Using programmatic CDM to trigger transformative change...

Before we proceed to the innovation and technology, it is important to go through a few definitions necessary to understand the project.

The Clean Development Mechanism (CDM), defined in Article 12 of the Protocol, allows a country with an emission-reduction or emission-limitation commitment under the Kyoto Protocol (Annex B Party) to implement an emission-reduction project in developing countries. Such projects can earn saleable certified emission reduction (CER) credits, each equivalent to one tonne of CO2, which can be counted towards meeting Kyoto targets. (United Nations Framework for Climate change)

The official definition by UN for programmatic CDM is, “A Program of Activities (PoA) is a voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal (i.e. incentive schemes and voluntary programs), which leads to GHG emission reductions or increase net greenhouse gas removals by sinks that are additional to any that would occur in the absence of the PoA”. (United Nations Framework for Climate change)

Certified Emission Reductions (CERs) are a type of emissions unit (or carbon credits) issued by the Clean Development Mechanism (CDM) Executive Board for emission reductions achieved by CDM projects and verified by a Department Of Energy (DOE) under the rules of the Kyoto Protocol. These carbon credits can then be sold in European energy markets to buyers who seek to meet the emission norms set by the Kyoto protocol.

About 3 billion people cook and heat their homes using open fires and biomass stoves. Nearly 2 million people die every year from indoor air pollution. 44% of these are due to pneumonia, 54% from chronic obstructive pulmonary disease (COPD), and 2% from lung cancer. Cooking indoors over and open fires is equivalent to smoking two packs of cigarettes per day. According to a study by the UN, ‘Women exposed to heavy indoor smoke are three times as likely to suffer from chronic obstructive pulmonary disease (e.g. chronic bronchitis), than women who use cleaner fuels. Among men (who already have a heightened risk of chronic respiratory disease due to their higher rates of smoking), exposure to indoor smoke nearly doubles that risk.’

Fig 1: A women using traditional stove to cook the meals

Therefore, conversion of these biomass (mainly wood) based stoves to a cleaner technologies would not only be a great help to the poor people using these but would also be a boon to the degrading environment due to these activities.

Fig 2: An improved cook stove

Following are a list of possible advantages by replacing the traditional stove with the improved cook stove shown in the figure above.

Around $70-150 of income would be saved per year per family as the usage of the wood would drastically reduce by using the improved cook stove. Moreover, more than 250 hours of useful time in collecting and buying the wood would be saved per family per year. Further, over 30 trees wuld be saved resulting in saving of 3-5 tons of CO₂. This would also mean 50% less exposure to particulates from the smoke which will have huge health benefits for the poor people.

This project is currently being implemented by Earth Matters, Don Feil and SOSAI (DARE) in association with UN.

Following are the financials (and funding pattern) of the project:

•          Such stoves are sold in the open market at $35-40 each. This is really beyond reach for the poor families using stoves to cook.

•          These companies sell these stoves at a subsidized price of $10-15 to the consumers.

•          They then use funding from impact investors, debt and grant providers to fund the difference.

•          As this project is classified under programmatic CDM, CERs are issued by the DOE under the guidance of UN for reduction in CO₂.

•          The CERs are then sold in regulated markets like Europe over 5 years to pay cost of the subsidy and other operational costs.

•          For the consumers, the stove pays consumer in approximately 2 months and produces long term health and environmental benefits.

Therefore, it is a win-win for all. This is one of best examples of how a small technological innovation can be used to improve the lives of millions of poor families in underdeveloped and developing nations. Currently, this project is being carried out in poorest countries like Nigeria in Africa.