Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives
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Gold Standard Improved Cookstove 20.04.2016 Activities Guidebook Increasing commitments to clean-cooking initiatives 1
Table of contents Acknowledgement 4 Boxes, Tables and Figures About partners 4 Box 1: Cost of cooking with solid fuel ...................................................................................................... 8 Box 2: Global cooking practice ..................................................................................................................12 Box 3: Clean Cooking Loan Fund.............................................................................................................22 Abbreviations 5 Box 4: Black Carbon and Clean ............................................................................................................... 30 Useful terms 6 Box 5: Health impact quantification methodology Stoves ..........................................................31 Executive summary 7 Table 1: Financing solutions for Supplier.............................................................................................. 24 Key findings 7 Table 2: Consumer Financing Options.................................................................................................. 26 Table 3: Distribution channels.................................................................................................................... 29 Introduction 8 Fig. 1: Types of projects certified under GS .........................................................................................16 1.1 Objectives ...................................................................................................................................................... 10 Fig. 2: Number of GS cookstove projects certified under the GS CDM vs. GS VERS......17 1.2 Methodology ............................................................................................................................................... 10 Fig. 3: GS cookstove projects represented by scale. .....................................................................16 1.3 Structure......................................................................................................................................................... 10 Fig. 4: Geographical distribution of GS cookstove projects. .......................................................17 Fig. 5: Africa: Annual number of expected emission reductions by sub-region ..............18 Overview of Gold Standard Improved Cookstove activities 12 Fig. 6: Asia: Annual number of expected emission reductions by sub-region.................. 20 2.1 Regional profiles..........................................................................................................................................13 Fig. 7: Americas: Annual number of expected emission reductions by sub-region ........21 2.2. Gold Standard ICS projects..................................................................................................................15 Results and discussion 22 3.1 Financing........................................................................................................................................................23 3.2 Understanding user needs....................................................................................................................27 3.3 Role of Women .........................................................................................................................................27 3.4 Consumer Awareness ........................................................................................................................... 28 3.5 Marketing and Distribution Model .................................................................................................. 28 3.6 After-sales service................................................................................................................................... 29 Recommendations and conclusion 30 Selected Gold Standard cookstove projects 33 Case study 1: Improved Cook Stove Project with Carbon Finance (ICF), Nepal ............. 34 Case study 2: Efficient Cookstoves in the Bahian Recôncavo Region.................................. 36 Case study 3: Improved cookstoves diffusion programme in Peru........................................ 38 Case study 4: Darfur Efficient Cook-stove Project.........................................................................40 Case study 5: Integrated Biomass Energy Conservation Project - Malawi......................... 42 Case study 6: Efficient Wood Fuel Stove-Cooking-Sets, Lesotho.......................................... 44 Case study 7: The Breathing Space Improved Cooking Stoves Programme, India ....... 46 Case study 8: Ecological Stoves for Better Living - Micro Scale PoA................................... 48 Case study 9: Improved Kitchen Regimes: Bugesera, Rwanda (VPA) ................................. 50 Case study 10: GHG Emission reduction via use of “Bondhu Chulha” in Bangladesh....52 Annex: GHG quantification methodologies for cookstove activities 56 Cover Photo: GS3018: Improved Cook Stove Project with Carbon Finance (ICF), Nepal 2 | Gold Standard ICS activities guidebook 3
Acknowledgement Abbreviations The Gold Standard Improved Cookstove Activities Whitebook, which provides recommendations to pro- ACS Advanced Cookstove ject developers and aims to increase commitments to clean-cooking initiatives, was prepared with the financial support from Inter-American Development Bank (IDB) and World Vision Australia. This report is a BC Black Carbon part of the Financing Efficient Cookstoves for Rural Andean Communities programme funded by the Multi- CCLF Clean Cooking Loan Fund lateral Investment Fund (MIF), a member of the IDB Group and World Vision Australia. The programme aims CDM Clean Development Mechanism to promote the use of clean cookstoves in Peruvian Andean communities for better health and a better environment. CO Carbon Monoxide CO2-eq Carbon Dioxide equivalent We would like to thank Dr. Dean Thomson and Justin Couburn, World Vision, Australia for their valuable CH4 Methane guidance and feedback in drafting the report. We also extend our thanks to Walther Sanchez and his team, World Vision Peru, for their inputs. We extend a special thanks to Arthur Laurent and Claire Cuisset, DALYs Disability Adjusted Life-years Microsol, for their continuous feedback. We are also grateful to all of the project participants and consult- aDALYs Averted Disability Adjusted Life-years ants who have generously contributed their time in sharing their information and perspectives on the Gold DFID Department for International Development (UK) Standard projects. GACC Global Alliance for Clean Cookstove GHG Greenhouse Gas GS Gold Standard Foundation About partners HAP Household Air Pollution: Air pollution generated by household fuel combustion, leading to indoor air pollu- tion, and contributing to ambient air pollution. (WHO, 2014) Gold Standard Foundation www.goldstandard.org IAP Indoor Air Pollution Our role as a standard and certification body is to maximise the impact of climate and development ac- ICS Improved Cookstove tivities. We design the strongest processes that amplify the impact of efforts to deliver clean energy and ISO International Organization for Standardisation water, responsibly manage land and forests, and transform the lives of the world’s poor. We then verify the LPG Liquefied Petroleum Gas impacts, inspiring the confidence needed to drive investment and accomplish