How Induction-Based Cooking Can Help Reduce the Drudgery of the Summer Heatwave for Women and their Families
Making cooking environments safer for rural women in India
By Nitisha Agrawal, Director, Social Impact, MicroEnergy Credits
20th August 2024
As per a recent report - ‘The scorching divide: How extreme heat inflames gender inequalities in health and income’ published by The Adrienne Arsht-Rockefeller Foundation[i]In India, the number of women dying annually due to heat is projected to double, reaching 73,500 by 2050. While the report does not point specifically to the drudgery faced by women due to rudimentary cooking practices using fire food and biomass, much has been said about the uncomfortable, almost unbearable cooking conditions these practices create.
The report points out that presently, 27,000 women in India die each year due to heat-related excess mortality. While the women are exposed to extreme heat for all outdoor activities including paid and unpaid labour, cooking through traditional stoves further exacerbates their exposure to heat.
Several factors add to what could be termed as heat-related issues from the lens of the cooking scenario - direct exposure to flames, intense smoke, and soot that stays in the cooking area long after the food is cooked, increased instances of skin burns, longer hours to collect firewood as one’s efficiency is at an all-time low, and longer hours to fetch water due to drying water sources are among the obvious factors.
That extreme heat affects physical and mental health is a known fact, and the report highlights that “February 2023 was India's hottest February since 1901, and July 2023 broke records as the hottest July on Earth. Women are vulnerable to extreme heat due to physiological differences, limited access to healthcare, and increased risk of gender-based violence.”
However, the good news is that several new technologies and innovations could well have the solution to help reduce the heat factor in these women's cooking areas. Induction-based cooking is surely one of the most efficient and promising ways forward.
Based on my recent experience with MicroEnergy Credits, I had a chance to meet almost 25 women who have been using induction-based cookstoves for most of their cooking requirements. We met these women in their homes between March and April. Based on temperature records, some of those days had been recorded as the hottest days (29th April, Nalanda district of Bihar recorded well over 40 degrees daytime temperature in some parts).
The one differentiating factor that stood out immediately was that their cooking space did not feel as hot as compared to homes using traditional cooking methods. The absence of smoke and flame-related heat made their cooking environment bearable and comfortable. Most of these women shared that they find cooking on induction stoves convenient and easy. As opposed to traditional cooking methods using biomass, not being exposed to smoke and flame-related heat can prevent them from direct health issues like extreme exhaustion, giddiness, headache, respiratory illness, and heat-related fever.
MEC through its field partner network has been instrumental in bringing these induction cookstoves to over 1,30,000 households in the first year of its program which is a stupendous achievement given the largeness of this problem statement.
As the grid infrastructure and power connectivity continue to improve across the villages in India, induction-based cooking can play a pivotal role in preventing several issues related to rudimentary cooking practices including the health and well-being of women.
MEC is committed to strengthening the user experience through its partners and helping reduce barriers to adopting these new and improved technologies like induction-based cooking.
A Better Cooking Environment for Rural Indian Kitchens
Small but significant steps taken by MicroEnergy Credits’ induction cookstove carbon program
By Nitisha Agrawal, Director, Social Impact, MicroEnergy Credits
7th August 2024
That I’ll get to see an induction cook stove in a small home in Samastipur, Bihar along with the same old facets of an Indian village life, has been a fascinating first experience. These homes are still lined up with walls of dried cow dung and rudimentary structures but one of their cooking options is an induction-based stove, something that even I don’t have in my kitchen currently. In my 8th year as a practitioner of access to clean energy opportunities for the most marginal sections of our society, observing the use of induction cookstoves feels like a quantum leap.
I got this opportunity with MicroEnergy Credits (MEC) as they are currently rolling out a unique and first-of-its-kind induction cook stove clean cooking carbon program. Traveling to the state of Bihar, we made our way to Hasanpur in Samastipur District. Hasanpur is known for its sugar mills and one would assume that a large part of the population in this block would find employment in these mills. But there is more to it when we go deeper into the villages and meet the women.
MEC’s differentiated model of last-mile connectivity resides in its partnership with women’s financial inclusion organizations across the footprints of India. This makes the model not only scalable but also consistently dynamic. By its definition of purpose, ‘microfinance serves as a cornerstone for financial inclusion and grassroots development in India’. By providing the marginalized sections of society with access to credit and financial services, it has contributed to poverty alleviation, women empowerment, and rural development.
Now consider this powerful tool to provide opportunities for clean energy technologies. While most models grapple with achieving scale, MEC effectively uses this platform to reach lakhs of households with distributed technologies like induction cookstoves, improved cookstoves, solar lights, water purifiers, and others.
Our hosts for this visit were one of MEC’s field partners working for women’s financial inclusion, which has a robust footprint in this region and other parts of India. I could start to feel the power of this narrative by listening and interacting with women who are part of this universe. I attended a ‘women’s center collection’ meeting with our partner’s field team and realized that these women not only have taken their first steps towards empowerment but are better informed of their opportunities in life. Making decisions about accessing finance, what type of finance, using digital payment methods, handling their own money, choosing from an array of products and services offered through financial schemes, getting together regularly and talking about their home situations with a lot more confidence, felt like a move in the right direction.
In this meeting, we asked the women about their experience using an induction cookstove. While some of them are still learning how to use the stove to its full potential, their initial experience seemed positive and exciting to some extent. Expression of excitement emerges from the ease of use of these stoves, and perhaps how quickly one can make a dish or boil water or even milk.
