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2012 Accenture. All rights reserved 1 2012 Accenture. All rights reserved Accenture, its logo, and High Performance Delivered are trademarks of Accenture.
Global Alliance for Clean Cookstoves Ghana Market Assessment
Intervention Options
Accenture Development Partnerships
April 2012
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2012 Accenture. All rights reserved 2
Introduction
This Market Assessment was conducted by Accenture Development Partnerships (ADP), the not-for-profit arm of the global management consultancy, Accenture, on behalf of the Global Alliance for Clean Cookstoves (the Alliance).
It is intended to provide a high level snapshot of the sector that can then be used in conjunction with a number of research papers, consumer surveys and other sources (most published on the Alliances website) to enhance sector market understanding and help the Alliance decide which countries and regions to prioritize.
It is one of sixteen such assessments completed by the Alliance to:
- Enhance sector market intelligence and knowledge.; and
- Contribute to a process leading to the Alliance deciding which regions/countries it will prioritize.
Full slate of market assessments include studies in: Bangladesh, Brazil, Colombia, East Timor, Ethiopia, Ghana, Indonesia, Kenya, Mexico, Nigeria, Peru, Rwanda, South Africa, Tanzania, Uganda and Vietnam.
Each assessment has two parts:
- Sector Mapping an objective mapping of the sector. - Intervention Options suggestions for removing the many barriers that currently prevent the creation of a
thriving market for clean cooking solutions.
In each Alliance study a combination of ADP and local consultants spent 4-6 weeks in country conducting a combination of primary (in-depth interviews) and secondary research. They used the same Market Assessment
Toolkit for each country so that comparisons can be made. The Toolkit is available free of charge to all organizations wishing to use it in other countries.
The Alliance wishes to acknowledge the generous support of the following donors for the market assessments: Barr Foundation, Dow Corning Corporation, Shell Corporation, Shell Foundation, and the
governments of Canada, Finland, and Spain.
This market assessment was produced by Accenture Development Partnerships (ADP) on behalf of the Alliance. The findings, interpretations,
and conclusions expressed in this work do not necessarily reflect the views of the Global Alliance for Clean Cookstoves or its partners.
The Alliance does not guarantee the accuracy of the data.
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Agenda Executive Summary
Executive Summary
Intervention Options
Roadmap
Appendix
Conclusion
Project Approach and Background
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As a result of the Ghana cookstove market assessment, 23 intervention options have been identified.
There are 12 options in Fostering an Enabling Environment and 11 options in Enhancing Demand and
Strengthening Supply.
Intervention Options Executive Summary Executive Summary
Fostering an Enabling
Environment Intervention
Options (12) 1. Regulation and Testing (2)
2. Awareness (2)
3. Support and Funding (5)
4. Knowledge Capital and Transfer
(3)
Enhancing Demand and
Strengthening Supply
Intervention Options (11) 1. Design (2)
2. Materials/Fuel (3)
3. Production (2)
4. Sales and Distribution (4)
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Sector Mapping Executive Summary (1/2) Executive Summary
In West Africa, Ghana, with a population of 24 million, stands out as having political stability and a vibrant democracy for
almost two decades. Its economy, too, is notable; Ghana has moved from being a least developed country to a middle
income country. While the situation is hopeful, 28.5% of the population remains below the national poverty line.
Like the country itself, the cookstove ecosystem is promising. Ghana is home to many improved cookstove producers that
have each scaled to tens of thousands of cookstoves annually (and in one case to 100,000), and new entrants, such as
Envirofit and CookClean, are regularly entering the market. The improved cookstove sector started in the 1990s with the
Ministry of Energy's Ahibenso coalpot program. This program had limited impact, however, because production stopped
when the limited government funding ran out. Starting in 2002, EnterpriseWorks/VITA, a division of Relief International
(RI/EW) developed a sustainable production and supply chain for Gyapa stoves, which are more efficient that the traditional coalpot. Initially trained by the RI/EW program, two companies broke away in 2007 and continue to operate today: Toyola
Energy and Man & Man Enterprise, with Toyola having about 2/3 and Man & Man with 1/3, respectively, of Relief
International/EnterpriseWorks' production capacity. Even with their combined throughput, these improved stoves only
account for about 5% of the total cookstove market today.
Since the aforementioned Ahibenso coalpot program, the government's role in cookstoves has primarily been through its
LPG subsidy. Originally intended to promote household LPG use, the subsidy has had the unintended effect of reducing fuel
costs for commercial vehicles, usually taxis, instead. LPG supply has also been problematic, with frequent shortages.
Furthermore, LPG is not easily accessible in rural areas. The government is exploring options to reduce the subsidy and to
redirect funds to subsidizing LPG stoves and cylinders for the poor instead. In addition, the Energy Commission is working
with KITE, a local development organization and energy think tank, to pilot renewable charcoal woodlots. The Energy
Commission seeks to expand its activities in charcoal to help increase the regulation and efficiency of the sector.
Specific findings, organized by Macro Environment, Social and Environmental Impact, Consumers, Cookstove Industry, and
Financing are summarized on the following page.
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Sector Mapping Executive Summary (2/2) Executive Summary
Findings
Macro
Environment
Ghana has been a stable country with a representative democracy since 1993. Environmentally, deforestation is the largest issue
facing the country. The government understands that action must be taken to alleviate the problem, and following the
passage of its landmark Renewable Energy Act, is drafting a bioenergy policy which addresses woodfuel, biofuel, and
biomass use in Ghana. Additionally, the government seeks to continue its policy of woodfuel substitution for LPG, which has had
mixed results in the past. Generally, the governments limited funds constrain its scope of action.
Social and
Environment
al Impact
Over 80% of households use biomass as their primary cooking fuel. This fact, coupled with rapid deforestation--over 70% of
Ghana's forest cover has been eliminated--demonstrates the urgency of the situation. Beyond biomass, LPG is subsidized, but
much of the subsidy has gone to commercial vehicle owners instead of households as commercial vehicle owners have retrofitted
their vehicles to run on LPG, which is cheaper than petrol. The government is planning to phase out the subsidy. Overall, Ghana
is well-positioned to take action in cookstoves because of the strength of its civil society, local enterprise and
awareness of gender equality. Many NGOs, including women's group, operate in Ghana, helping to make civil society strong. In
terms of equality between men and women, women are in position of powerout of the 23 ministries, four are headed by women. However, men still hold most seats in parliament (90+%). In general society, women are well represented in most professions,
especially in services and sales, where they dominate (20% to 6%). In the cookstove sector, women are very prominent. They
own the retail shops and are sales agents. At one major cookstove company, women represent 95% of the sales agents.
Consumers
Due to costs, large segments of the population will continue to use biomass in the foreseeable future. In northern Ghana
and rural areas, basic wood stoves, such as three-stone fires and mud stoves, are most common. The 48% of the population that
uses woodfuel is completely underserved as there are no at scale cookstove programs for woodstoves. Yam, cassava, plantain,
beans, and maize are staple crops throughout Ghana and are dishes are typically cooked in pots with rounded bottoms. Because
of the homogeneity in cooking, the most salient consideration in stove design is the fuel used.
Cookstove
Industry
Ghanaians overwhelmingly continue to use traditional coalpots. Improved stoves, such as the Gyapa and LPG stoves, are in use and well-accepted. On the plus side, Ghana has a robust low-tech cookstove sector which is self-sustaining due to
a value chain which allows for manufacturing, distribution, and retailing actors to profit at each step of the way. But the
most common improved stove, the Gyapa stove, while more efficient, does not drive significant reductions in emissions. This in part stems from the lack of stove regulation, standards, and testing.
Financing
Financing is the major roadblock for producers to increase capacity and for consumers to purchase clean cookstoves.
Carbon financing in Ghana is reasonably advanced, with two registered Gold Standard projects, and several more in the pipeline.
Private capital is extremely limited thoughcommercial loans can have interest rates of as high as 30% and loans from MFIs are very expensive as well.
