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Microfinancing the uptake of modern cookstoves in Uganda

Improved Cook Stoves

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Since about 1.5 billion people in the world use traditional stoves for cooking (and heating), efforts to improve the efficiency of cookstoves have been increasingly popular in the developing world. Improved stoves come in different forms and sizes. 

Clean Development Mechanism market status: 

[Part of this information is kindly provided by the UNEP Risoe Centre Carbon Markets Group.]

The Clean Development Mechanism (CDM) allows for the inclusion of improved cookstove projects, the emissions of which can be credited and sold. A key devlopment within the CDM that improves the viability of improved cook stove projects is the creation of the Programme of Activities (PoA). PoAs allow multiple CDM projects to be included under a policy or programmatic umbrella, in order to scale up energy efficiency and reduce transaction costs.

An example of a CDM project related to cookstoves is: Efficient Fuel Wood Stoves for Nigeria. This project uses the Energy Efficiency Measures in Thermal Applications of Non-Renewable Biomass methodology to calculate the emission reductions. Other relevant methodologies, depending on the project circumstances, are Thermal energy production with or without electricity.

As of March 2011, there were 19 improved cook stoves projects in the CDM pipeline, out of which 3 hade been registered.

To promote the uptake of solar, biogas and institutional improved cook-stoves (ICS) technologies through building the capacity of microfinance institutions (MFIs) to support modern energy suppliers and consumers.


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Main activity and output: 
  • Mobilise at least 3 MFIs
  • Develop energy loan products and services
  • Train 20 marketing and loan officers
  • Research and produce a report on expenditure and consumption potential
  • Create a modern energy supply value chain, with 20 energy enterprises created through the loans, at least 100 potential energy entrepreneurs aware of energy financing schemes, and at least 5000 consumers receiving energy loans.
Expected impact: 
  • Solar, biogas and institutional improved cook-stoves (ICS) technologies are brought into the mainstream by MFIs
  • SMEs and consumers have access to financing for modern energy cookstoves
  • Creation of more energy businesses and market expansion for the energy products and services
  • Reduced disease prevalence from indoor air pollution, sustainable businesses  and environmental performance
  • Rural and peri-urban communities have easy access to modern energy services and products.
  • CO2 emissions reduced and effects of climate change mitigated
  • Avoided deforestation accrued from the introduction and use of the improved cook stoves
  • Catalyse policy influence on RE and EE