Clean Cooking 2

2012 Accenture. All rights reserved 1 2012 Accenture. All rights reserved Accenture, its logo, and High Performance Delivered are trademarks of Accenture.

Global Alliance for Clean Cookstoves Ghana Market Assessment

Intervention Options

Accenture Development Partnerships

April 2012

2012 Accenture. All rights reserved 2

Introduction

This Market Assessment was conducted by Accenture Development Partnerships (ADP), the not-for-profit arm of the global management consultancy, Accenture, on behalf of the Global Alliance for Clean Cookstoves (the Alliance).

It is intended to provide a high level snapshot of the sector that can then be used in conjunction with a number of research papers, consumer surveys and other sources (most published on the Alliances website) to enhance sector market understanding and help the Alliance decide which countries and regions to prioritize.

It is one of sixteen such assessments completed by the Alliance to:

- Enhance sector market intelligence and knowledge.; and

- Contribute to a process leading to the Alliance deciding which regions/countries it will prioritize.

Full slate of market assessments include studies in: Bangladesh, Brazil, Colombia, East Timor, Ethiopia, Ghana, Indonesia, Kenya, Mexico, Nigeria, Peru, Rwanda, South Africa, Tanzania, Uganda and Vietnam.

Each assessment has two parts:

- Sector Mapping an objective mapping of the sector. - Intervention Options suggestions for removing the many barriers that currently prevent the creation of a

thriving market for clean cooking solutions.

In each Alliance study a combination of ADP and local consultants spent 4-6 weeks in country conducting a combination of primary (in-depth interviews) and secondary research. They used the same Market Assessment

Toolkit for each country so that comparisons can be made. The Toolkit is available free of charge to all organizations wishing to use it in other countries.

The Alliance wishes to acknowledge the generous support of the following donors for the market assessments: Barr Foundation, Dow Corning Corporation, Shell Corporation, Shell Foundation, and the

governments of Canada, Finland, and Spain.

This market assessment was produced by Accenture Development Partnerships (ADP) on behalf of the Alliance. The findings, interpretations,

and conclusions expressed in this work do not necessarily reflect the views of the Global Alliance for Clean Cookstoves or its partners.

The Alliance does not guarantee the accuracy of the data.


Agenda Executive Summary

Executive Summary


Roadmap

Appendix

Conclusion

Project Approach and Background


As a result of the Ghana cookstove market assessment, 23 intervention options have been identified.

There are 12 options in Fostering an Enabling Environment and 11 options in Enhancing Demand and

Strengthening Supply.

Intervention Options Executive Summary Executive Summary

Fostering an Enabling

Environment Intervention

Options (12) 1. Regulation and Testing (2)

2. Awareness (2)

3. Support and Funding (5)

4. Knowledge Capital and Transfer

(3)

Enhancing Demand and

Strengthening Supply

Intervention Options (11) 1. Design (2)

2. Materials/Fuel (3)

3. Production (2)

4. Sales and Distribution (4)


Sector Mapping Executive Summary (1/2) Executive Summary

In West Africa, Ghana, with a population of 24 million, stands out as having political stability and a vibrant democracy for

almost two decades. Its economy, too, is notable; Ghana has moved from being a least developed country to a middle

income country. While the situation is hopeful, 28.5% of the population remains below the national poverty line.

Like the country itself, the cookstove ecosystem is promising. Ghana is home to many improved cookstove producers that

have each scaled to tens of thousands of cookstoves annually (and in one case to 100,000), and new entrants, such as

Envirofit and CookClean, are regularly entering the market. The improved cookstove sector started in the 1990s with the

Ministry of Energy's Ahibenso coalpot program. This program had limited impact, however, because production stopped

when the limited government funding ran out. Starting in 2002, EnterpriseWorks/VITA, a division of Relief International

(RI/EW) developed a sustainable production and supply chain for Gyapa stoves, which are more efficient that the traditional coalpot. Initially trained by the RI/EW program, two companies broke away in 2007 and continue to operate today: Toyola

Energy and Man & Man Enterprise, with Toyola having about 2/3 and Man & Man with 1/3, respectively, of Relief

International/EnterpriseWorks' production capacity. Even with their combined throughput, these improved stoves only

account for about 5% of the total cookstove market today.

Since the aforementioned Ahibenso coalpot program, the government's role in cookstoves has primarily been through its

LPG subsidy. Originally intended to promote household LPG use, the subsidy has had the unintended effect of reducing fuel

costs for commercial vehicles, usually taxis, instead. LPG supply has also been problematic, with frequent shortages.

Furthermore, LPG is not easily accessible in rural areas. The government is exploring options to reduce the subsidy and to

redirect funds to subsidizing LPG stoves and cylinders for the poor instead. In addition, the Energy Commission is working

with KITE, a local development organization and energy think tank, to pilot renewable charcoal woodlots. The Energy

Commission seeks to expand its activities in charcoal to help increase the regulation and efficiency of the sector.

Specific findings, organized by Macro Environment, Social and Environmental Impact, Consumers, Cookstove Industry, and

Financing are summarized on the following page.


Sector Mapping Executive Summary (2/2) Executive Summary

Findings

Macro

Environment

Ghana has been a stable country with a representative democracy since 1993. Environmentally, deforestation is the largest issue

facing the country. The government understands that action must be taken to alleviate the problem, and following the

passage of its landmark Renewable Energy Act, is drafting a bioenergy policy which addresses woodfuel, biofuel, and

biomass use in Ghana. Additionally, the government seeks to continue its policy of woodfuel substitution for LPG, which has had

mixed results in the past. Generally, the governments limited funds constrain its scope of action.

Social and

Environment

al Impact

Over 80% of households use biomass as their primary cooking fuel. This fact, coupled with rapid deforestation--over 70% of

Ghana's forest cover has been eliminated--demonstrates the urgency of the situation. Beyond biomass, LPG is subsidized, but

much of the subsidy has gone to commercial vehicle owners instead of households as commercial vehicle owners have retrofitted

their vehicles to run on LPG, which is cheaper than petrol. The government is planning to phase out the subsidy. Overall, Ghana

is well-positioned to take action in cookstoves because of the strength of its civil society, local enterprise and

awareness of gender equality. Many NGOs, including women's group, operate in Ghana, helping to make civil society strong. In

terms of equality between men and women, women are in position of powerout of the 23 ministries, four are headed by women. However, men still hold most seats in parliament (90+%). In general society, women are well represented in most professions,

especially in services and sales, where they dominate (20% to 6%). In the cookstove sector, women are very prominent. They

own the retail shops and are sales agents. At one major cookstove company, women represent 95% of the sales agents.

Consumers

Due to costs, large segments of the population will continue to use biomass in the foreseeable future. In northern Ghana

and rural areas, basic wood stoves, such as three-stone fires and mud stoves, are most common. The 48% of the population that

uses woodfuel is completely underserved as there are no at scale cookstove programs for woodstoves. Yam, cassava, plantain,

beans, and maize are staple crops throughout Ghana and are dishes are typically cooked in pots with rounded bottoms. Because

of the homogeneity in cooking, the most salient consideration in stove design is the fuel used.

Cookstove

Industry

Ghanaians overwhelmingly continue to use traditional coalpots. Improved stoves, such as the Gyapa and LPG stoves, are in use and well-accepted. On the plus side, Ghana has a robust low-tech cookstove sector which is self-sustaining due to

a value chain which allows for manufacturing, distribution, and retailing actors to profit at each step of the way. But the

most common improved stove, the Gyapa stove, while more efficient, does not drive significant reductions in emissions. This in part stems from the lack of stove regulation, standards, and testing.

