Key figures of the miti­gation activi­ty

Owner

ACT Group

Country and scope

Ghana

Bene­fi­ciaries of the Activi­ty

Rural house­holds in Ghana

Expected scale until 2030

1.36 million t CO2e

Status

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.