Context

57% of Guatemala’s total energy consumption comes from the use of fuelwood, mainly for cooking. About 2.1 million households, located mostly in the poorest and most vulnerable municipalities of the country, use firewood. 70% of Guatemalan households, mostly children and women, are at high risk of cardiac and respiratory diseases. According to population growth statistics for the next ten years, it is estimated that there will be an average increase of 65,000 new families per year who will use firewood as their main source of energy, which exacerbates the problem.  

Goals and approach to transformational change

The “Guatemala – Efficient Use of Firewood and Alternative Fuels in Indigenous and Rural Communities in Guatemala” (“Guatemala – Cookstoves”) project is committed to creating improved conditions for sustainable and efficient firewood use within the improved cookstoves subsector, building on the strategic pillars defined by the National Firewood Strategy. A respective action plan proposes:  

(i) to enhance access to efficient technologies,  

(ii) to increase demand, and  

(iii) to promote an enabling environment for sustainable and efficient firewood use. 

With tailor-made financial and technical support mechanisms, the project will help to sustainably stimulate the supply and demand for energy efficient cookstoves in Guatemala. Enhanced coordination and consolidation of national and international support is required to achieve scalability and long-term sustainability in the implementation of clean cooking technologies. 

Possible co-benefits include the reduction in forest degradation, increased health benefits, and improved economic conditions of households (through the reduced need to purchase fuel and/or time spent on collecting firewood) for approximately 1.1 million people, mostly indigenous women and children living in poverty. 

Components and support mechanisms

The Financial Cooperation (FC) component focuses on incentivising end-users, manufacturers and distributors by various financial products, including guarantee schemes, vouchers, grants and rewards. A contribution of EUR 14 million is expected from the private sector in the form of credits and microcredits from private financial institutions to purchase clean cookstoves. The public sector will negotiate and allocate approximately EUR 5.5 million to increase the sustainable production of firewood through the National Forestry Incentive Programs. Additionally, EUR 1.3 million are expected from the public sector; this contribution will be provided through ministerial and other institutional actions (financing of experts, services, logistics other expenses). 

Through the Technical Cooperation (TC) component, the project strengthens the environment for Improved Cookstoves (ICS) and alternative low-carbon cooking solutions. It raises consumer and retailer awareness, develops manufacturers’ capacity in business modeling and product evaluation, and promotes electric and other clean cooking technologies. By establishing quality standards, certification processes and a system, the project improves market transparency, efficiency, and innovation in the supply chain.  

Long-term impact

Approximately 1.7 MtCO₂e will accumulate by the end of the project; and 9.02 MtCO₂e will accumulate by year ten, with an annual reduction of 2.034 MtCO₂e by year ten.