Financing

Financing is the major roadblock for producers to increase capacity and for consumers to purchase clean cookstoves.

Carbon financing in Ghana is reasonably advanced, with two registered Gold Standard projects, and several more in the pipeline.

Private capital is extremely limited thoughcommercial loans can have interest rates of as high as 30% and loans from MFIs are very expensive as well.


Ghanas cookstove ecosystem would benefit from all 23 interventions identified in this report. However, there are four intervention areas that have the most significant impact.

1. Develop country-specific cookstove standards and a roadmap for improvement: More stoves without

adequate quality control would be counterproductive. ICS in Ghana, while more efficient, are not

sufficiently clean. Standards are critical for driving increased cleanliness.

2. Increase awareness of clean cookstoves, especially on the health impacts: Across Ghana, from end-

users to businesses to government, there is a lack of understanding of the deleterious effects of

household generated air pollution. A concerted marketing campaign is required to raise the level of

awareness, which will in turn drive clean cookstove adoption.

3. Increase access to financing: On both the demand and supply side, interventions here would help drive

rapid adoption of cookstoves. Lack of financing has constrained producers growth. For end-users, financing will be critical, especially as they move towards cleaner and more expensive technologies.

4. Design, produce, and distribute woodstoves, particularly in the northern regions: 48% of the total

population, mostly the poor and rural populations, primarily depend on dirty-burning woodfuel currently

do not have any cookstove and fuel programs serving them. This is a major gap that needs to be

addressed.

Intervention Options Executive Summary


Agenda Project Approach and Background

Executive Summary


Roadmap

Appendix

Conclusion



A structured approach first assessed the market for a cookstove industry and then used the sector

mapping output to develop the intervention options and Relative Roadmap.

Project Approach Project Approach and Background

Sector Mapping

Sector Map

Interventional Options

And

Relative Roadmap

Identify

Intervention

Themes

Develop

Relative Roadmap

Develop

Recommendations

Strategy Development

Indoor Air Pollution

Cookstove Consumer

Macro Environment

Cookstove Industry

Carbon Finance

Focus of This Deliverable


A three-pronged strategy has been developed to spur

the clean cookstoves market

Strengthen

Supply

Foster an Enabling

Environment

Enhance

Demand

Finance clean cookstoves and fuels at scale

Access carbon finance

Build an inclusive value chain for clean cookstoves and fuels

Gather better market intelligence

Ensure access for vulnerable populations (humanitarian)

Understand and motivate the user as a customer

Reach the last mile

Finance the purchase of clean cookstoves and fuels

Develop better cookstove technologies and a broader

menu of options

Promote international standards and rigorous testing protocols, locally and globally

Champion the sector to build awareness

Further document the evidence base (health, climate, and gender)

Engage national and local stakeholders

Develop credible monitoring and evaluation systems



The Interventions are analyzed according to their

impact to the three-pronged strategy Project Approach and Background

Enhancing Demand and Strengthening

Supply: Cookstoves Value Chain

Fostering an Enabling Environment

Macro-Environment: Not in Scope for Intervention Options


The Case for Action

The Government of Ghana is aware of the effects of cookstoves and expects to invest heavily in the

energy sector over the next 8 years.

- The Case for Action -

There is a high interest in

moving towards clean

energy sources to meet the

growing energy needs in

Ghana.

Reliance on woodfuels as an

energy source is depleting

Ghana's forests, forest cover

has been reduce 72% since

1972.

In Ghana, 6500+ deaths are

attributed to the effects of IAP

annually.

The use of biomass fuels for

cooking is contributing

significantly to the

deforestation problem in

Ghana.

The use of clean fuels like

LPG will reduce the

dependence on biomass as

a fuel source.

Reliance on biomass fuels

and traditional stoves

negatively contribute to the

health of women and

children.

In rural Ghana and for the

poor, LPG is not accessible

or it is too expensive; these

segments will need ICS for a

long time in the future.

Ghanas Renewable Energy Act of 2011 is expected to

draw $1 Billion USD in

investment over the next 8

years.

NGOs and private organizations across the

sector have mobilized on the

issue of IAP and are open to

sector wide collaboration to

address the issue.

Whats Happening? So What? Why Now?



Agenda Intervention Options

Executive Summary


Roadmap

Appendix

Conclusion



The market today

The Ghanaian cookstove market is well developed with

strong players across all sectors. Although the

government launched the Ahibenso Stove in the 1980s,

the sector started to gather momentum in 2002 when

Enterprise Works launched the Gyapa Cookstoves

Program, which still remains active today. The program

trains local entrepreneurs, who have now started

successful spin off cookstove programs. The sector is

growing rapidly, with several experienced producers

looking to expand their market share or enter the market

from other geographies.

Ghana has experienced considerable economic growth,

driven by the resources sector, and is investing in health,

infrastructure and energy security/stabilization. The

government is very supportive of ICS sector in terms of

implementation projects and key policies e.g. Renewable

Energy Act 2011, Bioenergy Policy (draft). Several

government agencies are involved in the ICS arena from

carbon finance support via the DNA to the scientific

research carried out at CSIR, although key gaps remain.

The most notable issues are the absence of an

independent testing facility and an associated lack of

regulations and standards for stove producers. Stove

testing is currently executed in-house by manufacturers

with a plethora of associated issues, including lack of

impartiality and lack of consistency with regard to training

and execution. The necessary skills and equipment are

not available to establish the required facility at present,

although efficiency testing could potentially be

implemented quicker and at lower cost than emissions

testing. The lack of standards and regulations also

impedes ICS producers efforts to differentiate their stoves (with many producers claiming to produce clean stoves) and impedes consumers, investors and donors from

making informed decisions.

Awareness is also an issue at the broader level, with the

general population largely unaware of the numerous

potential improvements resulting from ICS despite previous attempts to elevate the issue in the public

consciousness. Whilst an issue across the board,

informed households tend to be more aware of the

economic advantages as opposed to the IAP impact on

health.

Fostering an Enabling Environment Intervention Options

Typical market place selling traditional and

improved cookstoves


Efforts to raise awareness are hindered by a lack of access

to critical knowledge capital. The issue is three-fold; there

is a gap in the research performed to date, research is

executed by parties within the sector and therefore might

lack subjectivity/quality, and there is a lack of open

information between organizations leading to a duplication

of effort and lost economies. The major gap is the lack of

clarity around health consequences of current cooking

practices.

Another issue within the Ghanaian market is unfavorable

financing conditions, primarily impacting the private sector.

The key issue is limited/costly access to traditional capital

in the market as a whole, compounded by the higher risk-

adjusted interest rate for stove producers, thus reducing

the ability of SMEs to scale up. Implementers also suffer

from high import tariffs on imported stoves/components.

The move towards clean fuels could also be accelerated

through stimulated demand if the duty were reduced.

Although carbon financing is being used within the sector

(4 GS projects registered/listed and 1 CDM project within

the West African Regional PoA), barriers remain, and

Ghana will lose its LDC status at the end of 2012. This means no additional CDM credit generating projects can

be created.

Unless carbon financing starts to play a larger role in the

sector, access to traditional finance is critical for

implementers to scale up in the short term.

Deforestation remains a key driver, although additional

research regarding the health implications of IAP will most

likely raise the priority even further, especially within

government.

However, despite these gaps, the momentum within the

sector and the extensive support within the academic,

private, public and NGO sectors, combined with the long

term market for improved biomass cookstoves, create a

favorable market overall. The migration of Ghanaian

consumers up the energy ladder is a top priority for the

Government, hence the focus on the promotion of clean

energy and reduction of the dependence on biomass.


