Results-Based Financing (RBF) for Modern Energy Cooking Solutions: An Effective Driver for Innovation and Scale?

Abstract

Results-based financing (RBF) programmes in the clean cooking sector have gained increasing donor interest over the last decade. Although the risks and advantages of RBF have been discussed quite extensively for other sectors, especially health services, there is limited research-documented experience of its application to clean cooking. Due to the sheer scale of the important transition from ‘dirty’ to clean cooking for the 4 billion people who lack access, especially in the Global South, efficient and performance-proven solutions are urgently required. This paper, undertaken as part of the work of the UKAid-funded Modern Energy Cooking Services (MECS) programme, aims to close an important research gap by reviewing evidence-based support mechanisms and documenting essential experiences from previous and ongoing RBF programmes in the clean cooking and other sectors. On this basis, the paper derives key strategic implications and learning lessons for the global scaling of RBF programmes and finds that qualitative key performance indicators such as consumer acceptance as well as longer-term monitoring are critical long-term success factors for RBF to ensure the continued uptake and use of clean cooking solutions (CCS), however securing the inclusion of these indicators within programmes remains challenging. Finally, by discussing the opportunities for the evolution of RBF into broader impact funding programmes and the integration of energy access and clean cooking strategies through multi-sector approaches, the paper illustrates potential steps to enhance the impact of RBF in this sector in the future.

Keywords

• results-based financing
• clean cooking
• modern energy cooking services
• private sector development
• energy access