‘Click of a button’, and the cookstove is in use. Juxtaposing this ease against the smokiness of firewood-based cooking where it takes several minutes to get the fire going, use of a firestarter like plastic or kerosene and then subsequent and continuous fumes while the woman is cooking and even beyond that (as the smoke stays in the environment for a long time).
This makes me think of the mobile phone- the telecommunication revolution in rural India with the images of old grandparents being connected to their grandchildren first through voice and then through videos and now the digital payments revolution. The context may be different, but the emotion feels similar.
One may argue that induction-based cooking is drastically different from traditional cooking methods and so its impact on cooking output, but meeting these women made me believe that if given the right inputs and by continuously having conversations with them, they will choose what's right for them. And from what they shared; the taste is just what it needs to be.
Now in these homes in Bihar and other states, there is an interplay of three types of cooking tools: traditional cookstoves, LPG, and induction. The scope of this article is not about usage percentages and the actual MRV process followed by program developers but MEC’s approach takes this into account by making sure that only the most conservative data is used. And looking at the cooking scenario in homes using induction, there is definitely less smoke, much less drudgery associated with fuel food collection, and critical saving of the woman’s time. This is an impactful transition towards cleaner kitchens and if we continue to motivate women to increase their adoption of using more of cleaner cooking options, they will make the right choice.
Like any other new technology, there is initial hesitation attached to the use of induction cook stoves, like a TV, a mixer grinder, a microwave oven, and even induction in urban homes. These aspects of slight hesitation can easily be removed by demonstrations, sharing of experiences, and sometimes just by talking. This is another differentiator within the MEC model where the field partners are present in the lives of their clients for several years through some kind of financial service. Naturally, the relationship will move beyond that of a cookstove, but it will always allow the client to come back in case of doubts or problems.
If we can support the user community with continuous capacity building and training through the field partners, then this will perhaps lead to deeper adoption of these technologies.
After the collection meeting, we visited the homes of some of the users of induction cookstoves where again the dominant thread was ease of use and very visible saving of time. Yes, there are infrastructural gaps related to power connectivity and the presence of extension boards, but these will improve over time with concentrated efforts by the government and other developmental agencies.
An impromptu cooking demonstration done during our field visit helped erase certain doubts in the minds of women who were hesitant to use the induction cookstoves.
Observing the expressions of some of these women and even men, I felt that there is an underlying emotion of aspiration through the use of these induction-based cookstoves. As if the household has moved up the ladder. Yes, to be able to use induction-based cooking for some of the cooking needs is a huge movement up the energy ladder and this is indeed the underlying objective of MEC’s program. Another interesting dynamic in favor of this technology is the positive response from the younger generation. We saw that in homes where there are youth and children, there is better adoption. Not only are the youth using it themselves to make a quick snack like Maggi noodles but these cookstoves are turning out to be very useful in making early morning tiffins for school-going children. As per MEC’s current monitoring, women have reported saving 1.10 hours per household per week, which is about 10 to 12 minutes each day.
Given an option, any woman would like to save 10 minutes of her time daily and escape from the drudgery of a smoke-filled cooking environment.
MEC through its field partner network has been instrumental in bringing these induction cookstoves to over 1,30,000 households in the first year of its program which is a stupendous achievement given the magnitude of this problem statement.
Even though these women are choosing the induction for some of their cooking requirements regularly, they are still choosing the most advanced and clean technology available in this space and everyone involved in this transition should be extremely proud of this achievement.
MEC’s unique program methodology uses metered technology to track the use of these induction cookstoves to measure the energy used for cooking. This also means that the data is collected digitally, resides on a cloud-based system, and ensures that there is no manipulation of the numbers. The meter will only take the readings if the induction is in use and then record the energy spent during cooking through induction. This process of data collection once again is a step in the right direction as this metered technology can be scaled up to each cooking device over time, much like recording the TRP or viewership ratings through a chip for our TV viewing preferences.
While this visit to Hasanpur in Samastipur district opened up an opportunity to witness a transition unfolding in the homes here, I am extremely optimistic and curious to understand how induction-based cooking is impacting the lives of women and families in other parts of India. Globally, there is much emphasis on induction-based cooking, and rightly so, but programs like MEC’s are also allowing the users to choose what may seem the current best option for them by financial empowerment of making the purchase decision and not free distribution.
With over 1.3 lakh users of induction cookstoves currently under this program, the numbers are likely to go up substantially over time as one can see the demand for it. And when there is a pull for any technology, we have seen how quickly the penetration happens.
On MEC’s part, it is committed to strengthening the user experience through its partners and helping reduce barriers to adopting these new and improved technologies leading to the overall well-being and empowerment of women in rural India.
Lighting the Way: Women's Empowerment through Climate Finance in Action
A current MicroEnergy Credits client and a future one show the power of women’s empowerment climate finance.
By Garima Dawer, Director, Communications, MicroEnergy Credits
1st August 2024
I recently visited a new area where we at MEC hope to expand our clean energy program, and there I met with an inspirational woman, Tania Bibi.
Tania Bibi is a hardworking young mother to a school-going daughter in Barrackpore, near Kolkata in West Bengal, India. Like all mothers, Tania has hopes and dreams for her child, but her days are spent in drudgery, cooking on a traditional chulha surrounded by smoke, and her evenings and nights in an almost dark home. Her daughter studies by the meagre light of a kerosene wick lamp after dark because their home has no other source of lighting, managing the bare minimum she needs to, because the smell and smoke from the lamp mean she cannot sit next to it for too long without damaging her eyes and lungs.
