Women in India are driving the transition to clean energy: with microloans, they can switch to low-emission household appliances. In this climate project, social impact and climate action go hand in hand.
Challenges in rural India
Latha is a micro-entrepreneur who sells food and small household items from her shop. In the past, she was unable to serve her customers when it got dark. This changed through the benefit of solar lamps.
Many women in India live with difficulties like Latha's. And not only are their everyday working routines afflicted by poverty, but also the quality of life for many people. Communities in rural areas are particularly affected. One problem is the lack of hygiene standards: 39% of the rural population in India has no access to safe drinking water (Statista). Another problem is the lack of a reliable supply of electricity.
A climate project run by our partner MicroEnergy Credits (MEC) addresses these problems by bringing environmental and social benefits to rural communities. The project was launched in India in 2012 to improve the quality of life for local communities and provide employment opportunities for women while also reducing deforestation and harmful carbon emissions.
Women driving the transition to clean energy
Working with financial inclusion institutions, the climate project provides access to microcredits for women micro-entrepreneurs, such as those running small restaurants or shops. This enables women to afford solar lamps, water filters, or improved cookstoves. The project is also expanding supply chains in remote regions where these products would not otherwise be available, which is helping to accelerate the transition to clean energy in rural areas.
The women are using the new products for business, like Latha, who uses solar lamps to extend the opening hours of her shop. But they also use them at home to provide clean drinking water for their families and to cook without being exposed to harmful smoke. The women meet regularly in groups to support each other and ensure that everyone is happy with the products. Each group has a leader who takes care of after-sales service if the products need to be repaired or replaced. In addition, some of the women work as clean energy demonstrators, educating people in neighbouring villages about the benefits of the new products. This enables even more women to take the first step towards clean energy.
How do the different technologies work?
Solar lamps
Mamta's situation was similar to Latha's. She has four children and lives in the Indian state of Uttar Pradesh. Mamta and her family used to light kerosene lamps, which created smoke, made breathing difficult, and left the house dimly lit. Mamta descibes her new living situation: “Then we got a solar lamp […]. What I like most is that it allows me to finish my work that didn‘t get completed during the day at night. I can really take control of my work. […] The light from the solar lamp spreads far, which is also great.” Thanks to the solar lamp, Mamta's children have the freedom to better organise their free time and decide when they want to study. Mamta and the other women entrepreneurs have up to three years to repay the microloans in small, manageable instalments. By using this clean alternative, which requires significantly less kerosene or firewood, they can even save money right from the start. This also benefits the climate, as harmful emissions are reduced.
Water filters
Clean drinking water is not a given in India – many people boil their water over an open fire before using it. This produces heavy smoke, which causes respiratory diseases and contributes to around 607,000 deaths per year (Statista, 2023). Women often need to travel long distances to collect firewood. Water filters therefore make everyday life easier and healthier. They clean contaminated water mechanically, eliminating the need to boil it, which reduces carbon emissions, while regular sampling ensures its quality.
Improved cookstoves
660 million people in India cook over open fires (IEA, 2021). The resulting smoke causes serious health problems: according to the World Health Organization, millions of people die prematurely each year because of air pollution from cooking over open fires (WHO, 2023). The practice also requires large amounts of firewood, which leads to deforestation. Almost a third of India's land mass is already affected by desertification and degradation (GIZ, 2023). Krishna Devi is one of the women who appreciates the benefits of improved cookstoves: “With less wood, I can cook the same amount of food. You neither have to blow into it, nor is there smoke. With this stove I don’t have to go to the doctor. I am free of sickness.“ Many families in India feel the same way. Using the improved cookstoves reduces carbon emissions and avoids harmful smoke. By 2021, MEC had already sold almost 500,000 improved cookstoves in India, and many more have been added since.
How empowering women micro-entrepreneurs becomes a climate project
It is important for the success of this project that devices are purchased rather than given away for free. Experience has shown that when individuals decide which products to invest their money in, the devices are valued more highly.
The emissions that are reduced by using the new products can be calculated, which allows verified emission reductions (VERs) to be issued, and the income from these VERs makes the climate project possible. For example, it provides education on the benefits of clean energy products, after-sales service to repair and replace faulty appliances, and the establishment of supply chains in remote regions of India. The project contributes to various United Nations’ Sustainable Development Goals (SDGs), including “affordable and clean energy”, “decent work and economic growth”, and “climate action”.
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