New norms may threaten growth in clean cookstoves

Manufacturers of clean cookers fear that proposed standard changes for earning carbon credits could undermine their business model.

The news: UNFCCC, an intergovernmental body, has published new ways of calculating the climate impact of using traditional versus clean cookers.

• It’s down to how much of traditional fuel comes from non-renewable biomass.

• For example, are trees cut down or to what extent are cooks merely burning fallen branches?

Why it matters: The question may seem academic but could have a major impact on the commercial viability of the fast-growing cookstove sector.

• Manufacturers want to shift hundreds of millions to clean cooking fuels.

• This would reduce global emissions equivalent to the aviation sector (2% of the total).

Credit boom: Manufacturers scale impact by subsidising the sale of stoves with carbon credit revenues.

• Koko Networks has reduced stove costs by 85% and fuel by up to 40%

• Burn Manufacturing provides a subsidy of up to 95%.

Biomass calculations: The new UNFCCC norm could shrink the claimed emissions savings from 3 tonnes of carbon dioxide per household per year to 1 tonne.

• Manufacturers will potentially lose a majority of their carbon credit revenues.

Shared goals: So what’s behind the revision by the UNFCCC? Afterall, it aims to save the planet as much as the manufacturers do.

• Current standards are overly optimistic, meaningly favourable to manufacturers.

• This contributes to growing distrust around carbon markets, driven by scandals.

• Over time, reformers say, the manufacturers will benefit from higher integrity.

The debate: All very well, say manufacturers. But the numbers don’t work.

• The sector needs $10 billion for universal access to clean stoves.

• Currently, it sees annual investment of around $130 million.

• Take away the credit revenue, and emission targets become unachievable.

Reformers reply: That may mean manufacturers need more equity and debt funding.

• Carbon credits were low-hanging fruit but may now be becoming rarer.

Their own words: Manufacturers write in an open letter, “‘While we welcome a revised approach, we share concerns regarding certain data inputs and assumptions.”

What’s next: The UNFCCC is holding a public consultation.

• Which side of the fine line between adjusting and crushing a market will this fall?