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Results-Based Financing for Sustainable Clean cook stoves market in Nepal

Practical Action/SNV with funding support of GIZ EnDev programme is implementing “Sustainable Clean Cooking Solution Market in Nepal” project to provide clean, efficient, and safe cooking solutions to 10,000 households in Nepal by establishing sustainable market of clean cooking stoves. As there are limited choices for customers on improved cookstoves, EnDev aims to further develop a market for improved cookstoves for households by offering increased customer choice, which would include at least 40% fuel saving. The project offers “hood-stove and improved cook stoves” solution to tackle both the issues of inefficient use of biomass fuel and high levels of harmful emissions.

The project was first implemented in October 2014 by Practical Action Nepal. First adjustment of the project was made just after Nepal Earthquake 2015. Currently, SNV Nepal and Practical Action Nepal are implementing this project, to create a sustainable market for clean cook-stoves as well as to expand on the limited choices for customers on clean improved stoves. The current phase of this project aims to build on from the past RBF experiences and to further develop a market for at least tier 2 improved cookstoves for new 10,000 HHs by 2023 through incentivizing private sector companies to enter the market with their products.

Objectives of the Project

The overall objective of the project is establishing sustainable market of clean cook-stoves in Nepal to provide clean, efficient, and safe cooking solutions to rural households. Specific objectives of the project include:

  • To strengthen private-sector-led clean cook-stove marketing approach.
  • To strengthen the market chain of clean cook-stoves; and
  • To minimize respiratory health problems in rural Nepal

Learning objectives of the project includes:

  • Setting incentives that enable poor users to purchase and benefit push products despite their low financial means.
  • Innovative financing for clean cook-stoves through preferential loans via cooperatives as an alternative to the current approach of providing substantial subsidies for certain types of clean cook-stoves.

Project Targets

The project aims to achieve the following targets:

  • At least 10,000 households are benefitted from clean cook-stoves.
  • Strengthen technical and business development skill for clean cook-stoves manufacturing companies or business companies.
  • Provide technical assistance to village-level cooperatives for setting-up of their new credit lines for clean cook-stoves technologies.


Result based financing for clean cooking solutions has been played a crucial role in transforming rural households into clean, efficient, and safe for cooking.

*reported numbers as of December 2020