Washington DC, 16 November 2023 – New analysis from CLASP shows that the appliances sector has a staggeringly large climate impact, accounting for 39.3% of all energy-related CO2 emissions — roughly equivalent to the combined emissions of China, Europe, and Brazil in 2020. If current trends continue, appliance emissions will overshoot the International Energy Agency’s 2050 net zero targets by at least 9 gigatons.

The report, “Net Zero Heroes: Scaling Efficient Appliances for Climate Change Mitigation, Adaptation & Resilience,” also reveals profound inequities in access to appliances, leaving billions of people more vulnerable to the effects of climate change. For example, at least 1.2 billion people lack access to air conditioners and fans, making it difficult to cope with rising temperatures.

Fortunately, the appliances sector offers a time-tested solution for dramatically reducing emissions while bringing life-changing services to more people: energy efficiency.

CLASP provides a roadmap for realizing the sector’s mitigation and adaptation potential by rapidly increasing the efficiency of 10 key appliances: the Net Zero Heroes. This group is comprised of air conditioners, comfort fans, electric cookers, electric motors, heat pump space heaters, heat pump water heaters, LED lighting, refrigerator-freezers, solar water pumps, and televisions.

Dramatically reducing the energy consumption of the Net Zero Heroes would bring far-reaching benefits. In addition to avoiding emissions, thoughtful appliance efficiency policies contribute to end-use electrification and grid decarbonization. Efficient appliances are also less expensive to purchase and operate, making them more attainable for people in low- and middle-income countries and communities.

The report urges governments and manufacturers to supercharge the efficiency of the Net Zero Heroes within the next few years. It provides targets for each appliance and estimates the emissions reductions and resilience benefits associated with reaching them. It also describes proven policy and financing mechanisms for achieving these goals within the ambitious timeline required.

Compared to many climate solutions, appliance energy efficiency is low-cost and easy to deploy, making it a particularly vital tool for governments seeking to meet their Paris Agreement commitments. Efficiency pushes can deliver results relatively quickly by leveraging existing technologies and supply chains while harmonizing with existing policies.

For more information about “Net Zero Heroes: Scaling Efficient Appliances for Climate Change Mitigation, Adaptation & Resilience,” please contact:

Corinne Schneider

Chief Communications Officer

CLASP

cschneider[at]clasp.ngo

+1-202-375-9814

About CLASP:

CLASP is an international nonprofit dedicated to promoting appliance efficiency and energy access, working with governments, industry, and communities to advance policies and markets towards the highest-quality, lowest resource-intensive appliances, for the benefit of people and the planet.

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In the lead up to the United Nations Framework Convention on Climate Change 28th Conference of the Parties (COP28) in Dubai, United Arab Emirates from 30 November – 12 December, CLASP is launching #NetZeroHeroes – a celebration of the people and appliance heroes that are critical in reaching global Net Zero targets and promoting resilience in an already warming world.

Appliances like air conditioners, refrigerators, electric motors, and lighting collectively have a major climate impact. They are responsible for a staggering 40% of energy-related carbon dioxide (CO2) emissions globally, according to CLASP’s forthcoming report ‘Net Zero Heroes: Scaling Efficient Appliances for Climate Change Mitigation, Adaptation & Resilience.’ CLASP’s research shows how rolling out affordable, energy efficient alternatives is key to mitigating and adapting to the climate crisis and achieving the United Nations’ Sustainable Development Goals.

Through a series of reports, videos and articles highlighting stories of leadership and expert perspectives from across the sector, #NetZeroHeroes will amplify the urgent and immediate need to deploy efficient appliances at speed and scale to protect people and the planet.

The campaign will culminate in CLASP’s groundbreaking publication, “Net Zero Heroes: Scaling efficient appliances for climate change mitigation, adaptation & resilience” – launching the week before COP28 and available on CLASP’s website.

This research will highlight the transformative potential of efficient appliances by:

• Quantifying appliances’ ability to achieve the emissions reductions needed to meet the goals of the Paris Climate Agreement;
• Indicating where we should scale our efforts this decade for maximum impact;
• Analyzing gaps in access to appliances and recommending where scale-up would better enable communities to adapt in a warming world;
• Providing a roadmap of solutions that governments, investors and other stakeholders can implement today to get on track to net zero emissions and an inclusive energy transition.

Stay tuned and follow #NetZeroHeroes on social media. This page will serve as a homebase for all campaign materials and will be updated regularly.

