Scaling clean cooking use through smart commercial models & digital tools
The clean cooking sector plays a critical role in achieving global climate goals and advancing social equity. Today, over 2.3 billion people still rely on polluting fuels like wood, charcoal, and kerosene for cooking, contributing to deforestation, greenhouse gas emissions, and severe health issues. Transitioning to clean alternatives can reduce emissions, improve air quality, and address multiple Sustainable Development Goals (SDGs).
To make this shift effective, solutions must consider the realities of users’ daily lives. As emphasised by the World Bank’s Energy Sector Management Assistance Program (ESMAP), addressing this challenge requires technologies that match local cooking practices and preferences to overcome adoption barriers.
A key obstacle remains affordability. In response, pay-as-you-go (PAYGO) models have emerged as a transformative tool. By allowing users to pay in small, flexible installments rather than upfront, PAYGO increases access to clean cooking technologies among low-income households. This model not only promotes inclusion and ownership but also supports energy access in both rural and urban contexts.
Alongside PAYGO, carbon markets offer an additional financing stream that can reduce costs and help scale clean cooking solutions. According to a 2023 MECS report, clean cooking projects could unlock up to USD 800 million in carbon finance by 2030. Yet, the voluntary carbon market (VCM) faces growing scrutiny. Without strong compliance frameworks, its future depends on maintaining credibility and investor confidence—both of which hinge on data transparency.
In light of rising concerns about greenwashing, institutions like the International Finance Corporation (IFC) are pushing for clearer impact verification. With investors now prioritising high-integrity projects with measurable outcomes, transparency has become essential to build investment trust.
This is where Internet of Things (IoT) technologies play a pivotal role. IoT refers to interconnected devices—such as sensors and meters—that collect and transmit real-time data. In clean cooking, IoT enables accurate tracking of usage, emissions, and payments, which is vital for both PAYGO models and carbon credit verification.
Together, PAYGO and carbon finance—supported by robust IoT systems—create a powerful dual financing mechanism. This combination can significantly accelerate the adoption of clean cooking solutions, making them more affordable, scalable, and impactful for communities most in need.