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Ghanas cookstove ecosystem would benefit from all 23 interventions identified in this report. However, there are four intervention areas that have the most significant impact.
1. Develop country-specific cookstove standards and a roadmap for improvement: More stoves without
adequate quality control would be counterproductive. ICS in Ghana, while more efficient, are not
sufficiently clean. Standards are critical for driving increased cleanliness.
2. Increase awareness of clean cookstoves, especially on the health impacts: Across Ghana, from end-
users to businesses to government, there is a lack of understanding of the deleterious effects of
household generated air pollution. A concerted marketing campaign is required to raise the level of
awareness, which will in turn drive clean cookstove adoption.
3. Increase access to financing: On both the demand and supply side, interventions here would help drive
rapid adoption of cookstoves. Lack of financing has constrained producers growth. For end-users, financing will be critical, especially as they move towards cleaner and more expensive technologies.
4. Design, produce, and distribute woodstoves, particularly in the northern regions: 48% of the total
population, mostly the poor and rural populations, primarily depend on dirty-burning woodfuel currently
do not have any cookstove and fuel programs serving them. This is a major gap that needs to be
addressed.
Intervention Options Executive Summary
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Agenda Project Approach and Background
Executive Summary
Intervention Options
Roadmap
Appendix
Conclusion
Project Approach and Background
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A structured approach first assessed the market for a cookstove industry and then used the sector
mapping output to develop the intervention options and Relative Roadmap.
Project Approach Project Approach and Background
Sector Mapping
Sector Map
Interventional Options
And
Relative Roadmap
Identify
Intervention
Themes
Develop
Relative Roadmap
Develop
Recommendations
Strategy Development
Indoor Air Pollution
Cookstove Consumer
Macro Environment
Cookstove Industry
Carbon Finance
Focus of This Deliverable
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A three-pronged strategy has been developed to spur
the clean cookstoves market
Strengthen
Supply
Foster an Enabling
Environment
Enhance
Demand
Finance clean cookstoves and fuels at scale
Access carbon finance
Build an inclusive value chain for clean cookstoves and fuels
Gather better market intelligence
Ensure access for vulnerable populations (humanitarian)
Understand and motivate the user as a customer
Reach the last mile
Finance the purchase of clean cookstoves and fuels
Develop better cookstove technologies and a broader
menu of options
Promote international standards and rigorous testing protocols, locally and globally
Champion the sector to build awareness
Further document the evidence base (health, climate, and gender)
Engage national and local stakeholders
Develop credible monitoring and evaluation systems
Project Approach and Background
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The Interventions are analyzed according to their
impact to the three-pronged strategy Project Approach and Background
Enhancing Demand and Strengthening
Supply: Cookstoves Value Chain
Fostering an Enabling Environment
Macro-Environment: Not in Scope for Intervention Options
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The Case for Action
The Government of Ghana is aware of the effects of cookstoves and expects to invest heavily in the
energy sector over the next 8 years.
- The Case for Action -
There is a high interest in
moving towards clean
energy sources to meet the
growing energy needs in
Ghana.
Reliance on woodfuels as an
energy source is depleting
Ghana's forests, forest cover
has been reduce 72% since
1972.
In Ghana, 6500+ deaths are
attributed to the effects of IAP
annually.
The use of biomass fuels for
cooking is contributing
significantly to the
deforestation problem in
Ghana.
The use of clean fuels like
LPG will reduce the
dependence on biomass as
a fuel source.
Reliance on biomass fuels
and traditional stoves
negatively contribute to the
health of women and
children.
In rural Ghana and for the
poor, LPG is not accessible
or it is too expensive; these
segments will need ICS for a
long time in the future.
Ghanas Renewable Energy Act of 2011 is expected to
draw $1 Billion USD in
investment over the next 8
years.
NGOs and private organizations across the
sector have mobilized on the
issue of IAP and are open to
sector wide collaboration to
address the issue.
Whats Happening? So What? Why Now?
Project Approach and Background
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Agenda Intervention Options
Executive Summary
Intervention Options
Roadmap
Appendix
Conclusion
Project Approach and Background
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The market today
The Ghanaian cookstove market is well developed with
strong players across all sectors. Although the
government launched the Ahibenso Stove in the 1980s,
the sector started to gather momentum in 2002 when
Enterprise Works launched the Gyapa Cookstoves
Program, which still remains active today. The program
trains local entrepreneurs, who have now started
successful spin off cookstove programs. The sector is
growing rapidly, with several experienced producers
looking to expand their market share or enter the market
from other geographies.
Ghana has experienced considerable economic growth,
driven by the resources sector, and is investing in health,
infrastructure and energy security/stabilization. The
government is very supportive of ICS sector in terms of
implementation projects and key policies e.g. Renewable
Energy Act 2011, Bioenergy Policy (draft). Several
government agencies are involved in the ICS arena from
carbon finance support via the DNA to the scientific
research carried out at CSIR, although key gaps remain.
The most notable issues are the absence of an
independent testing facility and an associated lack of
regulations and standards for stove producers. Stove
testing is currently executed in-house by manufacturers
with a plethora of associated issues, including lack of
impartiality and lack of consistency with regard to training
and execution. The necessary skills and equipment are
not available to establish the required facility at present,
although efficiency testing could potentially be
implemented quicker and at lower cost than emissions
testing. The lack of standards and regulations also
impedes ICS producers efforts to differentiate their stoves (with many producers claiming to produce clean stoves) and impedes consumers, investors and donors from
making informed decisions.
Awareness is also an issue at the broader level, with the
general population largely unaware of the numerous
potential improvements resulting from ICS despite previous attempts to elevate the issue in the public
consciousness. Whilst an issue across the board,
informed households tend to be more aware of the
economic advantages as opposed to the IAP impact on
health.
Fostering an Enabling Environment Intervention Options
Typical market place selling traditional and
improved cookstoves
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Efforts to raise awareness are hindered by a lack of access
to critical knowledge capital. The issue is three-fold; there
is a gap in the research performed to date, research is
executed by parties within the sector and therefore might
lack subjectivity/quality, and there is a lack of open
information between organizations leading to a duplication
of effort and lost economies. The major gap is the lack of
clarity around health consequences of current cooking
practices.
Another issue within the Ghanaian market is unfavorable
financing conditions, primarily impacting the private sector.
The key issue is limited/costly access to traditional capital
in the market as a whole, compounded by the higher risk-
adjusted interest rate for stove producers, thus reducing
the ability of SMEs to scale up. Implementers also suffer
from high import tariffs on imported stoves/components.
The move towards clean fuels could also be accelerated
through stimulated demand if the duty were reduced.
Although carbon financing is being used within the sector
(4 GS projects registered/listed and 1 CDM project within
the West African Regional PoA), barriers remain, and
Ghana will lose its LDC status at the end of 2012. This means no additional CDM credit generating projects can
be created.
Unless carbon financing starts to play a larger role in the
sector, access to traditional finance is critical for
implementers to scale up in the short term.
Deforestation remains a key driver, although additional
research regarding the health implications of IAP will most
likely raise the priority even further, especially within
government.
However, despite these gaps, the momentum within the
sector and the extensive support within the academic,
private, public and NGO sectors, combined with the long
term market for improved biomass cookstoves, create a
favorable market overall. The migration of Ghanaian
consumers up the energy ladder is a top priority for the
Government, hence the focus on the promotion of clean
energy and reduction of the dependence on biomass.
Fostering an Enabling Environment Intervention Options
Stove production within a rural community
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Building the market for the future
The intervention options designed to foster an enabling
environment focus on four areas: Regulation & Testing;
Awareness; Support & Funding; Knowledge Capital &
Transfer.
An impartial stove testing facility is crucial for transparency
across the market, enabling informed purchasing decisions
and building consumer confidence. The urgency warrants
using testing centers in nearby countries if a national
facility can not be established within an acceptable
timeframe. A precedent for standards exists, with the
government having successfully enforced standards for
household appliances and regulated market standards for
products such as refrigerators. Whilst efficiency is a quick
win, the facility will need to include the more complex
emissions testing to add real value to the sector and
address the health impacts.
