163 skilled service teams serving biogas users department. Recognizing the economic benefits of bio- to guarantee normal operation of biodigesters. In 2011, gas beyond meeting rural households’ cooking demand, teams received an estimated 8,697 calls for support both the government and farming household users and 5,105 calls for maintenance, as well as 5,284 calls have become more incentivized to participate in the for on-site repair and 2,084 calls related to mechanical biogas industry, thus contributing to its sustainable operation. development. The supermarket model has also demonstrated eco- nomic benefits and is contributing to the sustainable Solar Cookers in Gansu Province development of biogas. To date, most service depart- ments are operating normally, and the annual economic Gansu province is a typical underdeveloped western prov- profit for township- and village-level service departments ince, with an income level below the national average. As is about RMB 30,000–50,000 and RMB 3,000–5,000, of 2011, more than 16 million people lived in rural villages, respectively. The model has successfully met the service with a per capita income below RMB 4,000. More than demand from more than 0.1 million biogas users in the two-thirds of rural energy consumption is dominated by entire city, which boosts the government’s image and biomass (i.e., straw, dung, wood, and forest residues). farmers’ enthusiasm in using biogas and participating in Biogas, solar, and other energy sources together com- biogas-related jobs. Thus, the model has proven to be an prise only 3 percent of the province’s total rural energy. important way to improve the rural environment, energy The biomass consumed in mountainous and forest areas infrastructure, agricultural growth, and farmers’ income. is obtained through cutting trees and digging grass roots, which have had a negative impact on local vegetation. 54 China: Accelerating Household Access to Clean Cooking and Heating Although Gansu experiences energy shortages, it is guidance and technical assistance to selected enter- endowed with abundant solar resources. The average prises. Furthermore, the Development and Reform Com- residential energy consumption in rural Gansu is only 398 mission incorporates solar cooker promotion into rural kg of standard coal equivalent per person, which is about energy construction as part of its long-term provincial 165 kg of standard coal equivalent below the national rural energy planning. Moreover, the Provincial Poverty average. However, rural households in some regions suf- Relief Office and Forestry Department consider solar fer energy shortages lasting up to several months. cooker promotion an important component of projects to alleviate poverty and return farmland to forests. Gansu’s richest solar regions are characterized by low- density populations that are widely scattered and poor transport, resulting in a backward economy. Therefore, Promotional Approach and Achievements there is an urgent need to circumvent conventional In recent years, Gansu has adopted three approaches to energy shortages by utilizing solar energy to meet rural promoting solar cookers: (1) market sale by producers, household demand at relatively low cost in a way that fits (2) procurement through government-supported proj- local households’ nomadic lifestyle. ects, and (3) Clean Development Mechanism (CDM) proj- ects. Of the three, procurement comprises 65 percent of the annual increase, while market sale contributes just Product Type 15 percent. Under government procurement, the solar The mostly widely adopted solar cookers in Gansu prov- cooker is priced at RMB 200 per unit, three-quarters ince are the focusing and heat-box types (figure 3.10), of