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.
In line with our commitment to transparency and integrity, we are providing a comprehensive list of all the information about our electric cooking carbon program here.
This initiative aims to ensure that stakeholders have access to program details and documentation in an easy-to-use way.
The purpose of the program is to provide end-users with Induction Cookstoves (IC) to reduce greenhouse gas (GHG) emissions from the burning of non-renewable woody biomass used for cooking. The project also envisages benefitting household members, especially women, by reducing exposure to indoor air pollution, reducing health expenses, and reducing drudgery towards the collection/purchase of firewood and its use in cookstoves for cooking.
MicroEnergy Credits Achieves Milestone with First-of-Their-Kind Induction Cookstove Carbon Credits Issuance under Gold Standard
Mumbai, 13 February 2024– MicroEnergy Credits, a trusted provider of social impact carbon credits, proudly announces the issuance of first-of-their-kind carbon credits for its innovative induction cookstove clean cooking carbon program under the new Gold Standard Methodology for Metered & Measured Energy Cooking Devices. This achievement marks a significant step forward in the fight against pollution and health impacts caused by traditional cooking fuels, particularly in rural India.
Cooking fuels, including wood, coal, and biomass, have long been a major source of indoor air pollution in India. This form of cooking has a disastrous impact on not only the environment but also a devastating toll on public health. Those who cook over wood or kerosene, mostly women, inhale dangerous amounts of toxic smoke. According to the World Health Organization, pollution from this type of cooking kills 4 million people every year. In India, smoke from solid fuel used for cooking and other household activities is the largest source of ambient air pollution. Recent studies[i], including the one by Rao et al[ii]., have found that 20–50% of the pollutants in ambient air in India originate from residential solid fuel combustion.
April Allderdice, CEO, MicroEnergy Credits said:
“Our induction cookstove program not only contributes significantly to reducing carbon emissions but also plays a crucial role in uplifting communities on the energy ladder, providing them with cleaner and more efficient cooking solutions. By harnessing the power of innovative solutions, we are empowering households to transition towards cleaner energy sources, contributing to a healthier environment, and improving the quality of life for rural and low-income women and their families.
“This initiative aligns seamlessly with the United Nations Sustainable Development Goals (SDGs), specifically targeting SDG 7 - Affordable and Clean Energy, SDG 3 - Good Health and Well-being, and SDG 13 – Climate Action. By addressing the cooking sector's environmental impact, we are promoting better health outcomes for communities as well as creating a positive ripple effect in mitigating climate change.”
Margaret Kim, CEO, Gold Standard said:
“Clean cooking projects play an essential role in contributing to sustainable development and reducing emissions. The first issuance of credits from our Methodology Metered and Measured Cooking Device methodology, which enables accurate real-time measurement of energy consumption, marks an important milestone for clean cooking in the carbon market. I congratulate MicroEnergy Credits for their innovative and impactful project, and look forward to seeing the wider adoption of this methodology.”
MicroEnergy Credits' induction cookstove clean cooking program offers a transformative solution by significantly reducing the air pollution and carbon emissions associated with cooking. Induction cookstoves provide a cleaner and more sustainable alternative to traditional methods. The technology not only improves air quality and health outcomes for communities, but it also aligns with global efforts to combat climate change.
The Gold Standard certification attests to the verifiable emission reductions achieved by the MicroEnergy Credits program. The rigorous monitoring and verification process ensures that each credit issued represents a genuine and impactful reduction in carbon emissions, further emphasizing the company's commitment to generating the highest quality of carbon credits with verifiable impact.
Following a certification the project has achieved the following verified impact:
85,310 tons of CO2 reduced annually
133,525 households benefited
103 jobs created
1.10 hours saved per household per week
“The world will not reach net zero without addressing clean cooking access. And the cooking crisis, like climate change, will not be solved without carbon finance,” said Donee Alexander, Chief Science and Learning Officer, Clean Cooking Alliance. “When based on realistic assumptions that reflect integrity, transparency, and accountability, like those of Gold Standard’s metered methodology, clean cooking projects can deliver huge climate wins for people and the planet.”
MicroEnergy Credits remains dedicated to pioneering programs with clean energy solutions to empower rural and low-income communities on their journey out of poverty. The induction cookstove carbon credits issuance is a testament to the company's ongoing efforts to make a positive impact on both the well-being of communities and the planet.
MicroEnergy Credits is a social enterprise that helps MFIs launch and scale clean energy lending programs by connecting them to carbon markets. As a trusted provider of social impact carbon credits, MEC seeks to empower every community by providing access to affordable and innovative clean energy solutions. MEC aims to create a world free of both poverty and climate change. Our programs enable rural and low-income communities to take control of their clean energy future while providing corporations committed to positive climate action with carbon credits with verifiable impact.
Over the past 16 years, we have impacted the lives of over 40 million people in the developing countries of Asia and Africa. Our MFI partners play a crucial role in the adoption of clean energy. As a supportive partner, MEC leverages its prowess in the carbon market to provide resources, training, and expertise to help our MFI partners make a difference on the ground.