I am so excited that MEC’s program will introduce solar lighting, improved cookstoves, and water purification in her region. It is an honor to help these inspiring women offer more to their families and children. Indeed, through our program, Tania Bibi will spend less to achieve clean and modern energy than she currently spends on traditional fuel. When Tania accesses clean energy solutions like an improved cookstove for cooking, and solar lights to light up her home so her child can study after dark, she and her family will achieve freedom from continued health risks due to exposure to harmful smoke, as well as from the high probability of Tania’s daughter dropping out of school and limiting her access to future opportunities for development. When a child drops out of school, there is a strong likelihood that another generation will remain in poverty.
As I return to my desk to get up to speed on generative AI, I am boggled by the contrast in how our society allocates wealth. There are still millions and millions of women, their children, and their families in Asia and Africa still living in the dark - cooking, heating, and lighting their homes with polluting fossil fuels, unable to access simple clean energy to improve their daily lives. This lack of access has a far-reaching impact on several human development factors such as a long and healthy life, access to education and a decent standard of living. India, where MEC is determined to create a high social impact through its projects, ranks a dismal 134 out of 191 in the Global Human Development Index, and Kenya, another MEC project geography, ranks 152nd.
Our company has had the privilege to work with some incredible corporations that have funded climate action. But this is a small portion of what is needed.
The integrity conversation has led to terrific tools to increase climate impact, like the ICVCM and the VCMI. But while the debate has raged, it has also delayed carbon funding, with billions of dollars earmarked for climate action lying untapped in corporations, resulting in organizations like MEC needing to scale back their plans. I have personally witnessed the urgency to resume this scale-up and reach women like Tania Bibi.
We need more corporations to commit to carbon funding so we can support more women like Tania Bibi, who are ready to create healthier homes and a cleaner climate.
Now meet Uttama Barik, another inspirational woman I met on my travels. She is an end-user of our clean cooking carbon program in Nayapalli, Bhubaneswar, Odisha, India, and a micro-entrepreneur who uses the induction cookstove bought as part of the program to make snacks she sells to tea stalls and student hostels. The induction cookstove has allowed Uttama to spend more hours cooking in a safe, smoke-free environment and supplement her family income that is now being used to fund her daughter’s diploma program in computer science. This one step of clean energy adoption has had a far-reaching effect – Uttama’s family’s health has improved, and the additional income has provided her daughter with a chance to enter the technical workforce, potentially lifting her family up the economic ladder.
Uttama’s is one of the many success stories of women positively impacted through our clean cooking program GS12066- Microfinance for Clean Cooking Product Lines - India. Success stories like hers are made possible only through climate finance, a critical tool that holds the potential to catalyze transformative change on a global scale.
Each dollar spent buying carbon credits from a high-integrity, high-quality project developer like MicroEnergy Credits goes ten times further, not only supporting critical climate action and creating livelihoods for clean energy product distributors and demonstrators but generating a host of co-benefits like improved health and access to education with the potential to change the lives of entire families, communities, and countries.
And each client positively impacted when corporations fund development through climate finance is more than a number. It’s an individual, a child, a family, and a community that benefits from meaningful change. By investing in climate finance, corporations not only mitigate the risks associated with climate change but also pave the way for a more equitable and sustainable future for generations to come.
Even as nations grapple with the consequences of rising temperatures, extreme weather events, and environmental degradation, all is not lost, and we are not powerless. There is near-term action that climate-aware corporations can take. Climate heroes like Tania Bibi and her young daughter are ready to improve the climate as well as their lives, as Uttama Barik and her daughter have been able to do.
MEC Africa Program: All You Need to Know
MicroEnergy Credits – Microfinance for Solar Lamps & Efficient Cookstoves
Grouped Project under Verra
In line with our commitment to transparency and integrity, we are providing a comprehensive list of all the information about our Africa clean energy program here.
This initiative aims to ensure that stakeholders have access to program details and documentation in an easy-to-use way.
In the rural areas in Kenya, the predominant means of cooking are traditional cookstoves that use charcoal or wood as fuel. The smoke and fumes from these inefficient stoves contribute heavily to indoor air pollution, and affect human health. In rural areas of Kenya there is either no grid connection or frequent power outages and low voltage so rural households must use kerosene for indoor lighting, which also contributes to indoor air pollution.
Under the project activity, MEC works with project partners to develop a successful and diversified clean energy-lending program. The clean energy program addresses typical barriers for low-income clients including education, price, finance, and supply and aftersales service. MEC trains project partners to implement the clean energy lending program, as well as a robust and transparent carbon credit monitoring and tracking system to quantify and record the volume of carbon emission reductions created through the clean energy program.
How Does MEC Incorporate the Research from UC Berkeley (Gill-Wiehl et al) in its Work?
As a project developer, MEC read Gill-Wiehl’s original research with interest. We are always trying to keep on the cutting edge using the best possible methodologies. Technology is continuously changing and we are evolving with it. As our CEO April Allderdice writes here, the methodologies will continue to change and improve over time. Moreover, it is our company's value that constructive criticism is a valuable catalyst for progress. The great news is that MEC has already been applying most of the suggestions for monitoring integrity. Here are some of the suggestions from the paper that MEC is already implementing:
The Usage Surveys are done physically and hence are based on the actual observations of the enumerators on the ground. There is minimal risk of recall bias as households are not asked to “recall” their use over the monitoring period.
MEC uses Kitchen Performance Tests which are considered robust.
