Cooking is the main source of food for Indian people, especially in rural areas. In order to cook, almost 45% of the rural population use mud structure chulhahs that use branches, plastic and kerosene.The World Health Organization (WHO) has estimated that the pollution levels in rural kitchens are 30 times higher than acceptable level. In addition, this article at New York Times mentions that such chulhahs are the main sources of the emissions of soot- also known as black carbon. It indicates that Black Carbon produced from tens of thousands of villages in developing countries is emerging as a major source of global climate change.
It is interesting to understand how cooking over open fires and traditional stoves in rural India is a danger not only to the health of these people, but also to the planet. In addition, poor countries and poorest people living in these countries actually suffer the most of the impact of climate change.
I have been thinking that Micro Finance Institutions can play a bigger role here. I recently read CGAP focus note on “Microfinance and Climate Change: Threats and Opportunities”
It suggests that MFIs can reach these people and lend to households so that they can purchase household size proven energy savings energy. MFIs can also work with the suppliers of household size proven savings devices and can provide credit to households to buy the equipment. Financial services can help customers reduce their carbon emissions by enabling them to switch to energy sources that emit less greenhouse gas.
I am aware that BASIX and Grameen have already started to address some features of climate change. I was just wondering if there is any other MFI that has addressed this issue. If not, why not? After all, poor people suffer the most …………….
8 comments:
Deepti,
Very interesting post. By energy savings products, do you mean smokeless chulahs? Are there other energy savings products that have been tried, or could be tried in rural areas (e.g., LEDs)?
Very interesting post Deepti! Actually I found out recently that KGFS, in partnership with Rural Energy NE (RENE), launched Envirofit smokeless (biomass) stoves in one of the KGFS village (Nattuchalai) of Thanjavur district through a local retailer. I bet there are quite a few other organizations out there under the radar who are doing the same....
Some of the MFIs are also offering these kinds of products to their customer. SKS has ploted this in Baleswar district of Orissa and sold solar lamps. I think Grameen Koota is also involved in this type of activity. In the villages smokeless chullahs and solar lamps are really useful for the people. But one need to make them understand the importance of these products and how these are useful for them. After sale service is the critical aspect of these kinds of intervention.
Using micro-finance as a means of sustainable credit for the purchase of eco-friendly and energy-saving devices at home is definitely very much on the radar of entrepreneurs in micro-finance in India. For a slightly different take on this, see ledfoundation.in
The LED foundation aims to provide solar-powered LED lighting to the lighting-excluded using a micro-finance model to finance the purchase of the devices. The lighting excluded mostly use kerosene stoves that provide low light, emit noxious fumes, and also pollute the environment, besides posing a fire hazard.
The extent of lighting exclusion in India is startling, and moreover, even if the power grid reaches everywhere that it possibly can, there will still be a large population that live in inaccessible areas that it will never reach.
CMF-JPAL have a project with Gram Vikas, an NGO in Orissa on measuring the effects of smokeless cook-stoves on Indoor Air Pollution. I know that Yusuke had done a lot of work on measuring energy efficiency of these smokeless chullas, but the best of results didnt show a significant efficiency gain. Of course, there is a huge impact on indoor air pollution and that is what the CMF-JPAL study is looking at.
The most common problem with these improved technologies is maintenance. From clogging pipes in smokeless stoves to faults in batteries or circuits in LED systems, there are a whole range of challenges that technology entrepreneurs have to address.
But MFIs taking up these programs is another story. Can MFIs handle moving away from their plain vanilla micro-credit products? MFIs have found it difficult to sustain relatively minor distribution services such as calcium tablets and vaccines for women and children, and more complicated services such as micro-insurance. There are CMF studies in Andhra and MP that give further leads into the same. There are very good reasons why this is so and of course, no easy answers to any of these questions...
Hi, I know that an NGO SSP working in about 5-7 districts of Maharashtra was working with BP. They had a low smoke stove developed and promoted enterprise through the sale of stoves and fuel pellets. Not sure whether microfinance in terms of loans were involved but definitely created micro-enterprise opportunities with what we can call the ripple effect of income generation leading to savings, leading to the women as microfinance clients in a manner of savings solutions. The same organisation does have a sister concern that is into microfinance, just not sure it overlapped for this particular project of reduced pollution.
Schneider Electric have also recently tied up with an NGO Aide et Action to train rural youth to sell and service their solar lanterns. This training facility is based at Bangalore. They have also partnered with MFIs to sell these solar lamps. So most probably they are stating their operations in South India.
Anybody has more inputs on this?
I also like this type of interests.
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