Climate Finance for Urban Development

The Nordic Environment Finance Corporation (NEFCO) is an international financial institution set up by Nordic governments in 1990. In cooperation with Carbonsink and AVSI, NEFCO launched Mozambique's first urban development and energy efficiency program for climate mitigation through the use of Efficient cooking technologies. Thanks to the use of Climate Finance mechanisms and the purchase of all carbon credits, generated up to 2020, it became possible to scale up sustainably the project over time.

Nhlamankulu is a district of Maputo (capital of Mozambique) which has a high population density and critical hygiene conditions due to the lack of basic services. 95% of the population uses coal-fired stoves, which have low energy efficiency. The AVSI Foundation and Carbonsink are jointly developing two projects to promote energy efficiency, preserve natural resources and improve living conditions in the area.

The first project consists in the replacement of 5,000 traditional cooking stoves with more advanced models bringing less environmental impact. The second project involves the replacement of at least 10,000 traditional cooking stalls. Both have a projected duration of 7 years, with periodic monitoring of the activities, aimed at obtaining the certification for the production of carbon credits.

In addition to the reduction of greenhouse gas emissions and the contribution of mitigation of climate change, stove designs have local benefits, such as:

Over 50% of carbon saved for cooking;

Over $190 saved annually on charcoal for local households;

Reduced health effects associated with the inhalation of smoke;

Reduce the time spent cooking that can be allocated to more productive tasks;

Slowdown of forest deforestation and degradation.

Carbonsink is a partner of the Global Alliance for Clean Cookstoves, a both public and private initiative led by the United Nations Foundation to save lives, improve quality of life, strengthen women’s status in the society and preserve the environment, creating a flourishing global marketplace for more environmentally friendly cooking methods.


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Climate Finance for Urban Development