MEC already avoids social desirability bias by not relying solely on the household response, but rather on in-person observation of the home and photos.
MEC carries out Kitchen Performance Tests in both dry and wet seasons to establish any difference in use. The conservative value between the wood used in any of these seasons is used for calculating the emission reductions.
MEC uses a higher sample size of 60-80 households for KPTs.
MEC usage rates range from 53-85% which is in line with independent literature
MEC’s projects apply the TPDDTEC v3.1 methodology however the baseline wood consumption does not go beyond the thresholds given in the TPDDTEC v4 methodology. This measure has been incorporated to ensure that the value of wood consumption is based on the latest available research and guidance from the methodology. Note that MEC is not required to apply these thresholds as they are not mandated under TPDDTEC v3.1.
MEC VPA project boundaries are carefully chosen to minimize the risk of heterogeneity within a VPA.
An additional safeguard is applied by MEC VPAs in that whenever there are multiple states within the same VPA, Usage Surveys and KPTs are done per state. This ensures that heterogeneity concerning size, age of family members, type of food, etc. is accounted for.
MEC projects are well within the 0.75 ton/capita/year (~3.2 MJ-delivered/capita/day) threshold and hence well below 3.2 MJ/capita/day.
MEC uses the highly regarded Gold Standard methodology for its cookstove projects in India.
Fostering Community Empowerment - Paving the Way Towards a Sustainable Future
MicroEnergy Credits (MEC) programs, backed by carbon finance, play a crucial role in bridging the gap between clean energy solutions and communities in need. Employing a holistic approach, MEC addresses challenges encompassing energy drudgery, awareness, pricing, finance, and after-sales services, ensuring a sustained impact on the communities it serves.
The comprehensive strategy of MEC's Africa programs makes a substantial contribution to community development. By significantly reducing indoor air pollution and providing access to sustainable energy for cooking and lighting, the program addresses the fundamental needs of low-income households. Strategic partnerships with microfinance institutions facilitate upfront credit facilities for clean energy technologies, ensuring affordability through manageable EMIs. Furthermore, the program creates employment opportunities for local youth, fostering sustainable development in the communities it serves.
Contributing to Sustainable Development Goals while addressing barriers for low-income clients under MEC Projects in Africa
Within the dynamic landscape of its projects in Africa, MEC not only strives to contribute to the broader canvas of Sustainable Development Goals (SDGs) but also successfully addresses the unique challenges faced by low-income households. This multipronged model forms the crux of MEC's mission in Africa.
MEC is committed to not only providing clean energy solutions and clean water (significantly contributing to SDGs 6 & 7) but also actively addressing the barriers faced by low-income clients. Comprehensive training programs empower MEC’s project partners to effectively implement clean energy lending, supported by a robust carbon credit monitoring system for transparency and accountability. These innovative strategies and multifaceted approaches employed by MEC’s projects in Africa have been striving to achieve the twin objectives of sustainable development and inclusivity in the African context since 2013, impacting 8 million low-income households.
MEC strategically employs carbon finance to drive sustainable change, focusing on:
Increasing awareness among end-users
Carbon finance is allocated to drive education and awareness campaigns among rural and low-income communities. This ensures that communities are not only aware of the benefits of clean energy but also actively engage in adopting solutions that help them shift away from traditional fossil fuels to improved clean energy technologies. This action aligns the end user’s perspective towards the low carbon technology and contributes to SDG-7(Affordable and Clean Energy) and 13 (Climate Action).
Training and capacity building
MEC dedicates resources to training and capacity-building programs for micro-entrepreneurs and staff members of microfinance institutions (MFIs). Each training program developed by MEC is tailored to the specific needs of partner organizations. These programs aim to improve skills, facilitate effective communication with end-users, and ensure the rigorous use of technology, along with prompt after-sales services, and scaling-up of the program in the long run. This action aligns the end user’s perspective towards the low carbon technology and contributes to SDG-7 (Affordable and Clean Energy), 13 (Climate Action), SDG-8 (Decent Work and Economic Growth)
Lending funds to local SMEs
MEC recognizes the importance of local businesses, especially Small and Medium Enterprises (SMEs), and channels funds to support sales of clean energy products. This not only boosts local economies but also creates a self-sustaining cycle of clean energy adoption. The activities under the program provide opportunities for skilled employment in rural areas and significantly contribute to SDG-8 (Decent Work and Economic Growth).
Aftersales service and maintenance
Carbon finance is utilized to provide after-sales service and maintenance, ensuring that the end-users can maximize the benefits from the continuous use of clean energy products. This solidifies the community’s trust and commitment towards the adoption and consistent use of clean energy technologies which significantly contributes to SDG-7 and SDG-13.
Sustained engagement with end-users
MEC maintains a sustained relationship with the end-user, with regular monitoring of product usage being an important part of MEC’s carbon program. MEC works with microfinance institutions which typically meet with clients every week or fortnight. These meetings serve the purpose of reinforcing the behavioural change needed for the sustained efficient adoption of the clean energy product. Moreover, these meetings create a timely opportunity for users to access after-sales service for their products. The action promptly contributes to SDG-7 and SDG-13.
Lowering interest or principal costs
Carbon finance is strategically used to lower interest or principal costs for clients, making clean energy solutions more affordable to low-income communities. This lowering of the upfront cost is supported through carbon finance promotes widespread adoption and significantly contributes to SDG-1.