Stove production within a rural community


Building the market for the future

The intervention options designed to foster an enabling

environment focus on four areas: Regulation & Testing;

Awareness; Support & Funding; Knowledge Capital &

Transfer.

An impartial stove testing facility is crucial for transparency

across the market, enabling informed purchasing decisions

and building consumer confidence. The urgency warrants

using testing centers in nearby countries if a national

facility can not be established within an acceptable

timeframe. A precedent for standards exists, with the

government having successfully enforced standards for

household appliances and regulated market standards for

products such as refrigerators. Whilst efficiency is a quick

win, the facility will need to include the more complex

emissions testing to add real value to the sector and

address the health impacts.

A suite of tools is required to address the lack of consumer

awareness within Ghana. There is a clear distinction

between rural and urban areas, with radio and TV being

the key mediums respectively. Internet penetration is

limited at the household level, especially within the poorest,

most vulnerable areas of Ghana and is of limited value.

Whilst implementers are key to raising awareness, the

government should also build on previous successful

national campaigns e.g. HIV/AIDs awareness. Working

alongside established institutions such as local NGOs,

religious groups and schools through initiatives such as the

school feeding program is a key method of creating

awareness, educating communities, and increasing

engagement. These relationships are key to changing

cooking habits from the top down.

To accelerate dissemination, increased access to capital is

required. Encouraging favorable government policies with

regard to clean technology/fuel would have a profound

impact on the sectors ability to both scale in country as well as profitably import stoves and components.

Successful government matching schemes can also be

replicated within the sector to increase capital. Improved

access for private implementers and microfinance for

consumers will have a critically positive impact on current

and future initiatives.

Improved access to carbon financing by establishing a

regional PoA, and hence reducing the entry barriers, will

also enable companies to invest in awareness campaigns,

marketing, R&D and M&E to further advance the sector.

Creating a more collaborative environment within Ghana is

essential, especially with regard to knowledge capital.

Additional research, primarily focused on health/

environmental impacts, deforestation, carbon financing and

LPG demand will greatly benefit. Research needs to be

executed transparently, with findings easily accessible to

all relevant domestic and international parties.



Foster an Enabling Environment

Support & Funding

Government INGOs and Associations Local NGOs and

Associations

Private Sector Academics

Monitoring &

Evaluation

Monitoring implementations

Tracking and Quantifying Success

Awareness

Consumer Awareness Stakeholder Awareness

Government Private Sector

Regulation & Testing

Indoor Air Quality Standards

Cookstove Standards Fuel Standards Standard Enforcement


KEY: ~

Through gaps identified in the Enabling Environment, Intervention options will focus on Support &

Funding, Regulation & Testing, Awareness, and Knowledge Capital & Transfer.

Health Environment

Gender Cookstove-Specific

Knowledge Capital & Transfer:

~

Advanced/ Favorable Has Potential/ Neutral None/ Unfavorable Focus Area

~

~

~

~

~ ~

~

~


There are no official cookstove standards and no independent body that verifies claims in the

cookstove sector, as a result there is limited impetus to raise cookstove quality and cleanliness.

Regulation and Testing Intervention Options

There are many stove producers in Ghana, but there is no independent verification of claims in the cookstove

market. Also, there is limited incentive for existing cookstove producers to improve the cleanliness of their products

because it is difficult to compare different brands of cookstoves.

Situation

Cookstove producers conduct their own testing

but these claims are hard to

verify

Ghana has many cookstove producers, but they are not

necessarily clean

cookstove producers

The Global Alliance is well positioned to be an outside

and trusted party for

standards setting,

particularly because of its

role in international

standards role

Rationale Intervention Options

Involved

Parties

Likelihood

of Success Budget

Estimated

Time

1. Create a stove

testing center over

the long term

Alliance,

Academic

Institution,

Gov Agency,

Testing/Moni

toring INGO

Medium Medium 1 year

2. Develop

common

standards and

roadmap for

improvement over

time

Ghana

Alliance for

Clean

Cookstoves,

Ghanaian

Standards

Authority,

Academic

Institution

Medium Small 1 year

Source: Stakeholder interviews


Testing and standards setting are the most impactful interventions for raising the bar for cookstove

quality in Ghana.

Regulation and Testing Intervention Options

- Actions - - Intervention Options- - Outcomes-

1. Create a stove

testing center over

the long term

In the short term, stove testing should be done outside of country where the necessary equipment, funding, and

expertise exists as Ghana is currently lacking all three

Over the long term, work with stove testing and standards experts to create an independent stove testing facility (with

testing equipment, knowledge of protocols, appropriate

equipment) in Ghana*

Stove testing center could be housed in CSIR-IIR, as other households appliances, such as refrigerators, are tested

there1

Report findings in a timely manner on the Alliances website so that donors, producers, and the Alliance can

understand and compare cookstove performance in Ghana

and globally

Increased transparency of cookstove performance

Steady cookstove quality improvements

Accuracy of measurements from out-of-country

experts in the short term

Organic development of testing ability in-country in

the long term

Because stove cleanliness is low and can still cause poor health results in Ghana, work with local stakeholders to

develop common standards that are in sync with

international standards

Develop rating system in coordination with international bodies such as ISO, the Global Alliance, and the World

Bank, that is comprised of reduction in emissions and

exposure and increase in fuel efficiency

Efficiency standards are straightforwardit will be the emissions and exposure standards that will be the most

challenging as they will require existing Ghanaian

cookstove manufacturers to make significant

improvements

To communicate and enforce standards, testing results should be posted online publically and spot checks

conducted by the Ghanaian Standards Authority

Imprint stoves with quality seals to signal that it is a clean cookstove

Create roadmap and implementation plan to raise standards over time

Commonly agreed upon standards of what

constitutes a clean cookstove

Steady cookstove quality improvements

Coordination with international standards

2. Develop common

standards and

roadmap for

improvement over

time

*Some stakeholders have suggested that it may make more sense to designate independent testing centers at an out-of-country location elsewhere in Africa where there

is greater funding and/or technical expertise. 1: Stakeholder interview with Dr. Essel Ben Hagan, former Director of CSIR-IIR


Although cookstoves have a huge impact on Ghanaians, there is limited awareness of the

environmental and health impacts.

Awareness Intervention Options

There is little public awareness surrounding efficient and clean cookstoves. Although the public intuitively

understands the challenges with smoke, they are not aware of the associated economic impact and specific health

problems.

Situation

While there is some awareness of efficient

stoves due to the USAID

funded campaigns almost a

decade ago, that

awareness has decreased

over time

Furthermore, people are more in tune with the

economic benefits of

improved stoves versus the

health benefits of clean

cookstoves

There is little knowledge of the health impacts of smoke

and emissions


Involved

Parties

Likelihood

of Success Budget

Estimated

Time

3. Pilot mass

media marketing

campaigns in test

markets

Advertising

Agency, Alliance,

Government,

Stove

Manufacturers

Large

Medium

(pilot)

Large

(scale-up)

6 mth to 1

year

4. Integrate HAP

awareness in

educational,

financial, and

religious

institutions

Ministry of

Education, Local

Governments,

Religious Groups,

Alliance, NGOs,

Financial

Institutions

Medium Medium 1 to 2

years

Source: Stakeholder and end-user interviews


By working with multiple parties, from the end-consumer to civil society to government, awareness

could be raised more effectively and rapidly.



