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.
Enhancing Project Integrity: MicroEnergy Credits’ Engagement with BeZero on Mongolia Program Rating
7th May 2024
As the voluntary carbon market landscape continues to evolve, the most important conversation continues to be around integrity, of carbon projects as well as carbon claims made by corporates. The emergence of rating agencies in the market is a welcome step towards enhancing the credibility of carbon programs and trust within the market. MicroEnergy Credits shares this vision of the rating agencies and is dedicated to upholding the highest standards of integrity and transparency in our carbon program, and our active collaboration with BeZero Carbon on the rating of our Mongolia program exemplifies this commitment.
Let’s delve deeper into the nuances and different aspects of BeZero’s rating process as it pertains to our Mongolia program, as understood through active engagement between MEC and BeZero:
Pioneering Efforts Acknowledged: BeZero recognized our Mongolia program as being the first of its kind in an area where efficient heating furnace options were previously unavailable. This acknowledgment highlights the innovative nature of our program.
High Ranking VPAs: BeZero noted that the VPAs in MEC’s Mongolia program rank impressively within the sector of household device projects. At the time of assessment[i], BeZero recognised that MEC Mongolia projects face a lesser risk of over-crediting than 80% of projects assessed in the household devices category and a lesser risk of non-permanence than 78% of household devices projects assessed. BeZero has stated that within all rated household devices projects, the MEC projects[ii], with their BB rating, sit at the higher end of the distribution.
Rating Distribution of Rated Household Devices Projects by BeZero
Effective Risk Management: BeZero recognized our approach to managing over-crediting risks through seasonal Kitchen Performance Tests (KPTs), demonstrating our commitment to ensuring that our projects align with robust monitoring practices, in line with sector science. 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.
Transparent Additionality: MEC has provided comprehensive information on program additionality, publicly available on its website, addressing concerns and prompting updates to the rating brief. Our detailed investment analysis has been instrumental in resolving ambiguities and enhancing transparency.
Ongoing Work by BeZero on the Vintage Split Model: Currently, BeZero does not follow a vintage split model, and evaluates projects across all vintages in one sweep.This means that a monitoring report from 2013is bringing down the rating of a vintage 2019 credit, even though there have been many monitoring reports in the interim that showed the issue had been resolved. There is a monitoring report from 2013 from the beginning of the program that showed that end users were loading the furnaces improperly. MEC solved the problem in the same year with an end-user campaign (made possible with the help of carbon finance). Subsequent auditsshowed good practices. BeZero has acknowledged this, although the rating does not reflect this improvement. BeZero's near-future plans to assess projects by vintage are expected to provide a more accurate representation of our program's evolution.
Addressing Additionality Concerns: BeZero acknowledged that the MEC projects are not common practice and are indeed additional. However, BeZero did not give the project the highest rating for additionality because the project used a subsidy provided by government actors as a separate co-financing. BeZero alleges that the subsidy could have caused the efficient furnaces to later become common practice. BeZero acknowledged that co-financing is a common best practice in the development sector. Not allowing the subsidy would have meant less climate action, as at-risk communities need the added impetus of co-financing and subsidies to adopt new clean energy technologies. Moreover, subsidies for a project do not make the generated verified emission reductions from the project any less valuable. We hope that BeZero will adopt a different approach in the future to accepting cofinancing without decreasing a project rating.
Commitment to Continuous Improvement: BeZero has acknowledged improvements observed in the second crediting period of our program, due to MEC's enhanced monitoring protocols.
At MEC, we remain steadfast in our commitment to rigorously upholding the integrity of our carbon programs. While the rating for our Mongolia project remains unchanged for now, engagement with BeZero and efforts to address the current rating are ongoing. The process has provided invaluable insights that will continue to inform our future endeavours. MEC is committed to actively considering, and where possible, following best practice developments in sector science, for instance, the Guidance for Developers by the Berkeley Carbon Trading Project to ensure the highest project implementation and assessment standards in all its programs.
[ii] (except GS2688) which was given a lower rating because a single monitoring report out of several annual reports - the first monitoring report from 2012 - is no longer available, having been deleted by MEC’s carbon consultant.
