Session 3.2 a tool for more sustainable fuel use in india
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  • 1. A tool for more sustainable fuel use? Carbon finance for cookstoves in India Olivia E. Freeman ASB Partnership for the Tropical Forest Margins and World Agroforestry Centre (ICRAF) Nairobi, Kenya Hisham Zerriffi University of British Columbia o.freeman@cgiar.orgPhoto Credit: Rob Goodier/E4C
  • 2. Potential in India Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C 93% wood harvested 67% - 85% dependent on solid fuels 2009 – 72% of pop lacking access 2/3’s using a traditional stove
  • 3. Potential in India Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C
  • 4. Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C Source: Dalberg 2013, GACC market assessment Modern fuel purchasers Solid fuel purchasers Solid fuel collectors * Millions of households 71 60 104 Fuel Usage in India
  • 5. Modern fuel purchasers Solid fuel purchasers Solid fuel collectors * Millions of households 71 60 104 Large Cookstove Market Potential Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C Source: Dalberg 2013, GACC market assessment
  • 6. Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C Scale Financial Sustainability Long-term Uptake NGOs Limited Dependent on external funding Variable/Unkno wn NPIC Achieved large scale Government funded Did not achieve Commercial Approaches Limited Limited Variable/Unkno wn Challenges in Dissemination
  • 7. Scale Financial Sustainability Long-term Uptake NGOs Limited Dependent on external funding Variable NPIC Achieved large scale Government funded Did not achieve Commercial Approaches Limited Limited Variable Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C Carbon Finance as a Tool
  • 8. How is carbon finance being applied as a tool for cookstove projects in India and what are the potential opportunities and barriers in using this tool? Photo Credit: Manna Lal Gameti/www.sanjhi.org/E4C
  • 9. Range of Organizations Interviewed Type of Organization Number Interviewed Number applying for Carbon Credits Cookstove Company 6 2 Social Enterprise/NGO 2 0 NGO 4 4 Carbon Company 3 3 Microfinancing Company 1 1 Research lab 1 Network 2 Consultant 1
  • 10. Approaches with Carbon Finance Diversified Approaches • Certifications, financing (e.g. microfinancing, CSR), type of buyer, size of project • Carbon revenue schemes All Targeting Low Income Populations New Actors • 2 Networks • 3 Carbon Companies © Photo Credit: United Nations Environment Programme
  • 11. Barriers in Applying Carbon Finance 1) Investment (~50%) 2) Complexity and tedious nature (~40%) 3) Uncertainty (~40) 4) Awareness creation (~50%) Photo Credit: Manna Lal Gameti/www.sanjhi.org/E4C
  • 12. Modern fuel purchasers Solid fuel purchasers Solid fuel collectors * Millions of households Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C Source: Dalberg 2013, GACC market assessment 71 60 104 Fuel Usage in India
  • 13. Photo Credit: Karan Singh Rathore/www.sanjhi.org/E4C Source: Dalberg 2013, GACC market assessment 71 60 104 Potential of Carbon Finance Modern energy users Solid fuel purchasers Low and mid-high income solid fuel collectors Very low income solid fuel collectors 71 60 47 56 * Millions of households
  • 14. Enabling Factors 1) Financial capital (risky investment) 2) Technical support 3) Awareness Photo Credit: Manna Lal Gameti/www.sanjhi.org/E4C
  • 15. Profit Driven vs Community Driven Implications for sustainable development outcomes Photo Credit: Manna Lal Gameti/www.sanjhi.org/E4C
  • 16. Conclusions 1) Great potential in India 2) Need diversified strategies 3) Carbon finance is one tool to reach low income populations 4) Enabling factors needed 5) Different actors care about different things
  • 17. Acknowledgement s Individuals - All of the study respondents - Dr. Reza Kowsari - Dr. Gireesh Shrimali Organizations - The Center for Study of Science, Technology and Policy (CSTEP) - The Resource Optimization Initiative (ROI) Funding - UBC Graduate Student International Mobility Research Award - The Natural Sciences and Engineering Research Council of Canada (NSERC) - the Bridge Canadian Institutes of Health Research (CIHR) Strategic Training Fellowship o.freeman@cgiar.org Photo Credit: Manna Lal Gameti/www.sanjhi.org/E4C
  • 18. Cookstove s Win-win-win Improved Health Reduction in climate forcers/ GHGs Reduced Pressures on Fuel Sources Increased time and/or financial resources Photo Credit: Karan Singh Rathore/E4C
  • 19. Carbon Project ‘Stats’ Project Size Range: 4,000 – 200,000 Stoves Most: 20,000-45,0000 Stoves Credits per Stove Range: 0.7 – 2.5 Average: ~1.7 Price Estimates CDM CER Market Price: 5.77-6.09 USD Estimates: most 5-11 USD – one 15.38 Project and Certification Costs Range: 21,500-150,000 USD Most: 47,710- 66,794 USD (2,500,000-3,500,000 INR)
  • 20. Rough categories of target consumers