A suite of tools is required to address the lack of consumer
awareness within Ghana. There is a clear distinction
between rural and urban areas, with radio and TV being
the key mediums respectively. Internet penetration is
limited at the household level, especially within the poorest,
most vulnerable areas of Ghana and is of limited value.
Whilst implementers are key to raising awareness, the
government should also build on previous successful
national campaigns e.g. HIV/AIDs awareness. Working
alongside established institutions such as local NGOs,
religious groups and schools through initiatives such as the
school feeding program is a key method of creating
awareness, educating communities, and increasing
engagement. These relationships are key to changing
cooking habits from the top down.
To accelerate dissemination, increased access to capital is
required. Encouraging favorable government policies with
regard to clean technology/fuel would have a profound
impact on the sectors ability to both scale in country as well as profitably import stoves and components.
Successful government matching schemes can also be
replicated within the sector to increase capital. Improved
access for private implementers and microfinance for
consumers will have a critically positive impact on current
and future initiatives.
Improved access to carbon financing by establishing a
regional PoA, and hence reducing the entry barriers, will
also enable companies to invest in awareness campaigns,
marketing, R&D and M&E to further advance the sector.
Creating a more collaborative environment within Ghana is
essential, especially with regard to knowledge capital.
Additional research, primarily focused on health/
environmental impacts, deforestation, carbon financing and
LPG demand will greatly benefit. Research needs to be
executed transparently, with findings easily accessible to
all relevant domestic and international parties.
Fostering an Enabling Environment Intervention Options
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Foster an Enabling Environment
Support & Funding
Government INGOs and Associations Local NGOs and
Associations
Private Sector Academics
Monitoring &
Evaluation
Monitoring implementations
Tracking and Quantifying Success
Awareness
Consumer Awareness Stakeholder Awareness
Government Private Sector
Regulation & Testing
Indoor Air Quality Standards
Cookstove Standards Fuel Standards Standard Enforcement
Intervention Options
KEY: ~
Through gaps identified in the Enabling Environment, Intervention options will focus on Support &
Funding, Regulation & Testing, Awareness, and Knowledge Capital & Transfer.
Health Environment
Gender Cookstove-Specific
Knowledge Capital & Transfer:
~
Advanced/ Favorable Has Potential/ Neutral None/ Unfavorable Focus Area
~
~
~
~
~ ~
~
~
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There are no official cookstove standards and no independent body that verifies claims in the
cookstove sector, as a result there is limited impetus to raise cookstove quality and cleanliness.
Regulation and Testing Intervention Options
There are many stove producers in Ghana, but there is no independent verification of claims in the cookstove
market. Also, there is limited incentive for existing cookstove producers to improve the cleanliness of their products
because it is difficult to compare different brands of cookstoves.
Situation
Cookstove producers conduct their own testing
but these claims are hard to
verify
Ghana has many cookstove producers, but they are not
necessarily clean
cookstove producers
The Global Alliance is well positioned to be an outside
and trusted party for
standards setting,
particularly because of its
role in international
standards role
Rationale Intervention Options
Involved
Parties
Likelihood
of Success Budget
Estimated
Time
1. Create a stove
testing center over
the long term
Alliance,
Academic
Institution,
Gov Agency,
Testing/Moni
toring INGO
Medium Medium 1 year
2. Develop
common
standards and
roadmap for
improvement over
time
Ghana
Alliance for
Clean
Cookstoves,
Ghanaian
Standards
Authority,
Academic
Institution
Medium Small 1 year
Source: Stakeholder interviews
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Testing and standards setting are the most impactful interventions for raising the bar for cookstove
quality in Ghana.
Regulation and Testing Intervention Options
- Actions - - Intervention Options- - Outcomes-
1. Create a stove
testing center over
the long term
In the short term, stove testing should be done outside of country where the necessary equipment, funding, and
expertise exists as Ghana is currently lacking all three
Over the long term, work with stove testing and standards experts to create an independent stove testing facility (with
testing equipment, knowledge of protocols, appropriate
equipment) in Ghana*
Stove testing center could be housed in CSIR-IIR, as other households appliances, such as refrigerators, are tested
there1
Report findings in a timely manner on the Alliances website so that donors, producers, and the Alliance can
understand and compare cookstove performance in Ghana
and globally
Increased transparency of cookstove performance
Steady cookstove quality improvements
Accuracy of measurements from out-of-country
experts in the short term
Organic development of testing ability in-country in
the long term
Because stove cleanliness is low and can still cause poor health results in Ghana, work with local stakeholders to
develop common standards that are in sync with
international standards
Develop rating system in coordination with international bodies such as ISO, the Global Alliance, and the World
Bank, that is comprised of reduction in emissions and
exposure and increase in fuel efficiency
Efficiency standards are straightforwardit will be the emissions and exposure standards that will be the most
challenging as they will require existing Ghanaian
cookstove manufacturers to make significant
improvements
To communicate and enforce standards, testing results should be posted online publically and spot checks
conducted by the Ghanaian Standards Authority
Imprint stoves with quality seals to signal that it is a clean cookstove
Create roadmap and implementation plan to raise standards over time
Commonly agreed upon standards of what
constitutes a clean cookstove
Steady cookstove quality improvements
Coordination with international standards
2. Develop common
standards and
roadmap for
improvement over
time
*Some stakeholders have suggested that it may make more sense to designate independent testing centers at an out-of-country location elsewhere in Africa where there
is greater funding and/or technical expertise. 1: Stakeholder interview with Dr. Essel Ben Hagan, former Director of CSIR-IIR
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Although cookstoves have a huge impact on Ghanaians, there is limited awareness of the
environmental and health impacts.
Awareness Intervention Options
There is little public awareness surrounding efficient and clean cookstoves. Although the public intuitively
understands the challenges with smoke, they are not aware of the associated economic impact and specific health
problems.
Situation
While there is some awareness of efficient
stoves due to the USAID
funded campaigns almost a
decade ago, that
awareness has decreased
over time
Furthermore, people are more in tune with the
economic benefits of
improved stoves versus the
health benefits of clean
cookstoves
There is little knowledge of the health impacts of smoke
and emissions
Rationale Intervention Options
Involved
Parties
Likelihood
of Success Budget
Estimated
Time
3. Pilot mass
media marketing
campaigns in test
markets
Advertising
Agency, Alliance,
Government,
Stove
Manufacturers
Large
Medium
(pilot)
Large
(scale-up)
6 mth to 1
year
4. Integrate HAP
awareness in
educational,
financial, and
religious
institutions
Ministry of
Education, Local
Governments,
Religious Groups,
Alliance, NGOs,
Financial
Institutions
Medium Medium 1 to 2
years
Source: Stakeholder and end-user interviews
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By working with multiple parties, from the end-consumer to civil society to government, awareness
could be raised more effectively and rapidly.
Awareness Intervention Options
- Actions - - Intervention Options- - Outcomes-
3. Pilot mass media
marketing
campaigns in test
markets
Make sure all campaigns emphasize both economic and especially health benefits, as
current producers have not focused on
health benefits
If advertising on television, the reach is far greater in urban areas (56% households as
of 2006) than rural areas (16%)
If advertising on radio, the reach is slightly greater in rural areas (56% of households)
than urban areas (42%)
Online advertising would likely be ineffective as only 2% of households had desktop
computers and only 0.5% had laptops as of
2006
Create an advertising matching fund for existing cookstove players so that for each
Cedi they put in, the donor and/or the
Alliance will match by a certain amount
Work with an ad agency to test marketing campaigns in select markets
Scale up successful marketing campaigns regionally or nationally
Coordinate with cookstove producers to ensure adequate supply to meet demand
Separately work with government ministries for public interest campaigns on cookstoves
(similar to what they are doing for HIV/AIDS)
After scale up, significantly increased demand for
improved and clean cookstoves
Efficient marketing spend
Through the matching fund, ensure that existing
cookstove producers have skin in the game
Increased awareness at all levels of society, from
end-users to producers to government
Source: Ghana Statistical Service: Ghana Living Standards Survey 5
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By working with multiple parties, from the end-consumer to civil society to government, awareness
could be raised more effectively and rapidly.
