Results-Based Financing for Promoting Clean Stoves: Pilots in China and Indonesia

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Presentation Slides: RBF Pilots on Clean Stove in China and Indonesia

 

Past government-supported stove programs have often followed public procurement procedures, meaning that public entities have been responsible for setting stove technical specifications and identifying eligible service providers, delivery methods, and end users to receive subsidized stoves. Results are often mixed.

Under the East Asia and the Pacific (EAP) Clean Stove Initiative (CSI), a
results-based financing (RBF) framework has been developed to promote clean stoves with the aim to motivate innovation and investments from the private sector and support market sustainability. ESMAP, through its Results-Based Funding for Energy Sector Development has provided financial and technical support for the design of the Indonesia pilot.

The RBF framework includes three building blocks:

1) defined clean stoves;
2) results-based incentives; and

3) a monitoring and verification system

The RB framework is supported by two pillars

1) institutional strengthening and capacity building; and
2) awareness-raising campaigns.


Although the concept seems straightforward, there are many considerations when it comes to putting the RBF framework into practice:

• How to define and measure the results that link to the disbursement of payment to the private sector?
• Is the private sector willing to take on the pre-financing risks?

• How to define RBF incentives levels? Are they sustainable?

• How to balance the verification costs and precision of verification?

• What is the best way to channel the RBF incentives? (Through direct government payments, commercial financial institutions, through the private sector, or directly to end users?)


This event will cover these issues by presenting how the RBF pilots are designed and implemented in China and Indonesia under the CSI program. The two RBF pilots are using the same framework but the arrangements differ significantly from one another.


This event is co-organized by E&E GP, Energy Access CoP, ESMAP, and East Asia and Pacific Clean Stove Initiative.


Chair

Charles M. Feinstein, Director, GEEDR


Presenter

Yabei Zhang, Senior Energy Economist, GEEDR

 

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When and Where

  • Start Time:

    Oct 15, 2014 2:00 PM EDT (America/New_York)
  • End Time:

    Oct 15, 2014 3:30 PM EDT (America/New_York)
  • Location:

    I 10-200

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    Open

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