If you are interested in getting involved with the campaign, reach out to Lexi Ross at aross@clasp.ngo.

18 Small and medium-sized companies selling productive use appliances (PUAs) were selected by the Productive Use Financing Facility to receive procurement subsidies and capacity-building grants.

PUAs are energy-efficient, income-generating appliances like refrigerators, walk-in cold rooms, electric cookers, solar water pumps and milling machines. Despite their transformative potential for local communities, small businesses and the environment, PUA sales are extremely low in emerging markets due to affordability and access to finance.

CLASP and Nithio want to change this. They set up the Facility, with support from the Global Energy Alliance for People and Planet (GEAPP), to make PUAs more affordable to consumers and companies. In this funding round, CLASP received over 80 applications from companies across Central, East and West Africa, representing a range of PUA technologies. Solar water pumps were the most common technology, followed by refrigerators and fans.

Subsidies with a transformative impact

The 18 companies selected will use their funding to sell a combined amount of 12,135 PUAs that will introduce life-changing productive use technology to over 500,000 people. The successful companies target both households and small businesses, with the PUA providing a transformative community-level impact by enabling customers to generate more income, save time, and improve their quality of life.

 “We are excited to support such a wide range of early movers and leaders in the productive use market,” commented Jeff Sottlemyer, CLASP program lead for the Facility. “We look forward to seeing the impact of this support on the lives of their customers and the communities they live and work in.”

Many applicants laid out strategies to specifically market appliances to women, showcasing the sector’s recognition of equitable uptake of PUA. BrightLife, a Ugandan refrigerator distributor, incentivizes sales agents to reach targets of at least 50% women shop owners and farmers for sales of refrigeration products. The companies also have a strong representation of women on their payroll. For example, women comprise more than 70% of the Ugandan-based and owned company POPO Africa’s workforce, while ALLTIMEFRESH in Nigeria is owned and predominately run by women.

“We anticipate the Facility will help early movers reduce unit costs, improving access to affordable, high-quality appliances,” noted Makena Ireri, Director at the Global Energy Alliance for People and Planet “Unit cost reduction is a necessary step in demonstrating commercially sustainable PUA businesses that can attract private investment and propel market growth.”

The goal of the Productive Use Financing Facility is to support companies with the potential to scale quickly, and this round prioritized companies that are ready to sell. Already sales are underway at many of these companies, with the others expected to commence within the next month.

Following a rigorous evaluation, CLASP selected the following 18 companies:

Subscribe to our newsletter for more updates on the Facility.

About The Productive Use Financing Facility

CLASP’s Productive Use Financing Facility, is supported by The Global Energy Alliance for People and Planet (GEAPP).

In September 2022, Rio de Janeiro’s Sustainable Favela Network (SFN) and Favelas Unified Dashboard published the report “Water and Energy Justice in the Favelas: Community Researchers Gather Data Revealing Inequalities and Calling for Action.”

The publication was the culmination of an intensive 6-month research course “Researching and Monitoring Water and Energy Justice in the Favelas,” engaging two youth and one leader from each of 15 favelas in Rio de Janeiro (45 people in total) to learn the entire arc of research, from why it’s important for their communities, to the development of useful indicators, all the way through how to report and advocate using data produced. As one of seven modules, participants generated “data by and for the favelas.”

CLASP collaborated with Catalytic Communities (CatComm), an NGO that has supported favela community organizers since 2000 and which facilitates the Sustainable Favela Network and Favelas Unified Dashboard. We contributed expertise on energy efficiency, leading intro to energy efficiency and policy sessions and helping community organizers develop indicators used in the survey. In the courses, we emphasized the connection between energy efficiency and electric bills, and how data are used in policymaking processes.

The Energy Needs of Underserved Favelas

Favelas are informal communities that emerge from an unmet need for affordable housing. Although a common English translation is “slums,” this term carries a negative connotation that fails to honor the unique historical consolidation and cultural context of favelas in Brazil. In Rio de Janeiro, most favelas are over 50 years old and some 24% of the population lives in these communities.

The course was created for youth in the favelas to better understand the importance of data — including how to collect, analyze, understand, and use it to communicate community needs. Community members collecting data of use to them and using it for advocacy represents an effort to remedy the underrepresentation of low-income populations in policymaking processes.

We spoke with Kayo Moura, a graduate student completing his second degree in Statistics, who led many of the course sessions centered on data and analysis for the reports. Kayo also served as the local leader for the Jacarezinho favela in the survey, drawing from his work with LabJaca, one of the 15 community organizations involved with the course, focused on “research, training, and production of data and narratives about favelas and peripheries.”