3. Pilot mass media

marketing

campaigns in test

markets

Make sure all campaigns emphasize both economic and especially health benefits, as

current producers have not focused on

health benefits

If advertising on television, the reach is far greater in urban areas (56% households as

of 2006) than rural areas (16%)

If advertising on radio, the reach is slightly greater in rural areas (56% of households)

than urban areas (42%)

Online advertising would likely be ineffective as only 2% of households had desktop

computers and only 0.5% had laptops as of

2006

Create an advertising matching fund for existing cookstove players so that for each

Cedi they put in, the donor and/or the

Alliance will match by a certain amount

Work with an ad agency to test marketing campaigns in select markets

Scale up successful marketing campaigns regionally or nationally

Coordinate with cookstove producers to ensure adequate supply to meet demand

Separately work with government ministries for public interest campaigns on cookstoves

(similar to what they are doing for HIV/AIDS)

After scale up, significantly increased demand for

improved and clean cookstoves

Efficient marketing spend

Through the matching fund, ensure that existing

cookstove producers have skin in the game

Increased awareness at all levels of society, from

end-users to producers to government

Source: Ghana Statistical Service: Ghana Living Standards Survey 5


By working with multiple parties, from the end-consumer to civil society to government, awareness

could be raised more effectively and rapidly.



Partner with the Ministry of Education to introduce curricula on clean cookstoves to

elementary

Hold workshops with religious leaders to educate them on the health impacts of clean

cookstoves; convince religious leaders to adopt

clean cookstove themselves

Tie with Ghana School Feeding Program Leverage the existing and well-developed

networks of rural banks and MFIs and use

those networks to spread awareness about

clean cookstoves1

Increased demand for improved and clean

cookstoves

Sustainable and semi-permanent promotion of

clean cookstoves

Increased uptake of clean cookstove in religious

congregations

4. Integrate HAP

awareness in

educational,

financial, and

religious

institutions

1: GHAMFIN interview


Support and Funding is the key to increasing access to capital and in turn scaling up existing clean

cookstove programs.

Support and Funding Intervention Options

On the supply side, cookstove producers are having challenges expanding their businesses because access to

funding is very limited or prohibitively expensive.

Situation

Cookstove producers in Ghana require additional capital in

order to scale-up and expand

their businesses

Carbon finance is critical to make cookstove programs

viable and sustainable over the

long term

Government has demonstrated interest in the cookstove sector

but has not committed major

funds towards the issue

Duties on cookstoves are high (about 20-30%)

Cost of capital is extremely high, 20+% per annum

Risk free rate is very high (over 10%)

Risk premiums for cookstove SMEs are very high, an

additional 10-20%


Involved Parties

Likelihood of

Success Budget

Estimated

Time

5. Have the Ghana Alliance

for Clean Cookstoves as a

collective voice when

working with other

stakeholders

Cookstove Stakeholders,

Alliance Large Small 6mth- 1 year

6. Fund the creation of an

open regional carbon POA

Donor, Alliance, Carbon

Project Developer, Ministry

of Environment, Science,

and Technology

Large Medium 1-2 years

7. Government funding

matching program

Ministry of Energy, Energy

Commission, Donor,

Alliance

Medium Medium

to Large 1-2 years

8. Guarantee loans to

cookstove SMEs

Donor, Local Banks,

SMEs Medium Large 6mth-1year

9. Work with government to

reduce duties on imported

cookstoves, fuel, and raw

materials

Ghana Customs, Excise,

and Prevention Services,

Ghana Alliance for Clean

Cookstoves, Cookstove

Producers, CSIR

Medium Small 1 year



Interventions in Support and Funding potentially create the largest impact in the clean cookstove

market in Ghana.

Support and Funding Intervention Options


5. Have the Ghana

Alliance for Clean

Cookstoves as a

collective voice

when working with

other stakeholders

This organizations creation, led by Relief International and SNV is already in progress

Create a common platform and communicate the platform to the government to quickly spur

government action, such as the reduction of

duties for imported cookstoves

Interface with international standards organizations to help develop and enforce

standards for the Ghanaian context, raising

the bar for the mostly non-clean cookstove

currently in market

Collectively bargain with financial institutions to reduce financing costsfor example, promise all cookstove business with one back

in exchange for more favorable loan terms

Single point of contact for cookstoves in Ghana

Ability to advocate with a bigger voice as one

collective group versus fragmented individuals

Increased professionalism of the industry in the

eyes of other stakeholders, such as government

Ghana does not currently have a regional POA so this would help jumpstart critical carbon

financing for new entrants. Although others,

such as Envirofit, are working on regional

POAs, these are not yet operational and are

likely closed to other stove producers

Partner with a carbon project developer to create an open plug and play Gold Standard

POA (since CDM is going away with Ghanas loss of LDC status at the end of 2012) that

smaller producers could work with in order to

access carbon credits

Provide administrative support for organizations that wish to plug into POA

Lowered barriers to entry for carbon financing,

allowing smaller players to enter and stay in the

market

This model can be replicated in other regions

worldwide

6. Fund the creation

of an open regional

carbon POA




market in Ghana.

Support and Funding (continued) Intervention Options


Similar matching programs have been implemented in the past; for example in the Social Investment

Fund

Tie clean cookstoves to energy, health, womens empowerment, and economic development/poverty

reduction policies

Partner with the government to match donor funds For example, for every GHC the Ghanaian

government allocates towards cookstoves and fuel,

donors would do an 100% match

Fund can go into the Energy Commissions GREEN Fund, which is dedicated to renewable energies,

including biomass

Investigate if additional funds can be leveraged

Encourage government commitment to the

cookstove sector

Multiplier effect on funds committed

7. Government

funding matching

program

A similar loan guarantee program has already existed in Ghana because of the UNEP AREED

programthis model can be replicated for cookstoves specifically

To address the high risk free rate (over 10%), direct international funds should be loaned at a lower rate

To address the high risk premium for cookstove SMEs, which causes end interest rates to be

upwards of 20%, have a loan guarantee to lower

that rate

Identify donors who are willing to partner with local banks in order to provide loan guarantees

Ask donors to subsidize loans Local banks would lend at lower rates as long as

donors agreed to cover potential loses to a certain

point

Increased access to capital because banks will

lend to cookstove SMEs at lower rates

Greater cookstove production at cheaper cost

8. Guarantee loans

to cookstove SMEs




market in Ghana.

Support and Funding (continued) Intervention Options


Work with the government to reduce duties on clean cookstoves, clean fuels, and parts

Create a new classification number and an associated tariff for clean cookstoves

Specifically work with CSIR and the Ghana Customs, Excise, and Prevention Services

Higher tech and high quality cookstove can be

imported from abroad

Potentially cheaper cookstoves imported from

abroad

Lower cookstove prices so that poor people can

afford them

9. Work with

government to reduce

duties on imported

cookstoves, fuel, and

raw materials


Knowledge of the cookstove sector in Ghana is limited because information is not shared or does not

exist.

Knowledge Capital & Transfer Intervention Options

Cookstove producers are each conducting their own

studies on the Ghanaian

Cookstove sector, replicating

work that previous

organizations have already

done

There is a lack of transparency regarding the

carbon financing process

Studies on cookstove environmental and health

impact are not readily

available, either because

they are spread across

disparate sources or

because studies have not

been done


Involved

Parties

Likelihood

of Success Budget

Estimated

Time

10. Create a

country-specific

portal

Ghana

stakeholders,

Alliance

Large Small 3 months

11. Create a

carbon finance

section within

country portal

Alliance,

Carbon

Finance Orgs,

Ghanaian

stakeholders,

government

Large Small 3 months

12. Collect and

commission

health and

environmental

studies

Academic

Institutions,

Alliance

Large Medium 1-3 years

There are redundant research and analysis efforts because knowledge is not widely shared between organizations.

In carbon financing and health and environmental studies, many gaps in knowledge exist.

Situation


The Alliance can play a major role in compiling and creating knowledge capital and promoting its

dissemination.

