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C
Nationally Appropriate Mitigation Action
Study on Sustainable Charcoal in Uganda
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UNDP partners with peope at a eves o society to hep buid nations that can withstand crisis, and
drive and sustain the kind o growth that improves the quaity o ie or everyone. On the ground in 177
countries and territories, we oer goba perspective and oca insight to hep empower ives and buid
resiient nations. www.undp.org
Copyright 2012 United Nations Deveopment Programme
A rights reserved. This pubication or parts o it may not be reproduced, stored by means o any system or
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The views and recommendations in this report are those o the authors and do not necessariy represent
those o UNDP, the United Nations or it Member States. The boundaries and names shown and thedesignation o maps do not impy ocia endorsement or acceptabe by the United Nations. Soe respon
sibiity is taken or errors o omission or commission.
Editor: Caitin Conney
About the cover photo: Red onionbased cutivation/Photo: UNDP/ Women Union o Vinh Chau District or
the UNDPGEF CBA ProjectDesign: Camio J. Saomn Nechar ([email protected], www.benedictodesign.com)
UNDP partners with people at all levels o society to help build nations that can withstand crisis, and drive and
sustain the kind o growth that improves the quality o lie or everyone. On the ground in 177 countries and
territories, we oer global perspectives and local insight to help empower lives and build resilient nations.
www.undp.org
MDG Carbon is an innovative programme to harness the resources o the carbon market in order to bring
long-term sustainable development, at scale, to wide range o developing countries. Since its launch in 2007,
MDG Carbon has assisted developing countries in implementing a host o low-carbon interventions, spanning
multiple technologies, active in all regions o the world, and leveraging signicant amounts in private-sector
millions o dollars in independent co-investments. www.mdgcarbon.org
Perspectives GmbH is an independent, highly qualied consulting rm that provides advice to private sector,
governmental and non-governmental clients in the international greenhouse gas GHG market. Perspectives
was ounded in 2003. Its core competencies are Clean Development Mechanism CDM project management
including Programmes o Activities, identication and quantication o GHG reduction opportunities in
developing countries, development o underlying CDM baseline and monitoring methodologies, provision
o climate policy advice, and implementation o capacity building on climate change issues in developing
countries. Perspectives sta have a high-level, interdisciplinary education in the eld o economics and
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Authors: Arindam Basu, Courtney Blodgett, and Nicolas Mller with a special thanks to Rainer Nerger or
his assistance at Perspectives Climate Change and Aleandra Soezer the United Nations DevelopmentProgramme UNDP MDG Carbon.
Acknowledgments:The study benetted rom an internal UNDP review, as well as valuable assistance rom
stakeholders in Uganda including: Berta Pesti UNDP LECB, Godrey Ndawula MEMD Assistant Commissioner,
New and Renewable Sources o Energy Division, John Tumuhimbise MEMD Principal Energy Ocer,
Paul Isabirye Climate Change Unit, Dr Igbokwe Kennedy FAO, Lucas Black UNDP GEF, Vincent Kienzler
Green Bio Energy, Musiimenta Boaz PMO, Stephen Mutimba Camco, Daniel McMondo and Onesimus
Muhwezi UNDP Kampala, and Susan Abbo and Karsten Bechtel CREEC.
Editor: Eileen Travers
Design: Camilo J. Salomn [email protected], www.benedictodesign.com
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1NATIONALLY APPROPRIATE MITIGATION ACTION STUDY ON SUSTAINABLE CHARCOAL IN UGANDA
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TABlE O F CONT ENTS
Acronms 4
Foreword 8
Executive Summar 9
I. Introduction 10
1.1. Background 11
1.2. Scope 12
1.3. Structure 13
II. Nationall Appropriate Mitigation Action 14
III. Charcoal Sector 15
3.1. Production 15
3.2. Value Chain 16
3.3. Policies in Sub-Saharan Arica 17
IV. Current Charcoal Situation in Uganda 18
4.1. Background 18
4.2. Policies and Programmes 25
4.3. Institutional Framework 29
V. Technolog Options or Improved Production 30
5.1. Baseline Production 30
5.2. Types o Technology Interventions 31
5.3. Selected Technologies 32
VI. The NAMA Concept 36
6.1. Charcoal Value Chain 376.2. Sustainable Charcoal Production 39
6.3. Sustainable Woodlot/Forest Management 43
6.4. Institutional Framework: 46
6.5. Policies 55
Tabe o Contents
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VII. Measuring, Reporting and Verifcation 567.1. MRV Objective 56
7.2. Monitoring Results 56
7.3. Understanding Impacts Using the Correct Result Indicators 67
7.4. Emissions Reductions and Sustainable Development Benets 68
7.5. Economic Evaluation o Activities 69
VIII. Assessment o Support Needs 70
8.1. Financing, Technology and Capacity Needs 70
8.2. Scale o the Problem 70
8.3. Cost Estimation 72
8.4. Potential Donors 78
IX. Next Steps 80
Reerences 81
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TABlE O F CONT ENTS