even more. MFI Microfinance Institution Gold Standard was established in 2003 by WWF and other international non-governmental organisations NGO Non-governmental Organization (NGO) as a best practice standard to ensure that projects which reduce carbon emissions under the UN’s PoA Programme of Activities Clean Development Mechanism (CDM) also deliver on their dual mandate to foster sustainable development. RBF Result-based Finance Now with more than 80 NGO supporters and 1100 projects in over 70 countries, our projects have delivered billions of U.S. dollars in climate and development outcomes in local communities all around the world. SDGs Sustainable Development Goals SE4All Sustainable Energy for All Microsol SLCPs Short-lived Climate Pollutants http://www.microsol-int.com VER Voluntary Emission Reduction Microsol is a social business organization dedicated to associate institutions and NGO experts in projects that improve the life quality of people affected by poverty and climate change in rural areas of Latin Amer- WHO World Health Organisation ica. Microsol specializes in projects that are capable of being sustained long-term, thereby guaranteeing lasting impacts and integrating all of the actors involved in the process. Microsol developed the first ever voluntary Gold Standard Programme of Activities (PoA), the Qori Q’oncha PoA (GS1005), which has certi- fied more than 100,000 improved cook stoves (ICS) implemented throughout Peru by several public and private local partners. The Qori Q’oncha PoA was registered in 2010 and is currently undergoing its fifth verification. Microsol builds programmes that replicate this experience and allow project developers of ICSs and other appropriate technologies to benefit from our knowledge transfer methodology and the resources of the in- ternational carbon market. Within this framework, Microsol has developed the Utsil Naj PoA (GS1377), multi- technology programme in that certifies ICSs and water filters project activities throughout Central America. It has been registered with Gold Standard since 2015 and is currently undergoing its first verification. 4 | Gold Standard ICS activities guidebook 5
Useful terms Executive summary The following terms are commonly used in the cookstove domain, but in different ways. In the recent »» Traditional cooking stoves and inefficient combustion of traditional fuels contribute significantly to publication “The State of the Global Clean and Improved cooking sector,” the World Bank’s Energy Sector human lives, primarily impacting women and children. The fact that the majority of the global popula- Management Assistance Program (ESMAP) and the Global Alliance for Clean Cookstoves (GACC) defined tion still relies on the use of solid-fuels is a large and growing problem. Inefficient and polluting stoves these terms for the purpose of the report with reference, where appropriate, to the ISO IWA tiers and are one of the world’s major public health challenges, causing more premature deaths than HIV/AIDS, standards. The following terms are adopted from the aforementioned publication with modifications where malaria, and tuberculosis combined. applicable for the purpose of this report. »» The clean and improved cooking sector has evolved significantly over the years, but is still under- developed. Impacts from the cookstove market can be seen from two perspectives: (1) medium term Improved cooking solutions Cooking solutions that improve, however minimally, the adverse health, impacts such as the wide-scale adoption of ICSs and sustainable fuels and (2) long-term impacts such environmental, or economic outcomes from cooking with traditional solid as climate change mitigation (via reduced greenhouse gas emissions) and improved livelihoods (via fuel technologies. This definition encompasses modern fuel cookstoves, improved health and greater income). renewable fuel cooking solutions, and the entire range of improved and advanced biomass cookstoves. Clean and improved cooking solutions »» A few countries have managed to introduce clean and improved cooking solutions on a broad scale to reduce emissions and improve health and the environment. address the widespread negative impacts of solid-fuel use, but these alone are not adequate for trans- Clean cooking solutions Cooking solutions with low particulate and carbon monoxide emissions formational health and environmental outcomes. Consequently, it is difficult to foresee quick adop- levels (IWA ISO Tier 3–4 for the indoor emissions indicator). The IWA tiers tion for clean cooking solutions without a mechanism for reducing price, an often-cited barrier. Apart for indoor emissions are consistent with the World Health Organization from the need to attract investments in this sector, this report makes recommendations for cookstove indoor air quality guidelines. These stoves can include advanced biomass project developers, including the cookstove manufacturers, to emphasize consumer education and cookstoves, renewable fuel solutions, and modern fuel stoves—with the awareness, address the willingness-to-pay barrier, and design projects based on results-based financ- partial exception of kerosene, since emerging evidence suggests that many ing (RBF) mechanisms such as carbon finance, amongst others. kerosene stoves may actually create significant negative health impacts. »» Current improved cookstove projects from the Gold Standard portfolio serve as stepping-stones to Traditional cookstoves Traditional solid-fuel cooking solutions include cookstoves such as understanding the barriers associated with these projects and how to overcome these to ensure three-stone fires, unvented mud/clay “U” shaped stoves, basic charcoal successful implementation. Selected project studies from countries across the globe, such as Nepal, cookstoves, and poorly vented coal cookstoves. Brazil, Peru, Bangladesh, Rwanda, Bolivia, Malawi, Lesotho, India, etc., help to provide examples of Improved (biomass) Solid-fuel stoves that improve on traditional baseline biomass how carbon finance can positively impact projects. We hope the lessons captured by this report will cookstoves (ICS) technologies in terms of fuel savings via improved fuel efficiency. encourage different stakeholders, such as private sector players, policymakers, and project develop- Some improved cookstoves also lower particulate emissions through ers to increase their commitment to clean cooking initiatives across the globe. improved combustion efficiency, but the critical distinction of “clean” cooking solutions is that “improved” stoves may not reach sufficiently low emissions levels to generate meaningful health benefits. Cookstoves covered by this definition include basic chimney ICS, basic portable ICS and intermediate ICS. Key findings Basic chimney ICS Solid-fuel cookstoves whose chimneys feature minimal to moderate improvements in thermal efficiency This section summarizes some important findings which are discussed in detail in the report: Basic portable ICS Portable biomass cookstoves that are unvented and feature moderate Cooking is a basic need of every household yet access to clean cooking is limited. There is a staggering improvements in thermal efficiency. This category includes minimally reliance on solid-fuels and traditional methods of cooking, which are associated with significant costs to improved ceramic and clay cookstoves. human health. These conventional methods lead to forest degradation, black carbon emissions, and other emissions from burning of the fuels which contribute to global warming. The gender and social impacts are Intermediate ICS A wide range of solid fuel