Awareness Intervention Options
- Actions - - Intervention Options- - Outcomes-
Partner with the Ministry of Education to introduce curricula on clean cookstoves to
elementary
Hold workshops with religious leaders to educate them on the health impacts of clean
cookstoves; convince religious leaders to adopt
clean cookstove themselves
Tie with Ghana School Feeding Program Leverage the existing and well-developed
networks of rural banks and MFIs and use
those networks to spread awareness about
clean cookstoves1
Increased demand for improved and clean
cookstoves
Sustainable and semi-permanent promotion of
clean cookstoves
Increased uptake of clean cookstove in religious
congregations
4. Integrate HAP
awareness in
educational,
financial, and
religious
institutions
1: GHAMFIN interview
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Support and Funding is the key to increasing access to capital and in turn scaling up existing clean
cookstove programs.
Support and Funding Intervention Options
On the supply side, cookstove producers are having challenges expanding their businesses because access to
funding is very limited or prohibitively expensive.
Situation
Cookstove producers in Ghana require additional capital in
order to scale-up and expand
their businesses
Carbon finance is critical to make cookstove programs
viable and sustainable over the
long term
Government has demonstrated interest in the cookstove sector
but has not committed major
funds towards the issue
Duties on cookstoves are high (about 20-30%)
Cost of capital is extremely high, 20+% per annum
Risk free rate is very high (over 10%)
Risk premiums for cookstove SMEs are very high, an
additional 10-20%
Rationale Intervention Options
Involved Parties
Likelihood of
Success Budget
Estimated
Time
5. Have the Ghana Alliance
for Clean Cookstoves as a
collective voice when
working with other
stakeholders
Cookstove Stakeholders,
Alliance Large Small 6mth- 1 year
6. Fund the creation of an
open regional carbon POA
Donor, Alliance, Carbon
Project Developer, Ministry
of Environment, Science,
and Technology
Large Medium 1-2 years
7. Government funding
matching program
Ministry of Energy, Energy
Commission, Donor,
Alliance
Medium Medium
to Large 1-2 years
8. Guarantee loans to
cookstove SMEs
Donor, Local Banks,
SMEs Medium Large 6mth-1year
9. Work with government to
reduce duties on imported
cookstoves, fuel, and raw
materials
Ghana Customs, Excise,
and Prevention Services,
Ghana Alliance for Clean
Cookstoves, Cookstove
Producers, CSIR
Medium Small 1 year
Source: Stakeholder interviews
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Interventions in Support and Funding potentially create the largest impact in the clean cookstove
market in Ghana.
Support and Funding Intervention Options
- Actions - - Intervention Options- - Outcomes-
5. Have the Ghana
Alliance for Clean
Cookstoves as a
collective voice
when working with
other stakeholders
This organizations creation, led by Relief International and SNV is already in progress
Create a common platform and communicate the platform to the government to quickly spur
government action, such as the reduction of
duties for imported cookstoves
Interface with international standards organizations to help develop and enforce
standards for the Ghanaian context, raising
the bar for the mostly non-clean cookstove
currently in market
Collectively bargain with financial institutions to reduce financing costsfor example, promise all cookstove business with one back
in exchange for more favorable loan terms
Single point of contact for cookstoves in Ghana
Ability to advocate with a bigger voice as one
collective group versus fragmented individuals
Increased professionalism of the industry in the
eyes of other stakeholders, such as government
Ghana does not currently have a regional POA so this would help jumpstart critical carbon
financing for new entrants. Although others,
such as Envirofit, are working on regional
POAs, these are not yet operational and are
likely closed to other stove producers
Partner with a carbon project developer to create an open plug and play Gold Standard
POA (since CDM is going away with Ghanas loss of LDC status at the end of 2012) that
smaller producers could work with in order to
access carbon credits
Provide administrative support for organizations that wish to plug into POA
Lowered barriers to entry for carbon financing,
allowing smaller players to enter and stay in the
market
This model can be replicated in other regions
worldwide
6. Fund the creation
of an open regional
carbon POA
Source: Stakeholder interviews
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2012 Accenture. All rights reserved 25
Interventions in Support and Funding potentially create the largest impact in the clean cookstove
market in Ghana.
Support and Funding (continued) Intervention Options
- Actions - - Intervention Options- - Outcomes-
Similar matching programs have been implemented in the past; for example in the Social Investment
Fund
Tie clean cookstoves to energy, health, womens empowerment, and economic development/poverty
reduction policies
Partner with the government to match donor funds For example, for every GHC the Ghanaian
government allocates towards cookstoves and fuel,
donors would do an 100% match
Fund can go into the Energy Commissions GREEN Fund, which is dedicated to renewable energies,
including biomass
Investigate if additional funds can be leveraged
Encourage government commitment to the
cookstove sector
Multiplier effect on funds committed
7. Government
funding matching
program
A similar loan guarantee program has already existed in Ghana because of the UNEP AREED
programthis model can be replicated for cookstoves specifically
To address the high risk free rate (over 10%), direct international funds should be loaned at a lower rate
To address the high risk premium for cookstove SMEs, which causes end interest rates to be
upwards of 20%, have a loan guarantee to lower
that rate
Identify donors who are willing to partner with local banks in order to provide loan guarantees
Ask donors to subsidize loans Local banks would lend at lower rates as long as
donors agreed to cover potential loses to a certain
point
Increased access to capital because banks will
lend to cookstove SMEs at lower rates
Greater cookstove production at cheaper cost
8. Guarantee loans
to cookstove SMEs
Source: Stakeholder interviews
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2012 Accenture. All rights reserved 26
Interventions in Support and Funding potentially create the largest impact in the clean cookstove
market in Ghana.
Support and Funding (continued) Intervention Options
- Actions - - Intervention Options- - Outcomes-
Work with the government to reduce duties on clean cookstoves, clean fuels, and parts
Create a new classification number and an associated tariff for clean cookstoves
Specifically work with CSIR and the Ghana Customs, Excise, and Prevention Services
Higher tech and high quality cookstove can be
imported from abroad
Potentially cheaper cookstoves imported from
abroad
Lower cookstove prices so that poor people can
afford them
9. Work with
government to reduce
duties on imported
cookstoves, fuel, and
raw materials
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2012 Accenture. All rights reserved 27
Knowledge of the cookstove sector in Ghana is limited because information is not shared or does not
exist.
Knowledge Capital & Transfer Intervention Options
Cookstove producers are each conducting their own
studies on the Ghanaian
Cookstove sector, replicating
work that previous
organizations have already
done
There is a lack of transparency regarding the
carbon financing process
Studies on cookstove environmental and health
impact are not readily
available, either because
they are spread across
disparate sources or
because studies have not
been done
Rationale Intervention Options
Involved
Parties
Likelihood
of Success Budget
Estimated
Time
10. Create a
country-specific
portal
Ghana
stakeholders,
Alliance
Large Small 3 months
11. Create a
carbon finance
section within
country portal
Alliance,
Carbon
Finance Orgs,
Ghanaian
stakeholders,
government
Large Small 3 months
12. Collect and
commission
health and
environmental
studies
Academic
Institutions,
Alliance
Large Medium 1-3 years
There are redundant research and analysis efforts because knowledge is not widely shared between organizations.
In carbon financing and health and environmental studies, many gaps in knowledge exist.
Situation
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2012 Accenture. All rights reserved 28
The Alliance can play a major role in compiling and creating knowledge capital and promoting its
dissemination.
Knowledge Capital & Transfer Intervention Options
- Actions - - Intervention Options- - Outcomes-
10. Create a
country-specific
portal
Create an Alliance-approved repository of relevant Ghana information (consumer behavior,
preferences, design, etc.)
