Clean Impact Bond: Mobilizing Finance for Clean Cooking

International Finance Corporation (IFC)

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Abstract: Clean cooking fuel,stoves,and related technology have great potential to improve households’ health and livelihoods,empower women,and reduce negative climate and environmental impacts. However,worldwide,more than 2.4 billion people lack access to clean cooking technology. Annually,this costs our society more than $2.4 trillion globally,driven by adverse impacts on health,climate,and gender equality,and contributes to 3.2 million premature deaths. Clean cooking solutions4 (such as ones that use biogas,ethanol,liquid petroleum gas,or electricity) are proven solutions for addressing these problems in low-income countries; however,they are often too expensive for poor households. For this to change,business models to manufacture,sell,and/or distribute clean cooking solutions must be scalable. Unfortunately,lack of financing is a major barrier to scaling up the production of existing solutions. Research suggests that $25 billion is needed annually to achieve universal access to clean cooking by 2030 – yet only $133 million has been committed towards clean cooking investment.