Description: 

This technical cooperation, financed with $2.435 million of SREP resources, intends to leverage and strengthen the existing private sector capacity in Honduras to transform the market for clean cookstoves by creating an enabling environment for new business models to develop and flourish.

Background:

Fuelwood is the largest energy source in Honduras with nearly 70 percent of the population dependent on it in some capacity for cooking. However, traditional fuelwood use creates a myriad of public health, climate, and financial challenges for rural Hondurans.

Over the last decade, a number of organizations and social businesses have made progress in developing and disseminating cleaner cookstove technologies, particularly in rural areas of the country. Yet, despite these advances, the current market penetration of clean cookstoves is approximately 12 percent of the at-need population, leaving an underserved market of nearly 1.2 million households that cook with traditional woodstoves or open fires.

The cookstove subcomponent will use a total of $2.435 million of SREP resources over 5 years. This includes multiple subcomponents of sustainable and efficient firewood use ($2 million), and part of the activities studies/technical designs/consultancies ($0.475 million) and capacity building ($0.475 million).

Objectives and Outputs:

The ERUS Cookstoves project focuses on creating enabling market conditions and strengthening a network of rural enterprises to promote, build, distribute, maintain and supervise the installation and proper use of clean cookstoves.

The general objective of this Technical Cooperation is to have a transformative impact on the market for clean cookstoves by enabling the market conditions for new business models to flourish and develop and by leveraging and strengthening the existing private sector capacity in Honduras. The project expects to reduce monthly average expenses for firewood from $219 to $115 and make available 75,000 new clean cookstoves. It is also expected to avoid 199,093 tons of CO2e emissions.

ERUS is intended to reduce health risks associated with indoor air quality in poor and low-income households in Honduras, reduce time and costs in household fuel use, and reduce greenhouse gas emissions. The project aims to scale up the proper use and adoption of clean cookstoves in Honduras through sustainable, market-based initiatives.

Clean cookstoves can save 1.5 to 2.5 tons of CO2-equivalent emissions annually per stove, improve indoor air quality, and reduce household fuelwood expenditures by 50 percent. The following indicators will be used to track and measure the project’s results: (i) 300 micro, small, and medium sized enterprises (MSMEs) offering and manufacturing products and services related to the clean cookstove value chain; (ii) $2 million of additional financing mobilized by the project through capital markets, carbon finance or other public or private non-reimbursable funds; (iii) at least 75,000 households adopting a clean cookstove and using the technology appropriately; (iv) 90 percent of certified MSMEs carrying out periodic after-sales and maintenance visits; and (v) 5,000 clean cookstoves installed by MSMEs outside of the project, representing expansion and sustainability of the market.

This project summary is drawn from draft project proposals [such as the PAD, PID, SAR, and country investment plan] and may not contain the most up-to-date information.

IDB Project Portal

Project Details:
Cover Note | Project Document | Proposed Decision
Approved on October 17, 2013 (Approved Decision)
Approved Amount(s):
USD 2.95 million (grant funding)

Comments and Responses:
Switzerland (October 2, 2013) 
United Kingdom (October 15, 2013) 
Switzerland (October 15, 2013)
Spain (October 16, 2013) 

IDB Response to United Kingdom (October 17, 2013)
IDB Response to Spain (October 17, 2013)
IDB Response to Switzerland (October 17, 2013)