Knowledge Capital & Transfer Intervention Options


10. Create a

country-specific

portal

Create an Alliance-approved repository of relevant Ghana information (consumer behavior,

preferences, design, etc.)

Specifically have knowledge about what wood stoves would be user accepted in the underserved

rural and northern regions

Review with local stakeholders to ensure accuracy Make this part of the Alliances overall knowledge

hub

Pay stakeholders, as necessary, in order to access and disseminate proprietary information

Commission additional studies, as necessary, to fill gaps (see the 3rd intervention in this section)

Reduced redundancy of effort

More accurate information

Easier for new stakeholders (e.g. new donors) to

understand Ghanas cookstove sector

Create a carbon finance portal for organizations in country to have easy access to information required

to setup a carbon finance program

Create a detailed step-by-step toolkit on how to receive carbon financing in Ghana

Encourage organizations to join the regional plug-and-play POA from the Support and Funding sector

Coordinate with the EPA and Ministry of Environment, Science, and Technology to make sure government

procedures are accurately reflected online

Lower barriers to accessing carbon financing

Supports the use of the plug-and-play carbon POA

Reduce redundant POAs and achieve economies

of scale

11. Create a carbon

finance section

within country

portal


The Alliance can play a major role in compiling and creating knowledge capital and promoting its

dissemination.

Knowledge Capital & Transfer (continued) Intervention Options


Although there are health studies in progress, there are no published health studies on

cookstoves in Ghana

There are existing studies on the charcoal industry, worked on by Dr. Essel Ben Hagan,

which can be posted online

Work with Ghanaian stakeholders to collect other existing studies and reports

Understand where gaps exist Commission additional studies, as appropriate,

to fill gaps

Suggested studies: Biochar feasibility from crop waste Rate of deforestation LPG consumer study on price and

supply tipping point for adoption

Improved and clean wood stove adoption strategy

Charcoal producer licensing and regulation

Eased knowledge sharing amongst stakeholders

Fill knowledge gaps

Shortened planning time so that organizations can

pilot and take action sooner

12. Collect and

commission health

and environmental

studies



The market today

Traditional cooking methods, using open fires, mud stoves

or coal pots remain extremely popular within Ghana,

especially in rural areas primarily due to cost and fuel accessibility. The 48% of the population using wood as the

primary fuel have very limited options for ICS, with

improved wood stoves offering minimal efficiency savings and very limited emission reductions.

Locally produced charcoal stoves, similar to the Kenya

Ceramic Jiko, have been well received within urban and

peri-urban areas. While the stoves offer considerable

efficiency improvements, the reduction in emissions is

difficult to verify. These 3 ICSs burn charcoal and are

hence unsuitable for the poorest, most remote and often

most vulnerable families in Ghana.

The majority of stoves last a relatively long time, 3+ years,

resulting in a low stove turnover for most households. As

such, it is important that stove standards are introduced

and consumers are educated as soon as possible.

Current costs and transport complications for LPG has

meant that although the stoves have been widely accepted

by communities, they remain inaccessible for a large

number of Ghanaians. As such, in the short term, improved

biomass stoves are critical to reduce deforestation and

improve household health in rural areas.

Most stoves are small and portable in design, with families

typically cooking in multiple round bottomed pots of varying

size. As such, most families typically own more than one

stove and prefer flexibility with regard to suitable pot size.

Although meals such as stews can require hours of

cooking and hence exposure to IAP, a large number of

households cook outdoors where possible, using thatched

roofs for shelter.

Cookstoves Value Chain Intervention Options

Typical stove available in the Ghanaian

market


Design

Most of the improvements within the cookstove sector

have focused on charcoal stoves. The available improved

charcoal stoves are superficially homogenous, since many of the producers were trained as part of the

Household Energy Program.

Charcoal stove designs are better established, but

emissions testing may highlight issues which will need to

be addressed. The majority of research and development

is performed by the private sector at present and, although

there is a market for improved woodstoves, there may

need to be support from other sectors with less focus on

direct profit to improve the demand and kick-start supply.

Previous efforts to distribute improved wood stoves, e.g.

Toyola woodstove, experienced minimal success, thus

leaving the 3 million wood burning households very

underserved by the ICS market. More research is needed

into improved woodstoves which are suitable for the

communities with regard to cultural sensitivities and local

diet.

Materials & fuel

Deforestation remains a key issue within Ghana, with

considerable focus from the government. However, wood

and charcoal still dominate the market with regard to

cooking fuel (53% and 30+% respectively)*. Fuel use is

dictated largely by accessibility and household income,

with people generally preferring to cook on charcoal when

possible.

Although in their infancy, the profile of improved charcoal

producing techniques has increased in Ghana, with

producers receiving a SEED award in 2011 to praise

progress made in this area. Sustainable charcoal has

considerable potential to reduce deforestation and indoor

air pollution and could benefit over 3 million households.

Several bold steps have been taken, with mixed results.

For example, biochar is being piloted as a fuel source,

although this is still in its infancy. The government

subsidised LPG to decrease dependence on biofuels. This

has had limited success, with commercial companies using

the LPG for transport, resulting in LPG shortages for

households.


Key: *Taken from the Sector Mapping. Stakeholder interviews suggest

that charcoal use is considerably higher than stated in official data


Production

Although several experienced stove producers have

recently entered the market or intend to in the near future,

at present most stoves are produced by local artisans

using local materials. Therefore, stoves are produced to

varying standards and scalability remains an issue.

That said, the Household Energy Program resulted in

multiple spin off companies which produce stoves in a

more standardized fashion and at a larger scale. These

companies are keen to expand within Ghana and

potentially into neighbouring countries. At present, the

main issue for new entrants into the market remains

access to capital, with interest rates reaching around 30%.

Sales & distribution

Existing ICS producers tend to manufacture charcoal

stoves in the southern areas of Ghana in accordance with

existing market demand. While that helps to cover the

Southern area, it leaves the Northern households to still

suffer from reduced availability and expensive stoves due

to difficult distribution. The average household income in

the North is considerably lower (especially in the Upper

East and Upper West provinces) than the central and

Southern provinces and households tend to be larger,

further exacerbating the impact of inaccessibility to ICS

(especially charcoal stoves and the associated on-going

cost)

At a broader scale, last mile distribution outside of urban

and peri-urban areas is difficult to achieve at reasonable

cost. Local networks are currently underutilized with regard

to stove distribution.

The suppressed demand, distribution costs and previous

failed attempts to supply these regions (with wood burning

stoves in particular), results in some of the most vulnerable

households being neglected by ICS initiatives.


Locally produced improved

charcoal burning stove

Sources: Ghana Statistics Service: Ghana Livings Standards Survey 5,

data from 2005-2006


Strengthening Supply and Enhancing Demand

Whilst the charcoal stove market is making strong

progress, the improved wood burning stove is currently

stagnant with devastating consequences for the poorer communities in the North. To address this in the short

term, more knowledge about the market is required with

regard to suitable designs, price etc. A quick and cost

effective approach is to perform pilot studies with improved

wood burning stoves imported from other geographies as

well as supporting small scale local manufacturers.

Since women are the key consumers and users of

improved cookstoves, it is strongly recommended that

focus groups, pilot studies and the testing of new designs

involves women throughout the process to ensure

consumer demand is addressed. This could be achieved

through working with local NGOs and would ensure that

cultural sensitivities are included in the design (as

highlighted as a key success factor by the Ministry of

Energy).

With regard to improved fuels, partnering with academic

institutions such as KNUST to explore agricultural charcoal

and biochar production from agricultural waste could

provide alternative energy sources. As well as addressing

the urgent issue of deforestation, this could provide rural

communities with a source of income thorough fuel

production.

