What is the challenge? 

In Mozambique the high levels of poverty among displaced populations (IDPs) and communities hosting them is representing a major barrier preventing them from accessing essential energy services.The lack of access to energy forces displaced families to live in darkness, compromising their safety and exposing them to risk of violence. Lack of access to energy is also hindering education and limiting livelihoods opportunities. Additionally, reliance on traditional cooking methods leads to significant health risks due to smoke and pollution. The lack of access to energy disproportionately affects women, as they bear the primary responsibility for gathering cooking fuel, predominantly firewood. This further exacerbates the burden on women, who already engage in unpaid labour like subsistence farming and firewood collection, leading to time poverty and health risks.

Banks and energy companies are hesitant to serve these communities because they see it as too risky, leaving families without access to affordable and sustainable energy options.

What is innovative about the project? 

The project promotes the use of improved cooking stoves and nature-based solutions to combine cooking solutions with environmental restoration. The project also includes the development of a premium carbon credit program, subsidy models for productive use of energy, and the promotion of savings groups and business training. This is an innovative approach that seeks to further develop and scale a holistic and modular process that supports the creation of a sustainable and inclusive marketplace to enable access to clean energy in displacement settings. The approach bridges the demand-supply gap of clean energy access in displacement settings in an innovative way, building on equitable and valuable partnerships between humanitarian actors, the private sector, and the displaced communities.

What are the expected outcomes? 

The long-term goal of the project is to create and sustain an inclusive and vibrant marketplace to enable communities affected by displacement to access clean and affordable energy solutions, thereby enabling them to improve their living conditions and build resilience. By establishing a premium carbon credit, IOM aims to unlock significant carbon financing for these communities. This approach will not only strengthen Mozambique's Just Energy Transition Strategy but also serve as a model for replication and scale-up in other regions and countries confronted with similar challenges.

Since receiving funding from Innovation Norway in 2021, the project has already helped 1,961 households in five different settlements. As it scales, it will reach more areas. The project makes communities healthier and safer by reducing smoke from cooking fires, while also creating business opportunities. It also helps build better relationships between displaced families and the local communities hosting them.

Who are the project partners? 

The project is led by IOM who collaborates with Schneider Electric Foundation.