IMPACT Issue 17 | September 2019 Source: Jibon Ahmed. BANGLADESH OFFERS MODEL OF SUCCESSFUL CLEAN COOKING PROGRAM ESMAP helped to identify and implement a successful market model for Bangladesh’s improved cookstoves program by building on successful models within the country, partnering with the local development-finance institution, and tapping into a network of local nongovernmental organizations to manufacture and distribute cleaner, more efficient cookstoves. The program has distributed nearly 1.7 million improved stoves and reduced greenhouse gas emissions by 3 million metric tons of CO2 equivalent. By project close, the program expects to reach 4 million households and reduce greenhouse gas emissions by a total of 10.5 million metric tons of CO2 equivalent. CLEANER COOKING, ESMAP Has Mobilized Much of the CLEANER AIR World Bank’s Lending Portfolio for The World Health Organization estimates that indoor Clean Cooking air pollution, created when wood fuels are burned in The World Bank’s US$350+ million lending traditional cookstoves, kills more than 4.3 million people each year. Women and children are disproportionately portfolio spans 21 countries, including affected, both because they inhale most of the carbon Bangladesh, China, Djibouti, Ethiopia, Kenya, monoxide and particulate matter emitted by traditional the Kyrgyz Republic, Mongolia, Senegal, and cookstoves, and because they carry the burden of Uganda. collecting wood, charcoal, coal, animal dung, or crop waste to fuel them. Programs under this portfolio are benefitting over 3.6 million households—over 18 million The estimated health, environmental, and economic people—with improved access to more efficient, costs are staggering: US$1.5 trillion annually.1 The cleaner cooking and heating solutions. collection of wood fuels is a major contributor to defor- estation in many parts of the world and the greenhouse *From the ESMAP Annual Report 2018 Source: Jibon Ahmed. 1 World Bank. 2016. The Cost of Air Pollution: Strengthening the Economic Case for Action (English). Washington, D.C., World Bank Group. http://documents.worldbank.org/curated/en/781521473177013155/The-cost-of-air-pollution-strengthening-the-economic-case-for-action gas emissions amount to a gigaton of CO2 per year— local partnerships from Bangladesh’s sanitation approximately 2 percent of global emissions. program, which had achieved remarkable success in delivering improved sanitation throughout rural Ban- The development community has been working to mit- gladesh by leveraging a network of nongovernment igate the impacts from traditional cookstoves for nearly organizations (NGOs). three decades, but with limited success. Poor, often rural, consumers lack awareness about the adverse Based on this analysis, the study proposed a market effects on their health and traditional cooking methods model that introduces training and incentives to encour- are deeply embedded in culture. Even when consumers age local NGOs and entrepreneurs to produce, pro- are knowledgeable about the risks and willing to adopt mote, and distribute improved cookstoves. The market a new method of cooking, they often lack the resources model and other findings from the study were discussed to pay for cleaner and more efficient cookstoves and with an array of stakeholders such as government fuels. officials, practitioners, entrepreneurs, donor representa- tives, and NGOs to build consensus on next steps. The World Bank’s Energy Sector Management Assis- tance Program (ESMAP) is trying to change this. The study formed the basis for the design of the ESMAP is helping to embed and scale up clean cooking Improved Cook Stove Program under the World Bank’s programs across World Bank operations through a mul- Rural Electrification and Renewable Energy Develop- tifaceted approach combining innovative market-based ment II (RERED II) Project. strategies, efficient stove technologies, better afford- ability, development of supply chains, and a focus on consumer behavior. ESMAP support to a rural energy TAPPING INTO A NETWORK project in Bangladesh is an example of this strategy. OF LOCAL NGOs AND INFLUENCERS A MARKET FOR CLEANER Building on the successful model, for sale and distribu- COOKSTOVES tion of solar home systems implemented under the first Traditional polluting cookstoves are widely used in Rural Electrification and Renewable Energy Develop- Bangladesh, especially in rural communities. Indoor ment Project (RERED), and the implementation model air pollution affects 145 million people, causing 78,000 of the improved sanitation program in Bangladesh, premature deaths per year—70 percent of these are the Improved Cook Stove Program utilized NGOs to children under 5 years of age. The government of produce, promote, and distribute clean and efficient Bangladesh has collaborated with global partners and cookstoves. donors on several programs to address this issue since the 1970s. Yet, despite these efforts less than 5 percent Clean cooking solutions: Technology that of households had access to an improved cookstove in improves indoor air pollution in a measurable 2010. way. Cooking solutions with low particulate Market intelligence was lacking to help the government and carbon monoxide emissions levels. understand the driving forces of transitioning house- holds to cleaner, more efficient cookstoves. In 2010, Improved cooking solutions: Technology that ESMAP completed a study that found that an improved reduces indoor air pollution, regardless of cookstove program could be successful in Bangladesh whether there are measurable impacts on health. if based on a market-driven model that would allow Cooking solutions that reduce adverse health, for the growth of entrepreneurs and micro-enterprises environmental, or economic outcomes from across the value chain through intensive training. cooking with traditional solid fuel technologies. The study reviewed local, ongoing household energy programs and international experiences on improved The improved cookstoves—which emit 90 percent less cookstoves, drawing lessons learned from successful carbon monoxide, require 50 percent less biomass programs. It also gathered best practices on developing fuel, and include a chimney that further reduces indoor 2 ESMAP Impact | Issue 17 air pollution—are made by local entrepreneurs using locally procured raw materials. This has strengthened rural supply chains and boosted jobs in rural commu- nities. The improved cookstoves also reduce cooking time by approximately half, freeing women and children from the time burden of collecting firewood for cooking. The NGOs that promote and sell the improved cook- stoves are financed