EYC - Financing Structures







The “earnwhile you cook” program – has to be supported with “patient capital” for it is not a candidate for traditional forms of capital.





Two largescale“earn while you cook” programs are already running successfully –  and has shown  quantified and monetized socio-environmental-economic impact and a model that is scalable with commensurate impact. It is with the financial support of carbon subsidy. 

What will make this program sustainable is 
  • When it can be independent of grants or subsidy.
  • When it can create a series of economic activity in the local community.
  • When it can create a viable ecosystem rather than just selling cookstoves ( fuel supply ecosystem, credit terms for households, sustainable livelihood around it ).



The “Earn while you cook” Program needs market building; Market building needs capital that will allow an enterprise to try, fail and learn from it and try again; The cost of trial requires patient capital.

The financing solution has to be sensitive to the fact that the  “Earn while you cook” program has to 

–  set up the ecosystems for product dissemination
–  that are currently non existent
–  in markets that deserve them
–  For markets that cannot afford them
–  with the larger vision of being able to replicate the business model in many other pockets of the country and developing world
–  That would otherwise not be attempted given the high cost of conceptualization, roll-out and the high cost of failure

Possible Finance Partners
  • CSRs
  • MFIs
  • Small Banks
  • Cooperatives
  • Micro Credit Institutions



 


The Charcoal Collateral:

·   20% of biomass is converted to charcoal.
·    Char has less than 10% ash content; high grade.
·      @650 grms of biomass per canister, the char output per canister is about 125 grams.
·     Which is equal to appr 500 grams of char per day, assuming 4 canisters (two cooking sessions).
·      Which is equal to about 15-20 Kgs of char per household per month.
·      A 100 households  represents one tonne charcoal per month.
·   Within a reasonable geographical spread will represent a meaningful cluster for the “household charcoal production” economic model.
·    The exact sequence of building this model will vary from community to community depending on the innate strengths and limitations of the community.
·      Regardless of this, it is possible to conceptualize and design a business model for any community by studying its specific features as it relates to cookstove usage, biomass availability, cost of collection of charcoal and ability of the cluster to set up “downstream activities” around charcoal such as packaging, adding compost etc.