The Green Climate Fund (GCF) and the World Bank have signed an agreement that will help expand the market for improved cookstoves in Bangladesh, bringing together a number of climate and health benefits.
The signing of the Funded Activity Agreement (FAA), which guide the implementation of approved GCF projects, marks a key milestone for the Global Clean Cooking Programme – Bangladesh initiative designed to reduce greenhouse gas emissions and deforestation, while also lessening health risks for Bangladesh people.
About 66 percent of the population of Bangladesh live in rural areas, where women predominantly cook using traditional, wood-fueled stoves. Burning wood for cooking releases carbon dioxide, methane and black carbon, causing an estimated 46,000 casualties every year in Bangladesh. The widespread use of inefficient cookstoves also leads to deforestation. Currently only 3 to 5 percent of households in Bangladesh use improved cook stoves.
GCF Executive Director Yannick Glemarec said: “Improved cookstoves offer a great opportunity to reduce greenhouse gas emissions and improve people’s health, while this project shows how the private sector can deliver public benefits to help tackle climate change. GCF’s grant will boost the development of a marketplace for improved cookstoves, and help the private sector create demand through improved awareness.”
Mr Glemarec added the World Bank is one of GCF’s key partners and, with the signing of this agreement, GCF benefits greatly by being able to further tap the bank’s global reach to accelerate climate action.
Dandan Chen, Acting Country Director, World Bank Bangladesh and Bhutan, said “the project is significant as it highlights the urgency to shift towards a low-carbon, resilient economy for emerging nations.” “Improved cookstoves benefit both the environment and the health of the user, who are mostly women. The World Bank is proud to partner with the Green Climate Fund for access to clean energy to contribute to this important energy finance program.”
The World Bank has been supporting the executing entity of the project, Bangladesh-based Infrastructure Development Company Limited (IDCOL), to open up the market for improved cookstoves since May 2013. GCF support will kickstart the second phase of this partnership by scaling up investment to increase demand and extend the reach of the existing supply chain.
Sultana Afroz, Additional Secretary, Economic Relations Division of the Government of Bangladesh and Enamul Karim Pavel, head of renewable energy of IDCOL were present at the signing ceremony.
The project will provide technical assistance to support partner organizations and local entrepreneurs to produce improved cook stoves, develop their technical skills, raise awareness among consumers, and carry out research and development of the stoves and their impact on air quality and health. GCF will provide a USD 20 million grant, which will supplement a USD 20 million loan from the International Development Association.
The GCF Board has approved nine projects with the World Bank, worth USD 576.55 million in GCF Funding and USD 2.12 billion in co-financing, respectively. The total approved World Bank projects will benefit 30,324,800 people (both directly and indirectly) and reduce emissions by 254,940,000 tCO2 eq. The Global Clean Cooking Program – Bangladesh Project will be the third Funded Activity Agreement (FAA) signed between the GCF and World Bank.