Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN...

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CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dear ladies and gentlemen. It is my pleasure to share our stove dissemination experiences with you. My name is Bayartogtokh, Coordinator of Ulaanbaatar Clean Air project financed by World Bank. I`m going to present a brief summary of outputs and lessons learned by the project. 1

Transcript of Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN...

Page 1: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA

April 19.2017

Dear ladies and gentlemen. It is my pleasure to share our stove dissemination experiences with you. My name is Bayartogtokh, Coordinator of Ulaanbaatar Clean Air project financed by World Bank. I`m going to present a brief summary of outputs and lessons learned by the project. 

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Page 2: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

COUNTRY OF BLUE SKY

First, I would like to present a short video about our country and its capital city, Ulaanbaatar. By the way, I must apologize for outdated statistics in the video which was produced in 2014. However, the general picture in it is still valid. Please take a look. 

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Page 3: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

UBCAP was designed to reduce air pollution in three ways:  

• first through short‐term measures, by giving ger area residents access to clean stoves at subsidized prices, 

• second by preparing for medium term interventions, such as several feasibility studies for medium‐term air pollution abatement and policy measures, and 

• third a continuous effort through lots of PR and awareness raising.  

In my presentation I will focus on the first component only, the stove dissemination progam

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Page 4: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Under the stove dissemination component of the project, we implemented the following activities.  

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Page 5: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

The project was designed as a gap filling measure, to maintain momentum from what other organizations had started, under coordination from the World Bank. The stove switching program was implemented from 2013 to 2015 and we reached our goal of disseminating clean stoves to more than 90% of all ger area households. 

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Page 6: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

As a result of the program, we switched forty thousand traditional stoves by improved models emitting less than 95% of the PM2.5

Although the program offered ger area residents 7 improved models, including 2 local and 5 imported stoves, most households selected an imported model. 

According to the program experience, the population prefers fuel savings, fast cooking, nice looking designs, and quickly heating up of the house. 

Complete combustion is a result of a combination of stoves, type of fuel, fuel and proper ignition techniques. Therefore, the public awareness program was a crucial part of the program to introduce top lit updraft (TLUD) firing, which is completely different from the traditional bottom lit updraft one. As this was a behavior change, users needed some time to adopt this completely.  

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Page 7: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

People generally had a limited understanding about clean stoves: how to distinguish it from a traditional stove? what are the benefits? What is the performance? 

This also raised the question about the testing method, how and who to do the testing?.  More importantly, what is the scientific base for the testing?

As part of the project, a Stove emission and efficiency testing (SEET) laboratory was set up and supported with additional equipment. The laboratory and the testing method have been validated by an external certification agency, SGS. The laboratory is owned and operated by the Mongolian University for Science and Technology as a separate unit.  It was supported with Technical Assistance from UBCAP and currently has 2 testing benches: one for stoves and another for low pressure boilers. 

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Page 8: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

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SEET lab has now also its own testing protocol and was certified by the National Agency for Standardization and Metrology in 2016. 

SEET lab staff intends to gain more experience by exchanging information with similar laboratories around the world,  and welcomes the fact that there are four of such laboratories represented today in this room, hoping that this can be a good start of collaboration between the laboratories.

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Page 9: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Slide 8

N1 Hope, manager will put detail information about testing procedure.Nyamaa, 07-Apr-17

Page 10: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

This slide shows an example of test results. 

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Page 11: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

SEET lab carried out more than 600 tests, on 65 different stove models of imported and locally produced stoves.  It also tested the performance of stoves with 35 different fuels.

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Page 12: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Local stove producers lack capacity to design and produce well performing  stoves. The Stove Development center was established under UBCAP in 2015, and is fully equipped with modern equipment and tools for stove manufacturing. It is a scientific education center where the local producers get assistance to develop their stove models and can get involved in capacity building programs. The stove development center is now visited often, and producers have requested assistance to start locally producing clean stoves.

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Page 13: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

The center provides following services. 

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Page 14: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Stove development center organizes training and knowledge sharing events among local producers. It allows producers to compare local and imported stoves to learn advanced technology in different countries. 

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Page 15: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Technology development such as new products and manufacturing technologies, including ceramics and cast iron. 

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Page 16: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

The most interesting part is developing improved stove and boiler designs. Presently, the Stove development center has produced 2 eligible stove designs, seen on the next slides, and one larger boiler design. 

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Page 17: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

The SDC plays an important role in improving the tested models so that they meet the standard and technical requirements. Based on the result of tests, SDC provides professional advice and training how to fix the weak performance of stove models. 

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Page 18: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

To be honest, project implementation process was not easy and there are still challenges testing our persistence and resilience. 

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Page 19: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

First and foremost, the unstable political environment had a critical impact on our shared goal. A high turnover of government institutions and personnel led several times to breaks of continuity of concerted efforts. Ad hoc ideas were often more supported than established programs to systematically reduce air pollution. As an example, clean fuels were promoted several times, leading to large investments, but without any proof of results.

