Early Lessons from the East Asia and Pacific Clean Stove Initiative Initial lessons from the East Asia and Pacific (EAP) Clean Stove Initiative (CSI) confirm the need for country-specific roadmaps, strong national support, well-targeted subsidies, and integration of local conditions and international best practices into stoves standards and testing protocols.
... See More + Pilot results suggest that results-based financing is a promising way to incentivize the clean stoves market. Linkage with other projects having clean stoves components could accelerate scaled-up implementation.
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Past market failures to deliver clean cooking and heating solutions, especially to low-income households, suggest the continued need for subsidies if universal access is to be achieved.
... See More + To succeed, however, subsidies must be well-targeted, have low potential for “leakage,” and be calibrated to avoid destroying commercial incentives and discipline. Results-based financing, which disburses public resources against demonstrated results, can be used to mobilizeand sustain private-sector participation in scaling up access to clean stoves. Pilots implementing this approach under the World Bank's Clean Stove Initiative show promising results.
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Overwhelming evidence indicates that climate change, caused in large part by human activities, is already adversely impacting all people, with the very real prospect of worse to come.
... See More + Nevertheless, a global treaty to curb carbon emissions remains elusive. In East Asia, all middle-income countries have set national targets for energy efficiency and renewable energy, and some even have targets for carbon reduction. This report focuses on recent experiences in applying public financing instruments and tries to draw the lessons to date: when and how to use the instruments, which instrument to select, and how to design and implement them. The wide range of financial instruments designed to support and catalyze clean energy investment over the last decade is truly remarkable. Such instruments include credit lines and risk guarantees designed to increase both the capacity and confidence of commercial banks for clean energy lending; dedicated funds and concessional financing mechanisms to kick-start new technologies; mezzanine and equity financing targeted at start-ups; small and medium enterprises and energy service companies; and various consumer financing instruments designed to lower the upfront costs of clean energy equipment. This report systematically reviews the successes and failures of innovative interventions and distills the lessons of applying them. This report is organized in following four parts: part one gives overview; part two focuses on financing energy efficiency; part three focuses on financing renewable energy; and part four focuses on clean energy financing case studies.
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Fast-growing cities in the East Asia and Pacific (EAP) region will define the region's energy future and its greenhouse gas (GHG) footprint. Rapid urbanization and growing standards of living offer a major opportunity to EAP cities to become the global engines of green growth by choosing energy efficient solutions to suit their infrastructure needs and by avoiding locking in energy-intensive infrastructure.
... See More + The underlying studies in three EAP pilot cities show a clear correlation between investments in energy efficient solutions in all major infrastructure sectors and economic growth by improving energy and GHG emissions efficiency, cities not only help the global environment, but they also support local economic development through productivity gains, reduced pollution, and more efficient use of resources. Thus, the Bank is well positioned to assist municipal governments in building institutions, creating policies, developing long-term green growth plans that will attract financial support and investments from both the private sector and the donor community, and linking efficiency and low carbon programs to international concessional financing and funding, as well as to the private sector investors who will play an important role in achieving green growth objectives. This paper is organized as follows: part one focuses on urban energy use and GHG emissions in EAP; part two presents sustainable urban energy and emissions planning in three pilot cities; and part three gives sustainable urban energy and emissions planning guidebook: a guide for cities in EAP.
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Indonesia's household cooking fuels have undergone a dramatic shift in recent years, owing primarily to the government's highly successful Kerosene-to- Liquefied Petroleum Gas (LPG) Conversion Program; yet the impact in poorer rural areas has been limited.
... See More + Switching to LPG, electricity, and other modern fuels would be the most effective way to achieve clean cooking solutions, but these fuels are expensive, requiring costly stoves and delivery infrastructure that are beyond reach for most rural households. By contrast, many types of biomass can be freely collected from the local environment or purchased for significantly less than other fuels. Thus, large-scale fuel switching in rural areas is unlikely to occur until rural economies become substantially more developed. This means that an estimated 40 percent of households will continue to rely on traditional biomass energy, especially fuel wood, to meet their daily cooking needs for years to come. This report is structured according to the directional organization of the study. Chapter two presents an overview of household cooking fuels in Indonesia, including policy changes and other factors that influence fuel choices. Chapter three examines an array of stove supply side issues, including market and production capacity, popular stove models, limitations of business models, key features of the supply chain, and attitudes toward new stoves. Chapter four identifies gaps in policies and institutional strengthening that future intervention programs will need to fill and reviews lessons from successful programs promoting clean cooking solutions that can be applied to those focused on clean biomass cooking. Finally, chapter five presents the recommended implementation strategy, including an innovative financing approach, and the next steps in helping Indonesia move toward universal access to clean cooking solutions by 2030.