If scaled up significantly, biochar could be used one

solution. However, since this is in the research stage,

improved charcoal producing techniques are needed in the

short term. To ensure that the improved techniques are

taught at the national level, the government could

incorporate improved charcoal in the national Renewable

Energy Plan. In order to ensure governance for this

program, it is recommended that a large local or

international NGO with experience of overseeing such a

program is appointed to coordinate the initiative.

The LPG subsidy increased clean fuel use, but resulted in

unexpected complications. To ensure the subsidized fuel is

used appropriately, systems need to be implemented to

limit/stop commercial transport using LPG. Options

include imposing physical restrictions through modified fuel

tank nozzles or separate pumps which can only be used to

fill smaller household containers, as well as research/

controlled pilot studies to access alternative approaches to

stimulating demand.

To improve production, increased transparency within the

sector is essential to ensure that best practice can be

developed by key implementers. Academic institutions are

also vital, producing impartial research into improved stove

materials, models and production techniques.



Building partnerships with international stove experts will

ensure this process is performed in a timely and cost

effective manner, leveraging best practice from other

geographies. For example, Aprovecho has vast amounts of

experience within the stove sector and has assisted

initiatives in other countries to improve stove design,

testing and production.

Follow-up support is critical to ensure that improvements

are built upon, since the skills will be easier to maintain

rather than completely re-teach at a later date. Since

access to capital remains difficult, funding could be used to

establish facilities that allow producers to produce higher

quality stoves with minimally increased operating costs e.g.

NGOs providing improved kilns/training for local

communities/cooperatives.

Providing support for local producers with regard to key

business processes e.g. securing capital will also help

strengthen the private sector. Envirofit had success

building partnerships with CEESD, there is considerable

potential to facilitate successful pairing of donors and

implementers to ensure funds are used in the most

effective manner.

Several approaches are required to address the sales and

distribution of ICS in Ghana. Toyola have had success with

direct sales and novel marketing approaches within the

sector, including the Toyola Moneybox, it is critical that other implementers learn from these successes, as well as

looking for best practice from other sectors e.g. Hunger

Ghanas MicroBusiness for Health franchise and Impact Energies LED lamps and micro solar home systems. Grass

roots sales strategies also increase sales since they build

on local relationships. Drawing on local gender projects

and working with women in local communities could be

very successful since the women typically know the

product much more intimately and are thus better at

creating buy in from the local community.

The Northern communities have an urgent need for

improved access to ICS. Identifying willing companies and

providing necessary incentives will encourage investment

in these areas. Once demand has been proven, it will be

more appealing for companies to invest in these regions.

Working with other distributors with a similar target market

will reduce last mile distribution for both parties, whether

this is to a local hub or the final mile to the household.

Stimulating supply, through donor subsidies or carbon

financing, will make the market more favourable for

cookstove producers and hence kick-start the market in the

most desperate regions.



Enhance Demand and Strengthen Supply:

Cookstoves Value Chain

Production

Scalability Handmade Masons Factory

Producer Fragmentation Producer Financing

Access to Capital

Repair & Replacement

Supply of Repair Skills and Parts

Post-sales Service

Materials/Fuel

Stove Raw Material Supply Stove Raw Materials Cost Fuel Value Chain

Biomass Clean Coal LPG

Cost of Clean Fuels

Design

Stove Type Wood Charcoal LPG

R&D Private Govt/Academics

Sales & Distribution Financing Purchasing (micro-credit) Carbon Financing Customer Segmentation Implementation Pilots Last Mile Distribution Reach Vulnerable Populations


Through gaps identified in the Cookstoves Value Chain, Intervention options will focus on Design,

Materials/Fuel, Production and Sales & Distribution.

KEY: ~ Advanced/ Favorable Has Potential/ Neutral None/ Unfavorable Focus Area

~

~

~ ~

~

~

~

~

~

~

~

~

~

~


Stove manufacturers and producers have not produced or distributed a woodstove with any success.

Design Intervention Options

People using woodfuel gather their firewood and cook using three stone fires or handmade stoves made out of mud

and clay that are free of charge. There are no current improved woodstove designs being distributed in the market

at scale.

Situation

3 million households, primarily located in rural

areas use wood for cooking

Woodstove designs have existed in the past, but have

not been successful in the

market (i.e. Toyola

Woodstove)

The Ministry of Energy highlighted taking into

account cultural issues and

dimensions around cooking

and eating as one of their top

3 objectives in promoting ICS

Women are the most common end-users of stoves


Involved

Parties

Likelihood

of

Success Budget

Estimated

Time

13. Facilitate pilots

for improved

woodstove designs

Alliance,

Local NGO

and Stove

Manufacturer

Medium Small 6mths-

1year

14. Incorporate

direct feedback of

women in the

product

development cycle

Local Gender

Groups,

NGOs,

Academia,

Large Small 3-6 mths

Source: Ghana Customer Segmentation, based on data from the Ghana

Living Standards Survey, Stakeholder Interviews


13. Facilitate pilots

for improved

woodstove designs

Facilitating pilots and incorporating feedback of end users in product development will allow the

sector to test and learn what works in rural areas.

Design Intervention Options


Improved woodstoves made available to the

3+ million households who continue to use

firewood for cooking3

Deforestation rates will decline as less

firewood will be gathered due to greater fuel

efficiency of ICS

Partner local and international NGOs with stove manufacturers to investigate and

test the woodfuel market

Focus on importing small portable stove designs similar to the Gyapa stove which is popular in the charcoal market in

Ghana

Import existing designs for user testing, like CEESD and Envirofit are

doing in Kumasi

Design locally made woodstoves and test in rural areas: CSIR, Toyola and

RI/EW have all tried this in the past

Assist in funding the pilots targeted to the woodstove market in the northern regions

14. Incorporate

direct feedback of

women in the

product

development cycle

Stove designs that meet the needs of local

consumers and take into account cultural

sensitivities

Partner with local women groups to conduct focus groups, interviews and

studies around product design and user

preferences as women are the end users

of stoves in Ghana

Involve local women in testing and designing of stoves as the Ministry of

Energy highlighted taking into account

cultural preference's as a barrier to

adoption of ICS

Source: Ghana Customer Segmentation, based on data from the Ghana

Living Standards Survey, Stakeholder Interviews


Materials/Fuel Intervention Options

Deforestation is a major environmental issue in Ghana, forest cover has been reduced by over 70% since 1972 and

current reliance on biomass as an energy source contributes to the issue.

Situation

Biochar has been piloted in parts of the country but is currently

being used by as little as a

fraction of a percent of the

population

Sustainable charcoal programs in Ghana have been recognized

internationally for their economic

and social benefits (Global

Bamboo Products 2011 SEED

Award Winner)

In the 1990s, Ghana's government developed an LPG

subsidy with the intent of

distributing LPG for cooking

purposes. However, currently

many commercial vehicles in

Ghana use LPG, reducing supply

and contributing to LPG shortages


Involved Parties

Likelihood of

Success Budget

Estimated

Time

15. Investigate the

feasibility of a market

based approach to

biochar as a fuel

source

Alliance,

Academia, Local

NGO, Local

Women Groups

Large Small 6mth-1year

16. Work with

charcoal producers

and distributors in

country to maximize

efficiency and

sustainability of

production

Government,

Local &

International

NGOs

Large Medium 6mth-1year

17. Revisit Ghana's

LPG strategy; tailor it

to address the

distribution of LPG for

cooking purposes

Alliance,

Government,

Local NGOs,

Local Businesses

Medium Large 1-3 years

Improving the efficiency in production of charcoal, revisiting Ghanas LPG strategy and reducing the reliance on biomass as a fuel source in Ghana would have a significant effect on the environment.