Specifically have knowledge about what wood stoves would be user accepted in the underserved
rural and northern regions
Review with local stakeholders to ensure accuracy Make this part of the Alliances overall knowledge
hub
Pay stakeholders, as necessary, in order to access and disseminate proprietary information
Commission additional studies, as necessary, to fill gaps (see the 3rd intervention in this section)
Reduced redundancy of effort
More accurate information
Easier for new stakeholders (e.g. new donors) to
understand Ghanas cookstove sector
Create a carbon finance portal for organizations in country to have easy access to information required
to setup a carbon finance program
Create a detailed step-by-step toolkit on how to receive carbon financing in Ghana
Encourage organizations to join the regional plug-and-play POA from the Support and Funding sector
Coordinate with the EPA and Ministry of Environment, Science, and Technology to make sure government
procedures are accurately reflected online
Lower barriers to accessing carbon financing
Supports the use of the plug-and-play carbon POA
Reduce redundant POAs and achieve economies
of scale
11. Create a carbon
finance section
within country
portal
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2012 Accenture. All rights reserved 29
The Alliance can play a major role in compiling and creating knowledge capital and promoting its
dissemination.
Knowledge Capital & Transfer (continued) Intervention Options
- Actions - - Intervention Options- - Outcomes-
Although there are health studies in progress, there are no published health studies on
cookstoves in Ghana
There are existing studies on the charcoal industry, worked on by Dr. Essel Ben Hagan,
which can be posted online
Work with Ghanaian stakeholders to collect other existing studies and reports
Understand where gaps exist Commission additional studies, as appropriate,
to fill gaps
Suggested studies: Biochar feasibility from crop waste Rate of deforestation LPG consumer study on price and
supply tipping point for adoption
Improved and clean wood stove adoption strategy
Charcoal producer licensing and regulation
Eased knowledge sharing amongst stakeholders
Fill knowledge gaps
Shortened planning time so that organizations can
pilot and take action sooner
12. Collect and
commission health
and environmental
studies
Source: Stakeholder interviews
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2012 Accenture. All rights reserved 30
The market today
Traditional cooking methods, using open fires, mud stoves
or coal pots remain extremely popular within Ghana,
especially in rural areas primarily due to cost and fuel accessibility. The 48% of the population using wood as the
primary fuel have very limited options for ICS, with
improved wood stoves offering minimal efficiency savings and very limited emission reductions.
Locally produced charcoal stoves, similar to the Kenya
Ceramic Jiko, have been well received within urban and
peri-urban areas. While the stoves offer considerable
efficiency improvements, the reduction in emissions is
difficult to verify. These 3 ICSs burn charcoal and are
hence unsuitable for the poorest, most remote and often
most vulnerable families in Ghana.
The majority of stoves last a relatively long time, 3+ years,
resulting in a low stove turnover for most households. As
such, it is important that stove standards are introduced
and consumers are educated as soon as possible.
Current costs and transport complications for LPG has
meant that although the stoves have been widely accepted
by communities, they remain inaccessible for a large
number of Ghanaians. As such, in the short term, improved
biomass stoves are critical to reduce deforestation and
improve household health in rural areas.
Most stoves are small and portable in design, with families
typically cooking in multiple round bottomed pots of varying
size. As such, most families typically own more than one
stove and prefer flexibility with regard to suitable pot size.
Although meals such as stews can require hours of
cooking and hence exposure to IAP, a large number of
households cook outdoors where possible, using thatched
roofs for shelter.
Cookstoves Value Chain Intervention Options
Typical stove available in the Ghanaian
market
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2012 Accenture. All rights reserved 31
Design
Most of the improvements within the cookstove sector
have focused on charcoal stoves. The available improved
charcoal stoves are superficially homogenous, since many of the producers were trained as part of the
Household Energy Program.
Charcoal stove designs are better established, but
emissions testing may highlight issues which will need to
be addressed. The majority of research and development
is performed by the private sector at present and, although
there is a market for improved woodstoves, there may
need to be support from other sectors with less focus on
direct profit to improve the demand and kick-start supply.
Previous efforts to distribute improved wood stoves, e.g.
Toyola woodstove, experienced minimal success, thus
leaving the 3 million wood burning households very
underserved by the ICS market. More research is needed
into improved woodstoves which are suitable for the
communities with regard to cultural sensitivities and local
diet.
Materials & fuel
Deforestation remains a key issue within Ghana, with
considerable focus from the government. However, wood
and charcoal still dominate the market with regard to
cooking fuel (53% and 30+% respectively)*. Fuel use is
dictated largely by accessibility and household income,
with people generally preferring to cook on charcoal when
possible.
Although in their infancy, the profile of improved charcoal
producing techniques has increased in Ghana, with
producers receiving a SEED award in 2011 to praise
progress made in this area. Sustainable charcoal has
considerable potential to reduce deforestation and indoor
air pollution and could benefit over 3 million households.
Several bold steps have been taken, with mixed results.
For example, biochar is being piloted as a fuel source,
although this is still in its infancy. The government
subsidised LPG to decrease dependence on biofuels. This
has had limited success, with commercial companies using
the LPG for transport, resulting in LPG shortages for
households.
Cookstoves Value Chain Intervention Options
Key: *Taken from the Sector Mapping. Stakeholder interviews suggest
that charcoal use is considerably higher than stated in official data
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2012 Accenture. All rights reserved 32
Production
Although several experienced stove producers have
recently entered the market or intend to in the near future,
at present most stoves are produced by local artisans
using local materials. Therefore, stoves are produced to
varying standards and scalability remains an issue.
That said, the Household Energy Program resulted in
multiple spin off companies which produce stoves in a
more standardized fashion and at a larger scale. These
companies are keen to expand within Ghana and
potentially into neighbouring countries. At present, the
main issue for new entrants into the market remains
access to capital, with interest rates reaching around 30%.
Sales & distribution
Existing ICS producers tend to manufacture charcoal
stoves in the southern areas of Ghana in accordance with
existing market demand. While that helps to cover the
Southern area, it leaves the Northern households to still
suffer from reduced availability and expensive stoves due
to difficult distribution. The average household income in
the North is considerably lower (especially in the Upper
East and Upper West provinces) than the central and
Southern provinces and households tend to be larger,
further exacerbating the impact of inaccessibility to ICS
(especially charcoal stoves and the associated on-going
cost)
At a broader scale, last mile distribution outside of urban
and peri-urban areas is difficult to achieve at reasonable
cost. Local networks are currently underutilized with regard
to stove distribution.
The suppressed demand, distribution costs and previous
failed attempts to supply these regions (with wood burning
stoves in particular), results in some of the most vulnerable
households being neglected by ICS initiatives.
Cookstoves Value Chain Intervention Options
Locally produced improved
charcoal burning stove
Sources: Ghana Statistics Service: Ghana Livings Standards Survey 5,
data from 2005-2006
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2012 Accenture. All rights reserved 33
Strengthening Supply and Enhancing Demand
Whilst the charcoal stove market is making strong
progress, the improved wood burning stove is currently
stagnant with devastating consequences for the poorer communities in the North. To address this in the short
term, more knowledge about the market is required with
regard to suitable designs, price etc. A quick and cost
effective approach is to perform pilot studies with improved
wood burning stoves imported from other geographies as
well as supporting small scale local manufacturers.
Since women are the key consumers and users of
improved cookstoves, it is strongly recommended that
focus groups, pilot studies and the testing of new designs
involves women throughout the process to ensure
consumer demand is addressed. This could be achieved
through working with local NGOs and would ensure that
cultural sensitivities are included in the design (as
highlighted as a key success factor by the Ministry of
Energy).
With regard to improved fuels, partnering with academic
institutions such as KNUST to explore agricultural charcoal
and biochar production from agricultural waste could
provide alternative energy sources. As well as addressing
the urgent issue of deforestation, this could provide rural
communities with a source of income thorough fuel
production.
If scaled up significantly, biochar could be used one
solution. However, since this is in the research stage,
improved charcoal producing techniques are needed in the
short term. To ensure that the improved techniques are
taught at the national level, the government could
incorporate improved charcoal in the national Renewable
Energy Plan. In order to ensure governance for this
program, it is recommended that a large local or
international NGO with experience of overseeing such a
program is appointed to coordinate the initiative.