under a microcredit scheme by the Infrastructure Development Company Limited (IDCOL), a government-owned development-finance institution. By leveraging the capacities of NGOs, the program has contributed to strengthening the commercial market for clean cooking solutions. https://www.worldbank.org/en/news/video/2018/05/08/better-cookstoves- Designed around a results-based financing framework, . ring-fresh-air-to-bangladeshs-homes b the NGOs are funded based on their performance, Source: The World Bank. with payouts for sales based on a variable scale. This the improved cookstoves. IDCOL engaged the Bangla- has led to an alignment between incentives and sales desh Atomic Energy Commission to act as a hub for increases, ensuring that only cookstoves that suit cus- testing, ensuring the quality of the improved cookstoves tomer preferences are manufactured and distributed. distributed under the program. The Bangladesh Univer- The program also supports local NGOs in establishing sity of Engineering Technology was also brought in to their own production centers closer to market and in help design some of the improved cookstove models partnering with the local entrepreneurs to improve their and act as a standard lab for testing and labeling. production capacity according to technical specifica- tions of IDCOL. Research and development support under the project resulted in improvements in the locally produced con- The program utilized marketing techniques from the crete stoves, upgrading the cookstoves to higher levels private sector to reach out to local communities to raise of efficiency over time. awareness about the benefits of the improved cook- stoves. Village influencers and early adopters were The cookstoves were tested by the Bangladesh Univer- identified and encouraged to spread messages about sity of Engineering Technology in 2017. They showed the fuel saving and health benefits of the improved over 20 percent reduction in particulate matter and 90 cookstoves. The multilevel awareness creation cam- percent reduction in carbon monoxide emissions. The paign works through village meetings, rural folk songs, standard field testing deployed by the program, along rural product displays and exhibitions, and user with the lab testing, offer real-time data on emissions trainings. and efficiency. IDCOL also hosts monthly committee meetings, bring- The Improved Cook Stoves Program, which began in ing together the development partners and the NGOs. May 2013, distributed one million improved cookstoves These meetings serve as open platforms for honest by January 2017, almost two years ahead of schedule. discussions on the program, including challenges and success stories. CREATING OPPORTUNITIES IMPLEMENTING STANDARDS FOR WOMEN TO IMPROVE EFFICIENCY The impacts on women have been particularly signif- icant. Seven of the NGOs selected to carry out the The Clean Cooking Alliance provided expertise on program in rural communities are being led by local stove technology and fuels, impact assessments, and women, such as Ms. Jhimi Mondal, who runs an organi- marketing strategies. Once performance standards zation that has sold over 130,000 improved cookstoves were established, labels identified the standards met by in the Bagerhat district in Southern Bangladesh since ESMAP Impact | Issue 17 3 financing, which will help the program reach 4 million more households by December 2021. This next phase will also introduce higher efficiency and cleaner cookstoves, the first large-scale program to do so. This higher efficiency model uses biomass and bio- mass waste-based pellets to fuel the cookstoves. Like the cookstoves, the pellets are manufactured by local rural entrepreneurs. The funding also includes allocations for further quality assurance, as well as training and outreach efforts to ensure continued success. The program will leverage the carbon credits earned from the installation of one million improved cook- stoves to further fund the distribution of the higher efficiency cookstoves. The carbon credits are expected Source: Jibon Ahmed. to provide over US$25 million in funding and will help the program remain sustainable beyond the project 2004. Ms. Mondal often employs poor and disadvan- end date in 2021. taged women. In total more than 58% of her staff are made up of women, employed in various capacities A SUCCESSFUL MODEL from senior management to masons. FOR CLEAN COOKING By supporting local supply chains and working closely As of February 2019, nearly 1.7 million improved with local village influencers and early adopters, the cookstoves had been installed under Bangladesh’s program has boosted adoption rates for the improved Improved Cook Stoves Program, reducing the use of cookstoves and created more than 3,000 direct and firewood by 58 percent and greenhouse gas emissions indirect jobs for women. Women involved in the by almost 3 million Mt of CO2 equivalent. Over its program are earning an income and reducing poverty lifetime, the program is expected to reduce greenhouse levels for their families. gas emissions by a total of 10.5 million Mt of CCO2 equivalent and reach 25 million households. REACHING BEYOND ONE MILLION STOVES More importantly, the unique program—which brings together the local development-finance institution Based on the success of the program’s first phase, and network of NGOs, linking incentives with verified efforts have been scaled up. In February 2018, ESMAP results—has proven to be a successful model for man- helped mobilize additional funding by preparing a pro- ufacturing, distributing, and raising awareness about posal to the Green Climate Fund (GCF). In September improved cookstoves, improving lives in Bangladesh, 2019, GCF committed US$20 million, along with and offering an example for future World Bank clean US$20 million from the World Bank, in additional cooking efforts. ESMAP MISSION The Energy Sector Management Assistance Program (ESMAP) is a global knowledge and technical assistance program administered by The World Bank. It provides analytical and advisory services to low- and middle-income countries to increase their know-how and institutional capacity to achieve environmentally sustainable energy solutions for poverty reduction and economic growth. ESMAP is funded by Australia, Austria, Canada, ClimateWorks Foundation, Denmark, the European Commission, Finland, France, Germany, Iceland, Italy, Japan, Lithuania, Luxembourg, the Netherlands, Norway, the Rockefeller Foundation, Sweden, Switzerland, the United Kingdom, and the World Bank. 1818 H Street, NW Washington DC 20433 www.esmap.org esmap@worldbank.org 4 ESMAP Impact | Issue 17 S e pt e mb e r 20 19