ADB-Greenway Pact

In a groundbreaking initiative, Asian Development Bank and Greenway Grameen Infra Private Limited have sealed a transformative deal, securing a USD 6.5 million senior secured loan. The objective is to manufacture and distribute one million improved cookstoves to rural households in Madhya Pradesh and Odisha states, India.

Carbon Finance for Clean Cooking

The project includes a USD 3.25 million first-loss liquidity reserve from the Climate Innovation and Development Fund (CIDF), administered by ADB. These improved stoves aim to replace traditional mud chulhas, offering a 65% reduction in fuel needs and a 70% decrease in smoke emissions.

Addressing Health Threats

ADB Director General Suzanne Gaboury emphasized the severe health threats posed by inefficient cooking, especially household air pollution and indoor carbon monoxide. The project seeks to subsidize eco-friendly cookstoves, prioritizing rural households still reliant on traditional and inefficient cooking methods.

Empowering Women and Reducing Carbon Emissions

Gaboury highlighted the project’s potential to empower women by reducing their domestic workload. The initiative anticipates a total reduction of 22.9 million tons of carbon dioxide. Greenway plans to sell carbon credits generated from improved cookstoves usage to international buyers, contributing to climate change mitigation.

Innovative Financing for Climate Change Mitigation

ADB’s debt financing plays a crucial role in bridging the gap between selling carbon units and operational costs. This novel financing channel demonstrates the business case for using carbon markets to finance community-based projects, creating a positive environmental and social impact.

Scaling Impact Through Blended Finance Structures

Greenway’s Co-founder and CEO, Ankit Mathur, acknowledged the potential of blended finance structures to accelerate and deepen climate action impact, thanking investors and off-takers for their pivotal role.

CIDF’s Philanthropic Commitments and Sustainable Development

Established in 2010, Greenway has sold over 2.5 million improved cookstoves, making substantial strides in the clean cooking sector. The CIDF, with significant philanthropic commitments, is poised to unlock up to USD 500 million for sustainable low-carbon economic development.

A Stride Towards a Sustainable Asia-Pacific Region

As ADB remains committed to achieving a prosperous, inclusive, resilient, and sustainable Asia-Pacific region, this collaborative effort signifies a significant stride towards leveraging carbon finance for positive environmental and social impact.

Re-reported from the article originally published in The ANI English