However, investments in clean cookstoves and fuels will likely need to reach $4.5 billion annually, according to recent 2011 World Energy Outlook figures by the International Energy Agency, if the world is going to meet the tremendous global need for clean cooking solutions. These figures are smaller on a per-capita basis than those from comparable health risks such as HIV/AIDS, tuberculosis, and unsafe water and sanitation. Given the relative enormity of the health and environmental risks and related deaths caused by use of open fires and crude cookstoves and related exposure to their smoke, major commitments of grant and investment resources are clearly both needed and in-line with the budget realities to confront the problem.
To attract broad donor and investor support for cleaner cookstoves in developing countries, the Alliance has made mobilization of resources for the sector a key component of its value proposition and strategic mission. The Alliance has developed a multifaceted fundraising strategy to foster engagement and financial support for the design, development, and adoption, of clean cooking solutions. To date the Alliance has raised more than $25 million in five year funding from a range of bilateral, corporate, foundation and individual donors and leveraged another $105 million in parallel US government support for our efforts. Our resource mobilization efforts include the following components:
- Securing unrestricted grants, primarily from donor governments, multinational corporations, foundations, and individual contributions, to the Alliance secretariat to be used for programming where the need is greatest. Multi-year pledges and commitments are particularly valuable in allowing the Alliance to develop long-range planning scenarios to meet the critical needs of the clean cookstoves and fuels sector and bring life-saving programs to those who need them most;
- Obtaining restricted grants that target support for specific programmatic, country specific, policy, or advocacy initiatives. This funding mechanism allows for more robust support for key activities of the Alliance such as the development of clean cookstove standards and more rigorous stove testing, expanded health, climate, and gender research, and the development of new business models;
- Attaining parallel funding where donors fund initiatives to enhance the sector in alignment with the Alliance’s ten-year strategic business plan. The U.S. government’s $105 million in funding represents the best example of this type of parallel support;
- Developing in-kind support and non-financial assets, largely from the private sector, non-governmental and multilateral organizations, and other partners who can offer critical services, expertise, and/or technical assistance to advance Alliance goals and objectives; and
- Investments in the clean cookstoves and fuels sector whereby the Alliance or other actors provide financing to support the development of in-country projects that spur the adoption of clean cookstoves and fuels and help in the development of a thriving market.
The initial resource mobilization phase of the Alliance will focus primarily on grant and in-kind resources while we build awareness in the investor community around the potential market opportunities in the clean cookstoves and fuels sector. Gradually, the Alliance Secretariat expects the balance of resources to shift in Phases II (2015-2017) and III (2018-2020), so that the majority of resources that the Alliance attracts for the sector comes as investments and are supplemented by grant funding and individual donations for those areas such as standards and testing where investments would be more difficult to secure.