The public-private partnership “Global LPG Partnership“ (GLPGP), which is an officially named initiative under the SE4All Clean Cooking Solutions High Impact Opportunity (HIO), aims to create a market environment that will support the replacement of outdated cookstoves and open fires with modern energy services based on Liquified Petroleum Gas (LPG) in order to address the significant health and environmental problems that result from the use of solid fuels. According to estimates of GLPGP, the initiative expects to initially transition up to 1.7 million households to LPG for cooking, produce up to 3.200 new jobs and prevent 20.400 hectares of annual deforestation (based on an initial fund volume of EUR 15 Mio. over ten years).
GLPGP aims to set up a fund structure, which objective is to refinance Microfinance Institutions (MFIs) providing adequate financing programmes to households and local Small and Medium Enterprises in order to unlock demand for LPG cooking appliances. With the support of adequate financing programmes customers are expected to overcome the initial costs arising when switching to LPG. By providing the necessary seed capital, the EU-ITF investment grant will enable the set up of the intended fund structure which supports the creating of a sufficient stable demand needed toattract the supply side to invest in the LPG supply chain. It will further release additional financial resources urgently needed to scale-up the project and achieve the intended large-scale social and environmental impact.
The EU-AITF SE4ALL grant of up to EUR 1.7 million will finance a feasibility study for the preparation of this regional programme in three pilot countries, Kenya, Ghana and Cameroon. The feasibility study will identify and develop investments and policy recommendations to unlock and grow the market for LPG as a major solution for clean cooking on a rapid and large scale.