which the government subsidizes. Thus, sales still using GRC and cement plaster as the main materials. The depend on government support, and the level of com- requirements for technical specifications should be met mercialization remains quite low. by all of the solar cookers being promoted (table A.2). Most of the solar cookers currently in use are 1.8–2 m2 Solar cookers were first introduced to Gansu during the in size and can boil 5 kg of water in 15–20 minutes at 1970s, with demonstration projects following through- midday. out the 1980s. The 1990s marked the start of the mar- ket development stage, while the first decade of the 21st century featured a period of steady growth. Along Policy Support with national implementation of western development, Legal support for solar cooker promotion was first laid accompanied by environmental management and the out in the regulations for managing rural energy con- project to return farmland to forests, solar cookers are struction in Gansu province, issued by the Provincial considered a key measure for protecting the environ- People’s Congress in 1998. Related departments in the ment. According to the Rural Energy Management Provincial People’s Congress are in charge of enforce- Department, 920,000 solar cookers were disseminated ment and inspection to ensure implementation. In addi- in Gansu during 2002–11, equivalent to about 90,000 tion, in accordance with industry association protocol, cookers per year. By late 2011, some 750,000 solar cook- the Gansu Rural Energy Industry Association provides ers were in use throughout the province (figure A.1).  UMULATIVE SOLAR COOKER INVENTORY, FIGURE A.1 C TABLE A.2 PARAMETER REQUIREMENTS FOR 2002–11 SOLAR COOKER PERFORMANCE IN GANSU 0.8 0.7 Parameter Requirement Millions of units Intercepting area (m2) 1.8-2 0.6 Power (W/m )2 > 450 0.5 Optical efficiency (%) > 65 0.4 Solar altitude angle (degree) 25~80 0.3 Operating height (cm) 110~130 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Operating distance (cm) 40~60 Source: CACS 2012. Source: CACS 2012. Annex A. Case Studies of Key Market Segments 55 After 20 years of development, solar cooker producers Lessons Learned are becoming larger in size. Currently, 12 manufactur- ers in Gansu have production levels above 10,000 units, The four case studies presented in this chapter—bio- employing more than 600 workers. With strict quality mass, coal, and biogas stoves, and solar cookers—offer control and advanced technology, these enterprises not valuable lessons and insights that can be applied to the only meet local demand; they also export a number of design and implementation of future stove promotion cookers to Qinghai and Ningxia provinces. However, programs. Although experiences in these four market the enterprises face various major challenges, including segments vary, the following general lessons can be unstable demand, lack of access to financing, low tech- drawn. nology level, and increasing production costs. Stove promotion strategies must be based on local condi- The promotion of solar cookers has generated tremen- tions, including fuel availability, climatic conditions, income dous benefits in terms of resource and cost savings, as level, and lifestyle. As discussed in chapter 2, household well as emissions reduction. It is estimated that every demand for stoves is determined by four interdependent solar cooker could replace 1,200 kg of straw or 600 kg factors in specific contexts, and thus stove promotion of coal, meaning that the 750,000 solar cookers in use at should cater to local demand and culture. For example, the end of 2011 could save consumption of 450,000 tons the biomass case study found that the cost of obtain- of coal (CACS 