Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives

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Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives
Gold Standard Improved Cookstove

20.04.2016
             Activities Guidebook
             Increasing commitments to clean-cooking initiatives

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Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives
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

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Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives
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.

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Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives
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.

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Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives
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.

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Gold Standard Improved Cookstove Activities Guidebook - Increasing commitments to clean-cooking initiatives
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.

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