New Delhi, November 22, 2023: The Asian Development Bank (ADB) and Greenway Grameen Infra Private Limited signed a $6.5 million senior secured loan to produce and distribute 1 million improved cookstoves to rural households in India’s Madhya Pradesh and Odisha states. The financing also includes a $3.25 million first-loss liquidity reserve from the Climate Innovation and Development Fund (CIDF), administered by ADB.
Compared to traditional mud chulhas or indoor stoves, the improved stoves reduce fuel needs by 65% and smoke generated by 70%, significantly reducing black carbon and carbon monoxide emissions. This project will subsidize the cost of the new cookstoves to rural households, which use traditional inefficient means of cooking.
The project will result in a total reduction of 22.9 million tons of carbon dioxide. Greenway, through its subsidiary SDG 13 Ventures Private Limited, will sell the carbon credits generated from the use of improved cookstoves to international buyers. ADB’s debt financing will allow Greenway to bridge the gap between the time it takes to sell the carbon units and the general operation costs, thereby generating a new avenue for channelling carbon markets to finance climate change mitigation projects.
CIDF is a blended finance facility managed by ADB, established in September 2021 with an initial $25 million philanthropic commitment from Bloomberg Philanthropies and Goldman Sachs. The fund has the potential to unlock up to $500 million in private sector and government investments for sustainable low-carbon economic development.
“Inefficient cooking is a major source of household air pollution and indoor carbon monoxide, posing serious health threats to millions of people, with women and children the most vulnerable. More efficient and cleaner cooking facilities are a quick and effective way to not just save lives, but to empower women by reducing their daily domestic workload,”said ADB Director General for Private Sector Operations Suzanne Gaboury.
“We are excited to scale up the distribution of Greenway Jumbo Stoves through this partnership with ADB and CIDF. We believe that blended finance structures can accelerate and deepen our climate action impact. Greenway and SDG 13 Ventures are at the forefront of community-led efforts to combat climate change through increased access to cleaner cooking. We would like to thank ADB, our investors and off-takers who’ve made this possible,” Greenway Cofounder and Chief Executive Officer Ankit Mathur.
Established in 2010, Greenway has sold more than 2.5 million improved cookstoves and employs more than 500 people. Aside from operating its manufacturing facilities, Greenway also works with community-based organizations such as banks, cooperatives, non-government organizations, and microfinance institutions to reach deep into rural communities. Greenway is a recipient of multiple impact investments, including from the New York-based Acumen Fund, the Asha Investment Fund, and the Centre for Innovation, Incubation, and Entrepreneurship.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members- 49 from the region.
