A new report written by Ecosystem Marketplace for the Global Alliance for Clean Cookstoves (GACC) highlights the growing role of carbon finance in driving clean cookstove distribution in developing countries around the world. More than half of the clean efficient stoves distributed in 2012 were financed in part by carbon offset. Cookstoves were also the third most popular offset project on the voluntary market in 2012.
This article was originally published in the V-Carbon newsletter. Click here to read the original.
3 October 2013 | A
“We think it’s working,” former US Secretary of State Hillary Clinton said of the GACC’s goal to distribute 100 million clean cookstoves by 2020. “More than 8 million clean cookstoves were distributed last year alone, that’s more than double the number in 2011.”
Ecosystem Marketplace surveyed the Alliance’s 800+ partners, finding that cookstove projects are typically funded by a mix of public, private-sector, and not-for-profit financing, with carbon offsets covering 16.9 million tonnes (MtCO2e) in carbon emissions supporting the dissemination of at least 4.1 million stoves. About half of the demand for these carbon offsets came from European buyers subject to compliance cap-and-trade program. The other half came from buyers on the voluntary market.
Because of their joint health and environmental benefits – and because they primarily benefit the women who use them – cookstoves were the third most popular offset project on the voluntary market in 2012. Offsets from clean cookstove projects sold for an average of $9.9 per tonne (/tCO2e). Though this is lower than the average 2011 price for cookstove offsets ($13.2/tCO2e), it is much higher than the average voluntary market price across project types ($5.9/tCO2e) and the average certified emissions reduction (CER) price ($3/tCO2e).
Cookstove projects are “charismatic” indeed. However, the future is uncertain: some project developers fear that prices will fall as more cookstove projects begin to sell offsets, especially if compliance markets falter.
Read Ecosystem Marketplace’s full coverage of the issue
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