Impact Carbon’s cookstove programme – carbon revenues for monitoring and capacity building
In 2009 Impact Carbon, with support from Climate Care, registered the first voluntary Gold Standard cookstove project. It is set up to include several types of efficient stoves, including household charcoal stoves, household wood stoves and institutional wood stoves, of which more than 300,000 have already been distributed to date. The stoves are all locally manufactured and are designed by a consortium of stove design experts to maximize efficiency and be tailored to the cooking needs of the users in Uganda.
Since registration, the project has passed five successful carbon credit issuances. Revenues from the sale of carbon credits have been used to fund a variety of activities reinvesting the revenues back into the project:
- Monitoring and evaluation: revenues are used to record user details, the results of Kitchen Performance Tests, Water Boiling Tests and usage surveys. Since these costs are usually fixed it is easy to estimate the portion of revenues which are needed to cover these costs.
- Capacity building at manufacturing: revenues are used to improve the manufacturing process (e.g. to improve the efficiency of the manufacturing process and to improve the quality of stoves manufactured), to provide on-the-job business development and manufacturing training and increase manufacturing capacity. The Ugastoves distributed under the project have been so popular that the biggest barrier to expansion has been manufacturing capacity.
- Marketing and consumer awareness raising: revenues are used for sales representatives to market the product and train retailers of their benefits and the importance of collecting warranty information (in which end-users submit their personal details to activate their warranty on the stove). Marketing is especially important when the project enters new areas.
Carbon revenues are not used to directly subsidize the cost of the stove. In this way, Impact Carbon has managed to keep a competitive market for stoves in Uganda by keeping market distortion low.
Figure 4: Efficient stove being manufactured in Uganda (Impact Carbon).
Collecting user information
In order to carry out the monitoring required under a carbon project, user data must be recorded. This is done through a Warranty Card, which allows users to be eligible for a one year warranty in exchange for their personal details and communicates transfer of emission reductions rights to Impact Carbon. The Warranty Card is perforated, allowing one half to be sent to Impact Carbon and the other half to be kept by the customer as evidence of eligibility for the warranty. The user fills out his or her contact details on the Warranty Card and returns this to the Ugastove vendor, who hands the completed Warranty Cards to Impact Carbon each time a new delivery of Ugastoves is made to a retail store.
To encourage users to fill out the Warranty Cards, Ugastove vendors receive training on what the Warranty Card is and how to fill it out correctly. Constant contact is maintained with the vendors through regular stove deliveries. Advertising campaigns targeting notifying users of the available warranty and encouraging them to ask for the Warranty Card are also employed to further encourage the completion of Warranty Cards.