Harmony between MEC projects in Africa and the Governments of Kenya and Uganda’s welfare schemes and programs
In addition to aligning with the SDGs, MEC's Africa program has broadened its influence by supporting various schemes and social security programs initiated by the Governments of Kenya and Uganda. The following is a list of schemes and programs to which the MEC program has contributed:
Sl. No
Scheme/Program Name
Country
About
Contribution of MEC’s Program to the Schemes/Program
The project is targeted at benefitting approximately 314,200 non-commercial customers (households) resulting in electricity access to an additional 1.5 million Kenyans
By implementing solar home lighting systems, MEC ensures sustainable access to electricity, enabling low-income households to engage in productive activities after nightfall
The National Climate Change Action Plan (NCCAP), 2018-2022, is a five-year plan that helps Kenya adapt to climate change and reduce greenhouse gas emissions
MEC MFI carbon program in Kenya is reducing GHG emission by providing low carbon technologies among the under-privileged communities.
mainstream climate change responses and formulate program and plans to enhance the resilience and adaptive capacity of human and ecological systems to the impacts of climate change;
The MEC MFI carbon program in Kenya is instrumental in establishing an ecosystem for the adoption of low-carbon technologies within underprivileged communities.
KYEOP is a transformational project that aims to empower and uplift the well-being of the youth in Kenya by equipping them with essential training, internship and business grant opportunities.
The MEC model educates and empowers microentrepreneurs, creating a skilled workforce in Africa. Additionally, MEC provides training for MFI staff, enhancing their skills in sales, marketing, and the service and maintenance of low carbon technologies.
to empower the target youth to harness their socio-economic potential and increase self-employment opportunities and income levels
The MEC model educates and empowers microentrepreneurs, creating a skilled workforce in Africa. Additionally, MEC provides training for MFI staff, enhancing their skills in sales, marketing, and the service and maintenance of low carbon technologies.
The implementation of the policy objectives will positively respond to the various policy instruments and programs, which address poverty, catalyze industrialization, and protect the environment.
The MEC MFI carbon program in Uganda is instrumental in establishing an ecosystem for the adoption of low-carbon technologies within underprivileged communities.
To ensure a harmonized approach towards a climate-resilient and low-carbon development path for sustainable development in Uganda
The MEC MFI carbon program in Uganda is instrumental in establishing an ecosystem for the adoption of low-carbon technologies within underprivileged communities and supporting the national climate change policy and action plan.
MEC seeks to empower every community by providing access to affordable and innovative clean energy solutions, including solar lighting systems, improved biomass cookstoves, and water purification systems.
With the aim to create a world free of both poverty and climate change, MEC leverages carbon finance through its programs, enabling rural and low-income communities to take control of their clean energy future. MEC's projects in India showcase collaboration, innovative financing, and a comprehensive approach to empowerment to bring enduring transformation for communities in their journey out of poverty.
In working towards a sustainable and eco-friendly future, Micro Energy Credits (MEC) is contributing through transformative projects in Kenya and Uganda. The program supported by Carbon Finance, play a pivotal role in bridging the gap between clean energy solutions and communities-in-need. MEC's holistic approach addresses challenges related to education, pricing, finance, and aftersales services, ensuring a comprehensive impact on the communities it serves.
MEC's African program embodies a comprehensive approach aligned with multiple Sustainable Development Goals (SDGs). By significantly reducing indoor air pollution, it actively contributes to SDG-13. Additionally, providing access to sustainable energy for cooking and lighting addresses the fundamental needs of low-income households, making a positive impact on SDG-1. MEC forms strategic partnerships with Microfinance Institutions to ensure upfront credit facilities for clean energy technologies, supporting affordability through manageable EMIs and contributing to SDG-7. Furthermore, the program plays a vital role in generating local employment opportunities, making a meaningful contribution to SDG-8.
Addressing Barriers for Low-Income Clients:
MEC goes beyond providing clean energy solutions by actively addressing the typical barriers faced by low-income clients. Through comprehensive training programs, project partners are equipped to implement clean energy lending effectively. This includes the establishment of a robust carbon credit monitoring and tracking system to ensure transparency and accountability.
Bridging Gaps through Client Education:
MEC places a strong emphasis on client education to empower communities with information about clean energy solutions. By fostering a deeper understanding of the benefits of clean energy, MEC not only provides a sustainable solution but also brings about a behavioral change towards adopting these technologies.
Utilizing Carbon Finance for Sustainable Impact:
The innovative use of carbon finance is at the core of MEC's projects in Africa, amplifying the impact of clean energy initiatives. Here's how MEC strategically employs carbon finance to drive sustainable change:
Client Education and Marketing:
Carbon finance is allocated to drive client education, awareness campaigns and marketing efforts. This ensures that communities are not only aware of the benefits of clean energy but also actively engage in adopting solutions that help them shift away from traditional fossil fuels to improved clean energy technologies.
Training and Capacity Building:
MEC dedicates resources to training and capacity building programs for micro-entrepreneurs and staff members of Microfinance Institutions (MFIs). Each training program developed by MEC is tailored to the specific needs of partner organizations. These programs aim to improve skills, facilitate effective communication with end-users, and ensure the rigorous use of technology, along with prompt after-sales services, scaling-up, of the program in the long-run.
Lending Funds to Local SMEs:
Recognizing the importance of local businesses especially Small and Medium Enterprises (SMEs), MEC channels funds to support sales of clean energy product. This not only boosts local economies but also creates a self-sustaining cycle of clean energy adoption.