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Indonesia's household cooking fuels have undergone a dramatic shift in recent years, owing primarily to the government's highly successful Kerosene-to- Liquefied Petroleum Gas (LPG) Conversion Program; yet the impact in poorer rural areas has been limited.
... See More + Switching to LPG, electricity, and other modern fuels would be the most effective way to achieve clean cooking solutions, but these fuels are expensive, requiring costly stoves and delivery infrastructure that are beyond reach for most rural households. By contrast, many types of biomass can be freely collected from the local environment or purchased for significantly less than other fuels. Thus, large-scale fuel switching in rural areas is unlikely to occur until rural economies become substantially more developed. This means that an estimated 40 percent of households will continue to rely on traditional biomass energy, especially fuel wood, to meet their daily cooking needs for years to come. This report is structured according to the directional organization of the study. Chapter two presents an overview of household cooking fuels in Indonesia, including policy changes and other factors that influence fuel choices. Chapter three examines an array of stove supply side issues, including market and production capacity, popular stove models, limitations of business models, key features of the supply chain, and attitudes toward new stoves. Chapter four identifies gaps in policies and institutional strengthening that future intervention programs will need to fill and reviews lessons from successful programs promoting clean cooking solutions that can be applied to those focused on clean biomass cooking. Finally, chapter five presents the recommended implementation strategy, including an innovative financing approach, and the next steps in helping Indonesia move toward universal access to clean cooking solutions by 2030.
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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.
... See More + RBF is often used to enhance access to and delivery of basic infrastructure and social services, such as water and sanitation, energy, and health care. In most cases, the funding entity typically a government, development agency, or other agent deals directly with the service provider. Some of the better known RBF approaches include output-based aid (OBA) (GPOBA 2011), conditional cash transfers, carbon finance, and advance market commitments (AMCs). Unlike traditional public procurement, 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.
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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.
... See More + RBF is often used to enhance access to and delivery of basic infrastructure and social services, such as water and sanitation, energy, and health care. In most cases, the funding entity typically a government, development agency, or other agent deals directly with the service provider. Some of the better known RBF approaches include output-based aid (OBA) (GPOBA 2011), conditional cash transfers, carbon finance, and advance market commitments (AMCs). Unlike traditional public procurement, 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.
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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.
... See More + RBF is often used to enhance access to and delivery of basic infrastructure and social services, such as water and sanitation, energy, and health care. In most cases, the funding entity typically a government, development agency, or other agent deals directly with the service provider. Some of the better known RBF approaches include output-based aid (OBA) (GPOBA 2011), conditional cash transfers, carbon finance, and advance market commitments (AMCs). Unlike traditional public procurement, 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.
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Approximately 40 percent of Indonesian households continue to rely on traditional biomass (mostly wood) for cooking. Most of these households are in rural areas and are likely to continue using traditional biomass in the near future.
... See More + Household burning of traditional biomass is a major health risk factor in Indonesia. The indoor air pollution caused by the use of traditional biomass is responsible for an estimated 45,000 premature deaths annually, with women and children particularly affected. In order to decrease indoor air pollution, Indonesia needs to build on its earlier experiences and scale up access to modern and cleaner methods of cooking. The World Bank is launching the Indonesia Clean Stove Initiative to help increase the access to clean and efficient stoves through capacity building, policy development, and the support of selected government action plans.
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More than half of China's population still relies on solid fuels (coal and biomass for cooking and heating. Most of these households are in rural areas and are likely to continue using solid fuels in the near future.
... See More + Household burning of solid fuels is a major health risk factor in China, estimated to lead to more than half million premature deaths annually with women and children particularly affected. China needs to build on its earlier successful stove programs and undertake more active interventions. The World Bank is launching the China clean stove initiative to help increase access to clean and efficient stoves through capacity building, policy development, and the support of selected government action plans.
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More than half of China's population still relies on solid fuels (coal and biomass for cooking and heating. Most of these households are in rural areas and are likely to continue using solid fuels in the near future.
... See More + Household burning of solid fuels is a major health risk factor in China, estimated to lead to more than half million premature deaths annually with women and children particularly affected. China needs to build on its earlier successful stove programs and undertake more active interventions. The World Bank is launching the China clean stove initiative to help increase access to clean and efficient stoves through capacity building, policy development, and the support of selected government action plans.
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