Impact Financing for Clean Cooking Energy Transitions: Reviews and Prospects

Susann Stritzke (), Malcolm Bricknell, Matthew Leach, Samir Thapa, Yesmeen Khalifa and Ed Brown
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Susann Stritzke: MECS Programme, STEER (Sustainable Transitions: Energy, Environment, Resilience-Centre), School of Social Sciences and Humanities, Loughborough University, Loughborough LE11 3TT, UK
Malcolm Bricknell: MECS Programme, STEER (Sustainable Transitions: Energy, Environment, Resilience-Centre), School of Social Sciences and Humanities, Loughborough University, Loughborough LE11 3TT, UK
Matthew Leach: MECS Programme, Gamos Ltd., Reading RG1 4LS, UK
Samir Thapa: MECS Programme, STEER (Sustainable Transitions: Energy, Environment, Resilience-Centre), School of Social Sciences and Humanities, Loughborough University, Loughborough LE11 3TT, UK
Yesmeen Khalifa: MECS Programme, STEER (Sustainable Transitions: Energy, Environment, Resilience-Centre), School of Social Sciences and Humanities, Loughborough University, Loughborough LE11 3TT, UK
Ed Brown: MECS Programme, STEER (Sustainable Transitions: Energy, Environment, Resilience-Centre), School of Social Sciences and Humanities, Loughborough University, Loughborough LE11 3TT, UK

Energies, 2023, vol. 16, issue 16, 1-26

Abstract: Achieving universal access to clean cooking requires a significant mobilization of capital to close the current funding gap of around US$7 bn per year. The clean cooking landscape has changed considerably with substantial innovation in terms of technology, business models, and services. The transition towards higher-tier, modern energy cooking (MEC) solutions provides key opportunities for innovative financing models to scale MEC globally. Transitions from cooking with polluting fuels to MEC have significant positive impacts on the environment, gender equality, and health. Impact Finance to monetize these co-benefits for MEC solutions is widely seen as an outstanding opportunity to channel funding into MEC transitions. However, except for climate funding, opportunities to channel finance for wider impact SDG benefits arising from MEC have proved challenging to realize in practice. This article explores in detail two new approaches which are taking advantage of features of digital technology to overcome some of these obstacles. It adds to the recent debate around climate finance for clean cooking and presents key learning lessons from developing and piloting the ‘Metered Methodology for Clean Cooking Devices’ as the current most accurate approach to estimate carbon savings for MEC and the ‘Clean Impact Bond (CIB)’ which aims at monetizing health and gender-co-benefits. The paper demonstrates how robust methodologies can help to accelerate funding for MEC and calls for joint approaches to standardize and streamline climate and outcome finance approaches to enhance their impact by making them more accessible for a wider range of MEC technologies, geographies, and projects.

Keywords: clean cooking; carbon finance; impact funding (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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