Aftersales Service and Maintenance:
Carbon finance is utilized to provide aftersales service and maintenance, ensuring optimal functionality of the clean energy products. This solidifies community trust and commitment towards adoption and consistent use of clean energy technologies, making the projects more effective in the long run.
Lowering Interest or Principal Costs:
Carbon finance is strategically used to lower interest or principal costs for clients, making clean energy solutions more affordable to low-income communities. This financial cost cutting supported through carbon finance promotes widespread adoption, furthering MEC's mission of creating a sustainable and resilient future.
Sustainable Development Goals (SDG) targeted under MEC’s projects in Africa
Climate Action (Goal 13): The emissions generated by the water purifier are lower compared to boiling water on a standard stove. Likewise, the substitution of kerosene lanterns with SLS results in decreased emissions, leading to a reduction in greenhouse gas (GHG) emissions.
No Poverty (Goal 1): The water purification systems and SLS offer efficient and environmentally friendly access to the basic essential services.
Affordable and Clean Energy (Goal 7): Project provides access to affordable and cleaner technology for drinking safe water i.e. operational WPS and Solar lighting Systems for lightning purpose.
Decent Work and Economic Growth (Goal 8): The project generates local employment for manufacturing, distribution, and maintenance of CEPs.
The overarching vision of MEC's projects in Africa is to enable the installation of solar lighting systems, improved biomass cookstoves and water purification devices throughout the country. By leveraging carbon finance in a multifaceted approach, MEC and its project partners aim to transform communities by providing them clean energy solutions and at the same time empowering them to build a sustainable and resilient future.
MEC's projects in Africa exemplify how collaborative efforts, innovative financing models, and a holistic approach can bring about tangible and lasting change. As we navigate the path towards a greener tomorrow, MEC’s projects pave the way for a future where clean energy is a universally accessible and affordable. Through education, strategic financing, and community empowerment, MEC showcases the potential for a sustainable and brighter future for all.
Image Credit: Freepik
MEC Clean Energy Program- Project Additionality: Overcoming Socio-Economic Barriers
Bolstering the Integrity of Carbon Credits
The concept of additionality is a critical component in bolstering confidence in the integrity of carbon credits. MicroEnergy Credits follows a robust process to ensure that all its carbon projects are strictly additional and have a high social impact.
In the Guide to Carbon Offset Utilization, the concept of "quality or integrity" of an offset revolves around the confidence of the stakeholders in the ability of credit to fulfill the emission reduction requirements. The principle of additionality is crucial for boosting trust in carbon credits and safeguarding their integrity. In the context of crediting mechanisms, "additionality" refers to the notion that emission reductions or removals resulting from a mitigation activity are considered additional only if the activity would not have taken place without the additional incentive provided by carbon credits. Essentially, an additional project signifies that it would only be financially viable with carbon funding from market-based mechanisms. To quality as genuine carbon offsets, the reductions from projects must be "additional" compared to what would happen at business as usual. All projects registered under widely accepted greenhouse gas (GHG) project standardsadhere to the guidelines for evaluating and demonstrating additionality as established by the respective GHG crediting programs.
Socio-EconomicBarriers Analysis for Proof of Additionality of MEC’s Clean Energy Program
Barriers faced by low-income households to adopting clean energy technologies in India& Africa
Low-income households in India and Africa face several barriers to adopting clean energy technologies. These barriers are economic, social, and infrastructural. Here are some common challenges:
High Initial Costs: Clean energy technologies have high upfront costs, making them unaffordable for low-income households. This includes the cost of solar panels, improved cookstoves, and other renewable energy technologies. Access to affordable financing options that can help spread out the cost over several years can help low-income households gain access to clean energy technologies and make additional savings when compared to the cost of fossil fuels in the long run.
Limited Access to Finance: Low-income households have limited access to financial resources and face challenges in obtaining loans or financing for clean energy investments. Lack of credit history and collateral. The above-mentioned issues prevent them from forming formal sources of lending such as banks. However, microfinance institutions can significantly contribute by offering small, affordable loans without collateral to low-income households, and enabling them to access and afford low-carbon technologies.
Lack of Awareness: People from low-income households lack awareness and understanding of the benefits of clean energy technologies. Most of these technologies are considered to be of extraterrestrial origin. Limited education and outreach efforts contribute to a lack of awareness regarding available options and potential savings. Besides that, the lack of a market ecosystem for renewable products is also a major constraint for low-income households to get familiar with the technologies. Comprehensive awareness creation exercises can enhance awareness of low-carbon technologies.
Dependency on Traditional Fuels: Low-income households rely heavily on traditional and non-renewable energy sources, such as kerosene, wood, or biomass, which are cheaper in the short term but have negative environmental and health impacts. Implementing a robust behavioral change strategy, which includes raising awareness through training sessions, door-to-door campaigns, and facilitating experiential learning processes, can increase and sustain public trust in low-carbon technologies.
Cultural and Social Factors: Social norms and cultural practices also influence technology adoption. For instance, a lack of acceptance or understanding of new technologies slows down their adoption in low-income Indian communities. Thorough training and capacity-building exercises can dispel myths associated with the technologies and reshape people's perceptions about the technologies.
Maintenance and Repairs: The lack of access to skilled local technicians or maintenance services also discourages low-income households from investing in clean energy technologies and increases the trust deficit in low-carbon technologies. Concerns about the ongoing costs and reliability of these systems create a significant barrier for low-income households to invest and adopt clean energy technologies.