cookstoves with significant improvements in fuel also skewed; women and children are primarily affected given their proximity to cooking fires and there is efficiency but typically more limited health and environment outcomes in decreased opportunity for children due to the time spent collecting fuel. comparison to clean cooking solutions, such as gasifier and modern fuel cookstoves ICS projects are implemented in Asia, Africa, and the Americas. This report addresses the different cooking Advanced (biomass) Fan draft or natural draft biomass gasification cookstoves that achieve patterns and practices in these regions and also provides a snapshot of the Gold Standard cookstove port- cookstoves (ACS): significant particulate emission reductions. folio. The Gold Standard case studies are a clear reflection of how partnering with the end-users to under- Modern cooking solutions Petro-chemical fuel (LPG, natural gas, kerosene), electric stoves, and stand their requirements and conducting robust research helps the success of the projects on the ground. electromagnetic induction cookstoves Although the end-user product preferences may vary worldwide, given heterogeneous cultural habits, Renewable cooking Biofuel cookstoves powered by ethanol and other plant-based liquids, differences in the willingness to pay, and varying household characteristics, etc., there is generally a po- solutions oils or gels; biogas cookstoves; solar cookers; and retained-heat cooking tential demand for clean cooking solutions given rising fossil fuel prices and increased deforestation. To devices. accelerate the uptake of ICSs, interventions such as RBF through carbon credits, ADALYs, etc., can help consumers afford better technologies. The most important barriers in the ICS sector are affordability of clean cooking fuels and high-quality cookstoves. Smart and targeted subsidies, private sector interventions, financing solutions in the form of ‘carbon credits’, and developing distribution channels can improve the penetration barriers which are ad- dressed in the report. 6 | Gold Standard ICS activities guidebook 7
1.0 T he cookstove is one of the oldest and sim- sions are from residential solid-fuel use for cooking plest household technologies. However, in and heating, about 84% of which is from house- the modern era, access to clean cooking holds in developing countries8. If one includes BC solutions remains a universal challenge, leading emissions and other particles of incomplete com- to immense human costs to humans, in health as bustion not listed in the Kyoto Protocol, such as Introduction well as environmentally and economically. More than 3 billion people, representing over 60% of the carbon monoxide and non-methane hydrocarbons, the potential annual carbon footprint of global solid developing world’s population, rely on traditional fuel cooking increases to 1.3–1.7 from 0.5–1.2 billion biomass fuels, such as wood, crop residues, and tCO2-equivalent. dung for their primary cooking needs via open fires or traditional stoves1. Of these, about 2.7 billion In the last decade, the growing recognition of Box 1: Cost of cooking with solid fuel people, primarily representing poor, rural house- health and environmental impacts of traditional The costs associated with the reliance on the inefficient use of solid-fuels are staggering. The health, envi- holds, use traditional biomass like wood, charcoal, cookstoves have seen a variety of efforts aimed ronmental and economic costs, estimated at over $123 billion USD (range: $22 – 224 billion USD) annually, animal dung, and crop waste while a further 400 at cleaner, more efficient household cookstoves take a heavy toll on society. million use coal2. Less than one-third of solid-fuel ranging from small-scale NGO-led projects to users operate improved cookstoves (ICSs) and government-run national ICS programmes. There even these households predominantly rely on is a global consensus among policymakers that basic ICSs that have limited health and environ- energy access is critical for sustainable develop- mental benefits3. ment. Earlier in 2012, the United Nations launched the initiative Sustainable Energy for All (SE4All) with Economics and livelihoods Environment and climate impacts Solid-fuel cooking imposes immense health, envi- ambitious targets for universal access to electric- »» Around $100 billion USD—an amount set to double by »» A recent Global Alliance funded study estimates ronmental, economic, and social costs on house- ity and modern cooking energy systems by 2030. 2020—is spent on typically inefficient and increasingly the total biomass fuel demand at 1.36 billion MT holds in developing countries (Box 1, p. 8). The In 2015, the United Nations adopted seventeen costly cooking fuel. Roughly one-half of this spending annually. It is clear that such high levels of solid household air pollution (HAP) from traditional Sustainable Development Goals, including Goal 7 is dedicated to solid-fuels, of which a significant share fuel combustion contribute to global warming, have is avoidable. negative local climatic effects, and—largely because stoves is often ignored due to the limited level of to “ensure access to affordable, reliable, sustain- of charcoal production—are contributing factors awareness and resources amongst consumers. able and modern energy for all” by 2030, bring- »» An average household spends roughly 7% of to localized deforestation and forest degradation. Over recent years, momentum has been grow- ing the issue to centre stage. According to recent income on cooking and lighting fuel expenditures Substantial emissions from solid fuel use and in developing countries, whereas urban consumers ing at national and international levels around the estimates, $4.7 billion USD is needed globally to charcoal production contribute to 0.5–1.2 billion MT need to increase adoption of ICSs and clean fuels ensure universal access to clean cooking energy on average spend 1.3 times more on energy as a in carbon dioxide (CO2) equivalent of Kyoto Protocol share of their expenditures than rural consumers. greenhouse gases (up to 3% of annual global CO2 in order to address problems associated with con- through 2030. With the goal of enabling 100 mil- »» Households spend an average of roughly 1.3 hours emissions). tinued use of traditional cooking methods. In spite lion households to adopt clean and efficient cook- of intensifying efforts, access to clean cooking so- stoves and fuels by 2020, the Global Alliance for per day collecting fuel, with a range of 30 minutes to over 6 hours daily for rural households across »» The residential solid fuel generates 25% of global lutions still remains limited in much of the devel- Clean Cookstoves (GACC) achieved significant black carbon emissions, when the assessment different geographies. includes these black carbon emissions and other oping world, leading to devastating outcomes on success by enabling the distribution of around 28 »» Avoidable cooking drudgery and fuel collection particles of incomplete combustion not listed in people’s health, environment and society. Each million clean and/or efficient stoves9 by 2014. tasks globally is over 60 million person years the Kyoto Protocol, like carbon monoxide and non- year around 4.3 million people die prematurely due annually. Even with moderate assumptions, these methane hydrocarbons, the potential annual carbon to indoor air pollution from cooking4,5. Household In this context, carbon finance is emerging as an time savings could translate into incremental annual footprint of global solid fuel cooking increases to 1.3–1.7 MT CO2-equivalent Air