||Improved stove projects in Guatemala yield potential social benefits and represent
sound financial investments for potential investors. Using the AMS IIG methodology
provided by the UNFCCC, the implementation of improved stoves, specifically the HELPS
ONIL stoves, could yield significant reductions of carbon emissions. With over 2.2
million households in Guatemala, an analysis shows that a 1% adoption rate per year
of the ONIL stove could reduce carbon dioxide emissions by 900,000 tCO2e per year
in 2019. Following the implementation schedule offered up by the ONIL CDM project,
by 2019 up to 1.7 million tCO2e could be reduced per year, which represents just over
10% of Guatemala’s carbon emissions. Within the 10-year framework of the proposed
project, emissions could be reduced by up to 1.7 billion tCO2e (cumulative).
An NPV (net present value) analysis demonstrates that stove projects also represent
cost effective and potentially profitable investment opportunities. Depending on the
deal structure agreed upon between project developers and investors, CERs could cost
as little as $1 per CER for an entity seeking to invest in CERs to use for compliance.
Also, as long as CER contract costs remain below $13 per CER, stove projects could
result in positive NPV projects for investors, yielding respectable profits. However,
the Clean Development Mechanism along with the European Emissions Trading Scheme is
critical in creating a market for carbon credits, thus supporting the widespread implementation
of improved stoves.
Unfortunately, some social impacts are not easy to quantify. Because of a variety
of land-use factors, such as agriculture and logging practices, deforestation impacts
are difficult to calculate. It is difficult to quantify the health benefits of improved
stoves because of confounding factors such as living conditions and nutrition. While
the figures presented are merely estimates of the potential impact on emissions levels,
they demonstrate benefits to be gained by implementing improved stove projects, not
only in carbon dioxide emissions reductions but also in overall quality of life.