Addressing these barriers requires a comprehensive approach involving government initiatives, financial institutions, awareness campaigns, and community engagement to make clean energy technologies more accessible and attractive to low-income households in India.
In India, MEC's Carbon Program is closing gaps by designing projects that empower low-income households to select the most suitable and dependable clean technologies, supported by carbon finance.
2. Barriers faced by micro finance institutions to fund low-carbon technologies
Historically, a few microfinance institutions have engaged in providing microfinance for low-carbon technologies, However, challenges such as the high cost of hiring additional staff, costs related to marketing and building awareness, understanding of the products and technologies, absence of a local supply chain, concern about reputational risk, limited onward lending funds and challenge in developing products for consumptive loans have always tied the scope of growth. The MEC has introduced a program aimed at helping microfinance institutions overcome these hurdles.
Use of carbon funding to overcome barriers to clean energy adoption
MEC utilizes carbon finance to overcome the barriers - from investing in awareness programs by training MFI partners to empowering microentrepreneurs by accessing loans for the adoption of products and supporting MFI partners to provide aftersales service to customers. MEC begins by collaborating with microfinance institutions to devise an attractive clean energy product offering for its microfinance client base, addressing obstacles such as lack of education, high pricing, access to financing, and delivery and after-sales services. Subsequently, MEC trains the microfinance institutions for the implementation of the clean energy-lending program. This includes business planning, capacity building, and the execution of marketing, awareness/ education, and supply chain processes. MEC has established a robust and transparent system for monitoring and tracking carbon credits, quantifying, and documenting the amount of emission reductions generated by the clean energy projects. Lastly, the carbon finance is employed to expand and sustain the clean energy program through activities such as:
Client education and marketing
Internal training and capacity building
On-lending funds to local SMEs producing clean energy systems
Aftersales service and maintenance
Lowering the interest or principal cost to the client.
MEC employs a rigorous methodology to guarantee that its projects exclusively benefit low-income households in rural India, who would otherwise face challenges in accessing clean energy technologies due to economic and financial obstacles. The utilization of carbon funding is instrumental to overcoming these barriers and eventually bridging the viability gap in investment decisions. Consequently, the carbon credits produced by MEC's carbon programs contribute significantly to socio-economic development and the achievement of Sustainable Development Goals (SDGs).
MEC India Clean Energy Program: Co-Benefits - Fostering Community Empowerment
Paving the Way Towards a Sustainable Future
MicroEnergy Credits (MEC) programs, backed by carbon finance, play a crucial role in bridging the gap between clean energy solutions and communities in need.
Employing a holistic approach, MEC addresses challenges encompassing energy drudgery, awareness, pricing, finance, and after-sales services, ensuring a sustained impact on the communities it serves.
The comprehensive strategy of MEC's India program makes a substantial contribution to community development. By significantly reducing indoor air pollution and providing access to sustainable energy for cooking, lighting, and clean water, the program addresses the fundamental needs of low-income households. Strategic partnerships with microfinance institutions facilitate upfront credit facilities for clean energy technologies, ensuring affordability through manageable EMIs. Furthermore, the program creates employment opportunities for local youth, fostering sustainable development in the communities it serves.
Contributing to Sustainable Development Goals while Addressing Barriers for Low-Income Clients under MEC Projects in India
Within the dynamic landscape of its projects in India, MEC not only strives to contribute to the broader canvas of Sustainable Development Goals (SDGs) but also successfully addresses the unique challenges faced by low-income households. This multipronged model forms the crux of MEC's mission in India.
MEC is committed to not only providing clean energy solutions and clean water (significantly contributing to SDGs 6 & 7) but also actively addressing the barriers faced by low-income clients. Comprehensive training programs empower MEC’s project partners to effectively implement clean energy lending, supported by a robust carbon credit monitoring system for transparency and accountability. These innovative strategies and multifaceted approaches employed by MEC’s projects in India have been striving to achieve the twin objectives of sustainable development and inclusivity in the Indian context since 2013, impacting 8 million low-income households.
MEC strategically employs carbon finance to drive sustainable change, focusing on:
Increasing awareness among end-users
Carbon finance is allocated to drive educative awareness campaigns among rural and low-income communities. This ensures that communities are not only aware of the benefits of clean energy but also actively engage in adopting solutions that help them shift away from traditional fossil fuels to improved clean energy technologies. This action aligns the end user’s perspective towards the low carbon technology and contributes to SDG-7(Affordable and Clean Energy) and 13 (Climate Action).
Training and capacity building
MEC dedicates resources to training and capacity-building programs for micro-entrepreneurs and staff members of microfinance institutions (MFIs). Each training program developed by MEC is tailored to the specific needs of partner organizations. These programs aim to improve skills, facilitate effective communication with end-users, and ensure the rigorous use of technology, along with prompt after-sales services, and scaling-up of the program in the long run. This action aligns the end user’s perspective towards the low carbon technology and contributes to SDG-7(Affordable and Clean Energy), 13 (Climate Action), SDG-8 (Decent Work and Economic Growth)
Lending funds to local SMEs
MEC recognizes the importance of local businesses, especially Small and Medium Enterprises (SMEs), and channels funds to support sales of clean energy products. This not only boosts local economies but also creates a self-sustaining cycle of clean energy adoption. The activities under the program provide opportunities for skilled employment in rural areas and significantly contribute to SDG-8 (Decent Work and Economic Growth).
Aftersales service and maintenance
Carbon finance is utilized to provide after-sales service and maintenance, ensuring that the end-users can maximize the benefits from the continuous use of clean energy products. This solidifies the community’s trust and commitment towards the adoption and consistent use of clean energy technologies which significantly contributes to SDG-7 and SDG-13.