Pollution (HAP) is responsible for nearly 5% of attractive option for upscaling cookstove initia- household income of $5–30 billion USD annually. Interestingly, once time use is factored into cooking the global disease burden (expressed as disability- tives. Carbon finance is different from traditional costs, the traditional open fire is the most expensive adjusted life-years (DALYs)), making it the greatest donor support and works on an RBF model, where Gender equity and other social impacts form of cooking with wood. global environmental health risk factor6. money is only paid when agreed-upon results are »» Disproportionate risks of negative HAP-linked delivered and verified—in this case, greenhouse health outcomes and physical injury for women Health and girls, given their proximity to cooking fires In addition to the health burden, burning solid-fuels gas emission reductions. Carbon finance solely »» At least 4.3 million premature deaths annually and and primary responsibility for firewood collection contributes to global climate change by emitting depends on GHG emission reduction, but it also 110 million disability adjusted life-years (DALYs) in many cultures. Also results in decreased greenhouse gases (GHGs) such as carbon dioxide enables technology development and uptake by resulting from household air pollution (HAP), educational opportunities for children involved in (CO2), methane and short-lived climate pollutants providing incentives for performance. The use of including lower respiratory infections, chronic fuel collection, impaired nutrition because of the (SLCPs) such as black carbon (BC). According to carbon finance in cookstove projects is a relatively obstructive pulmonary disease, lung cancer, heart diversion of resources to fuel purchases, and home environments damaged by smoke and soot. recent estimates, solid-fuel cooking and related recent phenomenon and is gaining traction despite disease, and cataracts. Many additional health charcoal production across the developing world fluctuations in the global market for carbon cred- harms not quantified include asthma, tuberculosis, adverse pregnancy outcomes, depression, bacterial »» The aggregate time loss across fuel collection, generate around 1.5–3.0% of global CO2 emis- its. Many programme implementers, ranging from traditional biomass cookstove cooking, and related meningitis, a variety of moderate-to-severe physical fuel preparation and food processing activities sions7. Globally, approximately 25% of BC emis- NGOs to private, national and international organi- injuries associated with firewood collection, burns, translates into 2–8 hours of effort per day, with a likely zations are tapping into carbon finance to support widespread minor ailments from smoke inhalation 1 2015, World Bank, The State of the Global Clean and Improved Cooking Sector average of close to 5 hours daily a commercial upscaling of their efforts, especially such as eye irritation and headaches, and the 2 2011, Smith et al; UNDP and WHO, 2009; IEA, 2011; Our global fuel-use emerging concerns about the harms of kerosene database, including coal users, tracks an estimated 3.03 billion solid fuel users for in developing countries. According to recent esti- cooking. cooking and heating and 2.85 billion solid fuel users for cooking globally. mates, the GACC has attracted $265 million USD in 3 2015, World Bank, The State of the Global Clea n and Improved Cooking Sector »» Of this mortality figure, it is estimated that over carbon finance for the cookstove sector10. 4 2010, Lim SS, Vos T, Flaxman AD, Danaei G, Shibuya K, Adair-Rohani H, et al. A 500,000 deaths stem from household air pollution comparative risk assessment of burden of disease and injury attributable to 67 risk factors and risk factor clusters in 21 regions, 1990–2010: a systematic analysis for via it’s contribution to ambient air pollution (AAP), the Global Burden of Disease Study 2010. Lancet. 2012;380 (9859):2224–60. doi: 8 Sims, R., V. Gorsevski and S. Anenberg (2015). Black Carbon Mitigation and the with HAP contributing to 12% of AAP globally. 10.1016/s0140–6736(12)61766–8. Role of the Global Environment Facility: A STAP Advisory Document. Global Environ- 5 2014, Smith KR, Bruce NG, Balakrishnan K, Adair-Rohani H, Balmes J, Chafe Z, ment Facility, Washington, D.C. et al. Millions dead: how do we know and what does it mean? Methods used in the 9 The definitions for “clean” and “efficient” are aligned with the ISO International comparative risk assessment of household air pollution. Annu Rev Public Health. Workshop Agreement (IWA) Guidelines for evaluating cookstove performance. The 2014;35:185–206. doi: 10.1146/ annurev-publhealth-032013–182356. Alliance considers stoves and fuels that are tier 3 or higher for indoor emissions to 6 2014, WHO guidelines for indoor air quality: household fuel combustion, World be clean and those that are tier 2 or higher for efficiency/fuel use to be efficient. Health Organization 10 2015, The Global Alliance for Clean Cookstoves, Five years of Impact 2010- Source: The State of the Global Clean and Improved Cooking Sector, 2015 7 2015, World Bank, The State of the Global Clean and Improved Cooking Sector 2015. 8 | Gold Standard ICS activities guidebook 9
Clean cooking presents an opportunity to mitigate The report also provides practical and logistical climate change. Despite successful examples of insights into the development of cookstove pro- carbon finance-based initiatives, project develop- jects using carbon finance. It is directed at cook- ers face barriers to securing carbon finance, rang- stove practitioners that include private companies, ing from technology selection, financing, and pro- NGOs, governments, public entities and any other ject design to successful adoption of technology. entities involved in setting up a cookstove project. Affordability of clean cooking fuels and high-quality cookstoves, low willingness to pay for the incre- mental benefits of clean cooking solutions, and 1.2 Methodology limited access to quality, high-performing products This report is a result of extensive research into to end-users are critical barriers to implementing the array of cookstove projects, combined with live clean stoves. On the developer’s side, constraints examples of successfully implemented projects include the difficulty of achieving a cost-effective across the globe. The methodology adopted for the supply chain (especially in rural areas), limited tech- purposes of this report includes a systemic desk nical and management capacity for producers and review of secondary sources, including the recent distributors, and a lack of access to finance. GACC market assessment reports and analysis of the Gold Standard cookstove project portfolio. Current trends suggest that the reliance on solid- fuels for cooking and heating will persist in the The case studies selected for the report are coming years. By 2020, around 3 billion people based on a focused set of questions to gather a will rely on solid-fuels for cooking and heating wide range of perspectives related to cookstove (Box 2, p. 8). Ensuring that the growth of clean financing instruments for project funding, the role cooking in the coming years is faster, more equi- of carbon finance, stove design to meet end-user table, and sustainable in the long-term will require needs, distribution models and their sustainability, substantially increased investment from the public training end-users and creating awareness, provi- and private sector with market support and trans- sion of post-sale services, participation of women, formation initiatives from