[ii] Rao, N. D., Kiesewetter, G., Min, J., Pachauri, S., & Wagner, F. (2021). Household contributions to and impacts from air pollution in India. Nature Sustainability, 4(10), 859-867. https://doi.org/10.1038/s41893-021-00744-0
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 Africa Program: Project Additionality- Common Practice Analysis to Bolster Integrity of Carbon Credits
The concept of common practice in additionality is a critical component in bolstering confidence in carbon offsets and their integrity. MicroEnergy Credits follows a robust process to ensure that all its carbon projects are strictly additional and not common practice.
Common practice analysis helps determine the extent to which a technology is business as usual i.e. has already diffused in a sector and region. Distributed clean energy products in Uganda and Kenya have been able to be deployed only through carbon finance. Several programs by multilateral banks, government initiatives, etc. have had limited success for various reasons, elaborated upon extensively later in the article.
In the context of energy access and clean cooking/lighting services in Kenya and Uganda, challenges and opportunities converge to shape the landscape.
About 0.7% and 20.40% of the populations of Uganda and Kenya, respectively, have access to clean cooking[i], Significantly contributing to indoor air pollution, fire hazards, and adverse health impacts. No or limited access to modern and clean energy sources, such as electricity and clean cooking technologies, remains a pressing issue.
The applicable geographic areas for interventions (rural areas of Uganda and Kenya) are characterized by diverse challenges including economic constraints, lack of infrastructure, and geographic remoteness. Many households face challenges in adopting clean cooking technologies due to high upfront costs, limited awareness, and insufficient supply of products.
MEC’s clean energy program reduces emissions by facilitating a transition from conventional fossil-fuel technologies to more energy-efficient alternatives. Collaborating with our partner microfinance institutions, MEC has identified products that meet the specific requirements of each community. These products include solar lighting systems and improved cookstoves (ICS).
In the period preceding the project's commencement, there was a lack of infrastructure and supportive conditions[ii] for the adoption of renewable technologies such as solar home lighting systems, and improved cookstoves (ICS). The community that the project aimed to assist had limited awareness about these cleaner technologies. Further, the essential products were largely unavailable in the local market, making it challenging for the targeted population to access and benefit from these sustainable and environmentally friendly solutions. Besides that, there was no financing[iii] available for the mentioned products, The upfront cost of these clean technologies was high for a low-income remotely located household. MEC, partnering with MFIs, sought to address these gaps by creating awareness, establishing a supportive ecosystem, enabling financial assistance in the form of microfinance loans, and making these technologies more accessible to the community, thereby contributing to a more sustainable and environmentally conscious way of living.
Projects implemented without carbon finance
Initiatives by the Governments of Uganda & Kenya and multilateral organizations have focused on the implementation of biomass cookstoves. Unfortunately, many of these efforts faced challenges and were largely unsuccessful due to a lack of a comprehensive ecosystem development approach. Most of these programs involved the free distribution of improved cookstoves among low-income households. The key issues contributing to their failure included an insufficient emphasis on behavioral change among end-users, limited access to repair and maintenance services, the inadequate establishment of local supply chains, and the provision of technologies not well-suited to local food habits and cooking styles.
Here is an example of a past program initiated by the Government of Kenya:
Name of Program
Objective
Period
Number of Clean Energy Technology Products Distributed
The Kenya Off-Grid Solar Access Project (KOSAP)
To increase access to modern energy services – electricity and modern cooking solutions– in households, businesses, and community and public facilities in fourteen underserved counties in Kenya
2018-2023
2,50,000 solar home lighting systems 1,50,000 improved cookstoves
A study[iv] conducted by the Lund University suggests that the failure of previous clean cooking programs is attributed to a lack of understanding of user needs. The conventional utility-based model focusing on benefits and price may overlook competing priorities. The cooking needs of stove users are diverse, extending beyond smoke reduction and fuel efficiency. The study underscores the necessity for stove design and dissemination methods to align with features valued by users, even those unrelated to health and environmental impacts. Recognizing user perspectives is vital, as users must value and find their needs met for sustained stove adoption and usage.
Similarly, a study[v] conducted by the Stockholm Environment Institute suggests that the use of carbon finance can benefit – and sometimes even strengthen – improved cookstove projects in several ways. Most cookstove projects using carbon finance are still in the early stages. However, by examining how various types of actors are using (or plan to use) carbon finance within their business models, and how these fit with what the literature tells us about the core ingredients for cookstove market transformation.
Additionally, a study[vi] conducted by the United Nations University, Institute for Advanced Study of Sustainability (IAS) in Machakos and Laikipia counties of Kenya, investigated women's perceptions of health risks related to firewood dependence, their attitudes toward improved cooking charcoal stoves (ICS) as cleaner alternatives, and barriers to adoption. Despite awareness of health risks, there is a projected upward trend in firewood demand. Barriers to ICS adoption vary socio-culturally. The study recommends stakeholder involvement, participatory designs, and leveraging SDG 7 to promote cleaner and sustainable energy sources for cooking.
