Promoting access to green energy through inclusive finance: what environmental impact?
A new analysis by ADA conducted in collaboration with the Luxembourg Institute of Science and Technology (LIST) shows the positive impact in terms of reducing greenhouse gas emissions of two projects promoting access to low-carbon equipment through inclusive finance.
Against a backdrop of climate change, ADA is seeking to assess the environmental impact of this type of initiative to ensure that its projects are consistent with a sustainable development approach.
The results of the two studies by LIST and ADA confirm the importance for development players of promoting access to equipment powered by renewable or energy-efficient energy sources.
Access to solar lighting and efficient cooking implements for households in Senegal
People living in rural areas of Senegal have little access to energy to meet their basic needs, particularly lighting and cooking. To improve the supply of low-carbon equipment for these populations, ADA conducted a project in collaboration with the organisation Le Partenariat in the Delta region of Senegal from May 2022 to March 2024. The aim was to build the entrepreneurial capacity of women distributing solar-powered or energy-efficient equipment, including solar lamps and more energy efficient stoves.
Analysis of the environmental impact of the equipment shows that using a solar lamp instead of paraffin lamps in Senegal reduces greenhouse gas emissions by 98% over the lifetime of the solar lamp. Using a stove which consumes bio-charcoal (a fuel formed by agricultural and forestry waste and other biomass) efficiently, reduces emissions by 56% compared with a traditional wood-burning stove. The analysis considered the entire lifecycle of the equipment, from production to recycling.
Setting up a solar farming system in Bangladesh
‘Chars’ are unstable alluvial islands located on the main rivers of Bangladesh, now threatened by climate change. One of the major challenges facing the local communities is water management for agricultural purposes, given the alternating periods of drought and flooding.
To improve irrigation management for rice production during dry periods in the Chitulia Digha char in Bangladesh, ADA and the NGO Friendship Luxembourg collaborated from July 2022 to October 2023 to install a solar farming system comprising two water pumps, a rice threshing machine and a dryer, all powered by electricity from 48 photovoltaic panels and 45 batteries.
The results in terms of greenhouse gas reductions are promising: using a solar-powered electric agricultural system instead of a diesel-powered system reduces emissions by 91% to produce the same quantity of rice.
Outlook
ADA will continue to test solutions that not only facilitate access to green energy for vulnerable populations but also leverage this energy to develop economic activities. Over time, this approach may enable the target populations to contribute to transitioning to a greener economy.
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