The LPG subsidy increased clean fuel use, but resulted in
unexpected complications. To ensure the subsidized fuel is
used appropriately, systems need to be implemented to
limit/stop commercial transport using LPG. Options
include imposing physical restrictions through modified fuel
tank nozzles or separate pumps which can only be used to
fill smaller household containers, as well as research/
controlled pilot studies to access alternative approaches to
stimulating demand.
To improve production, increased transparency within the
sector is essential to ensure that best practice can be
developed by key implementers. Academic institutions are
also vital, producing impartial research into improved stove
materials, models and production techniques.
Cookstoves Value Chain Intervention Options
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2012 Accenture. All rights reserved 34
Building partnerships with international stove experts will
ensure this process is performed in a timely and cost
effective manner, leveraging best practice from other
geographies. For example, Aprovecho has vast amounts of
experience within the stove sector and has assisted
initiatives in other countries to improve stove design,
testing and production.
Follow-up support is critical to ensure that improvements
are built upon, since the skills will be easier to maintain
rather than completely re-teach at a later date. Since
access to capital remains difficult, funding could be used to
establish facilities that allow producers to produce higher
quality stoves with minimally increased operating costs e.g.
NGOs providing improved kilns/training for local
communities/cooperatives.
Providing support for local producers with regard to key
business processes e.g. securing capital will also help
strengthen the private sector. Envirofit had success
building partnerships with CEESD, there is considerable
potential to facilitate successful pairing of donors and
implementers to ensure funds are used in the most
effective manner.
Several approaches are required to address the sales and
distribution of ICS in Ghana. Toyola have had success with
direct sales and novel marketing approaches within the
sector, including the Toyola Moneybox, it is critical that other implementers learn from these successes, as well as
looking for best practice from other sectors e.g. Hunger
Ghanas MicroBusiness for Health franchise and Impact Energies LED lamps and micro solar home systems. Grass
roots sales strategies also increase sales since they build
on local relationships. Drawing on local gender projects
and working with women in local communities could be
very successful since the women typically know the
product much more intimately and are thus better at
creating buy in from the local community.
The Northern communities have an urgent need for
improved access to ICS. Identifying willing companies and
providing necessary incentives will encourage investment
in these areas. Once demand has been proven, it will be
more appealing for companies to invest in these regions.
Working with other distributors with a similar target market
will reduce last mile distribution for both parties, whether
this is to a local hub or the final mile to the household.
Stimulating supply, through donor subsidies or carbon
financing, will make the market more favourable for
cookstove producers and hence kick-start the market in the
most desperate regions.
Cookstoves Value Chain Intervention Options
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2012 Accenture. All rights reserved 35
Enhance Demand and Strengthen Supply:
Cookstoves Value Chain
Production
Scalability Handmade Masons Factory
Producer Fragmentation Producer Financing
Access to Capital
Repair & Replacement
Supply of Repair Skills and Parts
Post-sales Service
Materials/Fuel
Stove Raw Material Supply Stove Raw Materials Cost Fuel Value Chain
Biomass Clean Coal LPG
Cost of Clean Fuels
Design
Stove Type Wood Charcoal LPG
R&D Private Govt/Academics
Sales & Distribution Financing Purchasing (micro-credit) Carbon Financing Customer Segmentation Implementation Pilots Last Mile Distribution Reach Vulnerable Populations
Intervention Options
Through gaps identified in the Cookstoves Value Chain, Intervention options will focus on Design,
Materials/Fuel, Production and Sales & Distribution.
KEY: ~ Advanced/ Favorable Has Potential/ Neutral None/ Unfavorable Focus Area
~
~
~ ~
~
~
~
~
~
~
~
~
~
~
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2012 Accenture. All rights reserved 36
Stove manufacturers and producers have not produced or distributed a woodstove with any success.
Design Intervention Options
People using woodfuel gather their firewood and cook using three stone fires or handmade stoves made out of mud
and clay that are free of charge. There are no current improved woodstove designs being distributed in the market
at scale.
Situation
3 million households, primarily located in rural
areas use wood for cooking
Woodstove designs have existed in the past, but have
not been successful in the
market (i.e. Toyola
Woodstove)
The Ministry of Energy highlighted taking into
account cultural issues and
dimensions around cooking
and eating as one of their top
3 objectives in promoting ICS
Women are the most common end-users of stoves
Rationale Intervention Options
Involved
Parties
Likelihood
of
Success Budget
Estimated
Time
13. Facilitate pilots
for improved
woodstove designs
Alliance,
Local NGO
and Stove
Manufacturer
Medium Small 6mths-
1year
14. Incorporate
direct feedback of
women in the
product
development cycle
Local Gender
Groups,
NGOs,
Academia,
Large Small 3-6 mths
Source: Ghana Customer Segmentation, based on data from the Ghana
Living Standards Survey, Stakeholder Interviews
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2012 Accenture. All rights reserved 37
13. Facilitate pilots
for improved
woodstove designs
Facilitating pilots and incorporating feedback of end users in product development will allow the
sector to test and learn what works in rural areas.
Design Intervention Options
- Actions - - Intervention Options- - Outcomes-
Improved woodstoves made available to the
3+ million households who continue to use
firewood for cooking3
Deforestation rates will decline as less
firewood will be gathered due to greater fuel
efficiency of ICS
Partner local and international NGOs with stove manufacturers to investigate and
test the woodfuel market
Focus on importing small portable stove designs similar to the Gyapa stove which is popular in the charcoal market in
Ghana
Import existing designs for user testing, like CEESD and Envirofit are
doing in Kumasi
Design locally made woodstoves and test in rural areas: CSIR, Toyola and
RI/EW have all tried this in the past
Assist in funding the pilots targeted to the woodstove market in the northern regions
14. Incorporate
direct feedback of
women in the
product
development cycle
Stove designs that meet the needs of local
consumers and take into account cultural
sensitivities
Partner with local women groups to conduct focus groups, interviews and
studies around product design and user
preferences as women are the end users
of stoves in Ghana
Involve local women in testing and designing of stoves as the Ministry of
Energy highlighted taking into account
cultural preference's as a barrier to
adoption of ICS
Source: Ghana Customer Segmentation, based on data from the Ghana
Living Standards Survey, Stakeholder Interviews
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2012 Accenture. All rights reserved 38
Materials/Fuel Intervention Options
Deforestation is a major environmental issue in Ghana, forest cover has been reduced by over 70% since 1972 and
current reliance on biomass as an energy source contributes to the issue.
Situation
Biochar has been piloted in parts of the country but is currently
being used by as little as a
fraction of a percent of the
population
Sustainable charcoal programs in Ghana have been recognized
internationally for their economic
and social benefits (Global
Bamboo Products 2011 SEED
Award Winner)
In the 1990s, Ghana's government developed an LPG
subsidy with the intent of
distributing LPG for cooking
purposes. However, currently
many commercial vehicles in
Ghana use LPG, reducing supply
and contributing to LPG shortages
Rationale Intervention Options
Involved Parties
Likelihood of
Success Budget
Estimated
Time
15. Investigate the
feasibility of a market
based approach to
biochar as a fuel
source
Alliance,
Academia, Local
NGO, Local
Women Groups
Large Small 6mth-1year
16. Work with
charcoal producers
and distributors in
country to maximize
efficiency and
sustainability of
production
Government,
Local &
International
NGOs
Large Medium 6mth-1year
17. Revisit Ghana's
LPG strategy; tailor it
to address the
distribution of LPG for
cooking purposes
Alliance,
Government,
Local NGOs,
Local Businesses
Medium Large 1-3 years
Improving the efficiency in production of charcoal, revisiting Ghanas LPG strategy and reducing the reliance on biomass as a fuel source in Ghana would have a significant effect on the environment.
