Session 3.2 a tool for more sustainable fuel use in india

A tool for more sustainable fuel use?Carbon finance for cookstoves in India

Olivia E. FreemanASB Partnership for the Tropical Forest Margins and

World Agroforestry Centre (ICRAF)Nairobi, Kenya

Hisham ZerriffiUniversity of British Columbia

[email protected]

Photo Credit: Rob Goodier/E4C

Potential in India

Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C

93% wood harvested

67% - 85% dependent on solid fuels

2009 – 72% of pop lacking access

2/3’s using a traditional stove

Potential in India



Source: Dalberg 2013, GACC market assessment

Modern fuel purchasers

Solid fuel purchasers

Solid fuel col-lectors

* Millions of households

71

60

104

Fuel Usage in India





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Large Cookstove Market Potential




ScaleFinancial Sustainability

Long-term Uptake

NGOs Limited Dependent on external funding

Variable/Unknown

NPIC Achieved large scale

Government funded

Did not achieve

Commercial Approaches

Limited Limited Variable/Unknown

Challenges in Dissemination

ScaleFinancial Sustainability

Long-term Uptake

NGOs Limited Dependent on external funding

Variable

NPIC Achieved large scale

Government funded

Did not achieve

Commercial Approaches

Limited Limited Variable


Carbon Finance as a Tool

How is carbon finance being applied as a tool for cookstove projects in India and what are the potential opportunities and barriers in using this tool?

Photo Credit: Manna Lal Gameti/www.sanjhi.org/E4C

Range of Organizations Interviewed

Type of OrganizationNumber

Interviewed

Number applying for

Carbon Credits

Cookstove Company 6 2

Social Enterprise/NGO

2 0

NGO 4 4

Carbon Company 3 3

Microfinancing Company

1 1

Research lab 1

Network 2

Consultant 1

Approaches with Carbon Finance

Diversified Approaches• Certifications, financing (e.g. microfinancing,

CSR), type of buyer, size of project• Carbon revenue schemes

All Targeting Low Income Populations

New Actors• 2 Networks• 3 Carbon Companies

© Photo Credit: United Nations Environment Programme

Barriers in ApplyingCarbon Finance

1)Investment (~50%)

2)Complexity and tedious nature

(~40%)

3)Uncertainty (~40)

4)Awareness creation (~50%)








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Fuel Usage in India



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Potential of Carbon Finance

Modern energy users


Low and mid-high income solid fuel collec-tors

Very low in-come solid fuel collectors

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56


Enabling Factors

1) Financial capital (risky investment)2) Technical support3) Awareness


Profit Driven vs Community Driven

Implications for sustainable development outcomes


Conclusions

1) Great potential in India

2) Need diversified strategies

3) Carbon finance is one tool to reach low income populations

4) Enabling factors needed

5) Different actors care about different things

Acknowledgements

Individuals- All of the study respondents- Dr. Reza Kowsari- Dr. Gireesh ShrimaliOrganizations- The Center for Study of Science, Technology

and Policy (CSTEP)- The Resource Optimization Initiative (ROI)Funding- UBC Graduate Student International Mobility

Research Award- The Natural Sciences and Engineering

Research Council of Canada (NSERC)- the Bridge Canadian Institutes of Health

Research (CIHR) Strategic Training Fellowship

[email protected]


Cookstoves

Win-win-win

Improved Health

Reduction in climate forcers/ GHGs

Reduced Pressures on Fuel Sources

Increased time and/or financial resources

Photo Credit: Karan Singh Rathore/E4C

Carbon Project ‘Stats’

Project Size Range: 4,000 – 200,000 StovesMost: 20,000-45,0000 Stoves

Credits per Stove Range: 0.7 – 2.5 Average: ~1.7

Price Estimates CDM CER Market Price: 5.77-6.09 USDEstimates: most 5-11 USD – one 15.38

Project and Certification Costs

Range: 21,500-150,000 USDMost: 47,710- 66,794 USD (2,500,000-3,500,000 INR)

Rough categories of target consumers

Documents

Session 3.2 a tool for more sustainable fuel use in india