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FINANCING CLEAN COOKING Despite the growing dynamism of clean cooking, investment rates remain far short of what is required. 33 In 2023, the IEA estimated that achieving universal access to clean cooking by 2030 in accordance with SDG 7 would require annu- al investment of US$8 billion. Of this amount, 21 percent would need to be allo- cated to infrastructure and 79 percent to stoves and other end-use equipment. A large share of this will need to be publicly funded by governments and inter- national development partners in order to ensure that clean cooking solutions are affordable for even the poorest households. A significant proportion of the financing is expected to be raised from private sources (for example by leverag- ing public finance), including commercial finance and household purchases of stoves and fuels. 34 While the financing needs are substantial, the publicly funded component repre- sents only a small fraction of current international development assistance and cli- mate finance. It is also well below the estimated US$1.4 trillion in global health costs resulting from lack of access to clean cooking. 35
US$ 8 BILLION Comparatively small annual investment required in clean cooking access in accordance with SDG 7:
FINANCE PROVIDED TO DATE AND FUTURE OPPORTUNITIES
Estimates of the current rates of investment vary significantly. IEA estimates total current clean cooking finance at around US$2.5 billion per year, with the majority being public investment, including from governments, bilateral donors, MDBs and DFIs. This represents around 30 percent of the total investment needed. However, other estimates put the figure much lower. A survey by CCA found that investment in clean cooking companies reached US$215 million in 2023 – a record high, but far short of the billions required. Total investment flows are dominated by debt (which in 2022 replaced equity as the largest source of funding for clean cooking) at 79 percent, with the remain- ing in equity (18 percent) and grants (3 percent). 36 Just over half the investment (54 percent) came from private sources, including local and international banks, large corporations and private fund managers. Around 43 percent came from multilateral sources, with the World Bank’s private sector arm, the International Finance Corporation, the largest single investor. 37
33 Corfee-Merlot, J., et.al., Achieving Clean Energy Access in Sub-Saharan Africa, Financing Climate Futures, OECD, 2019, https://www.researchgate.net/publication/332467415_Achieving_Clean_Energy_Access_in_Sub- Saharan_Africa_-_A_case_study_prepared_for_the_OECD_project_Financing_Climate_Futures 34 IEA (2023), A Vision for Clean Cooking Access for All, https://www.iea.org/reports/a-vision-for-clean- cooking-access-for-all
35 Energy Sector Management Assistance Program. (2020), https://www.esmap.org/
36 CCA (2023) Clean Cooking Industry Snapshot, 4th ed., 2023, https://cleancooking.org/reports-and- tools/2023-clean-cooking-industry-snapshot/
37 CCA (2023) Clean Cooking Industry Snapshot, 4th ed., 2023, p. 10, Ibid.
1. THE CLEAN COOKING AGENDA
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