Clean cookstoves and fuels have a large potential for reducing carbon dioxide emissions, saving as much as one to four metric tons per cookstove per year under the right conditions. With additional important benefits for health, development and the local and global environment, they should be able to leverage their ‘fair share’ of private and public sector funding within the realm of climate finance. The report New Sources of Climate Finance for Clean Cooking Initiatives provides an overview and analysis of various funding options in order to assist the Alliance and its stakeholders to tap into the opportunities. The report was commissioned by the Alliance following the recommendation of its climate finance working group, convened by the Alliance in 2013. The working group established the long-term objective to channel a fair share of climate finance to the clean cooking sector, with the short term objective to ensure that clean cooking programs/proponents are ‘at the table and in the conversation’ in the negotiations of a new climate finance architecture that is currently in the making under the UNFCCC.
The report examines the suitability of climate finance funding options to support clean cooking programmes and initiatives by looking at four criteria: (1) the extent of available funding, (2) the alignment of funding criteria with the cookstove sector, (3) the geographical areas where funding is disbursed and whether it aligns with the Alliance’s focus and partner countries, and (4) the timeline for accessing funding.
Based on an evaluation of these criteria, the report concludes with an assessment whether each of the analysed funding options holds good, some or no immediate potential for supporting the sector. The report also evaluates opportunities arising from new conceptual approaches in climate finance such as Nationally Appropriate Mitigation Action (NAMAs), New Market Mechanisms and Result-Based Finance.
The report was presented to the Alliance stakeholders and members of the climate finance working group at a meeting in Zurich in March 2014, on the sidelines of the Gold Standard conference. Emerging from the discussion a list of relevant opportunities was identified, which the Alliance agreed to further pursue:
- A detailed action plan to access REDD+ finance is to be developed, as this is one of the key opportunities;
- Engagement with the government and other key stakeholders in China on the potential to use cookstoves offsets in the developing emissions trading scheme (ETS);
- Joining the NAMA Partnership and looking for ways to engage with Alliance’s focus and partner countries to advocate for funding NAMAs related to the clean cooking sector;
- Continue the discussions with the World Bank and the GEF on enabling access to existing funds and potentially developing new funds to support clean cooking projects;
- Identify and engage stakeholders that are already on or could join the Green Climate Fund advisory panel to advocate for the Energy Access agenda.
Download the full report here.