Source: Ghana Country Environmental Profile by the European Commission,
2006, Ghana Living Standards Survey, Stakeholder Interviews,
www.seedinit.org
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2012 Accenture. All rights reserved 39
Investigating new fuel sources, re-visiting existing LPG strategies and identifying sustainable
methods for charcoal production will help address the issue of deforestation in Ghana.
Materials/Fuel Intervention Options
- Actions - - Intervention Options- - Outcomes-
Ghanaian consumers have access to a
cheaper and more sustainable alternatives
to charcoal
Gather and share lessons learned on charcoal production from local and
international partners, specifically focus on
large scale charcoal producers in Ghana,
not marginal female producers
Identify a local or international NGO to setup and manage the program
Train NGOs on the techniques and tailor existing charcoal production programs
around the best practices
Work with the Ministry of Energy to include these programs as part of the Renewable
Energy Plan
More efficient use of energy for the
production of charcoal nationwide
Increase in cooking efficiency due to higher
quality of the charcoal produced
Partner with an academic institution, like KNUST, which are already engaged in
biochar research to determine effective
components for biochar production:
Sawdust, Agri-waste, Corn
Work with local NGOs to share best practices and implement pilot projects in
the Eastern regions of Ghana where
charcoal production is most prevalent
Train marginal charcoal producers, mainly local women in the production and sales
of biochar
Offer local women technology and administrative support in establishing their
businesses, similar to the programs
offered by KITE
15. Investigate the
feasibility of a
market based
approach to
biochar as a fuel
source
16. Work with
charcoal producers
and distributors in
country to
maximize efficiency
and sustainability
Source:http://bioenergy.inbar.int/wiki/index.php/Bamboo_as_sustain
able_biomass_energy:_A_suitable_alternative_for_firewood_and_ch
arcoal_production_in_Africa
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2012 Accenture. All rights reserved 40
Investigating new fuel sources, re-visiting existing LPG strategies and identifying sustainable
methods for charcoal production will help address the issue of deforestation in Ghana.
Materials/Fuel (continued) Intervention Options
- Actions - - Intervention Options- - Outcomes-
Ghanaian consumers have access to LPG
for cooking purposes
Reduced demand on woodfuels as a fuel
source for cooking
Better health outcomes
Conduct an in depth analysis of the issues with current LPG distribution
methods
Work with the government to identify and impose regulations on the
distribution of LPG
Pilot projects with gas marketing companies to measure the effect of the
changes. Consider the following:
Separate pump for use with smaller gas canisters only, which are most
commonly used for cooking
Changing the nozzles for LPG tanks used in vehicles
Charging vehicles more for LPG and household users less
17. Revisit Ghana's
LPG strategy; tailor
it to address the
distribution of LPG
for cooking
purposes
Source: Stakeholder Interviews
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2012 Accenture. All rights reserved 41
Organizations in Ghana have developed innovative business models for their cookstoves programs;
however, few have achieved production at a large scale.
Production Intervention Options
Stove programs do not have access to the working capital and training needed to scale their operations.
Organizations in Ghana have received international recognition for their stove programs, are selling stoves at
increasing rates and have goals to expand their programs across Ghana and to other regions.
Situation
The Household Energy program in Ghana managed
by RI/EW, started in 2002 by
grants from USAID and Shell
Foundation has trained some
of the largest cookstove
manufactures in the sector (i.e.
Toyola Energy and Man and
Man Enterprises)
Interest rates for loans from private banks and MFIs in
Ghana are ~30%
Access to capital has been cited as the main catalyst to
program success
Rationale Intervention Options
Involved
Parties
Likelihood
of Success Budget
Estimate
d Time
18. Set up a training
program for local
manufacturers on how
to build clean energy
technologies such as
rocket stoves
Donor,
Alliance
INGO or
local
NGO,
SMEs,
Academia
Medium Medium 1 2 years
19. Scale up
cookstove programs
with sustainable
business models
Alliance,
INGOs,
Donors
Large Large 6mths 2years
Source: Stakeholder Interviews
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2012 Accenture. All rights reserved 42
Increase in the level of ICS market
penetration, current market penetration is ~3-
4% of the total stoves market10
19. Scale up
cookstove
programs with
sustainable
business models
Identify organizations with successful business models to scale up, i.e. E+CO
investment in Toyola Energy in 2007
Partner INGOs and donors with local organizations to give direct access to capital
for cookstove programs, as Envirofit has done
with CEESD
Work with the Ministry of Energy to fund programs that will help them meet their 50%
dependence on woodfuel by 2020 goal
Set up and manage an RFP or similar process for the distribution of funds to local
cookstove manufacturers
Assist local businesses to navigate the process of applying for and obtaining access
to private capital
Require investments in capital equipment to increase scale and quality
18. Set up a
training program
for local
manufacturers on
how to build
cleaner energy
technologies such
as rocket stoves
Scaling up programs with successful business models and setting up training programs for
producing clean energy technologies will increase the supply of ICS in the market.
Production Intervention Options
- Actions - - Intervention Options- - Outcomes-
New jobs for local entrepreneurs and
businessman
Increase the number of stoves designs on the
market and give consumers choice on the
design which suits their needs
Increase the adoption of clean energy
technologies
Work through local testing and research facility to design locally made clean energy
technologies, made of common local materials
such as galvanized steel and clay
Identify an organization to manage the program and identify local entrepreneurs
Partner organization with international SMEs, like Aprovecho, to generate a quality training
Fund local ceramicists and manufacturers with necessary equipment to make locally produced
stoves, i.e. kilns, sheet metal, machinery which
current manufacturers in Ghana lack
Work with the managing NGO to ensure post training support is provided
Source: Stakeholder Interviews
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2012 Accenture. All rights reserved 43
Involved
Parties
Likelihood of
Success Budget
Estimated
Time
20. Coordinate
trainings for local
entrepreneurs on
social and product
marketing and sales
Alliance, NGO,
Academia Large Small 3-6 mths
21. Improve last mile
distribution of ICS in
Ghana; leverage
women's networks to
reach consumer
Alliance,
International
NGO, Local
NGO,
Academia
Large Small 6mths 1year
22. Incentivize the
distribution of
woodstoves in rural
areas for businesses
and consumers
Alliance,
Donors, Local
NGOs, Int. and
local Stove
Mfg.
Medium Large 1 - 3 years
23. Establish a stove
production facility in
the northern regions
Local NGO,
Private
Company
Large Small 3-6 mths
Existing stove programs focus heavily on urban areas in southern regions, there is an opportunity to
support distribution of stoves in rural areas and in the northern regions of the country.
Sales and Distribution Intervention Options
Existing ICS programs in Ghana have focused heavily on the charcoal market and urban areas. Currently, the majority of
production facilities are located in larger urban areas in the southern regions of the country. There is a gap in the market for
consumers in rural areas using firewood as a fuel source and with the current distribution network it is difficult to distribute ICS in
the northern regions of the country.
Situation
There is limited product differentiation in the ICS sector as
most of the key players were
trained under the 2002 Household
Energy Program
Existing ICS programs target Accra, Kumasi and Takoradi for
the distribution of stoves
Past woodstove initiatives in the north have been shut down due to
limited funding and a lower
business priority for these market
segments
Current ICS programs have production facilities located in
Accra, Kumasi and Winneba;
Toyola Energy has a facility in the
Upper East region, but otherwise
the majority of ICS have to be
transported directly to the
northern regions post production
Rationale Intervention Options
Source: Stakeholder Interviews
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2012 Accenture. All rights reserved 44
20. Coordinate
trainings for local
entrepreneurs on
social and product
marketing and
sales
Broader awareness for ICS and the
associated health and economic benefits
Product differentiation in the marketplace,
today most stove design are similar
More knowledgeable businesses
Interview entrepreneurs to identify specific barriers to sales and areas of need, topics
could include:
Product differentiation currently ICS producers are all selling the same
Gyapa design Sales a direct sales model has
increase sales for Toyola YoY for the
last 5 years
Marketing the Toyola Moneybox concept has worked at increasing sales
Identify a local NGO or an academic institution to facilitate and host the
trainings
Training on product differentiation, expanding the existing distribution network and incentivizing
woodstove distribution will address underserved areas of the cookstove market.
