Payment for Outcomes
Currently the social an environment benefits of cookstoves projects are reflected in the premium prices paid for cookstove carbon credits. Increasingly project developers are looking for ways to decouple payment for social and environmental benefits from the carbon price.
Funding on the basis of social and environmental impacts is known as performance (or results) based funding. It is somewhat different from traditional development assistance or donor support, as it is based on payment for delivery of measurable environmental or social outcomes. The advantage of results based funding is that payments are only made if the project can demonstrate it has met its goals, rewarding results, rather than activities or inputs.
Given the environmental and social benefits from the use of clean cookstoves these projects are suitable candidates for attracting results based funding.
As is the case with GHG emissions reduction measures, accessing results based funding requires a quantitative assessment of positive impacts. Thus, the baselines and monitoring methodologies for the health, livelihood, gender and environmental impacts from the use of clean cooking technologies need to be developed in order to access results based funding.