Key figures of the mitigation activity
ACT Group
Ghana
Rural households in Ghana
1.36 million t CO2e
MADD authorised / in implementation
Supporting Ghana in achieving its clean cooking target
Ghana’s conditional NDC target explicitly refers to clean cooking solutions. Due to their specific circumstances, rural areas are often neglected by Improved Cook Stoves (ICS) initiatives. The activity will promote ICS in rural areas and thus supports the country in achieving additional GHG mitigation in harder to reach areas and thus raising its climate ambition.
Setting up an innovative financing mechanism
The mitigation activity will further establish a dedicated fund in the form of a Village Loan and Savings Association (VLSA) to enable access to a continued revolving consumer credit fund. Small holder farmers in the project area can participate by purchasing an “Envirofit” stove, which replaces the traditional way of cooking. Few farmers can pay the entire stove upfront. They will be given the possibility to pay the money back in small increments through the Village Loan and Savings Association. Access to credit for small holder farmers will be facilitated through a partner network of cocoa buying companies and agricultural cooperatives that provide inputs and purchase the crop. The innovative financing mechanism further empowers farmers to take care of their own economic development, by providing loans to further expand and develop their farms, or any other business venture. This market-based approach strengthens the resilience and continuity of the activity beyond KliK support.
Creating value through reduced biomass usage
With ICS technology, biomass consumption is immediately reduced by more than 60%. This leads to time savings for those who collect firewood, usually women. They can now spend more than 2.5 hours per week on other economic and income-generating activities. This in turn leads to additional income for the whole household. Those who buy their cooking fuel save money (typically $160 per year for firewood or $240 for charcoal). These cost savings can instead be spent on better quality seeds or other farm inputs.
Building farmers’ capacities
Many of the collectives and cocoa buying organizations already provide training for farmers on how to improve their farming practices. Unfortunately, farmers often neither have the time to attend these sessions nor access to the funds to implement the practices learned. The mitigation activity helps to tackle this issue and thus directly creates additional value for farmers. This is due to the time and money savings achieved through the ICS as well as the additional access to funding from the VLSA.
Farmers within the VLSA activities will also receive training on financial management and business development, allowing them to protect themselves from income fluctuations between the mid and main crop seasons.
Health, livelihoods, and other sustainable development co-benefits
The transition to ICS technology reduces smoke and toxic emissions in households by up to 80%, significantly decreasing the risk of respiratory diseases. Indoor air pollution causes nearly 10,000 deaths per year in Ghana alone, disproportionately affecting women and children. The Village Loan and Savings Association (VLSA) helps users in employing freed up resources in the most efficient and sustainable manner possible. Access to sustainable farming techniques not only allows farmers to increase their yield, but also protects the health of their soil, ensuring the resilience of the natural resources they depend upon.