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BAU BusinessasusuaBEST Biomass Energy Strategy
BTC Begium Technica Corporation
BUR Biennia update report
CCU Cimate Change Unit
CDM Cean Deveopment Mechanism
CERs Certied emission reductions
CH4 Methane
CIM Centre or Internationa Migration
cm Centimetres
CME NAMA coordinating and managing entity
CO2 Carbon dioide
CO2e Carbon dioide equivaent
COP Conerence o the Parties
CSO Civi society organization
EAP Environment Action Pan
EB Eecutive Board
EE Energy eciency
EPAC Energy Poicy Advice Component
FAOSTAT Food and Agricuture Organization Corporate Statistica DatabaseGEF Goba Environment Faciity
GHG Greenhouse gas
GIS Geographic inormation system
GIZ German Agency or Internationa Cooperation (Geseschat r InternationaeZusammenarbeit)
hp Horsepower
hr Hours
ICA Internationa consutation and anaysis
IRIN Integrated Regiona Inormation Networks
KW Reconstruction Credit Institute (Kreditanstat r Wiederaubau)kg Kiogram
km Kiometer
kW Kiowatt
kWe Kiowatt equivaents
kWh kiowatt hour
LDCs least deveoped countries
Acronyms
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ACRONYMS
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ACRONYMS
LPG liqueed petroeum gasLSC large scae
MEM Ministry or Energy and Mineras1
MEMD Ministry o Energy and Minera Deveopment
MRV Measurement, Reporting and Verication
MNRT Tanzanian Ministry o Natura Resources and Tourism
MoFPED Ministry o Finance, Panning and Economic Deveopment
MW Megawatt
MWLE Ministry o Water, lands and Environment
MWE Ministry o Water and Environment2
NAMA Nationay Appropriate Mitigation Action
NCV Net caoric vaue
NEA Nationa Environment Act
NEAP Nationa Environment Action Pan
NEMP Nationa Environment Management Poicy
NFA Nationa Forestry Authority
NFP Uganda Nationa Forestry Poicy
NGOS Nongovernmenta organizations
NPA Nationa Panning Authority
NTF Nationa Task Force or Biomass EnergyRE Renewabe energy
SBL Standardized baseine
SME Sma and mediumsized enterprises
SSC Smascae
t Metric tonne
tCO2e Metric tonnes o CO
2equivaents
TJ Terajoue
UGX Ugandan shiing
UNDP United Nations Deveopment Programme
UNFCCC United Nations Framework Convention on Cimate Change
WB Word Bank
WE Wood equivaent
XNRB
Nonrenewabe biomass
1 Formally Ministry o Energy and Mineral Development MEMD.2 Formally Ministry o Water, Lands and Environment MWLE.
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TABlES
Tabe 1: Charcoa suppy to Kampaa and source districts (Knpfe 2004) 19Tabe 2: Panned increase o modern energy services (Rura Eectrication Agency 2007) 26
Tabe 3: Carbonization technoogies 32
Tabe 4: Briquetting technoogies 34
Tabe 5: Possibe stakehoder trainings 54
Tabe 6: Baseine parameters or charcoa production 57
Tabe 7: Four types o charcoa incuded in monitoring pan 58
Tabe 8: Monitoring parameters overview 59
Tabe 9: Registration o charcoa producers 60
Tabe 10: Number o abeed charcoa bags provided 60
Tabe 11: Number o abeed bags o each charcoa type purchased by the district 61
Tabe 12: NCV o dierent charcoa types 62
Tabe 13: Revenue rom taes coected by each district 62
Tabe 14: Ta rom charcoa put into orest und 63
Tabe 15: Charcoa icenses granted 63
Tabe 16: Number o bags o each type o charcoa checked during road bocks 64
Tabe 17: Taes coected rom unabeed BAU charcoa passing through road bocks 64
Tabe 18: Bags o charcoa brought into the warehouse 65
Tabe 19: Bags o charcoa sod to retaiers 65
Tabe 20: Retaiers registered in the charcoa retai association 66
Tabe 21: Ugandas urban popuation or 2011 (City Popuation n.d.) 72
Tabe 22: Annua charcoa demand 73
Tabe 23: Green charcoa suppy 75
Tabe 24: Percentage o green charcoa to be produced by Casamance and Adam retort kins 76
Tabe 25: Cumuative kin costs (USD) 77
Tabes
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Bx 1: Prices in Kampaa 22Bx 2: Charcoa types 38
Bx 3: The roe o the Casamance kin 43
Bx 4: The Adam kin 44
Bx 5: Incentives or district empoyees 51
FiguresFgure 1: Charcoa vaue chain 17
Fgure 2: Key stakehoders in eisting charcoa vaue chain 17
Fgure 3: Map o Uganda showing urban centres (red) and districts 20
Fgure 4: The cone o major deorestation activities 21
Fgure 5: Schematic representation o major poicies in Uganda with impact on charcoa 25
Fgure 6: Eisting charcoa vaue chain and considerations or deveoping a charcoa NAMA 37
Fgure 7: Charcoa types and the type o intervention 39
Fgure 8: Schematic representation o sustainabe orestry and ecient kins 43
Fgure 9: Schematic representation o the proposed NAMA concept 46
Fgure 10: Schematic representation o the district charcoa unit 48
Fgure 11: Forestry und use o charcoa taation revenue to promote sustainabe charcoa 50
Fgure 12: Restructuring o the charcoa vaue chain without disturbing the eisting reationships 52
Boes
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BOxES, FIGURES
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The objective o this NAMA study is to provide Uganda with an important opportunity to hep shape its uture owcarbon deveopment. Not ony woud the impementation o an improved charcoa vaue chain NAMA hep Uganda
to increase the eciency and eectiveness o the current vaue chain, it woud enabe the country to remove a major
driver o deorestation whie increasing energy security and sustainabiity.