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- Project Additionality: Common Practice Analysis
Bolstering the 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 India have been largely successfully deployed 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/drinking water/lighting services in rural India, challenges and opportunities converge to shape the landscape. About 840[i] million in India fully or partially rely on traditional biomass for cooking, contributing to indoor air pollution, fire hazards, and adverse health impacts. 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 in rural areas of India 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, improved cookstoves (ICS), and water purifiers.
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, improved cookstoves (ICS), and water purifiers. 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 on 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
Numerous initiatives by the Government of India (GOI) 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 are a few examples of past programs initiated by the GOI:
Name of the Program
Objectives
Period
Number of stoves distributed
National Program on Improved Cookstoves (NPIC)
To disseminate improved cookstoves on a mass scale, through various partners, including state nodal agencies, NGOs, and self-employed workers
To enhance technical capacity, strengthening research and development for ICS
2009
NA
Unnat Chulha Abhiyan
To promote improved biomass cookstoves across all states and union territories
2014
2.4 million
A study conducted[v] jointly by J-PAL Global, Harvard University, and the University of Chicago on evaluating the long-term impacts of improved cooking stoves in India revealed significant insights into the sustainable outcomes and effectiveness of these state-run cookstove programs. The study was conducted in Odisha, India, in partnership with NGO Gram Vikas, to assess the long-term health and environmental impacts of an improved cookstove program. It was found that while many households accepted the stoves, regular usage was low and declined over time. The stoves did not substantially reduce exposure to harmful pollutants, leading to limited health improvements. The study suggests that real-world conditions significantly affect the success of such state-run interventions, emphasizing the need for testing technologies in realistic settings before massive-scale implementation.
Likewise, a research paper titled "Piloting Improved Cookstoves in India"[vi], advocates for a social marketing strategy. The approach, based on the 4Ps (promotion, product, price, and place), is recommended to stimulate the adoption of improved cookstoves. The authors emphasize the necessity of a holistic strategy that addresses communication, pricing, and placement considerations. To surpass the current low levels of adoption, the article suggests a comprehensive field-testing methodology, exploring various combinations of social marketing interventions. The study is executed in rural India, concentrating on areas with diverse socio-political and biophysical contexts.
Another academic publication by the University of Iowa, USA and Cornell College, USA titled "Why Have Improved Cook-Stove Initiatives in India Failed?“[vii] argues that rural women in India, who are the primary users of cookstoves, do not give priority to improved cookstoves. Meeting the priorities of these women would necessitate substantial investment to challenge established and influential social practices.
A joint research study[viii] “Who is willing to pay for solar lamps in rural India?” by VIT Bhopal University, India, Indian Institute of Technology Bombay, India, and the Boston College School of Social Work, USA underscores the need to increase awareness in the surveyed states, particularly for solar home systems (SHS) and solar water pumps. Given the minimal duration of available electricity, especially during dark hours in Bihar, Jharkhand, and Uttar Pradesh states, the research suggests that solar products can serve as a meaningful solution to address these gaps. Recommendations include promoting awareness through various programs to generate significant interest in solar energy products, ultimately increasing willingness to pay among the population.
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 India 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
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).
MicroEnergy Credits Carbon Program: Stringent Measures Ensuring No Over-Crediting of Emission Reductions
Over-crediting in the context of carbon reduction/avoidance projects pertains to issuing more emission reductions than are achieved or attributable to a project. To mitigate this potential risk, MicroEnergy Credits (MEC) adopts various safeguards throughout project implementation.
These range from program-level safeguards aligned with the IC-VCM’s Core Carbon Principles to technology-level safeguards based on the latest science, research, and best practices.
Measures in place to avoid over-crediting
Robust sampling methods
MEC’s projects have a robust sampling approach for all three technologies i.e. improved cookstoves, water purification systems and distributed solar lamps/solar home lighting systems. The sampling approach is designed keeping in mind the heterogeneity in the population across geographical sub-divisions of the specific project boundaries, and the associated differences in the parameters monitored for GHG impact quantification.
Samples are randomly chosen from specific geographical sub-divisions where products are implemented, thereby ensuring that a random subset of a population is selected, meaning that the samples are representative of the cooking/water consumption/lighting practices in the state. This stratified approach yields unbiased estimates of population parameters and accounts for differences in the way these technologies and resulting services are used.