2012). At an average price of RMB 1,300 ing forest residues was much less than that of agricul- per ton of coal, the economic benefit could reach RMB tural residues, making it more appropriate to promote 580 million. Moreover, solar cookers have the potential to biomass stoves in fruit-tree growing regions. In the solar reduce annual emissions of carbon dioxide (CO2) and sul- cooker study, products were designed and made for easy fur dioxide (SO2) by more than 1 million tons and 10,000 portability and durability to suit herdsmen’s customary tons, respectively. lifestyle. A market-based approach should be explored in stove pro- What Was Learned motion to ensure sustainability. Past programs to promote Current industry development relies heavily on govern- biomass stoves, solar cookers, and biogas digesters ment-supported programs that are often one-off and spo- relied heavily on government support, which was often radic. The production and sales level is largely determined one-off and fragmented. In addition, producers of these by government procurement rather than the market, sug- stoves experienced difficulty in accessing financing. The gesting an unstable industry unlikely to be sustainable. supermarket system model for biogas application dem- onstrates the success of a combined commercial and At this stage, continued government support is required non-commercial service approach. Receiving an influx and should be integrated with programs that center on of economic benefits, suppliers are motivated to provide energy conservation, emissions reduction, and poverty continued services, with which users are more willing to alleviation. There is also a need for strategic planning install and utilize biogas digesters. For stove programs and promotion; currently, this is lacking at all levels of to achieve sustainability, a market-based approach is a the government agenda, which has no fixed channel for must. Therefore, it is necessary that the design of future subsidies. The overall benefits of solar cookers—energy programs integrate a market-based approach from the savings, emissions reduction, and environmental protec- outset. tion—are not fully realized by the government. Lack of economic incentives, an obstacle experienced by many Product standardization and quality control provide an enterprises, could be overcome by strengthening gov- enabling environment for market development. Lessons ernment support through integrated programs. from all four market segments show that lack of technical standards and a quality control process impairs market Greater efforts in technological improvement and inno- growth. Setting up a standardization system, together vation are also needed. Currently, design technology with monitoring and verification (M&V), creates a regula- and production processes remain at 1980s levels. Thus, tory environment for the stove industry (chapter 4). there is ample room for improving solar cooker tech- nology, especially with regard to shell and reflectorized Strong government commitment is especially important for materials and production technology. Scientific research any industry that depends on subsidies, but careful design of in designing better solar cookers for rural households the subsidy scheme is required for sustainable development. should be conducted at research institutes, universities, With government support, production and technology in and colleges. the biomass stove, biogas, and solar cooker industries 56 China: Accelerating Household Access to Clean Cooking and Heating have greatly improved over the past several decades; end users are not fully aware of the overall benefits of yet commercialization has not been reached. A better improved stoves, as