Clean cooking options to decrease mortality and mitigate climate change and air pollution
- Yekbun GURGOZ, CCAC
- Noah ELBOT, XacBank (Mongolia)
- Caroline OCHIENG, Stockholm Environment Institute (SEI)
- Thomas THIVILLON, Entrepreneurs du Monde
PRESENTATIONS
Yekbun GURGOZ gave a short introduction to the theme of the session, highlighting the work of the Climate and Clean Air Coalition (CCAC) and contextualising the influence of cooking stoves on air quality and climate change. 3 billion people still cook and heat their homes using solid fuels: wood, crop wastes, charcoal, coal and dung in open fires and leaky stoves. Most are poor, and live in low- and middle-income countries. She mentioned that around 2 million people worldwide die prematurely due to poor air quality stemming from the emission of black carbon or particulate matter. Gurgoz also pointed out that the negative effects of black carbon on climate change could be partly avoided with an increasing use of improved cooking stoves. From this perspective, Gurgoz explained that this session would look at the behavioural challenges and success factors in different cooking stove adaptation programmes.
Caroline OCHIENG started her presentation by noting that the Stockholm Environment Institute (SEI) has several branches worldwide, including one in Nairobi. Subsequently, she explained SEI’s focus on households with the following fact: more than half of the population in developing countries lacks access to modern energy, thus relying on biomass for everyday activities such as cooking. Ochieng also demonstrated that around 70 percent of the population in Sub-Saharan Africa does not have connection to electricity, which will worsen by 2030 due to the region’s population growth. The use of biomass to generate energy has serious impacts on people’s health and on the environment. She mentioned that household air pollution from solid fuels is the number one risk factor for people’s health in Sub-Saharan Africa, and number two in Asia. The effects, as Ochieng explained, go beyond health. Traditional cooking stoves depend on wood fuel, whose collection results in deforestation and long-term scarcity. In addition, health and education services depend on electricity to function.
Ochieng stated that the solution to the problem requires concerted efforts going beyond the energy sector. She noted that the adoption of improved cooking stoves in developing countries is one of the most important solutions to address the impact of biomass use. Nonetheless, it brings a series of behavioural and cultural challenges, such as the adaptation of traditional cooking to the new equipment.
In a specific example from the field, Thomas THIVILLON introduced the Nafa Naana (“easy benefits” in Dioula) programme, implemented in Burkina Faso since 2012. He explained that almost 90 percent of the Burkinabé households rely on wood fuel for cooking, and more than 100,000 hectares of forests are cut down annually. In this context, the mission of Nafa Naana is to make clean and affordable energy products available to the poorest households. Thivillon said that this is done by selecting a range of lighting and cooking products, the latter including wood, gas (LPG) and charcoal stoves. Nonetheless, he noted that Nafa Naana is in the process of introducing more advanced, but affordable, wood and LPG stoves. These products rely on an international standard set up by the Global Alliance for Improved Cooking Stoves. Thivillon further noted that Nafa Naana bridges the gap between manufacturers of cooking stoves and distributors. He also called attention to Nafa Naana’s role in conducting market research to collect consumer information, arranging the imports of products, carrying out marketing campaigns and providing financial services. Nafa Naana pays 70 percent of the products upfront to manufacturers to address their working capital challenges, and it also provides distributors with deferred payments. Thivillon also explained the structure of the financial services provided to microfranchised retailers, who receive a 3-month payment term with a 20-30 percent initial payment. Regarding key accounts such as associations and federations, a payment facility is also provided by Nafa Naana, so that they can re-sell the product to their members with a payment plan. Thivillon revealed that nearly 30,000 products have been sold since 2012, representing a disbursement for payment plans of around EUR 375,000. In terms of impact, he estimated that the programme has helped save nearly 52,000 tonnes of wood, avoided the emission of 111,300 tonnes of CO2 and saved EUR 3 million in fuel purchases since 2010.
Noah ELBOT briefly introduced XacBank and emphasized the bank’s strict triple bottom line policy. He contextualised the challenge presented by Mongolia’s natural disaster: the “dzud”, which causes a lot of people to lose their livelihoods in the countryside and move to the city. The migrant population is mostly accommodated in Ulaanbaatar’s “ger” area in nomadic homes which are not connected to the heating grid. As a result, the population resorts to traditional coal stoves, thus creating a thick layer of black smoke during the cold winters. Elbot specified that the black smoke over the city greatly exceeds the WHO’s standards. He also explained that the population in the “ger” area spends up to 40 percent of their winter income on fuel, also representing a financial burden. In order to address this issue, the XacBank and its institutional partners joined forces in 2009 to make a quick impact through an eco-product programme, establishing distribution centres in the “ger” districts and selling World Bank-tested stoves and insulation tools. He explained that the programme subsidized up to 80 percent of the stove and generated carbon credits. Elbot also highlighted that the stove is a culturally important piece in the household, which resulted in a lot of marketing efforts towards convincing the local population to replace it. In the end, the programme reached a successful penetration rate of 70-80 percent in the “ger” areas.
DISCUSSION
A member of the audience claimed that access to gas in rural areas is very difficult, and wondered whether Nafa Naana faced a similar challenge regarding LPG stoves. Thivillon clarified that the gas infrastructure in Burkina Faso is not bad, and that the programme also provides fuel re-fills. In addition, the fuel is subsidised by the government. Gurgoz expressed that it is important to move away from subsidised rates, since co-financing adds more value and sense of ownership to the product. She then invited the panellists to comment on the success factors of their programmes.
Elbot mentioned that some of the strong points of XacBank’s eco-product programme were its city approach and strong institutional partnerships, which created a solid business case. Ochieng commented that success factors will vary per context. She mentioned that, in the case of rural Kenya, the product has to be paid for upfront, and that the stove has to address real needs; the user cannot keep on alternating between the traditional and the improved stove. Thivillon agreed that the products are still failing to incorporate some of the benefits which users are looking for and to go beyond the issue of emissions.
In a question related to the involvement of MFIs in Nafa Naana, Thivillon mentioned that the products are sufficiently affordable, and require a type of technical skill which MFIs do not have. In addition, he clarified that this is not a highly profitable business. A member of the audience agreed that MFIs are not good at promoting the product, but can still be involved as a loan provider.
To conclude the session, Gurgoz and Elbot summarised the ideal configuration for the implementation of improved cooking stove programmes consists of: 1) ensuring availability of alternative revenue streams; 2) making sure of adaptation to consumer needs; 3) providing the right quality and affordability; 4) being able to rely on availability of fuel in the local market; 5) securing seed funding and a conducive regulatory framework; and 6) moving away from subsidies with a commercial approach.