Sustained engagement with end-users
MEC maintains a sustained relationship with the end-user, with regular monitoring of product usage being an important part of MEC’s carbon program. MEC works with microfinance institutions which typically meet with clients every week or fortnight. These meetings serve the purpose of reinforcing the behavioural change needed for the sustained efficient adoption of the clean energy product. Moreover, these meetings create a timely opportunity for users to access after-sales service for their products. The action promptly contributes to SDG-7 and SDG-13.
Lowering interest or principal costs
Carbon finance is strategically used to lower interest or principal costs for clients, making clean energy solutions more affordable to low-income communities. This lowering of the upfront cost is supported through carbon finance promotes widespread adoption and significantly contributes to SDG-1.
Harmony Between MEC Projects in India and the Government of India's Welfare Schemes and Programs
In addition to aligning with the SDGs, MEC's India program has broadened its influence by supporting various schemes and social security programs initiated by the Government of India. The following is a list of schemes and programs to which MEC's India program has contributed:
Scheme/Program Name
About
Contribution of MEC’s Program to the Schemes/Program
By implementing solar home lighting systems, MEC ensures sustainable access to electricity, enabling low-income households to engage in productive activities after nightfall
Enhance employability of the India's youth by providing them with skill development and vocational training
The MEC model educates and empowers microentrepreneurs, creating a skilled workforce in rural areas. Additionally, MEC provides training for MFI staff, enhancing their skills in sales, marketing, and the service and maintenance of low carbon technologies
Focuses on afforestation, reforestation, and conservation of biodiversity to enhance carbon sinks, mitigate climate change, and improve environmental sustainability
The MEC program guarantees a decrease in carbon emissions, contributing positively to climate change mitigation and enhancing environmental sustainability. Efficient energy usage in improved cookstoves reduces the amount of firewood used in cooking, reducing deforestation
Promotes entrepreneurship among women, Scheduled Castes (SCs), and Scheduled Tribes (STs)
The MEC model educates and supports micro entrepreneurs, especially women, cultivating a skilled workforce (for example: distributors of clean energy products, and clean energy leaders) in rural regions
MEC seeks to empower every community by providing access to affordable and innovative clean energy solutions, including solar lighting systems, improved biomass cookstoves, and water purification systems.
With the aim to create a world free of both poverty and climate change, MEC leverages carbon finance through its programs, enabling rural and low-income communities to take control of their clean energy future. MEC's projects in India showcase collaboration, innovative financing, and a comprehensive approach to empowerment to bring enduring transformation for communities in their journey out of poverty.
MEC India Program - Microfinance for Solar Lighting & Water Purifiers: Audited Documents
In line with our commitment to transparency and integrity, we are providing all details of and access to audited documents pertaining to our carbon programs here. This initiative aims to ensure that stakeholders have access to program details and documentation in an easy-to-use way.
In the rural regions of India, the prevalent method for obtaining drinking water involves boiling, typically done using traditional cook stoves fuelled by woody biomass. Unfortunately, the resultant smoke and fumes significantly contribute to indoor air pollution. Additionally, households in these rural areas face challenges such as lack of grid connectivity or, in cases where connectivity exists, frequent power outages and low voltage. This situation forces households to resort to using kerosene for indoor lighting, further exacerbating indoor air pollution and greenhouse gas (GHG) emissions. The Verified Project Activity (VPA) outlined in this initiative encompasses the marketing, education, distribution, and financing of solar lighting systems and water purification devices specifically tailored for low-income households and microentrepreneurs in India. MicroEnergy Credits Corporation Private Limited serves as the Coordinating and Managing Entity for this Program of Activities (PoA), overseeing the efforts of VPA implementers in the distribution of Clean Energy Products across India.
These products, namely solar lighting systems and water purification devices, play a pivotal role in providing clean drinking water and renewable energy for lighting. The water purification devices, distributed as part of the proposed VPAs, replace traditional cookstoves, eliminating the need for fuelwood to boil water, and consequently, reducing GHG emissions associated with fuelwood consumption. Simultaneously, the solar lighting systems serve as substitutes for kerosene-based lamps in households, mitigating potential GHG emissions resulting from the burning of fossil fuels, specifically kerosene. This multifaceted approach aims to address both water purification needs and lighting requirements while significantly curbing the environmental impact associated with traditional practices.
The audited documents for all the VPAs under this program are listed below. Click on the document name to open. These documents can also be found on the Gold Standard registry.
MEC India Program - Microfinance for Inverter LED Lamps: Project Design Document
The purpose behind MEC’s Grouped Project “Microfinance for Inverter LED lamps in India” is to reduce fossil-fuel based electricity consumption in the rural households across India by introducing more energy efficient inverter LED lamps to replace incandescent lightbulbs (“ICLs”). An inverter LED contains a light bulb coupled with a battery system (typically Li-Ion type) such that the LED bulb will operate on mains power supply during availability and will switch to battery power when main supply is not available (for e.g., in a blackout situation). This makes the inverter LED more versatile and useful than a normal LED bulb. The inverter LEDs distributed under the grouped project will replace ICL lamps in households, which would have resulted in GHG emissions due to usage of ICL. Thus, the grouped project will lead to mitigation in GHG emissions and a range of other sustainable development benefits in the project region. The distribution of SLS is not mandated by Indian law and the grouped project is a voluntary initiative.
