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)

22. Rough categories of target consumers