reflected in limited government bud- designed subsidy scheme that works toward sustainable gets and sporadic support and lack of enthusiasm among market development is needed. It should create incen- users. Raising the public’s awareness of the many ben- tives for the industry to sustain itself, even without con- efits of stoves—energy savings, environmental protec- tinued subsidy (chapter 5). tion, emissions reduction, poverty alleviation, and better health—can stimulate users’ interest in high-efficiency, Stove programs can be integrated into programs that focus low-emissions stoves. Recognizing these benefits, on such broad areas as energy efficiency and conserva- the government could carry out more coherent, inte- tion, environmental protection, emissions reduction, poverty grated programs that target multiple issues to generate alleviation, and health improvement, along with strength- co-benefits. ened awareness-building campaigns. Policy makers and ANNEX B Survey Method and Questionnaire To gain a better understanding of the current status of China’s stove market, the China Alliance for Clean Stoves and China Stoves Website conducted a survey of the biomass stove supply chain—producers, wholesalers, and retail- ers throughout the country. Survey questionnaires were sent to both manufacturers and dealers nationwide; valid responses were received from 110 producers in 25 provinces and 123 wholesalers and retailers. Additional information was collected through subsequent field trips, including visits with selected stove manufacturers. The abbreviations used in the market survey are as follows: C = cooking, CO = carbon monoxide, H = heating, NOx = nitrogen oxides, PM = particulate matter, SO2 = sulfur dioxide, and WH = water heating. 炉具行业生产和销售市场调查（生产企业） Market Survey of Stove Supply Chain (for Producers) 日期 Date: 地点 Address: 调查员 Investigators: 受访者签名 Signature: 炉具行业生产和销售市场调查表 Market Survey of Stove Supply Chain # 问题栏 Question 回答栏 Answer 1 受访者姓名 Name 2 单位名称 Organization 3 地址 Location 4 联系方式 Contact 电话 Tel 传真 Fax 邮箱 Email 5 企业注册时间、资本和法人代表 年Y 月M 日D Registered capital and legal representative 元RMB 法人代表 Legal representative 6 企业类型 □ 民营 Private What type of ownership is this stove □ 合资 Joint venture production? □ 国有或其他 State-owned or other (continued) 57 58 China: Accelerating Household Access to Clean Cooking and Heating 7 企业人数 □ 工人 Workers Number of staff □ 管理人员 Managers □ 技术人员 Technical staff 8 占地面积和厂房建筑面积 占地面积 m2 厂房建筑面积 m2 Floor space and plant area Floor space Plant area 9 2011年生产及销售量 □ 燃煤炉具 Coal stove Production units Sales units Stove production and sales in 2011 炊事 Cooking 1. 生产 台 销售 台 2. 采暖 Heating 生产 台 销售 台 3. 炊事水暖 C+WH 生产 台 销售 台 4. 炊事烤火 C+H 生产 台 销售 台 □ 生物质炉具 Biomass stove 炊事 Cooking 1. 生产 台 销售 台 2. 采暖 Heating 生产 台 销售 台 3. 炊事水暖 C+WH 生产 台 销售 台 4. 炊事烤火 C+H 生产 台 销售 台 10 生产的主要炉具规格 □ < 5 kW □ 5~20 kW □ 20~50 kW □ > 50 kW Main product sizes（可多选） 11 炉具热效率 □ 燃煤炉具 Coal stove Stove efficiency 1. 炊事 Cooking % 2. 采暖 Heating % 3. 炊事水暖 C+WH % 4. 炊事烤火 C+H % □ 生物质炉具 Biomass stove 1. 炊事 Cooking % 2. 采暖 Heating % 3. 炊事水暖 C+WH % 4. 炊事烤火 C+H % 12 炉具功率 Stove power □ 燃煤炉具 Coal stove 炊事 Cooking 1. kW 采暖 Heating 2. kW 炊事水暖 C+WH 3. kW 炊事烤火 C+H 4. kW □ 生物质炉具 Biomass stove 炊事 Cooking 1. kW 采暖 Heating 2. kW 炊事水暖 C+WH 3. kW 炊事烤火 C+H 4. kW 13 炉具烟气污染物排放指标 □ 燃煤炉具 Coal stove Primary stove emissions level 一氧化碳CO 1. % 二氧化硫 SO2 2. mg/m3 烟尘浓度 PM 3. mg/m3 氮氧化物 NOx 4. mg/m3 烟气林格曼黑度 Ringelmann shade 5. level □ 生物质炉具 Biomass stove 一氧化碳CO 1. % 二氧化硫 SO2 2. mg/m3 烟尘浓度 PM 3. mg/m3 氮氧化物 NOx 4. mg/m3 烟气林格曼黑度 Ringelmann shade 5. level 14 2011年销售价格（和问题9对应填写） □ 燃煤炉具 Coal stove (RMB) Stove average price (RMB), corresponding 1. 2. to Question 9 3. 4. □ 生物质炉具 Biomass stove (RMB) 1. 2. 3. 