Results-Based Aid in the Energy Sector

This report investigates whether, and how, results-based aid (RBA) could be used to support the implementation of the National Program for Improved Household Biomass Cook Stoves Development and Promotion in Ethiopia. The report is intended to assist Energy+ in its discussions with the Government of Ethiopia regarding how results-based approaches could be used to structure the financial support that it is providing to Ethiopia to promote energy access and emissions reductions. It also serves to illustrate the methodological discussion regarding RBA outlined in an accompanying paper by Vivid Economics. The National Program for Improved Household Biomass Cook Stoves Development and Promotion is an ambitious program for the deployment of more than 9 million improved cook stoves (ICS) in Ethiopia by January 2018. This deployment is expected to lead to a range of benefits including a reduction in emissions of up to 14 Mt of CO2e over three years, a reduction of 1,000 to 2,000 deaths per year from indoor air pollution and the creation of more than 5,000 private sector jobs. The value of these benefits is expected to be significantly greater than the resources that the Ethiopian government estimates it needs from international development partners to deliver the program. The objective of the cook stove scheme seems to be to (i) improve the health and wellbeing of households through increased access to clean energy and (ii) to prevent deforestation and forest degradation. The report also provides discussion about some of the more detailed design characteristics for each the approaches to (RBA).