development institutions, monitoring and data collection, sustainable devel- NGOs, and foundations. In addition, greater scale and ambition in national clean cooking programs opment benefits, etc. The case studies are also ac- and improved program coordination and support companied by one-on-one discussions with some from funders will also be needed. Carbon finance of the project developers. has played a significant role in transforming the cookstove market to date, and is expected to al- 1.3 Structure leviate the barriers even further. The report is organized into five main sections. The preceding first section introduces the purposes and 1.1 Objectives scope of this report. The following second section The nexus of cooking practices, household eco- provides a brief snapshot of cooking patterns and nomics, health indicators, forest resource man- an overview of Gold Standard cookstove projects agement, and global greenhouse gas (GHG) emis- in different geographical regions. The third sec- sions is remerging as a transformative opportunity tion presents an overview of challenges and how for improving health outcomes, livelihoods, and Gold Standard projects overcome these barriers. the global environment. In the cookstove sector, The fourth section analyses the lessons learned, the Gold Standard is by far the leading voluntary followed by updated recommendations for project carbon standard. Nearly all voluntary cookstove developers looking to setup a cookstove project. projects for carbon finance have been developed Selected projects from the Gold Standard portfolio under Gold Standard, and the majority of CDM are presented in Annex -1, highlighting the key bar- cookstove projects applied for Gold Standard la- belling due to its strong quality assurance.11 This riers and lessons from projects across the globe. report takes stock of the collective knowledge of Annex-2 summarises the key GHGs quantification the problems and challenges in the clean cook- methodology available for developing cookstove stove sector and provides plausible solutions with activities for carbon finance. respect to Gold Standard cookstove projects. In summary, this report aims to: »» examine the barriers for cookstove project developers »» assess how developers can overcome bar- riers and use standardization frameworks to quantify the benefits from cookstove projects, driving finance into these initiatives »» recommend best practices for cookstove pro- ject developers 11 2013, Stockholm Environment Institute, Assessing the Climate Impacts of Cookstove Projects: Issues in Emissions Accounting. GS500: Darfur Efficient Cookstove Project 10 | Gold Standard ICS activities guidebook 11
2.0 I n spite of the rapid technological advancements man) of the family. Women generally take charge of of the 21st century, nearly half of the world’s pop- cooking5. In the entire region, traditional open fire ulation still meets cooking requirements by burn- stoves are preferred for cooking practices in addi- ing fuels such as wood, crop residues, and dung. tion to heating water for drinking or bathing, provid- According to recent estimates, large populations ing space heating, smoking food, keeping insects Overview of Gold Standard across geographical regions depend on solid-fu- away, lighting in the absence of electricity, etc. It els for their primary cooking needs. Sub-Saharan has been observed that due to the varied usage Improved Cookstove activities Africa has the highest level of solid-fuel depend- of cookstoves, ICSs rarely replaces all usage, com- ence globally at 82%, followed by Asia (44 – 71%), monly resulting in “stacking” behaviour, i.e., contin- Latin America (17%) and Eastern Europe (19%)1. uing to use traditional devices even after the ICSs Box 2: Global cooking practice are adopted. Further, this behaviour is observed Compared to rural populations, urban populations even when households have access to modern More than 3 billion people—over 60% of the developing world’s population and 40% of the global popula- across all regions rely less on solid-fuel cooking fuels like liquefied petroleum gas. tion—rely on solid-fuels for their primary cooking needs via open fires or traditional stoves. Sub-Saharan Africa due to better access to new technologies, driving has the highest level of solid-fuel dependence globally, followed by Asia, Latin America, and Eastern Europe. higher adoption rates of modern fuels (Box 2, p. 12). Traditional open-fire cooking devices are distin- Current trends point to an increase in the overall guished throughout the region based on cooking number of solid-fuel users globally over the next habits and customs. For example, in Mexico and decade. It is anticipated that population growth will Central America, tortilla-making is the main cook- have the most dramatic impact in Africa, where the ing task, thus it requires a plancha (hot flat surface) region’s population has grown at an annual rate of type cookstove, while in South America, where tor- 2.5% and is predicted to double by 2036. Slower tillas are not consumed, meals are cooked in pots but still rapid population growth in other regions in direct contact with the flame or hot air. There- (1–1.5%) will likewise continue to drive solid-fuel fore, the vast majority of ICSs in Latin America in- demand. In total, the number of users utilising solid clude in-situ rocket stoves with chimneys, such as fuels globally will be around 3.1 billion by 2020. the Patsari in Mexico, the ONIL in Guatemala, La The largest shares of users of traditional solid-fuel Justa in Honduras or the Inkawasi in Peru. Portable stoves appear in Sub-Saharan Africa, followed by and typically less expensive stove solutions have South Asia, and East Asia. In the following sec- seen much less uptake in the region, with the ex- tions, a brief overview of current cooking patterns ception of some portable plancha models (Ecocina and likely future scenarios are presented for each stove) in Central America and the majority of char- region. coal stoves in Haiti. A new generation of ICSs with nearly 20 models is available in Central America 2.1 Regional profiles with significant improvements in design and per- formance. »» In all regions, the urban population is less likely to Pakistan. In contrast, the solid-fuel population in East Asia is projected to decrease significantly About 200 million households use ICSs, repre- rely on solid-fuel cooking than rural populations. senting 30% of 700 million global households who given the strong trend of migration to modern fuels The costs of producing the most common ICSs »» Wood is dominating solid-fuel in developing across all segments in China, combined with rapid rely on solid-fuels (about 3 billion individuals total). in Latin America, whether in-situ or pre-manufac- countries, where approximately 40% of the urbanization in that country. In Latin America and There is significant variability across regions as de- tured, range from $60 USD to $250 USD6 per unit, population relies on wood as a primary fuel. About Southeast Asia, increasingly urban and modern scribed in the sections below. 58% of rural households use wood as a cooking fuel-oriented middle-income economies of leading a price that is hardly affordable for low-income fuel, compared to 15% of households in urban areas. regional nations are continuing to decrease these households. This explains why the ICS sector in regions’ solid-fuel footprints. 2.1.1 Latin America »» Latin America and East Asia feature large rural LPG The majority amongst the urban populations in this region is dominated by institutional and NGO- populations whereas the fuel is less common in rural »» Cumulatively, the forecast is that there will be a based distribution, while the commercialization of South Asia and almost entirely absent in rural Africa. stagnant global solid-fuel population, culminating Latin America have transitioned to modern fuels ICS is very limited. Today, there is major progress »» Around half of all solid-fuel users (