Source: Ghana Country Environmental Profile by the European Commission,

2006, Ghana Living Standards Survey, Stakeholder Interviews,

www.seedinit.org


Investigating new fuel sources, re-visiting existing LPG strategies and identifying sustainable

methods for charcoal production will help address the issue of deforestation in Ghana.

Materials/Fuel Intervention Options


Ghanaian consumers have access to a

cheaper and more sustainable alternatives

to charcoal

Gather and share lessons learned on charcoal production from local and

international partners, specifically focus on

large scale charcoal producers in Ghana,

not marginal female producers

Identify a local or international NGO to setup and manage the program

Train NGOs on the techniques and tailor existing charcoal production programs

around the best practices

Work with the Ministry of Energy to include these programs as part of the Renewable

Energy Plan

More efficient use of energy for the

production of charcoal nationwide

Increase in cooking efficiency due to higher

quality of the charcoal produced

Partner with an academic institution, like KNUST, which are already engaged in

biochar research to determine effective

components for biochar production:

Sawdust, Agri-waste, Corn

Work with local NGOs to share best practices and implement pilot projects in

the Eastern regions of Ghana where

charcoal production is most prevalent

Train marginal charcoal producers, mainly local women in the production and sales

of biochar

Offer local women technology and administrative support in establishing their

businesses, similar to the programs

offered by KITE

15. Investigate the

feasibility of a

market based

approach to

biochar as a fuel

source

16. Work with

charcoal producers

and distributors in

country to

maximize efficiency

and sustainability

Source:http://bioenergy.inbar.int/wiki/index.php/Bamboo_as_sustain

able_biomass_energy:_A_suitable_alternative_for_firewood_and_ch

arcoal_production_in_Africa


Investigating new fuel sources, re-visiting existing LPG strategies and identifying sustainable

methods for charcoal production will help address the issue of deforestation in Ghana.

Materials/Fuel (continued) Intervention Options


Ghanaian consumers have access to LPG

for cooking purposes

Reduced demand on woodfuels as a fuel

source for cooking

Better health outcomes

Conduct an in depth analysis of the issues with current LPG distribution

methods

Work with the government to identify and impose regulations on the

distribution of LPG

Pilot projects with gas marketing companies to measure the effect of the

changes. Consider the following:

Separate pump for use with smaller gas canisters only, which are most

commonly used for cooking

Changing the nozzles for LPG tanks used in vehicles

Charging vehicles more for LPG and household users less

17. Revisit Ghana's

LPG strategy; tailor

it to address the

distribution of LPG

for cooking

purposes

Source: Stakeholder Interviews


Organizations in Ghana have developed innovative business models for their cookstoves programs;

however, few have achieved production at a large scale.

Production Intervention Options

Stove programs do not have access to the working capital and training needed to scale their operations.

Organizations in Ghana have received international recognition for their stove programs, are selling stoves at

increasing rates and have goals to expand their programs across Ghana and to other regions.

Situation

The Household Energy program in Ghana managed

by RI/EW, started in 2002 by

grants from USAID and Shell

Foundation has trained some

of the largest cookstove

manufactures in the sector (i.e.

Toyola Energy and Man and

Man Enterprises)

Interest rates for loans from private banks and MFIs in

Ghana are ~30%

Access to capital has been cited as the main catalyst to

program success


Involved

Parties

Likelihood

of Success Budget

Estimate

d Time

18. Set up a training

program for local

manufacturers on how

to build clean energy

technologies such as

rocket stoves

Donor,

Alliance

INGO or

local

NGO,

SMEs,

Academia

Medium Medium 1 2 years

19. Scale up

cookstove programs

with sustainable

business models

Alliance,

INGOs,

Donors

Large Large 6mths 2years



Increase in the level of ICS market

penetration, current market penetration is ~3-

4% of the total stoves market10

19. Scale up

cookstove

programs with

sustainable

business models

Identify organizations with successful business models to scale up, i.e. E+CO

investment in Toyola Energy in 2007

Partner INGOs and donors with local organizations to give direct access to capital

for cookstove programs, as Envirofit has done

with CEESD

Work with the Ministry of Energy to fund programs that will help them meet their 50%

dependence on woodfuel by 2020 goal

Set up and manage an RFP or similar process for the distribution of funds to local

cookstove manufacturers

Assist local businesses to navigate the process of applying for and obtaining access

to private capital

Require investments in capital equipment to increase scale and quality

18. Set up a

training program

for local

manufacturers on

how to build

cleaner energy

technologies such

as rocket stoves

Scaling up programs with successful business models and setting up training programs for

producing clean energy technologies will increase the supply of ICS in the market.

Production Intervention Options


New jobs for local entrepreneurs and

businessman

Increase the number of stoves designs on the

market and give consumers choice on the

design which suits their needs

Increase the adoption of clean energy

technologies

Work through local testing and research facility to design locally made clean energy

technologies, made of common local materials

such as galvanized steel and clay

Identify an organization to manage the program and identify local entrepreneurs

Partner organization with international SMEs, like Aprovecho, to generate a quality training

Fund local ceramicists and manufacturers with necessary equipment to make locally produced

stoves, i.e. kilns, sheet metal, machinery which

current manufacturers in Ghana lack

Work with the managing NGO to ensure post training support is provided



Involved

Parties

Likelihood of

Success Budget

Estimated

Time

20. Coordinate

trainings for local

entrepreneurs on

social and product

marketing and sales

Alliance, NGO,

Academia Large Small 3-6 mths

21. Improve last mile

distribution of ICS in

Ghana; leverage

women's networks to

reach consumer

Alliance,

International

NGO, Local

NGO,

Academia

Large Small 6mths 1year

22. Incentivize the

distribution of

woodstoves in rural

areas for businesses

and consumers

Alliance,

Donors, Local

NGOs, Int. and

local Stove

Mfg.

Medium Large 1 - 3 years

23. Establish a stove

production facility in

the northern regions

Local NGO,

Private

Company

Large Small 3-6 mths

Existing stove programs focus heavily on urban areas in southern regions, there is an opportunity to

support distribution of stoves in rural areas and in the northern regions of the country.

Sales and Distribution Intervention Options

Existing ICS programs in Ghana have focused heavily on the charcoal market and urban areas. Currently, the majority of

production facilities are located in larger urban areas in the southern regions of the country. There is a gap in the market for

consumers in rural areas using firewood as a fuel source and with the current distribution network it is difficult to distribute ICS in

the northern regions of the country.

Situation

There is limited product differentiation in the ICS sector as

most of the key players were

trained under the 2002 Household

Energy Program

Existing ICS programs target Accra, Kumasi and Takoradi for

the distribution of stoves

Past woodstove initiatives in the north have been shut down due to

limited funding and a lower

business priority for these market

segments

Current ICS programs have production facilities located in

Accra, Kumasi and Winneba;

Toyola Energy has a facility in the

Upper East region, but otherwise

the majority of ICS have to be

transported directly to the

northern regions post production




20. Coordinate

trainings for local

entrepreneurs on

social and product

marketing and

sales

Broader awareness for ICS and the

associated health and economic benefits

Product differentiation in the marketplace,

today most stove design are similar

More knowledgeable businesses

Interview entrepreneurs to identify specific barriers to sales and areas of need, topics

could include:

Product differentiation currently ICS producers are all selling the same

Gyapa design Sales a direct sales model has

increase sales for Toyola YoY for the

last 5 years

Marketing the Toyola Moneybox concept has worked at increasing sales

Identify a local NGO or an academic institution to facilitate and host the

trainings

Training on product differentiation, expanding the existing distribution network and incentivizing

woodstove distribution will address underserved areas of the cookstove market.