Overcoming barriers to clean energy adoption with MEC’s carbon funding
There is also evidence to suggest that giveaway programs (i.e. where clean energy products are given for free) are not successful for several reasons, e.g. limited to no focus on end-user awareness, lack of after-sales service, and no capacity development at an individual or institutional level.
The MEC program is not common practice as it utilizes carbon finance to overcome challenges, empowering microentrepreneurs to invest in clean energy products. Initially, MEC collaborates with the microfinance institution to devise an appealing clean energy product offering for its microfinance client base, addressing obstacles such as education, pricing, financing, and the availability of supplies and after-sales service. Subsequently, MEC provides training to the microfinance institution for the implementation of the clean energy-lending program. This training encompasses aspects like business planning, capacity building, marketing and awareness campaigns for client education, and supply chain processes. MEC establishes a robust and transparent system for monitoring and tracking carbon credits, quantifying, and documenting the number of emissions reduced by the clean energy program. 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
The common practice analysis conducted in the context of MicroEnergy Credits' carbon programs in Africa underscores the pivotal role of additional practices in ensuring the integrity of carbon credits. MEC's approach, leveraging carbon finance to overcome barriers to clean energy adoption, stands out as a distinctive and effective strategy, addressing challenges ranging from lack of awareness and infrastructure to financing constraints. By integrating microfinance institutions, client education, and comprehensive monitoring systems, MEC not only reduces carbon emissions but also establishes a sustainable and environmentally conscious pathway for rural communities, thereby contributing significantly to the broader goals of carbon mitigation and sustainable development.
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 Africa Program – Microfinance for Solar Lamps & Efficient Cookstoves: Project Design & Monitoring 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.
MEC Africa Program – Microfinance for Solar Lamps & Efficient Cookstoves
In both rural areas of Kenya and urban areas of Uganda, the predominant means of cooking involves traditional cook stoves using charcoal, wood, or kerosene, leading to significant indoor air pollution and adverse effects on human health. The lack of grid connection or frequent power outages in these regions necessitates the use of kerosene for indoor lighting, further contributing to indoor air pollution. The proposed project activity, spearheaded by MicroEnergy Credits Corporation (MEC), aims to address these challenges through the marketing, distribution, and financing of approximately 650,000 solar lighting systems (SLS) and 10,000 improved cook stoves (ICS) in Kenya, as well as 650,000 solar lamps and 75,000 improved cook stoves in Uganda.
This comprehensive initiative targets low-income households, community organizations, and small/medium enterprises, providing them with clean and renewable energy solutions for both cooking and lighting. MEC collaborates with project partners to establish a successful clean energy-lending program, overcoming barriers such as education, pricing, finance, and supply and aftersales service. The program includes training for project partners in implementing the lending initiative and incorporates a robust carbon credit monitoring and tracking system to quantify and document carbon emission reductions achieved through the adoption of clean energy. The utilization of carbon finance ensures the expansion and sustainability of the clean energy program in both regions. This report delves into the details of these initiatives, exploring their impact on environmental sustainability, human health, and the overall well-being of communities in Kenya and Uganda.
MEC India Program - Microfinance for Induction Cookstoves: 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.
MicroEnergy Credits - Microfinance for Clean Cooking Product Lines
MicroEnergy Credits (MEC) - Microfinance for Clean Cooking Product Lines – India PoA is initiated to address environmental and developmental concerns in peri-urban areas of India. Targeting regions with a prevalent use of non-renewable biomass and fossil fuels for cooking, the PoA aims to distribute induction cookstoves, reducing greenhouse gas emissions and fostering sustainable development. This voluntary initiative, led by MicroEnergy Credits Corporation Private Limited, operates within peri-urban zones, where boundaries are porous and transitory between rural and urban environments. With a focus on reducing health impacts, such as respiratory diseases, associated with inefficient cooking devices, the PoA utilizes the Gold Standard approved methodology for energy-efficient cooking devices.
The distribution of induction cookstoves not only improves living conditions but also lessens pressure on local forests, contributing to a wide range of sustainability benefits. MEC, as the Coordinating Entity, collaborates with microfinance institutions, overcoming historical barriers to introduce clean energy products to micro entrepreneurs. Utilizing carbon finance, MEC addresses challenges like the lack of upfront finance, awareness, and after sales service. The comprehensive approach involves product development, training, and a transparent carbon credit monitoring system to quantify emission reductions. The resulting carbon finance is then used to expand and sustain the clean energy program, covering aspects like client education, internal training, on-lending funds, aftersales service, and reduced costs for clients. MEC coordinates with Partner Organizations (POs) for the dissemination of induction cookstoves, and the electronic Credit Tracker Platform ensures accurate tracking, preventing double-counting of installations.