solid-fuel cooking emissions kill nearly 600,000 and another 7-8 million use the legacy stoves. The variation, however the chulha-style stoves with promoting acceptable and minimum standards Africans annually. Emissions from solid-fuel cook- ICS supply is focused on urban areas. More than multiple pot-holders and chimneys are mostly used for stove performance, (3) promoting awareness ing emissions are now recognized as the second- 90% of stoves in Africa are artisanally manufac- for cooking. Most stoves utilize firewood, crop- of cookstoves and the positive benefits they hold, largest health risk factor in terms of death and dis- tured, such as, chiefly portable ceramic jiko style waste, and animal dung—the latter being a region- and (4) providing and promoting a wider base and ability in the region. stoves, legacy chimney stoves, and efficient rocket ally important fuel. Charcoal and coal are prominent diversity of financing options for consumers and stoves in some areas. in selected sub-regions. The use of unimproved suppliers. Sub-Saharan Africa is predominantly a market of chulhas is often combined with basic three-stone portable stove users with the three-stone stoves The number of people relying on solid-fuels in fires or, more rarely, primitive clay stoves that offer Based on the background information presented serving as the traditional firewood and crop-waste Africa is expected to increase toward the end of the household flexibility for cooking stew-based in the sections above, one can conclude that irre- cooking solution, with the metal brazier or bucket this decade. Historical fuel mix trends and demo- dishes and bread preparation. spective of the diversity in cultures, traditions and stoves historically serving as the baseline charcoal graphic drivers, such as population growth, sug- cooking practices, the problem in adopting clean cooking solution. Chimney stoves are used oc- gest that the number of Africans relying on solid- Most of the unimproved chulhas are built by owners. stoves share similarities across the globe. casionally, but not often. Built-in stoves do have fuels as a primary fuel will grow to 850–900 million A large swathe of the region requires specific a tradition in some countries in the continent like by 2020. cooking adaptations for the preparation of staple 2.2. Gold Standard ICS projects Ethiopia (fixed stoves for injera cooking), Uganda, rice dishes (Indian rice belt, Bangladesh, Sri Lanka) The Gold Standard certifies renewable energy Kenya, Rwanda, and Nigeria, but the vast major- 2.1.3 Asia and beans (dhal). The chulha culture can be traced supply and end-use energy efficiency and waste ity of built-in and semi-portable stoves have been East Asia, dominated by China, differs significantly across key regional geographies like India, Paki- handling and management projects. ICS-type ac- introduced over multiple generations of improved both in terms of solid-fuel preferences and tradition- stan, Nepal, and Bangladesh. The improved stove tivates primarily fall under the end-use energy ef- stove programs. al stove features. China is the world’s largest coal culture mirrors these preferences with the domi- ficiency scope. Approximately one fourth of the cooking market. Consequently, coal stoves (basic nance of fixed, chimney-based improved stoves, Gold Standard’s project pipeline comprises of ICS- Many of the households use traditional biomass- coal stoves or improved stoves distributed via the although portable stoves have also seen uptake. type projects, including domestic, institutional and burning stoves as their secondary cooking device National Program and now replaced through more Portable ICSs are particularly important in markets commercial stoves. In addition, household biogas due to the common phenomenon of fuel and stove commercial mechanisms) and coal fuel supply like Sri Lanka (e.g., Anagi stove). The vast majority project type, which comprises around 15% to total “stacking”. Consumers’ limited willingness to fully chains (coal briquettes) are major features of the of improved stoves are artisanally produced, often projects, also belong to the improved cooking so- adopt new fuels and limited ability to pay for im- market. During the 1980s and 1990s, China’s Na- on location by skilled artisans or constructed by lutions category. In total, Gold Standard cookstove proved cooking solutions are the greatest long- tional Improved Stoves Program (NISP), one of the owners with some external support. Stove costs projects have been registered or listed in over 40 term obstacles to broader adoption of clean cook- world’s most successful stoves programs, distrib- across all manufacturing modes are relatively low countries globally as of September 2015. Together, ing in Africa. Even when consumers are educated uted about 180 million improved stoves. Yet stove ($5–40 USD)—typically below the cost of improved ICSs and household biogas activities contribute about stove benefits, willingness to adopt often development and production has not kept pace stoves in all regions other than Southeast Asia. around 18% of the total 90 million tCO2eq emission remains low due to the new solutions’ inability to with the multidimensional challenges associated reductions annually that is expected from all Gold fit with consumers’ cooking preferences as a result with promoting clean stoves10. Approximately 67% of households in India remain Standard projects. of perceived or actual design shortcomings, lack of wedded to solid-fuels as their primary source of consumer trust in stove performance and durabil- The majority of coal stoves feature chimneys and cooking fuel12. The use of solid-fuels and traditional The ICS activities comprise two types: (1) GS-CDM ity, concerns about the accessibility of fuel supply many are built to provide space and water heat- cookstoves has had significant impacts on health that are being developed under CDM and (2) GS and after-sales support, and the behavioural (e.g., ing—another important feature of the China market outcomes and livelihoods, particularly for women. – VERs that are voluntary in nature. The majority risk aversion, present bias) and cultural obstacles explained by the large share of the population Approximately 400 million people in India (of which share is comprised of voluntary activities that rep- to sustained adoption of new technologies. living in cool climates. The China market also has a 90% are women) are exposed to the negative resent around 80% of total ICS activities (excluding large biomass-cooking segment which is split into health effects associated with indoor air pollution household biogas activities) and contribute around The vast majority of ICSs in Sub-Saharan Africa crop waste cooking (20–50% based on region) from traditional cookstoves, resulting in respira- 6.0 million tCO2eq annually. (whether basic, intermediate, or advanced) follow and firewood users. Most biomass stoves are tory, pulmonary and vision problems. It is estimated in the mould of traditional technologies—portable, built into the structure of the home and often have that household air pollution is the leading cause In terms of project scope, ICS activities are repre- typically chimneyless, single-burner stoves de- space-heating features. The