The NAMA, once uy deveoped and approved, woud be integrated with other reevant UNDP initiatives in Uganda,
in particuar the low Emission Capacity Buiding Programme, which is part o a arger UNDP owemission cimate
programme and addition to the GIZ Biomass Energy Strategy initiative to deveop short, medium and ongterm
interventions to achieve sustainabe management o biomass energy resources. The NAMA woud aso be integra to the
recenty approved UNDPimpemented and Goba Environment Faciity nanced projects in the charcoa sector reated to
addressing barriers to the adoption o improved production technoogies and sustainabe and management practices.
UNDP recognizes that the charcoa sector provides some o the most important opportunities to not ony prevent
emission reductions but aso to provide signicant and highy reevant sustainabe deveopment outcomes or
deveoping countries, and in particuar in least Deveoped Countries (lDCs). The NAMA modaity can provide the
essentia hoistic ramework or the improvement o the compete vaue chain in the charcoa sector.
The understanding o the NAMA concept is sti evoving and there is as o to date reativey itte on the ground eperience
with turning the concept into concrete action. UNDP hopes that by unding this study it can contribute to urther shaping
the concept and transating it into action. The key dening criteria or a NAMA to be comprised o measurabe, reportabe
and veriabe (MRV) emission reduction activities show us the way to the uture generation o emission reduction
eorts that intend to scaeup their scope and go beyond the projectbased approach that has been the main ocus
o the CDM. UNDPs MDG Carbon program has been providing comprehensive project deveopment services or
cients in deveoping countries. Starting with an ecusive ocus on project based CDM, the program has shited its
ocus to scaedup programmatic and sector wide approaches, in particuar targeting lDCs. It accompanies these
services with targeted capacity deveopment assistance, o which this particuar study is a good eampe.
UNDP is determined to assist deveoping countries in impementing owcarbon interventions and bringing ongterm
sustainabe deveopment benets. The sustainabe charcoa NAMA in Uganda is an eciting mitigation programme
that can achieve both objectives.
Mare Aers
Head, Energy, Inrastructure, Transport&Technoogy
Manager o MDG Carbon,
UNDP Goba Environment Faciity
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FOREWORD
Foreword
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ExECUTIVE SUMMARY
The charcoa sector currenty provides one o the greatest opportunities to hep to prevent emissions in eastdeveoped countries (lDCs) whie ostering signicant sustainabe deveopment benets. However, despite recent
improvements in the production sector, there have unti now been ew activities in CDM or genera cimate nancing.
However, the recent approva o a smascae (SSC) methodoogy or charcoa and the ongoing approva o a
charcoa standardized baseine (SB) shoud provide a strong basis or the uture deveopment o cimate nanced
charcoa projects.
First deveoped at the 2007 United Nations Framework Convention on Cimate Change (UNFCCC) Conerence o
the Parties, the concept o a nationay appropriate mitigation action (NAMA) has continuay evoved athough
ew have been designed and impemented. NAMAs are we suited to hoistic programmes since success depends
on considering a components o the vaue chain orest management, production, transportation, retai andconsumption.
This study ocuses on the midde three components o the vaue chain production, transportation and retai and
provides inormation about the Ugandan contet o the vaue chain, the stakehoders invoved, the reevant poicies
and the institutiona ramework. The core part o the study is the design o an improved vaue chain or Uganda,
incuding, at the production eve, the introduction o improved kins. A major component o the NAMA woud be
the creation and institutionaization o a charcoa unit at the district eve that is charged with, among other activities,
purchasing rom producers, categorizing the type produced so producers can be paid a dierentiated vaue based
on whether or not the product is sustainabe, and arranging transport rom the districts to Governmentcreated
warehouses ocated outside urban areas. At the warehouses, the charcoa wi be sod by retai associations.
A crucia component in the NAMA design is the incorporation o measuring, reporting and ongterm verication.
For this reason, the study incudes a system that permits robust monitoring that is impementabe in the Ugandan
contet in addition to parameters and recording and reporting procedures. It aso presents the necessary net steps
in the NAMA process that incude two stages o deveopment o a NAMA design document, which must be deveoped
in cose cooperation with stakehoders, and, eventuay, impementation. Finay, the study incudes a ist o possibe
donors to und both stages.
Eecutive Summary
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3 Reer to Section 1.2 or urther inormation about the scope o this study.4 Coconut shell charcoaling and power generation at Badalgama, Sri Lanka.
1.1. BACKGROUNDOne o the argest opportunities to prevent emissions and trigger signicant sustainabe deveopment benets in
east deveoped countries (lDCs) is improving the charcoa sector. Yet unti recenty, there has been very itte CDM
or genera cimate activity within the charcoa production sector.3 Ony two approved CDM charcoa methodoogies
eist with a newy approved third methodoogy discussed beow. The rst is a SSC methodoogy, the AMSIII.K,
which comprises the avoidance o methane reease rom charcoa production. Ony one charcoa project4 has appied
this methodoogy and ater it was registered, the rst issuance o certied emissions reductions (CERs) rom the
project was ony 12 percent o the epected voume (UNEP Risoe 2012a). The second methodoogy is a arge scae
methodoogy, the ACM0021 reating to the reduction o emissions rom charcoa production by improved kin
design and/or abatement o methane. Two projects have been registered under this methodoogy but no CERs
have yet been issued.