4. (continued) Annex B. Survey Method and Questionnaire 59 15 2011年生产成本（和问题9对应填写） □ 燃煤炉具 Coal stove (RMB) Stove average cost (RMB), corresponding 1. 2. Question 9 3. 4. □ 生物质炉具 Biomass stove (RMB) 1. 2. 3. 4. 16 主要销售地区及销售商数量 主要销售地区 Sales areas Sales areas and wholesaler/retailer 销售商数量 Wholesaler/retailer numbers numbers 17 2011 年炉具销售额 Sales revenue in 2011 RMB 18 享受过哪些国家优惠政策和国家项目补贴 □有Y □无N Do you have government subsidies? 19 如果生物质炉具有补贴，每台补贴金额（和 1. 元 2. 元 问题9对应填写） 3. 元 4. 元 If you have the subsidy, how much (RMB) per stove? 20 主要销售方式 （可多选） □ 自己销售网络直接到用户 Directly to consumers What is/are the sales channel(s)? □ 通过批发商//代理商 Through wholesalers/traders □ 通过零售商店 Directly to retail shop □ 政府采购 Government procurement 21 市场开拓的主要障碍（可多选） □ 融资 Finance □ 价格 Price □ 技术 Technology What is/are the main constraint(s) to □ 燃料 Fuel □ 销售网络 Selling network expansion? 22 企业资金来源（可多选） □ 自有资金 Self finance What is/are the financing source(s) for □ 银行贷款 Bank loans stoves production? □ 民间融资 Private loans □ 外商投资 Foreign investment □ 其他 Other（如政府、集团公司支持等） 23 质量保证体系和售后服务 质量保证体系 Quality-assurance method What is/are the methods of quality 售后服务：After-sales service □有Y □无N assurance? Is there after-sales service? 中国农村能源行业协会节能炉具专委会/中国清洁炉灶联盟 China Alliance for Clean Stoves ，中国炉具网 China Stoves Website 世界银行 The World Bank 联系电话/Tel：010-60889502 本调查表下载地址：www.chinaluju.com 请将本调查表填好后于2012年4月10日之前发送至邮箱：chinaluju@126.com 60 China: Accelerating Household Access to Clean Cooking and Heating 炉具行业生产和销售市场调查（批发/零售商） Market Survey of Stove Supply Chain (for Wholesalers/Retailers) 日期 Date: 地点 Address: 调查员 Investigators: 受访者签名 Signature: 炉具行业生产和销售市场调查表 Market Survey of Stove Supply Chain # 问题栏 Question 回答栏 Answer 1 受访者姓名 Name 2 单位名称 Organization 3 地址 Location 4 所有权性质 Type of ownership □ 个人 Individual owned □ 企业 Company □ 其它 Other 5 联系方式 Contact 电话 Tel 传真 Fax 邮箱 Email 6 2011年销售炉具的类型及销售量 □ 燃煤炉具 Coal stove Production units Sales units Number and types of stoves sold in 2011 炊事 Cooking 1. 生产 台 销售 台 2. 采暖 Heating 生产 台 销售 台 3. 炊事水暖 C+WH 生产 台 销售 台 4. 炊事烤火 C+H 生产 台 销售 台 □ 生物质炉具 Biomass stove 炊事 Cooking 1. 生产 台 销售 台 2. 采暖 Heating 生产 台 销售 台 3. 炊事水暖 C+WH 生产 台 销售 台 4. 炊事烤火 C+H 生产 台 销售 台 7 平均销售价格（和问题6对应填写） □ 燃煤炉具 Coal stove (RMB) Stove average price (RMB), corresponding 1. 2. to Question 9. 3. 4. □ 生物质炉具 Biomass stove (RMB) 1. 2. 3. 4. 8 销售的是否为清洁高效炉具 □有 Yes □无 No Are there any clean and efficient stoves sold? 9 销售的炉具规格（可多选） □ < 5 kW □ 5~20 kW □ 20~50 kW □ > 50 kW Main product sizes 10 主要销售地区 Sales areas 11 销售量最大的炉具类型？（可多选） □ 燃煤炉具 Coal stove Which kind of stove sells best? □ 炊事 Cooking □ 采暖 Heating □ 炊事水暖 C + WH □ 炊事烤火 C + H □ 生物质炉具 Biomass stove □ 炊事 Cooking □ 采暖 Heating □ 炊事水暖 C + WH □ 炊事烤火 C + H (continued) Annex B. Survey Method and Questionnaire 61 12 采用什么方式销售？（可多选） □ 批发 Wholesale What is the business model? □ 零售 Retail □ 代理(后付款) On consignment □ 经销(先付款) Pay first 13 运输方式和距离（可多选） □ 送货到家 To home □ 用户自己提货 By user self What are the stove delivery method and □ < 10 km □ 10~20 km □ > 20 km range? 14 主要销售品牌及供应商？ Who is/are the supplier(s) of stoves to the retail shop? 15 是否提供炉具配件和维修服务？ □有 Yes □无 No Are there any parts and/or repair services for stoves? 16 市场销售的主要障碍（可多选） □ 融资 Finance □ 价格 Price □ 技术 Technology What are the main constraints to □ 燃料 Fuel □ 销售网络 Selling network expansion? 中国农村能源行业协会节能炉具专委会/中国清洁炉灶联盟 China Alliance for Clean Stoves ，中国炉具网 China Stoves Website 世界银行 The World Bank 联系电话/Tel：010-60889502 本调查表下载地址：www.chinaluju.com 请将本调查表填好后于2012年4月10日之前发送至邮箱：chinaluju@126.com References CACS (China Alliance for Clean Stoves). 2012. Background report Lim, S. S., et al. 2012. “A Comparative Risk Assessment of Bur- prepared for the China CSI, World Bank, Beijing. den of Disease and Injury Attributable to 67 Risk Factors and Risk Factor Clusters in 21 Regions, 1990–2010: A Sys- CAREI (China Association of Rural Energy Industry). 