Kayo was raised across the Guanabara Bay in Niterói by a single mother who always encouraged him to study hard — so he did, earning a scholarship to the private Pontifical Catholic University (PUC) of Rio de Janeiro. After living in different places in and around favelas, interacting with PUC’s surrounding neighborhood with a high population of wealthy and white students, was eye-opening.

This commitment led Kayo to the research course, designed to help youth better understand the extent of the injustices they have experienced in their respective communities and the role they can play in addressing them. “It is people with similar problems, or perhaps with different ones, sharing their experiences and lessons learned that strengthens and enhances everybody’s work. That is what happened during the course.”

Energy Efficiency Improves Energy And Water Access

Reducing energy demand is especially crucial now — climate change has diminished the reliability of Brazil’s hydroelectric power, and combined with turbulent economic conditions, more households are struggling with high energy burdens. When households cannot afford electric bills, they resort to siphoning electricity from the grid, known locally as using a “gato.”

“A resident turned to me and said that she had no reason to lie; she has a ‘gato’ because she doesn’t even have money for the basics in her house, let alone paying for electricity and water. But I told her that electricity and water are basics for human beings… that we deserve and need to survive.”

— Domênica Ferreira (Morro dos Macacos)

Utilities can decline to service areas with “gatos” or Areas with Severe Operational Restrictions (ASRO), which some favelas are categorized as due to the presence of armed criminal groups. During the data collection, Rio experienced the second deadliest operation in its history in Vila Cruzeiro, only surpassed by the operations in Jacarezinho just one year earlier. These conditions are an additional barrier preventing residents in the favela from accessing basic services.

“One of the problems here is the cost of energy to supply water. To have water requires a lot of energy.”

Juliana Cesário
Cosmorama/Mesquita

This research has shown that collaboration is needed to design programs that provide meaningful benefits to underserved populations. As experts on their own needs and living conditions, residents play a critical role in designing both relevant surveys, and the solutions necessary for successful policy action.

Interested in learning more?

• Water and Energy Justice in the Favelas report (English)
• Insights into Energy Efficiency in the Favelas
• Research Is Also ‘By Us for Us!’ Leaders and Youth From 15 Favelas Prepare to Launch ‘Water and Energy Justice in the Favelas’ Report
• Comprehensive report (in Portuguese)
• 43 min documentary on the research course
• 5 min report launch video

Recently, India’s PM Modi identified women-led development as a high priority for India’s G20 presidency, and created an engagement group “Women 20” focused on gender equity. While women’s contributions – including different perspectives and approaches to business – result in more inclusive and effective workplaces is widely acknowledged, today only 21 women are at the helm of Fortune 500 Companies.¹

The energy sector represents a unique gender imbalance: energy remains one the least gender-diverse sectors, yet women experience the greatest obstacles in access to quality energy services. According to the IEA, the energy sector workforce has 76% fewer women than men, in contrast with the total global workforce gap of roughly 8%. Women make up only 32% of the renewable energy workforce: 28% hold STEM positions and 45% administrative jobs. The gender imbalance in the workforce is reflected in boardrooms and other leadership tiers, as women in the energy sector are far outnumbered by their male counterparts. A 2022 study of 155 countries revealed that 80% of senior management roles in the energy sector are held by men. Comparatively, fewer women are hired into senior roles in energy than in most other industries.

Women disproportionately shoulder the burden of energy poverty, yet poor representation means they are excluded from energy decision-making processes. Delivering energy services with a gendered lens can reduce drudgery, generate income, and promote women’s health and prosperity.

Equitable representation drives innovation and catalyses inclusive solutions. Experience in other sectors, and anecdotal evidence from the energy sector, suggest that women indeed have an important role to play in sustainable energy development. The World Energy Transitions Outlook 2022 report estimates that a 1.5°C-aligned energy transition will result in 139 million energy sector jobs worldwide by 2030. Of those jobs, 38.2 million will be in renewable energy and 74.2 million in other energy transition-related sectors (e-mobility, energy efficiency, etc.). The growth in the clean energy sector provides an opportunity to reskill and upskill a balanced and diverse transition workforce, inclusive of women at all levels of the workforce.

As we celebrate International Women’s Day, let’s not forget how crucial leadership across the gender spectrum is for a more equitable world. At CLASP and through our work, we recognize the important role that women play in promoting clean energy and reducing energy burden. Today and every day, we implore our partners to take action to promote greater gender equality in the energy sector.