To date, there is no methodoogy to acquire CERs rom the improvement o the eciency o the charcoa production
process or rom the reduction in the use o nonrenewabe biomass (xNRB
). The ack o a reevant methodoogy is a
missed opportunity to tap into the signicant potentia to reduce charcoa production emissions.
In addition, the ack o incentives to switch to renewabe biomass or o interventions in improving charcoa production
eciency has been ueed by a number o actors, incuding its ow cost, generay underpriced by 20 to 50 percent,
and strong cutura barriers to switch to aternative ues. As a resut, use xNRB
and o traditiona oweciency kins
continues aongside conventiona charcoa production and the consumption chain, which paces a high burden onoca orest resources and becoming a major source o deorestation.
At the seventieth CDM Eecutive Board (EB) meeting hed in November 2012, a new charcoa methodoogy was
approved. The SSC methodoogy, AMSIII.BG: Emission reduction through sustainabe charcoa production and
consumption, wi or the rst time provide an opportunity to earn CERs or switching rom xNRB
to renewabe biomass
in improved kins. In addition, the rst SB submitted to the UNFCCC is or charcoa production in Uganda. This SB
was submitted in May 2012; an initia assessment by the UNFCCC was successuy competed and a more detaied
assessment has been ongoing since November 2012.
The new SSC methodoogy and SB pave the way or urther carbon market activity or improved charcoa productionby providing a strong basis or Measuring, Reporting and Verication (MRV). In particuar, the SB provides strong and
conservative assumptions with regard to the yied and carbon fows in the baseine production. It is in that ight that
this study was commissioned. The goa o the study is to undertake a basic assessment o how the charcoa SB in
Uganda coud be urther buit upon and epanded on a poicy eve, in the orm o a NAMA.
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1. INTRODUCTION, 1.1. BACKGROUND
1. Introduction
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UNDP nanced this study with the goa that the deveopment o the NAMA concept woud provide an importantopportunity or Uganda to hep to shape its uture ow carbon deveopment. The impementation o an improved
charcoa vaue chain NAMA wi hep Uganda to increase the eciency and eectiveness o its current vaue chain
and wi enabe Uganda to remove a major driver o deorestation whie increasing energy security and sustainabiity.
Estabishing an adequate NAMA or the charcoa probem woud ideay entai the oowing steps:
i. Assessment: Knowing the scae o the probem in order to provide a soution at a sucient or at east
meaningu scae
ii. Anayss: Presenting the unctiona chain that inks the consumption o charcoa as cooking energy to
deorestation
iii. Frmuatn respnse: On the basis o the unctiona chain, identiying and seecting the most appropriate
scope o intervention to address the probem (e.g. depoyment o improved production technoogies; switch to
aternative sources o biomass, etc.)
iv. Mntrng resuts rst part te MRV: Computing the resuts achieved by the NAMA intervention or
the seected measures
v. Evauatn te stefetveness te resuts send part te MRV: Economic indicators on the
cost eectiveness o the probem shoud be incuded in order to check the cost o avoided emissions against
initia assumptions
vi. Evauatn te mpats trd part MRV: The MRV o the resuts shoud enabe an evauation o
the impacts
This report provides a strong basis or steps (i) through (iii) and touches upon (iv) through (vi). Foowing the competion
o this NAMA study, the net step woud be a urther eaboration o a steps.
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1.1. BACKGROUND
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1.2. SCOPEAs wi be seen in Section 3.2, the charcoa vaue chain is comprised o ve components: orest management, production,
transportation, retai and consumption.
The rst component o the vaue chain that coud be improved is orest management. This component wi be touched
upon in this study but wi not be eaborated since the issue is being addressed by other initiatives, such as the Uganda
Forest Working Group Sustainabe Forest Management, and shoud be addressed by orestry eperts.
The components o production, transportation and, to a esser etent, retai wi be addressed in this study.
The na crucia component o the vaue chain is consumer demand. This component, which is oten eamined in
reation to carbon nance, consists o reduction in consumption through the use o improved cook stoves. Indeed the
energy eciency o unimproved charcoa cook stoves is quite ow, with an eciency o ony 17 percent, whie modern
cook stoves can reach an eciency o above 40 percent (Berkeey Air Monitoring Group 2012). This indicates that
switching to more ecient cook stoves coud signicanty sash the demand or charcoa whie providing the same
cooking energy.
Athough there is a great potentia or charcoa savings rom improved charcoa cook stoves, the present study wi not
ocus on the user side o the charcoa chain or the oowing reasons:
1. Programmes and projects aimed at improving the energy eciency o charcoa cook stoves are aready underwayin severa countries, incuding Uganda, where reated projects incude Improved Cook stoves or East Arica,
Ecient Cook stove Programme: Uganda and Up Energy Improved Cook stoves (UNEP Risoe 2012b).
2. Pressure on countries where charcoa is used as a cooking ue is oten doubed, with growing popuations and
charcoa demands aongside the decreasing avaiabiity o wood. For eampe, charcoa demand in Uganda is
growing at yeary rate o +6 percent and without intervention orecasts show that a tota depetion o orestry
resources woud occur by 2050 (NEMA 2008). With this in mind, soey improving the mid to ongterm eciency
o charcoa stoves might not be sucient.
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1.2. SCOPE
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It shoud be noted that when the u NAMA design document is deveoped, improved cook stoves need to be takeninto consideration. The incusion o improved cook stoves is particuary important regarding charcoa price easticity.
