The lack of access to clean cooking, which continues the dependence on traditional cooking fuels, has a substantial impact on health and well-being. Around the world, 2.1 billion people still lack access to clean cooking, with 900 million of them residing in Sub-Saharan Africa. They—usually women and children—are at risk of severe consequences from household air pollution, which is associated with various illnesses and is responsible for premature deaths, including among children under the age of five.
Alternative and clean solutions that include renewable energy are available, such as improved biomass cookstoves, pellets, biogas, ethanol, and electric cooking. Renewables-based clean cooking solutions can offer environmental benefits, as well as fuel and cost efficiency. However, adoption remains low due to affordability constraints, as the majority of those in need are from low-income households.
Scaling up these solutions to reduce the massive gap in access to clean cooking requires an annual investment of around USD 8 billion by 2030. However, currently only a fraction of these funds has been mobilised. During the pre-day of the International Renewable Energy Agency (IRENA)’s 16th Assembly, governments and stakeholders highlighted this issue, sharing country experiences in increasing financial flows towards their clean cooking sectors.
In her opening remarks, IRENA’s Deputy Director-General, Ms. Gauri Singh, said: “It is important that we explore a wide range of finance sources and opportunities, including those available domestically. External finance, especially grants and concessional loans, remains important, and its critical role should not be undermined. The key message is to consider both; pursue strategies that can increase both domestic spending on clean cooking as well as international finance.”
Although a significant opportunity exists to raise additional capital, and some funds are already available, target recipients often have a low capacity to absorb these funds due to a lack of bankable projects, high interest rates, and stringent requirements. This results in limited uptake of available finance, highlighting the need for guarantees to reduce interest rates.
An additional challenge is the lack of clear information for investors. Comprehensive data allows investors to track where investments are going and the impact they make, boosting confidence and mobilising more funds for the sector.
In an upcoming report, IRENA presents primary data on clean cooking investments channelled by Global South governments between 2022 and 2024, drawn from surveys of the 100 largest access-deficit countries and supplemented with analysis by the Organisation for Economic Co-operation and Development’s Development Assistance Committee. Based on the findings, the report encourages a more cohesive and coherent assessment of international clean cooking finance flows going forward.
Using the case of Tanzania, another IRENA report shows how clean cooking investment data—including detailed information at country and project levels—is necessary to support decision-making by governments, development finance institutions, donors and private investors. The data maps companies and organisations involved in clean cooking solutions, identifies financing gaps, and highlights capacity challenges among stakeholders.
By understanding these gaps and needs, the report concludes that more targeted financing is required to strengthen the business capacity of clean cooking companies, while also boosting local manufacturing and maintenance.
However, efforts to scale up investment in clean cooking solutions must occur in parallel with investments in transitional fuels like charcoal. With 157 million people in Sub-Saharan Africa still relying on charcoal as a primary cooking fuel, it cannot be ignored in the clean energy transition.
Ignoring charcoal in national energy planning risks undermining livelihoods and may result in policies that fail to reflect local realities. Therefore, charcoal use must be addressed strategically.
Another IRENA report highlights the urgent need for innovation and investment to modernise charcoal production and use. It introduces a ‘new form of charcoal’ that differs from traditional methods in production, harvesting, processing, transport and use, offering a more sustainable alternative. The report also recommends policy frameworks to support alternative income sources for charcoal producers.
This message is further reinforced by IRENA, Nuvoni Centre for Innovation Research, Climate Compatible Growth, and representatives from Kenya, Malawi, Uganda, Rwanda, Zambia and Ethiopia, along with other stakeholders, through a communiqué released after a workshop in Kenya. They emphasised that including charcoal in the clean cooking conversation is not about endorsing unsustainable practices, but rather taking a pragmatic approach to modernising, regulating and improving its sustainability within the transition.