Sales and Distribution Intervention Options
- Actions - - Intervention Options- - Outcomes-
21. Improve last
mile distribution of
ICS in Ghana;
leverage women's
networks to reach
consumers
The rural population has easy access to ICS
across all regions of Ghana
Mobilize and coordinate the local NGO and gender networks to distribute ICS to
rural communities
Gather and share lessons learned from similar last mile distribution schemes in
country
Freedom from Hunger Ghanas MicroBusiness for Health franchise12
Impact Energies LED Lamps and micro solar home systems project
Work with women's networks to identify local organizations in communities to reach
end consumers
Source: http://www.freedomfromhungerghana.org/,
http://www.impactenergies.com, stakeholder interviews
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2012 Accenture. All rights reserved 45
Employ and train local artisans, craftsman and entrepreneurs
Kick-start business by providing the resources required to scale production (i.e.
kiln, machinery)
23. Establish stove
production facilities
in the northern
regions of Ghana
Access to ICS for retailers and consumers in
the underserved northern regions.
New jobs for local craftsman and artisans in
the northern communities
Training on product differentiation, expanding the existing distribution network and incentivizing
woodstove distribution will address underserved areas of the cookstove market.
Sales and Distribution (continued) Intervention Options
- Actions - - Intervention Options- - Outcomes-
22. Incentivize the
distribution of
woodstoves in rural
areas for
businesses and
consumers
Increased # of cookstove programs run in
under-penetrated regions of the country and
target market segments
Access to affordable woodstoves for rural
communities
Businesses
Identify organizations interested in distributing woodstoves in the northern
regions of Ghana
Create incentive structure that motivates promoters and encourages wide-scale
adoption
Consumers
Investigate creative funding mechanisms for end consumers to incentivize
purchasing ICS as affordability is an issue
in rural areas as average daily income is
$1.75 a day
Distributing carbon finance revenues to local consumers
Subsidizing the stoves to generate demand through donors
Bundling with other clean energy technologies, such as Solar or LED
Lamps
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Agenda Roadmap
Executive Summary
Intervention Options
Roadmap
Appendix
Conclusion
Project Approach and Background
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The Cookstove Value Chain is a sequential process, and contains interdependencies. Similarly, the
Enabling Environment Framework components should be done in lock-step with the value chain.
Intervention Options Roadmap Overview Roadmap
Design Materials /
Fuel Production
Sales & Distribution
Repair & Replace
Regulation & Testing Monitor & Evaluate
Support & Funding
Awareness
Knowledge Capital Development
Market Development Phase Market Entry Phase Post-Sale Phase
Create a stove testing center Develop common standards and roadmap for improvement over time Pilot mass media marketing campaigns in test markets Integrate HAP awareness in educational, financial and religious
institutions
Have the Ghana Alliance for Clean Cookstoves as a collective voice when working with other stakeholders
Fund the creation of an open regional carbon POA Government funding matching program Guarantee loans to cookstove SMEs Work with government to reduce duties on imported cookstoves, fuel, and
raw materials
Create a country-specific portal Create a carbon finance section within country portal Collect and commission health and environmental studies Facilitate pilots for improved woodstove designs Incorporate direct feedback of women in the product development cycle Investigate the feasibility of a market based approach to biochar as a fuel
source
Work with charcoal producers and distributors in country to maximize efficiency and sustainability
Revisit Ghana's LPG strategy Set up a training program for local manufacturers on how to build clean
energy technologies such as rocket stoves
Scale up cookstove programs with sustainable business models
Coordinate trainings for local entrepreneurs on social and product
marketing and sales
Improve last mile distribution of ICS in Ghana; leverage women's
networks to reach consumers
Incentivize the distribution of woodstoves in rural areas for
businesses and consumers
Establish stove production facilities in the northern regions of Ghana
Key
Cookstove Value
Chain Component
Enabling
Environment
Framework
Component
Note: Repair and replace and
monitor and evaluate were not
focus areas for Intervention
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2012 Accenture. All rights reserved 48
Knowledge Capital
Development
In the Market Development Phase, intervention options will focus on cultivating a market-based
environmental for cookstoves.
Market Development Phase Roadmap Roadmap
Awareness
Support and Funding
Materials & Fuel
Design
Regulation & Testing 2. Develop common standards
2012 2013 2014 2015+
3. Pilot mass media marketing campaigns
5. Have the Ghana Alliance for Clean
Cookstoves as a collective voice
1. Create a stove testing center
13. Facilitate pilots for woodstove designs
14. Incorporate feedback of
women in PD
15. Investigate biochar as a fuel source
6. Fund the creation of an open regional carbon POA
7. Government funding matching program
8. Guarantee loans to cookstove SMEs
16. Work with charcoal producers
4. Integrate HAP awareness in educational and religious institutions
9. Work with government to reduce duties
10. Create a portal
12. Collect and commission health and environmental studies
11. Create CF section
Production 18. Set up a clean energy training program
17. Revisit Ghanas LPG Strategy
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2012 Accenture. All rights reserved 49
In the Market Development Phase, intervention options will focus on supporting manufacturers to get
their cookstoves to end users, including scale-up activities.
Market Entry Phase Roadmap Roadmap
Sales and Distribution
Production
19. Scale up cookstove programs with sustainable business models
20. Coordinate trainings
on marketing and sales
2012 2013 2014 2015+
22. Incentivize the distribution of
woodstoves in rural areas
23. Establish production
facilities in the north
21. Improve last mile distribution; leverage
women's networks
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2012 Accenture. All rights reserved 50
Agenda Conclusion
Executive Summary
Intervention Options by Customer Segment
Situation
Intervention Options Roadmap
Conclusion
Appendix
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In Ghana, the cookstove sector is dominated by a few institutions. There is a need to develop
additional partnerships and invest in the sector so cookstove production can be scaled-up.
Conclusion Conclusion
Enabling Environment
Ghanas cookstove sector is reasonably well-developed and four main areas of intervention can help tip Ghana
towards greater success:
1. Set standards and testing benchmarks for quality
improvements leading to cleaner cookstoves
2. Scale-up robust awareness campaigns
3. Ensure access to capital through direct loans, loan
guarantees, and carbon financing
4. Facilitate and increase government support and
funding
Supply and Demand: Value Chain
The market has the basic fundamentals across the value
chain needed to support the cookstove sector, but a few
areas of intervention can drive the sector forward:
1. Design and distribute a product that addresses the
segment of the market using woodfuels for cooking
2. Investigate new and existing fuel sources
3. Scale existing programs and distribution networks to
reach all regions of Ghana
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2012 Accenture. All rights reserved 52
Agenda Appendix
Executive Summary
Intervention Options by Customer Segment
Situation
Intervention Options Roadmap
Conclusion
Appendix
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2012 Accenture. All rights reserved 53
The Ghana Alliance for Clean Cookstoves is currently being established to strengthen local actors
working in the cookstoves sector, support government achieve its renewable energy policy and
climate change program goals and increase consumer awareness on the importance of fuel efficient
and clean cookstoves.
Case Study: Ghana Alliance for Clean Cookstoves Industry Assessment
Increase awareness and collective action within the cookstove sector to lead to increased opportunity
within Ghana and internationally
1) Provide the platform for a collaborative, technical sharing entity for active organizations working
in fuel efficient and clean cook stoves to promote:
Innovative ideas Information Product standardization Sector wide best practices Increase consumer awareness
2) Promote awareness and raise the profile of the sectors positive work in Ghana at the
international level
Goal
Objective
Note: The Ghana Alliance for Clean Cookstove is not yet an established organization. Information is based on the initial concept note.
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2012 Accenture. All rights reserved 54
Case Study: Relief International/EnterpriseWorks Appendix
Relief International/ EnterpriseWorks is the largest improved
cookstoves producer in Ghana. It also received the largest single
VER issuance of the Gold Standard for cookstove carbon
programs to date in December 2011.
Region: Accra, Kumasi, an