世界发展银行-Understanding-Market-Based-Solutions-and-Access-to-Finance-Options-for-Clean-Cooking-Technologies-in-Bangladesh_76页_1mb

Summary of Market-Based Solutions and Access to Finance for Clean-Cooking Technologies in Bangladesh

Core Content

This report provides an in-depth analysis of the clean-cooking market in Bangladesh, focusing on market-based solutions and access to finance options for promoting the adoption of clean-cooking technologies. It highlights the health, environmental, and economic impacts of traditional cooking methods and outlines the current status of various clean-cooking technologies and initiatives in the country.

Main Findings

• Health and Environmental Impact:
  Traditional cookstoves and open fires, which are used by 82% of Bangladesh's population, contribute to severe household air pollution (HAP), leading to over 4 million premature deaths annually globally and 106,900 in Bangladesh. Women and children are particularly vulnerable, with HAP causing chronic illnesses and early-childhood pneumonia, emphysema, and other health issues.

• Current Market Share:

  • 74% of households still use traditional stoves.
  • 11% use natural gas.
  • 9% use LPG.
  • 7% use ICSs.
  • 2% use electric stoves.
    ICSs have the largest market potential and should be prioritized for scaling up.

• Clean Cooking Initiatives:
  The Bangladesh government has been promoting clean-cooking solutions since the 1970s, with the launch of the National Action Plan for Clean Cooking (2020–2030) aiming for 100% adoption by 2030. NGOs such as Grameen Shakti and GIZ have also played a key role in popularizing ICSs and biogas.

• Technology Overview:
  The main technologies include:

  • Natural Gas and LPG: Popular in urban and semi-urban areas, with growing potential.
  • Improved Cookstoves (ICSs): Widely distributed, especially through the IDCOL ICS Program.
  • Electric Stoves: Increasingly popular due to convenience, with growth potential as electricity coverage improves.
  • Biogas and Solar Cookers: Less widely adopted but have niche markets.

• Consumer Segmentation and Preferences:

  • Consumer segmentation helps in identifying market potential and tailoring strategies.
  • Current ICS users prefer fuel-saving and time-saving benefits.
  • Willingness to pay for ICSs varies, with higher-end models more likely to be purchased on installment plans.
  • The "stove and fuel stacking" phenomenon is common, where households use multiple cooking technologies simultaneously.

• Market Penetration and Growth Projections:

  • ICS adoption is projected to grow from 2.7 million to 16–21 million households by 2030.
  • LPG adoption is expected to increase from 3.3 million to 23–27 million households.
  • Electric stoves are projected to grow from 1 million to 2–3.5 million households in the next decade.

Key Stakeholders and Program Implementation

• IDCOL ICS Program:

  • Implemented under the World Bank's RERED II Project.
  • Has distributed over 2.46 million ICSs as of December 2020.
  • Involves 61 partner organizations (POs) and decentralized production centers.
  • POs promote IDCOL-approved ICSs and are reimbursed for marketing and promotional costs.

• Stakeholder Mapping:

  • Includes government bodies, NGOs, private sector actors, and financial institutions.
  • Key players include the Clean Cooking Alliance, SREDA, and IDCOL.

Access to Finance

• Challenges:

  • Limited access to finance for both households and POs.
  • Delays in payments from IDCOL (around 3 months) create liquidity issues.
  • High transaction costs and low loan amounts make traditional financing options unattractive.

• Recommendations:

  • Develop a diverse and innovative financing ecosystem.
  • Implement consumer financing options such as free trials, cash vouchers, trade-in programs, and microfinance loans.
  • Create a loan guarantee scheme and liquidity facilities for businesses.

Community Engagement and Marketing

• Effective Marketing Strategies:

  • Door-to-door visits (90.9%), word-of-mouth (84.5%), billboards/posters (61.1%), and brochures (60.5%) are the most effective.
  • Awareness campaigns and educational programs in schools are recommended to influence consumer behavior.

• Community Engagement:

  • Use of "Uthan boithok" (community courtyard meetings) to share experiences and promote ICS adoption.
  • Entertainment-based videos to increase engagement and understanding.

Recommendations

1. Call for greater clean-cooking ambitions and a shared vision of universal adoption by 2030.
2. Recognize the "stove and fuel stacking" phenomenon and prioritize ICS in the transition to cleaner energy.
3. Strengthen awareness building and marketing interventions to drive adoption.
4. Build a reliable and sustainable ICS supply chain in rural Bangladesh.
5. Develop a diverse and innovative financing ecosystem to enable large-scale market penetration.
6. Increase capacity-building support for businesses in the clean-cooking sector.
7. Launch nationwide consumer-facing awareness campaigns to promote the ICS concept.

Conclusion

The IDCOL ICS Program is the largest clean-cooking initiative in Bangladesh and has made significant progress in reducing HAP and GHG emissions. However, challenges such as limited access to finance and low consumer awareness remain. Addressing these through targeted strategies, community engagement, and innovative financing mechanisms is crucial for achieving the 2030 target of universal clean-cooking adoption.

Key Figures and Data

• Total households in Bangladesh: ~39 million
• Biomass users: ~31.3 million (81%)
• Traditional stove users: ~29 million
• ICS users: ~2.7 million
• LPG users: ~3.3 million
• Natural gas users: ~4.4 million
• Electric stove users: ~1 million
• Projected ICS users by 2030: 16–21 million
• Projected LPG users by 2030: 23–27 million
• Projected electric stove users by 2030: 2–3.5 million

Methodology

• Secondary Research:
  Review of past studies, reports, and data from various sources to understand market trends and consumer behavior.

• In-Depth Interviews:
  Conducted with key stakeholders, including IDCOL, POs, manufacturers, and government officials, to gather insights and validate findings.

• Analysis of Findings and Gaps:
  Identified information gaps and developed strategies for scaling up clean-cooking adoption, focusing on market-based solutions and financial access.