I the use o improved cook stoves signicanty increases, the demand or charcoa wi in turn signicanty decrease,
eading to ower charcoa prices. A price decrease wi change the prot made by actors throughout the vaue chain
and must be considered as it coud signicanty aect stakehoders wiingness to engage in an improved vaue chain.
UNDP strongy supports the integration o this NAMA study with other reevant initiatives in Uganda, or instance,
a Goba Environment Faciity (GEF) supported project that has a highy reevant goa o securing mutipe environmenta
benets. Addressing the twin chaenges o unsustainabe utiization o biomass or charcoa and poor and management
practices common in Ugandas woodands, the project uses technoogy transer and ue switch, improved data
coection and carbon monitoring and promotion o sustainabe and and orest management practices.
This study serves to provide inormation that can be used to concretey deveop the necessary documentation
needed or the successu impementation o an ecient charcoa production NAMA in Uganda.
1.3. STRUCTURE
The study wi rst introduce NAMAs and report on the current progress at the internationa eve. A genera
introduction provides the reader with background knowedge, incuding eampes o charcoa poicies impemented
in subSaharan Arica. The study wi then narrow its ocus to Uganda, providing background inormation about the
vaue chain, poicies, institutiona ramework and, briefy, other ongoing initiatives. Net, technoogy options orimproved production wi be provided. The most reevant o these technoogies wi then be incuded, amongst other
activities, poicies and the governance structure, in the proposa or the NAMA. The grounds or the NAMA measuring,
reporting and verication wi then be set. Finay, a discussion covers where support or the NAMA is needed and who
coud provide it.
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1.3. STRUCTURE
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The NAMA concept was created at the 2007 thir teenth Conerence o the Parties (COP) to the UNFCCC. Since
then progress at the internationa eve on the design o NAMAs has been sow but steady athough the eact
denition o the concept remains vague. The key dening criteria or a NAMA are that the concept is comprised
o measurabe, reportabe and veriabe (MRV) emissions reductions activities by deveoping countries in the
contet o sustainabe deveopment (UNFCCC 2007). Two types o NAMAs have been dened domesticay
or internationay supported with support coming in the orm o nance, capacity or technoogy transer.
A number o deveopments at the teenth COP to the UNFCCC (COP15) in 2009 in Copenhagen incuded deveoping
countries requests to submit inormation about NAMAs and decisions to create a UNFCCC NAMA registry and to
conduct internationa consutations and anayses o biennia reports (UNFCCC 2009). In 2010, at COP16 in Cancun,
a decision permitted deveoping countries to appy NAMAs to reach a deviation rom businessasusua (BAU)
emissions in 2020. In 2010 and 2011, deveoping countries submitted an etensive ist o NAMAs to the UNFCCC
and COP17 in Durban saw the mandate to deveop and naize the NAMA registry prior to COP18.
In 2011 and 2012, NAMA progress was made on the ground. Capacity buiding activities or deveoping countries
began, initia NAMA documents were written and requests or support or NAMA designs were upoaded onto
the registry. The concept o NAMAs has sowy been turned into concrete actions.
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2. NATIONAllY APPROPRIATE MITIGATION ACTION
2. Nationay Appropriate
Mitigation Action
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3.1. PRODUCTIONBiomass ues are an essentia component o ie in Arica, meeting more than 90 percent o energy needs in much
o subSaharan Arica. In 2000, househods in the region were estimated to consume neary 0.72 tonnes per capita or
470 miion tonnes o wood ues in the orm o pure wood and charcoa (Baiis et a. 2005), with this number increasing
over time as popuation does. Since much o the biomass consumed is nonrenewabe, there is a signicant generation
o greenhouse gas emissions. The majority o the biomass used in rura areas is wood and, across the region, the use o
charcoa is imited to urban househods.
For instance, in Kenya, 80 percent o househods rey on charcoa as their primary source o ue or cooking (Energy
or Sustainabe Deveopment Arica 2005). Scenarios that anticipate arge shits to charcoa and no improvements in
harvesting and production suggest that greenhouse gas emissions associated with charcoa coud reach 15 biion
tonnes o CO2
by 2050 (Steenbik 2006).
Charcoa is produced by sow pyroysis, which is the heating o wood or other substances in the absence o oygen.
Pyroysis, or carbonization, is initiated by heating a pie o wood under controed conditions in a cosed space, such
as a charcoa kin, with a very imited suppy o air triggering endothermic and eothermic reactions. The biomass
produces, as a resut o the pyroysis process, a miture o gas, iquid and charcoa (Energypedia 2012). This process
is usuay carried out in traditiona kins. Once the charcoa has cooed, it is paced into bags and transported to retai
centers, mainy in urban areas. The entire process can take 7 to 12 days (Greenpower 2012a).
Traditiona kins have conversion eciencies o 10 to 22 percent (cacuated on using ovendry wood with 0 percent
water content), resuting in the use o 8 to 12 kiograms (kg) o wood or the production o 1 kg o charcoa. This ow
eciency is primariy due to the rudimentary techniques used by producers. Variabes, such as pyroysis temperature
and time, and the initia rate o heating have a signicant impact on charcoas physica and chemica properties (Cua
Surez et a. 2010), thereore aecting the eciency o the production process. Switching to the use o improved kins
can resut in increasing eciency up to 30 to 42 percent, with the use o just 3 to 4 kg o wood per kg o charcoa
produced (Adam 2009).