fact that many stoves of DALYs in South Asia, leading to approximately sented by three categories of scale: (1) large-scale, signed to handle wood-fuels, crop-waste biomass, are built-in implies that their costs of construction 875,000 premature and avoidable deaths. In ad- (2) small-scale and (3) micro-scale. Partially, due to or a combination of solid-fuels. Stove prices across are higher. The legacy of the NISP and its historic dition to the health effects, traditional cookstoves the dispersed nature of the project technology, the the continent are moderately high due to the in- reach has meant that most of the stoves in China and practices entails that women spend up to micro-scale activities with a cap of 10,000 tCO2eq creased costs of labour, materials, and poor distri- are either industrially or semi-industrially produced. around 5-8 hours per day on cooking activities, are large in number, but the emission reduction bution infrastructure for basic stoves ($5–10 USD), with around 20% of that time devoted to the col- contribution is only around 13%. The small-scale and high import duties, taxes, and transport costs The burning of solid-fuels represent a major health- lection of fuel. activities have the highest share of 54% followed for industrial ICS solutions that are mostly imported risk to Chinese households. The Global Burden of by the large-scale activities. Note that each of the ($25–100 USD)9. Disease Study 2010 estimates that each year about Overall, there is a high potential for cookstoves to activities developed under PoAs are accounted 1.04 million premature deaths can be attributed to become an attractive opportunity for the private according to the individual activities within their There is a growing consensus among regional poli- HAP linked to smoke emitted from solid cooking sector to engage in an impactful mechanism that scope. cymakers on the case for clean cooking energy. fuels.11 The International Energy Agency estimates improves health outcomes while the decreased National cookstove programs are being launched that about 280 million residents— including many amount of time spent on collecting solid-fuels Due to the flexibilities and advantages of PoA and scaled up aggressively in countries like Ethio- poor, rural households—will still depend heavily on generates livelihood opportunities for millions of schemes, a large number of developers adopted pia, Ghana, Malawi, Nigeria, Rwanda, Senegal, and solid-fuels for cooking and heating by 2030. households. However, in order to scale up both the PoA schemes for ICS activities. Around 52% of total Uganda. Biomass ICS distribution is small but grow- supply and demand for cookstoves in India, sup- GS-PoAs are ICS PoAs, which are comprised of ing; fewer than 10 million sub-Saharan households South Asia is characterized by vast intra-regional port is required in four areas: (1) facilitating greater 40% GS CDM-PoAs and 60% GS VERs PoAs. use the basic ICS, 5-7 million use the intermediate partnerships between stakeholders and sharing of 10 2013, World Bank. 2013. China: Accelerating Household Access to Clean Cook- ‘rocket’ ICS or the highly improved charcoal ICS, ing and Heating. East Asia and Pacific Clean Stove Initiative Series. Washington, DC: knowledge within the sector, (2) developing and World Bank. 9 2015, World Bank, State of the global and Improved Cooking Sector 11 WHO, Global Burden of Disease (GBD). 12 2013, GACC, India cookstoves and fuels market assessment. 14 | Gold Standard ICS activities guidebook 15
»» Inner circle represents the number of activities; Outer circle represents the expected annual emission reduction (million tCO2eq)) »» The annual emission reductions are based on ex-ante estimations, it may differ from actual issued units. Fig. 1: Shows the types of projects certified under Gold Standard Fig. 2: Shows the number of Gold Standard cookstove projects certified under the CDM (GS CDM) versus the voluntary market (GS VERS). »» Inner circle represents the number of »» Inner circle represents the number of activities; Outer cirle represents the activities; Outer circle represents the expected annual emission reduction expected annual emission reduction (million tCO2 eq (million tCO2eq)) »» The annual emission reductions are »» The annual emission reductions are based on ex-ante estimations, it may based on ex-ante estimations, it may differ from actual issued units. differ from actual issued units. Fig. 3: Shows Gold Standard cookstove projects represented by scale. Fig 4: Shows the geographical distribution of Gold Standard cookstove projects. 16 | Gold Standard ICS activities guidebook 17
Since the highest number of solid-fuel users reside in Africa, more than 50% of the ICS activities are The fuel savings are in the range of 20–35% and located there, followed by Asia and Latin America. 35–65% for the portable wood and charcoal inter- The ICS projects from Africa also contribute 4.4 mil- mediate ICSs that are the focus of Africa distribu- lion tCO2eq emission reductions annually. How- tion efforts by companies like Envirofit, Ezy Stove, ever, the ICS solutions are highly uneven across EcoZoom, and BURN Manufacturing. Among other African continent, skewing heavily to a handful of factors, the rapid growth of carbon-financed pro- countries. For example, the highest number of the jects across the region in 2012 and 2013 are due projects are located in Kenya, which contributes to significantly enhanced profits for distributors of around 20% of total annual emission reductions in wood rocket stoves. Africa. Region/Country No. of Annual expected emission projects reductions (tCO2e) `Central Africa Cameroon 3 48,799 Congo 5 66,349 Fig 5. Africa: The annual number of expected emission reductions by sub- East Africa Burundi 4 365,118 Comoros 2 2,000 Eritrea 3 24,490 Ethiopia 10 378,690 Kenya 27 786,821 Madagascar 1 168,759 Malawi 7 280,358 Mozambique 2 184,984 Rwanda 26 409,795 Tanzania 4 201,429 Uganda 13 357,286 North Africa Sudan 4 131,494 South Africa Lesotho 2 22,000 South Africa 18 112,999 West Africa Benin 2 10,000 Burkina Faso 14 128,803 Cote d'Ivoire 2 40,000 Ghana 5 380,086 Guinea 1 8,000 Mali 3 105,025 Nigeria 9 169,074 Grand Total 167 4,382,359 18 | Gold Standard ICS activities guidebook 19
Fig 6. Asia: The annual number of expected emission reductions by sub-region Fig 7. Americas: The annual number of expected emission reductions by sub-region Region/Country No. of Annual expected emission Region/Country No. of Annual expected emission projects reductions (tCO2e) projects reductions (tCO2e) East Asia China 10 622,809 Central America El Salvador 6 130,308 Mongolia 12 448,720 Guatemala 2 349,996 Honduras 8 342,268 South Asia Bangladesh 44 390,361 Mexico 2 129,094 India 29 1,252,863 Nicaragua 2 57,780 Nepal 3 39,271 Pakistan 1 30,961 Caribbean Haiti 3 51,227 South East Asia Indonesia 1 1,500 South America Bolivia 3 15,123 Laos 1 75,174 Brazil 2 13,534 Myanmar 4 40,000 Colombia 2 9,977 Peru 5 148,977 Grand Total 105 2,901,659 Grand Total 35 1,248,284 20 | Gold Standard ICS activities guidebook 21