Seasonal Variation
Monitoring of certain parameters for improved cookstoves and water purification systems are designed in a manner to account for the effects of seasonal variation. For improved cookstoves, the quantity of fuel consumed for cooking (both in baseline and project scenarios) is conducted both in dry and wet seasons. The conservative value between the two seasons is considered for calculating the emission reductions. Similarly, for water purification systems, the quantity of water consumed per person per day also considers season variation ensuring that the results are conservative.
Cross-Check Mechanism
As a general practice, MEC cross-checks the fixed monitoring parameter values with credible literature or the latest available government data to ensure the results are aligned. A few examples are cited below:
The quantity of fuel used for cooking (parameters Pb and Pp) is cross-checked against the University of Berkeley’s report “Cooking the books: Pervasive over-crediting from cookstoves offset methodologies” to ensure that the service level caps prescribed are never crossed.
For the quantity of water consumed per person per day (parameter QPWy), the value is cross-checked against the WHO report “Technical Notes on Drinking Water, Sanitation and Hygiene in Emergencies.
Similarly, the value for the parameter the proportion of the population already using safe water (parameter Cb) is cross-checked against the Jal Jeeval Mission (JJM), an initiative by the Government of India and Central Pollution Control Board (CPCB) water quality testing reports under their National Water Quality Monitoring Programme (NWQP).
Quarterly and Annual Monitoring
In addition to the methodological requirements, MEC also conducts quarterly monitoring for solar lighting systems and annual monitoring for improved cookstoves and water purification systems.
Every quarter of the calendar year, MEC partner organizations conduct monitoring to check whether the solar lighting system is operational. This is done for all the products part of the project.
All the products (solar lighting system, improved cookstove, and water purification system) are checked by partner organizations in the last month of the calendar year to check the usage status.
If the products are found non-operational in any quarter (for solar) and end of the calendar year (for all technologies) then emission reduction is not claimed for those households.
These measures are deployed in addition to the monitoring frequencies prescribed for certain parameters in the applied methodology resulting in any systemic issues with adoption and usage of these products as well as being able to provide timely after-sales service.
Defining “Use” and “Non-Use”
For improved cookstoves, MEC has defined “use” vs “non-use” in the project design document to determine which household should be considered eligible for crediting. During monitoring, if any household is found not using the project stove daily or the stove is found not in use through visual inspection then emission reduction is not claimed for those households. This is a more conservative approach than what other projects in the sector use where a “user” could be a household that uses the stove up to once a week. Similarly, for the water purification system, if a household has not used the water purifier once in two days, then emission reduction is not claimed for those households.
Fraction of Non-Renewable Biomass (fNRB)
MEC uses the CDM tool 30 version 4.0 to calculate the fNRB. The fNRB value calculated uses the value of 0.5 tonnes per annum for calculating wood harvest as a measure of conservativeness.
Robust Data Management System
MEC employs a robust database management team that develops customized data model algorithms and proprietary software that surgically scans and eliminates any duplicate records of end-users through multiple levels of data modeling checks. To implement these checks successfully, MEC engages with partner organizations to submit an extensive monthly database of loan records corresponding to clean energy product sales.
Click here to learn more about our data management system.
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Ensuring No Over-Crediting of Emission Reductions Due to Double Counting: Stringent Data Management and Exclusive Partnership Contracts
MicroEnergy Credits (MEC) is committed to the ICVCM’s Core Carbon Principles and ensuring that emission reductions from its program are not double counted. According to IC-VCM, the “GHG emission reductions or removals from the mitigation activity shall not be double counted, i.e., they shall only be counted once towards achieving mitigation targets or goals” (ICVCM, 2023).
Double counting covers double issuance, double claiming, and double use. Double claiming and double use are risks managed by standards that certify the projects. MEC’s projects are certified by reputed standards like Gold Standard and Verra which have mechanisms in place at their registry level to ensure that double claiming does not occur. Double Issuance occurs when two or more carbon credits co-exist for one GHG emission reduction or removal, under the same or different carbon-crediting or other programs. MEC takes stringent measures to ensure that there is no double issuance of credits from a single household or that no other entity is issuing credits from the same project. MEC employs a robust database management team that develops customised data model algorithms and proprietary software that surgically scans and eliminates any duplicate records of end-users through multiple levels of data modeling checks. To implement these checks successfully, MEC engages with partner organisations to submit an extensive monthly database of loan records corresponding to clean energy product sales. Moreover, MEC’s contract agreement with partnering organisations includes a rigorous exclusivity clause for the carbon project implementation within a specified geographical area.