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3. CHARCOAl SECTOR, 3.1. PRODUCTION
3. Charcoa Sector
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3.2. VALUE CHAINFigure 1: Charcoal value chain
Each component o the chain has a number o dierent actors. As mentioned previousy, this study wi ocus on the
midde three components production, transportation and retai. The study wi ocus on key stakehoders in the
eisting vaue chain (See Figure 2).
Producers have access to private orest ands where they produce charcoa to se
The intermediaries connect the producers and transporters who are then invoved with transporting the charcoa,
either iegay or egay (i.e. ater paying the appicabe evy) to the urban centres
Whoesaers are invoved with buk trade and operate rom markets ocated within urban centres
Retaiers purchase rom the whoesaers and vary greaty in scae o operation (rom arge markets to individua
shop owners).
Figure 2: Key stakeholders in eisting charcoal value chain
PRODUCERSINTERMEDIARIES/
WHOLESALERS
RETAILERS
(Urban centric)
CONSUMERS
(Urban centric)
ExISTING CHAR COAL VALUE CHAIN
Source: Authors.
Source: Authors.
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3.2. VAlUE CH AIN
1. Forest
management
2. Charcoal
production
3. Transportation 4. Charcoal
retail
5. Charcoal
consumption
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3.3. POLICIES IN SUB-SAHARAN AFRICAIn order to try and address the probem o deorestation caused by the charcoa sector, a number o countries have
impemented a variety o poicies and reguations. Reevant reguations range rom those reated to orestry management,
ogging, charcoa production, transport and use. Discussion o three eampes o reguation is presented beow,
demonstrating some o the chaenges .
Chad
In 2008, the Government o Chad passed a aw banning the production o charcoa produced rom reshy cut trees.
At the same time, the President introduced another initiative o panting a miion trees over ve years to act as
a buer against the encroaching desert. The tree panting initiative has been wecomed but the charcoa ban hasproved highy controversia as the initiative was announced ony three weeks prior to coming into orce and once
the aw was enacted, the Government bocked a charcoa, regardess o how it was produced, rom coming into
the capita, Ndjamena (IRIN 2009). The Government introduced a subsidy on natura gas, however, prices have
increased threeod since the ban was impemented, eaving many peope without an economicay viabe ue
option (Hicks 2012).
Kena
In 1999, the Kenyan Government introduced a partia ogging ban in pubic orests that aowed ony our arge timber
companies to og in state orests and reorest the and. The ban was ited in 2010 ater it had caused increased iega
ogging, destroyed timber reated jobs and resuted in higher charcoa prices (Migiro 2012). In November 2012, the
Kenya Forest Service announced a new charcoa poicy to egaize and reguate the charcoa trade ees and charges wi
be evied on the charcoa and the revenue wi then be returned to the charcoaproducing communities (Ndonga 2012).
United Republic o Tanzania
In 2006, the Tanzanian Ministry o Natura Resources and Tourism (MNRT) introduced a ban on charcoa or a period
o two weeks to study the impact on the trade. During the two week ban, production, trade and use o charcoa
continued amost unchanged, abeit under more dicut conditions. The unsuccessu enorcement o the ban by the
MNRT ocers, as we as by other Government agencies may have been due to two reasons: the poicy measure to ban
charcoa was not we coordinated among the dierent government agencies who are at east party responsibe
or the subject matter; or the monitoring and enorcement machineries o the other Government agencies were as
ineective as MNRTs bureaucracy to successuy enorce the compete ban on charcoa (Word Bank 2010).
As can be seen, many charcoa poicies have been ineective. These aiures highight the need or a uy integrated
approach, with signicant stakehoder engagement, to tacking the chaenges o an inecient charcoa vaue chain.
It is in this contet that a uy integrated NAMA needs to be deveoped.
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3.3. POlICIES IN SUB-SAHARAN AFRICA
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4.1. BACKGROUND
The importance o charcoa in Uganda can be gauged by its nickname, back god, as it is reerred to by some traders
in Kampaa. Charcoa in Uganda is viewed by urban househods as a reiabe, convenient and accessibe source o
cooking ue avaiabe at a stabe price. More than 90 percent o the popuation depends on charcoa and rewood
as the primary source o cooking ue (GIZ 2011). The uncertainties around the avaiabiity and high costs o iqueed
petroeum gas (lPG) usuay resuts in most rich urban househods depending on charcoa cook stoves as backups.
Moreover, the socioeconomic importance o charcoa is substantia, invoving the iveihoods o thousands o peope
who work in the charcoa vaue chain.
However, there is a growing concern in Uganda about the deteriorating state o the countrys orest cover. The Nationa
Forestry Authority (NFA) estimates that 80,000 hectares o private and protected orests are being ceared annuay
or the unsustainabe production o charcoa and timber (IRIN 2012).5 This is a signicant increase rom the estimated
50,000 hectares in 2004. For a country where one quarter o the and is covered by orests, the current rate o deorestation
transates to amost 1.24 percent o the orest and being ost annuay (Knpfe 2004).
Production
In Uganda, ike many other countries in the region, charcoa production is predominanty undertaken by rura
popuations in unorganized groups or individuas. Foowing the pyroysis process and ater having cooed, the
newy produced charcoa is coected in bags with an average weight o 50 to 60 kg and carried to the nearest road
coection point where intermediaries (transporters, traders) pay o the producers at an onspot price and transport
the charcoa to urban centres, predominanty Kampaa.
