Guatemala - Efficient Use of Fuel and Alternative Fuels in Indigenous and Rural Communities

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 are at high risk of cardiac and respiratory diseases, mostly children and women. 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 that will use firewood as their main source of energy, which exacerbates the problem.

Guatemala is committed to create improved conditions for sustainable and efficient firewood use and has set up a dedicated Firewood Commission to implement 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 NAMA Support 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, and for strengthening participatory governance to implement the National Firewood Strategy, which is part of Guatemala’s Nationally Determined Contribution (NDC) presented at COP21.

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.

Direct funding leverage: 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.

Indirect funding leverage: 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).

Mitigation potential:

Approximately 1.7 million tCO2e accumulated by the end of the project; and 9.02 million tCO2e accumulated by year 10, with an annual reduction of 2.034 million tCO2e by year 10.

Facts
Partner ministries Ministry of Economy through the National Competitiveness Program; Ministry of Environment and Natural Resources
Delivery organisation Inter-American Development Bank
Implementing partners Sustainable Firewood Commission including the Ministry of Environment and Natural Resources; Ministry of Energy and Mines; Ministry of Agriculture, Livestock and Food; Ministry of Economy through its National Competitiveness Program; Ministry of Education; Ministry of Social Development; Ministry of Health and Social Assistance; Presidential Secretariat for Planning and Programming; Secretariat for Food Security and Nutrition; National Forestry Institute and National Council of Protected Areas, Local Governments, the National Council on Climate Change, the Cluster for Improved Stoves and Clean Fuels, the Global Alliance for Clean Cookstoves
Funding volume EUR 10.9 million
Project duration 2017-2020
Status appraisal

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