With support from the IKEA Foundation, CLASP is collaborating with Charm Impact to pilot a new financing facility for early-stage, locally owned, renewable energy companies on the African continent. The Supporting Early-Stage Local Entrepreneurs (SESLE) Program promotes inclusive finance by investing in local companies, which are often challenged to access the capital they need to grow their renewable energy businesses. SESLE de-risks loans for investors and helps borrowers hedge against volatile currency fluctuations.

Locally-owned companies are key drivers of the renewable energy transition. Despite their potential, financing to help them expand operations and reach more customers is critically insufficient, with investors often perceiving them as too risky. Funding overwhelmingly goes to foreign-owned companies. Often, the ticket size of available micro-financing is too small to be useful for entrepreneurs. At the same time, local commercial banks are unwilling to lend to startups or carry prohibitive collateral requirements and charge exceptionally high annual interest rates.

Charm Impact has developed a unique approach to tackling the financial exclusion of local entrepreneurs. Using its credit risk and impact assessment tool, Charm supports companies in establishing a commercial credit history. This enables entrepreneurs to scale their operations, prove their creditworthiness and access capital from later-stage investors. Adding to this effort, SESLE’s blended finance approach offers a pathway for increasing financial flows to these local companies.

“Blended finance is typically only looked at through the lens of supporting investors,” says Gavriel Landau, CEO and Founder of Charm Impact. “With SESLE, we have flipped this paradigm on its head and created an innovative instrument that caters to investors and entrepreneurs. One component of SESLE de-risks loans for investors by guaranteeing a portion of their investments. While the other supports entrepreneurs by absorbing some of their potential losses in the event of currency depreciation.”

Locally-owned energy access companies are desperately needed to create competition in the marketplace, reach underserved geographies and cater to last-mile customers to boost progress towards United Nations Sustainable Development Goal 7. Without the commercial funding to enable these companies to grow, it will be impossible to achieve the SDG7 targets.

“Energy access for all is possible. SESLE can help accomplish this by offering an innovative new funding facility that creates an equitable investment ecosystem and supports locally owned companies that are fundamentally being left behind”, says Siena Hacker, a Senior Program Associate at CLASP.

SESLE has demonstrated early traction by already incentivizing investment in three locally owned companies across Rwanda, Nigeria and Kenya. After demonstrating the pilot’s success, SESLE will aim to expand its reach and ensure that local entrepreneurs across Africa can climb the credit ladder, illustrate the success of their customer-centric businesses and enhance the growth of the energy access industry.

Jeffrey Prins, Head of Portfolio, Renewable Energy at IKEA Foundation, says, “We have partnered with CLASP and Charm Impact to give locally owned, renewable energy companies on the African continent the means to scale their high-impact businesses. This will help boost the local renewable energy markets, reduce greenhouse gas emissions and enable many families on the continent to access renewable energy products that would otherwise be unattainable.”

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About the IKEA Foundation

The IKEA Foundation is a strategic philanthropy that focuses its grant-making efforts on tackling the two biggest threats to children’s futures: poverty and climate change. It currently grants more than €200 million per year to help improve family incomes and quality of life while protecting the planet from climate change. Since 2009, the IKEA Foundation has granted more than €1.5 billion to create a better future for children and their families. In 2021 the Board of the IKEA Foundation decided to make an additional €1 billion available over the next five years to accelerate the reduction of Greenhouse Gas emissions. Learn more at: www.ikeafoundation.org or by following them on LinkedIn or Twitter.

About CLASP

CLASP serves at the epicenter of collaborative, ambitious efforts to mitigate climate change and expand access to clean energy through appliance energy performance and quality.

About Charm Impact

Charm Impact’s mission is to combat the financial exclusion of clean energy entrepreneurs across Sub-Saharan Africa.

Charm has provided 27 loans across Nigeria, Kenya, Malawi, Rwanda, Zimbabwe, Tanzania and India with a combined value of £2m, improving energy for more than 350,000 people. To date, Charm maintains no defaults across its portfolio and has had 11 loans fully repaid.

Contacts                               

• We encourage local entrepreneurs eligible for the financing facility to get in touch via hello@charmimpact.com.
• Funders/philanthropies interested in supporting SESLE can contact CLASP via shacker@clasp.ngo.
• For media inquiries, please get in touch with Lisa Kahuthu at lkahuthu@clasp.ngo.