Given the unorganized nature o the business and the compeities invoved in the vauechain rom producers to
the urban consumers there is a dearth o veriabe and uptodate inormation. In 2004, a survey was undertaken
by the then Ministry o Energy and Minera Deveopment (MEMD) to estimate the annua consumption o charcoa
in Kampaa and to determine the district o its origin. The data coection was carried out by ed agents positioned
at ten entry points covering a important arteria roads entering Kampaa. Over a oneweek period, the agentsphysicay counted and measured the charcoa bags and questioned the source o origin o the charcoa. The data
was then etrapoated to determine the annua vaues o charcoa produced rom each region. A summary o the
data is provided in Tabe 1 and Figure 3. Whie the methodoogy ceary shows the chaenges associated with
acquiring accurate data, which is not uncommon in many lDCs, it aso provides a practica and proven soution
or pursuing simiar initiatives in uture.
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4. CURRENT CHARCOAl SITUATION IN UGANDA, 4.1. BACKGROUND
5 See accessed 21 December 2012.
4. Current Charcoa Situation
in Uganda
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Figure 3: Map o Uganda showing urban centres red and districts
Source: Ezion Maps, N.D. (Mentioned).
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4.1. BACKGROUND
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Value ChainMost trees used or charcoa production in Uganda are chopped rom privatey owned orests. The enorcement o
aws to prevent random deorestation on private ands has been dicut given the unorganized and distributed nature
o the activity. From 1990 to 2005, as seen in the Nationa Biomass Study, there was a 28 percent decrease in orest
cover, rom 4.9 miion hectares to 3.5 miion hectares (MEMD 2001, 30). As charcoa consumption is concentrated in
urban areas, the deorestation activities have been greatest in centra Uganda orest ands, which are near the cities,
as can be seen in Figure 4.
Figure 4:The cone o major deorestation activities
MAJOR URBAN CENTERS
CONE OF DEFORESTATION
Source: Authors.
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4.1. BACKGROUND
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A signicant voume (5 to 15 percent at production sites and 5 to 20 percent at retai areas) o charcoa in the ormcharcoa dust is ost during transportation and improper storage (Knpfe 2004). The signicance o these osses can
be gauged by the act that manuacturers around Kampaa buy out the residua charcoa dust and combine it with
a binding agent ike cassava to orm charcoa briquettes. A briquette manuacturer interviewed at the time o the
onsite study reveaed that he produced over one tonne o briquettes per day with the capacity to scae up to 4 to
5 tonnes/day in the immediate uture.
Apart rom the income generating potentia that charcoa production oers to the rura popuation, the producing
districts stand to earn signicant revenue through taation. Districts charge a evy in the range o 15 to 20 percent o
the tota vaue on the charcoa that is eported out o the districts. However, traders nd means to bypass this taation
resuting in signicant economic osses or the districts. Transporters oten resort to taking detours through anes andorest roads to bypass check points ocated on the major arteria roads.
Transportation o charcoa is oten unorganized and requenty invoves overoaded trucks o varying capacities.
The charcoa is transported to temporary storage sites in and around urban centres rom which it is then distributed
through a network o oca retaiers. Transportation aso invoves a arge spectrum o peope ooking to take advantage
o the reativey high price dierence between the money paid to the producers and the na price paid by consumers.
A market survey indicates that the 2012 retai market price o charcoa in Kampaa is in the range o 800 to 1,000
Ugandan shiings (UGx)/kg and producers can epect to be paid in the range o 5 to 10 percent o the retai price.
Further inormation about charcoa prices can be seen in Bo 1.
Box 1: Prices in Kampala
Source: Based on data coected by authors at time o site visit, Oct 2012.
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4.1. BACKGROUND
For a amily o ve, the average monthly charcoal consumption in Kampala is approimately two 70kg bags. The price
o a 70 kg bag is 55,000 to 70,000 UGx, a signicant increase rom the price o 20,000 UGx three years ago. The price
increase can be attributed to rapidly depleting orests. Locals indicate a reluctance to travel or more than 0.5 km to buy
charcoal, which indicates the density o the retail network. Most oten charcoal is stored in small neighbourhood shops
that maintain a stock o a ew bags o varying sizes.
In comparison, prices o briquettes remain competitive. Green Bio Energy, a local manuacturer, sells three package sizes
under the brand Briketi at the ollowing retail price:
Small bags 1.1-1.25 kg: 800 UGx
Medium bags 5.5 kg: 7,000 UGx branded, packaged in carton with re starters
Large bags 25 or 50 kg: 18,000 and 35,000 UGx
The average retail price o charcoal briquettes is lower than conventional charcoal, given that the manuacturer incurs
no cost o procuring charcoal dust, uses locally improvised technology and maintains a lower overhead or himsel i.e.
takes no salary. The cost o setting up a briquetting plant has been low as the investments have been made rom personal
savings and some grant nancing. The current market o briquettes is very limited given the low number o the briquette
manuacturers in Kampala, low awareness o the option and that the manuacturers have limited access to the eisting
charcoal value chain retailers. Hence, companies such as Green Bio Energy supply briquettes to supermarkets with the
target market being educated, upper middle-class customers.
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Charcoal EconomicsAny charcoa reated project in Uganda needs to take into account the entire vaue chain o production, transportation
and distribution. The cassic eampe o a producer is a rura mae who undertakes production activity as an additiona
source o income to suppement his earnings rom working on the eds. Operations tend to be unorganized as they
are based on the individua producers constanty changing daiy income needs. In Uganda, charcoa producers can
aso incude the entire spectrum o the popuation incuding women and chidren, working in organized groups or
as individuas.
