Results Based Financing: Framework for Promoting Clean Stoves

Key messages:

• Results-based financing disburses public resources against demonstrated, independently verified outputs or outcomes instead of project inputs. This distinguishing feature can mean more effective and efficient use of public funds and improved support of market interventions.
• Applying this approach to programs that promote clean stoves offers suppliers the flexibility to innovate, which is critical for market development. To succeed, they must design stoves that fit local conditions and meet certification criteria.
• The building blocks of a framework using this approach could include defined clean stoves, results-based incentives, and monitoring and verification, supported by institutional strengthening/capacity building and awareness raising campaigns. Plans are under way to pilot this framework in country programs as part of the Clean Stove Initiative.