Results-Based Financing as a Potential Scale-Up Tool for the Sector

The report focuses on performance based RBF programmes rather than other RBF mechanisms such as carbon credits, development impact bonds, and conditional cash transfers. However, it briefly discusses how climate finance can  create opportunities for clean cooking RBF programmes.

Performance-based RBF mechanisms disburse grants to private companies or service organisations based on the delivery and verification of pre-agreed results (such as the number of stoves sold). They aim to encourage organisations to carry out activities outside their usual business, for example expanding into underserved areas. Consequently, RBF can catalyse enhanced uptake of new or improved technologies in challenging or early-stage markets.