Another example is the Clean Air Foundation (CAF), which was the main financing instrument from the Government:‐established 2011, by the President of Mongolia to attack the air pollution emergency‐transferred it 2013 to Prime Ministers’ cabinet‐re‐structured in 2015 to become a Department in the Ministry of Environment‐Abolished in 2016 as the urgency for reducing air pollution was no longer visible‐in 2017, discussion about re‐establishment, as air pollution is increasing again

For air pollution control to be effective, the core policy should consistently embrace all potential solutions based on their scientific merits, and promote a comprehensive strategy. 

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Page 20: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Another large challenge is the economical factor. The weak economy, lack of accountability and improper utilization of funds caused reduced budgets for air pollution reduction. For example, despite donor’s contribution in excess of 30m USD, a similar amount was allocated by the government in 2013 for air pollution reduction activities.  In 2016 it was only one‐sixth of this, and the UBCAP is the only instrument available for reducing air pollution.  

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Page 21: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Mongolian’s cold climate makes clean stoves expensive, as they need to perform well at all times and at the same time do not emit pollution.  Traditional stoves only cost around 60 USD and emit lots of pollution, imported clean stoves cost between 200‐350 USD making it hard to afford for poor UB households.  This price difference, combined with the air pollution emergency, made the use of a high subsidy needed.

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Page 22: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Lets talk about manufacturing capacity. 

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Page 23: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Since 2010, with financial support from donors, the Mongolian artisans tried to do clean stoves. Example. In 2012, when UBCAP was launched, only one local stove was eligible for project and passed the SEET lab testing. But this number was increased up to 6 by 2017.

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Page 24: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

In 2012 there was only one locally produced clean stove model, but now there are 6. However, since the subsidy is no longer available, these stoves have not been disseminated as most households prefer the low price of a polluting stove rather than the high price of a clean stove.

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Page 25: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Lets turn now to manufacturing challenges. 

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Page 26: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Although the number of locally produced eligible stove is increased, its sustainable  production remans questionable once the stove program ends. The capacity of localmanufacturers is still weak and depends on financial support. Parallel existence of traditional stoves in the market was one of the biggest barriers. 

As result of UBCAP’s testing of stoves, new stove standards have been developed and from April 1st, 2017, a ban on the production and sale of traditional stoves and boilers is enforced. This will hopefully create a conducive environment for local clean stove producers. 

Poorly operating tools and machinery (mostly mechanical operation) are another obstacle for local producers, and UBCAP is currently looking how to best assist local producers. However, producers face a low demand for clean stoves, and their weak financial situation does not allow them to realize investments for improvement. 

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Page 27: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Some parts of stove are not fully available from local market, such as Ceramic for lining, and cast iron cover of stoves. There are several attempts to start up the production, but mass production, suitable for all stove models is still difficult. We do have the raw materials for ceramic and cast iron, but the know‐how and technology for processing are still in the early stages. We need to learn from our Chinese, Kyrgyz and Tajik colleagues more how to do this because newly approved clean stove standard requires ceramic lining. 

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Page 28: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

EFFECT OF HIGH SUBSIDY ON CONSUMER AND PRODUCER

A decision was made by the stove program preceding the UBCAP to only import clean stoves. This led to high cost stoves.  To address the air pollution emergency, the Government decided to double the subsidy from the donor by allocating more funds from the CAF.  So, the subsidy amounted to 90% of the list price of the stove. When UBCAP started, it could not immediately change these subsidies, but it gradually introduced 3 major changes: • Establishing stove performance criteria, pledging support for all eligible stove models 

(imported or local)• Make the subsidy a fixed amount per stove rather than a percentage of the list price• Announcing that the subsidy would be phased out over 4 years

As a result of the high subsidy:• poor households saw an opportunity to sell their subsidized stove to a non‐eligible 

household and earn some quick money. Many of the stoves left UB in this way.• since the subsidy was a percentage of the list price, suppliers only proposed expensive 

imported stoves, and lower priced stoves from local producers were neglected by beneficiaries as the imported models looked far more modern and professional – and the price was very low anyway.

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Page 29: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Lets look now at cultural factors. Number of leaking improved stoves from UB to country side has been increased due to reselling, shifting, keeping and giving purpose. 

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Page 30: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

The stove switching program focuses only on UB city. Households outside town, or not officially registered in UB city were not eligible for the subsidy. This created opportunities for “leakage”.

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Page 31: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Indeed, stove leakage towards countryside was widespread, despite the fact that stoves were marked and could be traced back to the original owner. 

Since the demand for of improved stove is present in the whole country, the program should have addressed this.   

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Page 32: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Therefore, we need to consider whole market rather than UB only. 