Sales and Distribution Intervention Options


21. Improve last

mile distribution of

ICS in Ghana;

leverage women's

networks to reach

consumers

The rural population has easy access to ICS

across all regions of Ghana

Mobilize and coordinate the local NGO and gender networks to distribute ICS to

rural communities

Gather and share lessons learned from similar last mile distribution schemes in

country

Freedom from Hunger Ghanas MicroBusiness for Health franchise12

Impact Energies LED Lamps and micro solar home systems project

Work with women's networks to identify local organizations in communities to reach

end consumers

Source: http://www.freedomfromhungerghana.org/,

http://www.impactenergies.com, stakeholder interviews


Employ and train local artisans, craftsman and entrepreneurs

Kick-start business by providing the resources required to scale production (i.e.

kiln, machinery)

23. Establish stove

production facilities

in the northern

regions of Ghana

Access to ICS for retailers and consumers in

the underserved northern regions.

New jobs for local craftsman and artisans in

the northern communities

Training on product differentiation, expanding the existing distribution network and incentivizing

woodstove distribution will address underserved areas of the cookstove market.

Sales and Distribution (continued) Intervention Options


22. Incentivize the

distribution of

woodstoves in rural

areas for

businesses and

consumers

Increased # of cookstove programs run in

under-penetrated regions of the country and

target market segments

Access to affordable woodstoves for rural

communities

Businesses

Identify organizations interested in distributing woodstoves in the northern

regions of Ghana

Create incentive structure that motivates promoters and encourages wide-scale

adoption

Consumers

Investigate creative funding mechanisms for end consumers to incentivize

purchasing ICS as affordability is an issue

in rural areas as average daily income is

$1.75 a day

Distributing carbon finance revenues to local consumers

Subsidizing the stoves to generate demand through donors

Bundling with other clean energy technologies, such as Solar or LED

Lamps


Agenda Roadmap

Executive Summary


Roadmap

Appendix

Conclusion



The Cookstove Value Chain is a sequential process, and contains interdependencies. Similarly, the

Enabling Environment Framework components should be done in lock-step with the value chain.

Intervention Options Roadmap Overview Roadmap

Design Materials /

Fuel Production

Sales & Distribution

Repair & Replace

Regulation & Testing Monitor & Evaluate

Support & Funding

Awareness

Knowledge Capital Development

Market Development Phase Market Entry Phase Post-Sale Phase

Create a stove testing center Develop common standards and roadmap for improvement over time Pilot mass media marketing campaigns in test markets Integrate HAP awareness in educational, financial and religious

institutions

Have the Ghana Alliance for Clean Cookstoves as a collective voice when working with other stakeholders

Fund the creation of an open regional carbon POA Government funding matching program Guarantee loans to cookstove SMEs Work with government to reduce duties on imported cookstoves, fuel, and

raw materials

Create a country-specific portal Create a carbon finance section within country portal Collect and commission health and environmental studies Facilitate pilots for improved woodstove designs Incorporate direct feedback of women in the product development cycle Investigate the feasibility of a market based approach to biochar as a fuel

source

Work with charcoal producers and distributors in country to maximize efficiency and sustainability

Revisit Ghana's LPG strategy Set up a training program for local manufacturers on how to build clean

energy technologies such as rocket stoves

Scale up cookstove programs with sustainable business models

Coordinate trainings for local entrepreneurs on social and product

marketing and sales

Improve last mile distribution of ICS in Ghana; leverage women's

networks to reach consumers

Incentivize the distribution of woodstoves in rural areas for

businesses and consumers

Establish stove production facilities in the northern regions of Ghana

Key

Cookstove Value

Chain Component

Enabling

Environment

Framework

Component

Note: Repair and replace and

monitor and evaluate were not

focus areas for Intervention


Knowledge Capital

Development

In the Market Development Phase, intervention options will focus on cultivating a market-based

environmental for cookstoves.

Market Development Phase Roadmap Roadmap

Awareness

Support and Funding

Materials & Fuel

Design

Regulation & Testing 2. Develop common standards

2012 2013 2014 2015+

3. Pilot mass media marketing campaigns

5. Have the Ghana Alliance for Clean

Cookstoves as a collective voice

1. Create a stove testing center

13. Facilitate pilots for woodstove designs

14. Incorporate feedback of

women in PD

15. Investigate biochar as a fuel source

6. Fund the creation of an open regional carbon POA

7. Government funding matching program

8. Guarantee loans to cookstove SMEs

16. Work with charcoal producers

4. Integrate HAP awareness in educational and religious institutions

9. Work with government to reduce duties

10. Create a portal

12. Collect and commission health and environmental studies

11. Create CF section

Production 18. Set up a clean energy training program

17. Revisit Ghanas LPG Strategy


In the Market Development Phase, intervention options will focus on supporting manufacturers to get

their cookstoves to end users, including scale-up activities.

Market Entry Phase Roadmap Roadmap

Sales and Distribution

Production

19. Scale up cookstove programs with sustainable business models

20. Coordinate trainings

on marketing and sales

2012 2013 2014 2015+

22. Incentivize the distribution of

woodstoves in rural areas

23. Establish production

facilities in the north

21. Improve last mile distribution; leverage

women's networks


Agenda Conclusion

Executive Summary

Intervention Options by Customer Segment

Situation

Intervention Options Roadmap

Conclusion

Appendix


In Ghana, the cookstove sector is dominated by a few institutions. There is a need to develop

additional partnerships and invest in the sector so cookstove production can be scaled-up.

Conclusion Conclusion

Enabling Environment

Ghanas cookstove sector is reasonably well-developed and four main areas of intervention can help tip Ghana

towards greater success:

1. Set standards and testing benchmarks for quality

improvements leading to cleaner cookstoves

2. Scale-up robust awareness campaigns

3. Ensure access to capital through direct loans, loan

guarantees, and carbon financing

4. Facilitate and increase government support and

funding

Supply and Demand: Value Chain

The market has the basic fundamentals across the value

chain needed to support the cookstove sector, but a few

areas of intervention can drive the sector forward:

1. Design and distribute a product that addresses the

segment of the market using woodfuels for cooking

2. Investigate new and existing fuel sources

3. Scale existing programs and distribution networks to

reach all regions of Ghana


Agenda Appendix

Executive Summary

Intervention Options by Customer Segment

Situation

Intervention Options Roadmap

Conclusion

Appendix


The Ghana Alliance for Clean Cookstoves is currently being established to strengthen local actors

working in the cookstoves sector, support government achieve its renewable energy policy and

climate change program goals and increase consumer awareness on the importance of fuel efficient

and clean cookstoves.

Case Study: Ghana Alliance for Clean Cookstoves Industry Assessment

Increase awareness and collective action within the cookstove sector to lead to increased opportunity

within Ghana and internationally

1) Provide the platform for a collaborative, technical sharing entity for active organizations working

in fuel efficient and clean cook stoves to promote:

Innovative ideas Information Product standardization Sector wide best practices Increase consumer awareness

2) Promote awareness and raise the profile of the sectors positive work in Ghana at the

international level

Goal

Objective

Note: The Ghana Alliance for Clean Cookstove is not yet an established organization. Information is based on the initial concept note.


Case Study: Relief International/EnterpriseWorks Appendix

Relief International/ EnterpriseWorks is the largest improved

cookstoves producer in Ghana. It also received the largest single

VER issuance of the Gold Standard for cookstove carbon

programs to date in December 2011.

Region: Accra, Kumasi, an

Documents

Clean Cooking 2