Microsol’s Qori Q’oncha Programme – carbon revenues earmarked for long-term financial sustainability
Microsol, a French social enterprise, is operating the PoA “Qori Q’oncha – Improved Cookstoves Diffusion Programme” to encourage and coordinate the implementation of improved cookstoves in Peru. The programme was registered in 2011. It has implemented over 100,000 cookstoves to date and has been successfully issuing carbon credits.
Microsol acts as the CME of the project, leaving actual implementation open to specialized local partners. These partners, which include local and international NGOs and regional authorities, benefit from joining the programme by receiving at least 70% and up to 80% of the generated carbon sales revenues. To join, local partners need to adhere to the eligibility criteria set forth by the programme and commit to subsequently using the carbon funding for activities that support the long term sustainability of the programme. Participation in the programme is free.
To this end, carbon revenues are used by the implementing agencies to secure the long term financing needs of the cookstove VPAs, thereby ensuring continuity. Instead of using funds to subsidize the purchase price of cookstoves, local partners agree to primarily invest the funds in capacity building exercises, local lobbying, monitoring and maintenance services. The secondary use of the funding is to scale up operations and outreach. This business model has been designed to take into account lessons learned from the past, where unsuccessful cookstove initiatives run by the government or other public bodies secured funding for the initial years of project implementation but then were forced to shut operations due to lack of long term funding. Such discontinued initiatives leave limited positive impact on local communities. Microsol has created Qori Q’oncha to support local cookstove initiatives (public and private) towards sustainability and scale up. In 2013, after 3 Issuances, more than EUR 3 million have flown back to projects developers.
Figure 3: Preparing a meal in the Peruvian Andes (Annabelle Avril).