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Page 33: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Institutional capacity to respond to service requests after the purchase of improved stoves. To ensure long lasting performance of stoves, there must be a good maintenance service in the market. The absence of this service can decrease thte public trust and reputation of improved stoves. As today almost 160k clean stoves are penetrated in UB. However, those sold in 2011 and 2012 are braking down and there are no replacement or spare parts available for these imported stoves. 

Some of the suppliers who imported the clean stoves from Turkey have converted their business into other fields, so no place to address complaints.  

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Page 34: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Based on our experience, we would like to highlight the importance of scientific solutions and proven results for decision making process. We believe that voice, responsibility and cooperation among scientific community is crucial thing to lead inclusive decision making process in effective way. 

An example is the believe that clean fuels will automatically lead to cleaner air. The contrary is often true, and processed coals (such as semi‐coked coal) were shown in the laboratory to emit more pollution in traditional or clean stoves than raw coal. Clean fuels should not have been promoted without proper scientific evidence that this is beneficial for the country. 

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Page 35: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Now lets move to PR program. 

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Page 36: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Mongolians say that . . .better to see something once, than to hear about it a thousand time. So our PR program aims to demonstrate the difference between traditional and improved stoves through consumption based tests to build trust and raise awareness. 

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Page 37: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

We reach everywhere to disseminate information. For instance schools, ranging from kindergarten to university 

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Page 38: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

Hospital 

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Page 39: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

The PR was taken to the largest market of the country, the Black market, water kiosks that are omnipresent in ger areas as there is no piped water supply, and bus stands and street. 

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Page 40: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

To ensure successful implementation of PR plan, it should be pragmatic, logical and well designed. The help of a specialized PR and awareness raising company is crucial.

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Page 41: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

We try our best to keep key messages of the project interesting, interactive and clear to understand for everyone. 

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Page 42: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

SUBSIDY PROGRAM

INCENTIVE SYSTEM

FOLLOW-UP PROJECT

To solve above mentioned challenges, we would like to share following solutions. First of all, empowering local producers in technical and financial ways help us to strength clean stove market. 

Support local producers technically and financially: ‐ Financial support on production ‐technical support on parts; like ceramic lining and cast iron part‐tax exemption‐tax release on stove parts

Next thing is about informed public participation in each level of society. It was shown that once the stove program stopped, air pollution increased again in winter period. Awareness raising is in fact a continuous and sustained effort and should not be only related to the project.

At last, we need to sustain clean stove market by continuing to implement a subsidy program, incentive mechanism for households such as : tax reward, financial support to insulate homes, …… or other

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Page 43: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

All in all, I dare say that UBCAP showed some very positive results: improved stoves indeed can make a real difference in ambient air quality, and coal can be combusted very cleanly as long as a properly designed stove is used.  

The following slide show the story:

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Page 44: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

260

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142129.3 102 85.7 90.8

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102,912

134,805 156,286 149,275

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162,412170,324 179,386 184,513 191,904 198,683 204,161

106,848 131,447

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209,791 228,982

257,498

441,836 470,519

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Stove program impact and air quality

PM2.5 Clean stove nr hh ger district nr ofCars

First of all, results are obtained despite the fact that the population of UB is has constantly increased: there are 50,000 more households in ger areas in just 7 years (1/3rd increase); 

Secondly, this is so despite the fact that the number of cars has exploded and almost quintupled over these 7 years

Thirdly, as the vertical bars show, average winter time air pollution (in terms of PM2.5) has decreased substantially, from 260 microgram/m3 in 2008 to 86 microgram/m3 in 2014. Remind you, WHO interim guidelines are 50 microgram/m3 on average over the whole year.  Unfortunately, average winter time air pollution started to increase again after 2014.

The reason for this that the stove subsidy program stopped in 2014, so no new stoves were disseminated. Moreover, since country side households also liked these clean stoves but could not buy them with a subsidy, they purchased these “illegally” from poor UB households at a reduced price (win‐win: the UB household cashes in some of the subsidy, and the country side household gets a good stove below its price). These “leaked” stoves are all replaced by traditional and dirty stoves, as there is no supply of clean stoves without subsidy.

We certainly showed what can be done, and we also shared the lessons we learnt. If you 

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Page 45: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

want more details on any of this, please do not hesitate to contact us!

Is the project therefore a success as the air is cleaner than before, or a failure as the work is not completed and the air is again getting more polluted again?. 

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Page 46: Presentation for Clean and Efficient heating …...CLEAN AND EFFICIENT HEATING EXPERIENCE IN MONGOLIA April 19.2017 Dearladies and gentlemen. It is my pleasure to share our stove dissemination

I would like to conclude that efforts to reduce air pollution shouldn’t stop when initial results appear good: what was started should be finalized, until a sustainable situation is reached for all Mongolians.

Thanks for your attention. 

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