3.0 C ooking will continue to be an inseparable ies highlight how Gold Standard project develop- part of human life, but ensuring that clean ers successfully developed, scaled up, and sus- cooking is practiced in every household tained the operations by alleviating these barriers. remains a mammoth task. According to the World The key to a successful cookstove program is an Bank1, millions will gain access to some form of appropriate business model that facilitates the Results and discussion improved cooking appliance by 2020, however, design, production, sales, marketing, and mainte- 35–45% of the global population will remain vul- nance of cookstoves. The financing for cookstove nerable to the adverse effects that stem from tra- activities includes access to the seed capital for ditional cooking methods. Thus, it is imperative to market research, product design and basic market- carefully consider the barriers that stand in the way ing needs. Establishing the distribution network is Box 3: Clean Cooking Loan Fund of adoption of improved or advanced stoves and essential for developing a successful project4. At identify the key drivers which can potentially scale the consumer level, the prevailing barriers like the up clean cooking solutions. limited ability to pay for higher costs and access to clean cookstove and fuels are commonly citied Three of the most influential organizations in the global The Global Alliance for Clean Cookstoves has kicked- In the recent past, there is a growing momentum at barriers for almost all projects registered with Gold clean cookstove market have announced the creation of off the fund with $290,000 USD. The target is to raise the Clean Cooking Loan Fund (CCLF) which will help lev- additional investments of $300,000 USD to $1,000,000 national and international levels to scale up access Standard. erage private sector finance to scale-up the adoption of USD within 1 year. The fundraising target will be adjusted to cleaner cookstoves and fuels in developing clean cookstoves to billions of people around the globe. based on results from the call for proposals, which will countries. Initiatives such as SE4ALL brought back 3.1.1 It has commonly been observed that carbon help the CCLF determine demand. clean cooking to the international development finance complements other financing options like The GACC, The Gold Standard Foundation and Nexus Carbon for Development have joined forces to create Any project that delivers durable, efficient and clean agenda and successfully raised awareness for the donor funds, private funding, loans, etc. Along this unprecedented fund to mend the gap of commercial cookstoves and/or clean cooking fuels to the base of the need to increase adoption of ICSs and clean fuels in with carbon finance, there are several options to fi- financing for clean cookstoves and fuels that has served pyramid households via a market-based approach is eli- order to address long lasting problems associated nance clean cookstove projects (summarized in the as a strong barrier to entrepreneurs and others to de- gible to apply for a loan from the CCLF. Eligible projects with continued use of traditional cooking methods. table below). The most commonly cited models in- velop a thriving market for these technologies. may use funds from a CCLF loan to cover the following costs: In the last decade, carbon revenue opportunities clude grant funding, upfront sale of carbon credits, The purpose of the CCLF is to provide cost effective proved to be a catalyst in realising clean cookstove micro-finance, and government/national agencies loans to clean cookstove and fuels enterprises to help »» General certification costs, including, but not limited activities on the ground and transforming the ICS subsidies. For instance, Microsol and local partners finance carbon certification costs. to validation, registration, verification and issuance market at commercial level2. Despite challenges in rely on public funding and donation along with car- fees. The CCLF is administered by Nexus Carbon for Develop- the carbon market, carbon financing for improved bon revenue for project implementation and scal- ment, which manages project origination, technical due »» For Gold Standard projects, funds from a CCLF loan and clean cookstoves is booming, with voluntary ing up. Since targeted rural poor households, who may also cover any costs associated with the Local diligence, performance monitoring and financial man- buyers channelling $61 USD million to Gold Stand- are unable to pay in agement, including repayment. In addition, there is a Stakeholder Consultation (“LSC”) or Stakeholder Feedback Round (“SFR”). ard certified offsets from projects that distribute cash, contribute in- kind by providing the “In regions where households Technical Committee, which reviews the final outputs of clean cookstove in 20133. The project develop- the due diligence process, and an Investment Commit- »» Inclusion costs for any Programmes of Activities. ers, including NGOs, donor agencies, international locally-available con- have very limited cash availability tee, which makes the final investment decisions after the full due diligence processes and reviews by the Techni- and national agencies, private investors and stove struction materials, and have no access to micro- cal Committee have been completed. Further details about CCLF available here. manufactures have successfully infused carbon such as adobe, lime, finance facilities, it can be useful revenue into their business models for financing and water, in addi- to value their in-kind contribution. cookstove interventions, aiming for the distribution tion to manual labour of millions of stoves in the coming years. during the cookstove Providing some of the materials construction. After can save production and trans- This section combines insights from the case stud- the successful imple- port costs whereas participating ies and international best practices in the establish- mentation of its first in the stove's construction can ment of cookstove projects. The recommendations activity, Microsol has save labor costs. These contribu- are in the context of cookstove project develop- replicated the model ment using carbon revenue, based on best practic- in other regions of tions should not be neglected by es adopted for successful Gold Standard activities. Peru and installed the project developer and can be over 100,000 stoves substantial in remote regions with 3.1 Financing across the country. difficult access.” However, it is evi- For a carbon cookstove project to be success- denced that only sub- Source: Microsol, Peru ful, the literature suggests that financing is as im- sidized approaches portant as the adoption and sustained use of the face difficulty when donor or public funding dries cookstove. Nevertheless, both challenges depend up. To overcome this barrier, the project developer on key elements involving financing models, start- uses a blend of different financing options. In an- up costs, market research, product development, other instance, Proyecto Mirador has installed over financing for users, outreach and promotion, and 100,000 stoves over the past decade in Honduras after-sales support and monitoring. The case stud- by following a similar financing model as Microsol, but accepts smaller cash contributions along with 1 2015, World Bank, The State of the Global Clean and Improved Cooking Sector 2 2015, Oliver Johnson, Hannah Wanjiru, Cassilde Muhoza, Fiona Lambe, Marie raw materials and labour from end-users. Instituto Jürisoo, Wathanyu Amatayakul and Audrey Chenevoy; From Theory to Practice of Perene’s approach is similar with 90% of costs be Change: Lessons from SNV’s Improved Cookstoves and Fuel Projects in Cambodia, Kenya, Nepal and Rwanda, Stockholm Environment Institute 4 2011, Shrimali, G., Slaski, X., Thurber, M. C. and Zerrif , H. Improved stoves in 3 2015, World Bank, The State of the Global Clean and Improved Cooking India: A study of sustainable business models. Energy Policy, 39(12). 7543–56. Sector DOI:10.1016/j. enpol.2011.07.031. 22 | Gold Standard ICS activities guidebook 23
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