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Women’s Energy Justice Network: CDM and microfinancing

Background

The lack of access to clean and efficient energy is a poverty trap that particularly affects women and children in developing countries. Indoor smoke and fumes from the inefficient burning of biomass dramatically increases the death rate through pneumonia, heart disease, lung cancer and chronic respiratory ailments.

In India, household and community-based energy efficiency and renewable energy projects have great potential to reduce indoor air pollution and greenhouse gas emissions, lower energy expenditures, decrease health impacts and create jobs. Despite this, in 2009 the Clean Development Mechanism (CDM) had not yet tapped the potential of this kind of project due to financial, procedural and social barriers.

 

 

Purpose

To assist potential project developers and decision makers in the use of the Clean Development Mechanism, voluntary carbon markets and other project finance mechanisms to support small-scale sustainable energy projects to deploy efficient cookstoves and other clean technologies at the household and rural community level in India.

Photo: Susmit

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Main Activities

  • Create an online database to track Appropriate Sustainable Energy Technologies (ASETs) projects and financing mechanisms, Clean Development Mechanism (CDM) use, voluntary carbon markets, microlending and others.
  • Establish a working group to analyse how traditional and programmatic CDM can be used to support ASET projects with financing mechanisms such as microlending.
  • Develop a household ASET retrofit and financing project concept for a pilot community using bundled small-scale CDM and related funding mechanisms.
  • Create a programmatic CDM project concept with supplemental microlending mechanism for selected ASETs.
  • Produce reports and training materials for ASET pCDM, CDM bundling and the related financing mechanisms.
  • Hold a workshop for key government ministries, state-level stakeholders, financial institutions, major NGOs and project developers

Expected Impact

  • Increase in the availability and quality of available information on ASET projects and feasible financing methods
  • Improved profitability and feasibility of CDM-based and pCDM-based ASET projects in impoverished rural areas.
  • Increased engagement for pro-poor and gender-sensitive CDM financing
  • Increased project developer understanding of ASET projects and their financing through the CDM
Location
India
Programme Sector
Renewable Energy / Energy Efficiency / Policy and Regulation
Duration
2009 - 2010
Budget
€ 149,320 including co-funding from Center for Energy Environmental Security (CEES)
REEEP grant funded by
United Kingdom
REEEP grant funded by
Norway