Checking for duplicate records
Duplicate records can happen due to human error in entering records or erroneous data submission. Since MEC’s carbon program follows a market-driven approach, every end-user of the clean energy product is accessing affordable financing options from a partner microfinance institution (MFI). Therefore, all clean energy product loans have a unique transaction number. In the monthly data submitted by MFIs, MEC checks all transaction records in the entire database and eliminates all duplicate transaction numbers as double entries or erroneous records. This way, we can eliminate any human error or the possibility of erroneous data submission that may inflate the emission reduction calculations and generate more carbon credits than the actual. This method might sometimes even lead to under-crediting, which preserves the principle of conservativeness in the calculation of carbon credits.
Double-layer scrutiny with checks for overlapping records.
MEC works with several MFIs across different crediting periods, which means that there is a possibility that a single end-user may be a client of multiple MFIs at the same time. Sometimes end users may access a cross-sale loan from multiple MFIs for the same technology device. End users can also access an MFI for multiple loans for similar technologies across different loan periods. There is a risk that an end-user might end up with more than one solar light, improved cookstove, or water purifier during the same crediting period. While one may argue that an end-user may need multiple units of similar devices and may be using them regularly, by the principle of conservativeness in carbon credits, only the first unit may be eligible for calculation of carbon credits as that unit is reducing emissions over the baseline under a business-as-usual scenario. Therefore, it becomes imperative that all succeeding and overlapping devices of the same technology type are eliminated while calculating the emission reductions from the carbon program.
MEC applies a second layer of checks (beyond duplicate entries) for overlapping user account identifications by carefully identifying patterns and matches in all historical customer identifier data fields. MEC sends all overlapping records to partner MFIs for clarification, and only upon submission of satisfactory evidence does MEC include such records in the current monitoring period, otherwise these records are eliminated.
MEC also eliminates the possibility of overlapping loan products across partner MFIs by scrutinizing the entire database across different partners by applying partial matching algorithms on end-user demographic microdata. This helps us scan out overlapping sales, which we send for clarification to different partner organizations for a common data field. MEC eliminates all overlapping records from the database and only includes unique records in the emission reduction calculations.
MEC has developed a proprietary data warehousing and processing software called the Credit Tracker, which applies all these complex data modeling algorithms to ensure that the data integrity is maintained by elimination of over-crediting due to double counting across the entire program in the defined geographical area. Our Credit Tracker software is ever-evolving, and the current version is upgraded with state-of-the-art big data algorithms to identify noise across a heterogeneous database of over 9 million households across the globe.
Distinction between MEC's CER and VER portfolio
MEC ensures that the emission reductions from its projects and the related climate impacts are counted only once. MEC ensures that there is no double issuance because:
There is no overlap between the CDM monitoring periods and GS/Verra monitoring periods for any of these PoA/projects.
There are no issued CERs that have been converted to GS-VERs or VCUs.
Exclusivity clause
The concept of exclusivity is deeply embedded in the partnership agreements between MEC and partnering MFIs. MEC signs partnerships with MFIs on the ground that all clean energy projects by the partnering entity shall only be registered under MEC’s carbon program. This ensures that no partnering MFI can claim carbon funding from any other project developer while being a part of MEC’s carbon projects. Through continuous training and engagement with partners, MEC implements the concept of exclusivity in all carbon projects to avoid any possibility that two or more mitigation activities have overlapping GHG accounting boundaries in the carbon market which could lead to double issuance. This enables us to implement a market-wide check and balance since MEC is the trusted carbon program partner to all major MFIs in the geographical area.
MEC’s stringent data management and exclusive contracts can set out a market-wide standard for upholding the integrity of carbon credits and eliminate doubts that different market participants may have on the issue of over-crediting due to double counting.
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