2011a. tematic Analysis for the Global Burden of Disease Study Energy-saving Stoves Industry Development Report. 2010. ” Lancet 380 (9859): 2224–60. Beijing: China Association of Rural Energy Industry. National Bureau of Statistics. 2008. Second National Agricul- ———. 2011b. Biogas Industry Development Report. Beijing: ture Census, 2006 (http://www.stats.gov.cn/tjgb/nypcgb/ China Association of Rural Energy Industry. qgnypcgb/t20080226_402464495.htm). ———. 2012. Translated from “Introduction to CAREI” (http:// NRCSTD and Fafo IAIS (National Research Center for Science www.carei.org.cn/). and Technology for Development and Fafo Institute for CAREI Platform. 2012. “China Association of Rural Energy Applied International Studies). 2006. Life in Western Industry,” Finn-Sino Rural Renewable Energy Cooperation China: Tabulation Report of Monitoring Social and Eco- (http://www.carei.fi/en/aboutus/chinaassociationofru). nomic Development in Western China. Beijing: China Sta- tistics Press. Carolina Population Center. 2008. “China Health and Nutrition Survey 2006” (http://www.cpc.unc.edu/projects/china). State Forestry Bureau. 2005. The Sixth National Forest Resources Inventory (1999–2003). CDM-PDD (Clean Development Mechanism-Project Design Document). 2011. “Clean and Efficient Cooking and Heat- USAID (U.S. Agency for International Development). 2010. ” ing Project in China. Black Carbon Emissions in Asia: Sources, Impacts, and Abatement Opportunities. Regional Development Mis- China Agriculture Statistical Yearbook. 2010. Beijing: China Agri- sion for Asia. Bangkok: U.S. Agency for International culture Press. Development. China Energy Statistical Yearbook. 2011. Beijing: China Statistics WHO and UNDP (World Health Organization and United Nations Press. Development Programme). 2009. The Energy Access Sit- China Livestock Industry Yearbook. 2011. Beijing: China Agricul- uation in Developing Countries. New York: United Nations ture Press. Development Programme. China Statistical Yearbook. 2007. Beijing: China Statistics Press. World Bank. 2011a. One Goal, Two Paths: Achieving Universal Access to Modern Energy in East Asia and Pacific. Wash- ———. 2011. Beijing: China Statistics Press. ington, DC: World Bank (http://elibrary.worldbank.org/ China Stoves Website. 2013. http://www.chinaluju.com. content/book/ 9780821388372). IEA (International Energy Agency). 2010. World Energy Outlook ———. 2011b. “Clean Stove Initiative in the East Asia and Pacific 2010. Paris: Organisation for Economic Co-operation and Region.” Concept Note. World Bank, Washington, DC. Development (OECD)/International Energy Agency. Xu, E., W. Zhao, X. Hu, L. Ma, and B. Wang. 2004. “Simulation Jia, Z. 2011. “Summary Review of the Cooking Stove Program in Model of Heat Supply Network. ” Journal of North China China.” Background paper prepared for the East Asia and Electric Power University 31: 2. the Pacific Infrastructure Unit, World Bank, Beijing. Zhang, Y., and O. Knight. 2012. “Results Based Financing: Li, J., and S. Wang. 2007. China Solar PV Report. Beijing: China Framework for Promoting Clean Stoves. ” World Bank, Environmental Science Press. Washington, DC. Zhang, Y., and Y. Wu. 2012. “Household Impacts of Indoor Air Pollution.” World Bank, Washington, DC. 63 Copyright © 2013 The International Bank for Reconstruction and Development/ The World Bank Group 1818 H Street, NW Washington, DC 20433 USA All rights reserved. First printing: September 2013 Manufactured in the United States of America. Photo credits: Front cover: Xiaofu Chen Back cover (left-to-right): Xiaofu Chen and Guangqing Liu Inside front cover: Xiaofu Chen Inside back cover (left-to-right): Laurent Durix and Guangqing Liu