APPROACH AND METHODOLOGY
GEI will launch a market-based initiative to promote improved biomass cookstoves in rural China. By linking households, local governments, local enterprises (including cookstove suppliers and briquette producers), and carbon financers, GEI will develop a model for financing mass deployment of improved cookstoves in China and other developing countries, leveraging funds from carbon financers. In order to realize these goals, GEI will implement the following approach:
Feasibility Study on Pilot Areas: GEI will begin with a feasibility study in pilot sites with special attention paid to energy consumption, cookstove technology, feedstocks, briquette/pellet factories, and policy support mechanisms. In addition, the feasibility study will explore potential emission reductions through improved biomass cookstoves, and the creation of a public-private-partnership operating model linking local government, enterprises, rural credit unions, households, and carbon financers.
Demonstration Project: Once partnerships have been established between GEI and local stakeholders, GEI will launch demonstration projects in pilot areas. The demonstration project will focus on the dissemination of improved cookstoves and linking biomass briquettes to at least 3,600 households in each of three pilot sites. In addition, with the support of local governments, GEI will provide trainings on the operating model to local stakeholders, as well as more general trainings on climate change and rural energy.
Operation Model: After gaining a full understanding of pilot sites through the feasibility study, GEI will begin the design and implementation of an operating model linking carbon financers with local stakeholders. They will begin learning CDM and voluntary carbon market (VCM) methodologies appropriate to deploying cookstoves and developing a Project Design Document (PDD) for submission to the CDM Executive Board and other carbon market verifiers.
Evaluation: Following completion of pilot projects after two years, GEI will hold a workshop for policy advocacy in support of improved biomass cookstoves and rural renewable energy at the provincial and national level in China.
IMPLEMENTATION, TIMELINE, AND DELIVERABLES
Feasibility Study: September 2010 - October 2010
Surveys of sites in Shanxi, Sichuan, and Inner Mongolia Autonomous Region (Provincial governments assist in selection of local sites, with support of ESCOs under local energy offices)
Identification and calculation of energy consumption and technology, feed-stocks (e.g. cornstalks.), types of cookstoves used, and emissions (incl. type and amount)
Distribution of pellet factories
- Identification of potential benefits
Identification of local government and enterprise partners
Deliverables: Research Reports
Demonstration: January 2011- January 2012
Sign official agreements with government partners March 2011
Conduct trainings for stove sellers and factories (May-June 2011) (focus on: cookstove technology; operating model: sales and marketing, carbon benefit sharing; stakeholder climate change training)
Distribute 3,600 cookstoves at each of three target sites
Establish a commercial operating model within two years
Reduce 36,000 emissions (March 2011 - May 2011)
Deliverables: Trainings, sale of 10,800+ cookstoves
Operating Model: November 2010 - December 2011
Design operating model November 2010 - March 2011
Test and Revise model March - April 2011
Study Cookstove Methodologies September - October 2010
Join Nexus October 2011
Submit Project Design Document May 2011 - December 2011
Deliverables: Operating Model, Project Design Document
Evaluation Workshop: January 2012
1.6 billion people living in rural areas of the developing world lack basic access to electricity (Alliance for Rural Electrification; <http://www.ruralelec.org/>). Some are turning to commercial, fossil fuel sources (e.g. liquefied petroleum gas) to supply energy and electricity, with the remaining population depending on traditional sources of biomass (i.e. straw and firewood). Clean energy technologies can address multiple challenges brought about by these fuel sources.
Rural China is currently experiencing significant growth in fossil fuel energy consumption, particularly coal and liquefied petroleum gas (LPG). Their per capita fossil fuel consumption has increased from 54.44 kg standard coal in 2001 to 92.51 kg standard coal in 2008, with an annual average growth rate of 9.42%. Per capita carbon emission from the burning of fossil fuels for domestic energy use in China's rural areas increased 63.5% between 1996 and 2007. Carbon emissions from the domestic burning of fossil fuels in China's rural areas has increased from 0.1 tons in 1996 to 0.17 tons in 2007, while in the urban areas it has increased from 0.29 tons in 1996 to 0.31 tons in 2007. (Sources calculated based on China Energy Statistical Yearbook 2009 , China Statistical Year Book 2009, and an unpublished manuscript from the Department of Science and Technology Education under the Chinese Ministry of Agriculture, entitled: 'National Statistical Atlas of Rural Renewable Energy, 2001-2008.')
This presents an important opportunity to advance market mechanisms for rural renewable energy technology. By promoting public-private partnerships, local governments can be linked with local enterprises for the effective dissemination and financing of rural renewable energy technology. In addition, with the growth of the Clean Development Mechanism (CDM) Program of Activities (CDM PoA or P-CDM), the Gold Standard and Nexus-Carbon for Development, various opportunities have emerged for using carbon market funds to develop small-scale energy projects in the developing world. Building such market-based models that link public and private stakeholders with carbon financers will be key in promoting South-South collaboration on renewable energy technology.
Finally, by implementing cost-effective technology designed in the developing world, and mobilizing Chinese foreign aid towards the development and use of renewable energy and energy efficiency technology, GEI aims to encourage South-South collaboration on energy technology, and effective, low-tech solutions to the energy and climate challenge.
SEEKING: Financial Resources, Implementing Partners, Best Practice Information, Media/Marketing Opportunities
GEI is mainly seeking partners in carbon finance, in addition to implementation partners (for instance cookstove makers).
OFFERING: Implementing Partners, Best Practice Information, Media/Marketing Opportunities
We can assist possible project coordinators in implementing similar projects in China or other developing countries like Sri Lanka or the Lao PDR. We can help to promote the model we are designing in other developing countries, thereby furthering south-south collaboration on climate change.