The raw materia or charcoa production is most oten cut rom private orest ands, where cuturay there is a notion
o community and ancestra ownership. In many cases and owners encourage deorestation as it aows them to
convert orestand into more productive arming and at a reativey ow cost. More organized charcoa producers have
some sort o a nancia arrangement with the orest and owners based either on the number o bags o charcoa
produced or the area o orest and being ceared. Given the producers imited coective bargaining power, and aso
their ack o knowedge/incentive to increase production eciency, the share o the tota revenue pie to producers
is airy ow, ranging rom 5 to 10 percent). Any structure that incentivizes sustainabe charcoa production must
ocus on providing a stabe, assured and higher nancia return to the producers. Apart rom charcoa producers, the
owners o private orest ands need to be made aware o the opportunities or comparabe or better economic returns
by retaining the orests as compared to cearing the orest and or agricuture. The NAMA concept or an improved
charcoa vaue chain takes an incusive approach and proposes a potentia soution that addresses the concerns o
a stakehoders.
Industr Findings
The orest ands in Uganda can be cassied as either Governmentowned orests managed by the Nationa Forestry
Authority or private orest ands owned by individuas or cans. The atter constitutes 70 percent o the tota orest ands
in Uganda with orest ownership being passed down through generations.
Athough there are severa studies on the impact o charcoa on deorestation in Uganda, the east understood act is
the impact o the eisting socia system, the various cans and their perception about orest ands and orest ownership.
The ownership structure on private orests can be compicated, with severa individuas staking a caim on the absoute
ownership o a particuar orest. The trees in the private orests are deemed to be owned by the individuas/cans and
are, thereore, subject to deorestation without any authorization.
In many cases, the private owners aow tenants to reside on the private orest ands and aow them to cut down
the trees in return or a predetermined ee, e.g. based on the number o bags o charcoa produced. There are aso
instances where tenants are encouraged to cut down trees and prot through charcoa production as the owners are
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4.1. BACKGROUND
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incined to convert orests into agricutura and, which ensures ong term nancia returns. The orests continue toprovide the rura popuation the singe argest source o income in the orm o charcoa, rewood, timber and other
orest products, such as medicine, materia or crats etc.
Outside the orest ands, the charcoa industry aso provides a signicant source o income, both directy and indirecty,
or various sections o the society and or the Government. There are parties with signicant vested interests in
ensuring that the eisting charcoa vaue chain is not disturbed. Any signicant ecusion o the various invoved
parties rom the eisting vaue chain without consideration or aternative sources o income can ead to opposition
rom the parties and socia disturbances (e.g. there has been an instance where charcoa transporters set re to a truck
carrying briquettes into Kampaa when briquette manuacturing was viewed as competition). Thereore, the approach
to introducing sustainabe charcoa practices needs to be gradua. The aected parties need to understand the reasonor change (e.g. unsustainabe orestry woud eventuay ead to permanent oss o income) and avenues to adapt
to the changes woud need to be provided (e.g. graduay introduce sustainabe charcoa whie sowy reducing the
demand or unsustainabe charcoa through a combination o poicy initiatives and market condition). Furthermore,
a more incusive approach needs to be designed (e.g. empoy eisting transporters o unsustainabe charcoa to
hasseree transportation o sustainabe charcoa to identied warehouses).
The broad set o issues that need to be tacked is:
Ugandas energy poicy and government reguations
Charcoa production and suppy chain, incuding producers, transporters and retaiers
Sustainabe orest and woodot management
Energy ecient cook stoves
Roe and demands o internationa donor agencies
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4.1. BACKGROUND
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4.2. POLICIES AND PROGRAMMESCharcoa in Uganda as under two ministries (See Figure 5). As a source o energy, the charcoa vaue chain is subject
to rues and reguations under the Ministry o Energy and Mineras (MEM) (aso reerred to as i ts ormer name o
Ministry o Energy and Minera Deveopment). As the raw materia is sourced rom orest ands, the vaue chain rom
the charcoa production perspective is subject to the Ministry o Water and Environment (MWE).
Figure 5: Schematic representation o major policies in Uganda with impact on charcoal
Uganda Vision 2040
The Nationa Panning Authority estabished in 2002 has been entrusted with deveoping a ongterm country strategy
or Uganda with the objective o a transormed Ugandan society rom a peasant to a modern and prosperous country
within 30 years (NPA 2012). The Uganda Vision 2040, a vision ramework document, provides broad deveopment
indicators or 33 categories, with % o popuation with access to eectricity sated to increase rom the 2010 baseine
o 11 percent to 80 percent by 2040. Whie acknowedging that 95 percent o househods use wood and/or charcoa
as the primary cooking ue, the document states that over the vision period, the Government wi epand the rura
eectrication programme to cover the whoe country and aternative energy sources such as soar, natura gas and
biogas wi be promoted (NPA 2012). The ongterm deveopment o charcoa vaue chain, thereore, does not orm
a critica part o Ugandas ongterm energy strategy.
UGANDA VISION 2040
Other related policies
MEM, Uganda
Energy Policy o Uganda
Renewable Energy
Policy o Uganda
Biomass Energy StrategyBEST proposed
MWE, Uganda
National Forest Policy
National Environment ActNational Environment Action Plan
National Environment Management Policy
Source: Authors.
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4.2. POlICIES AND PROGRAMMES
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Energ PolicThe Energy Poicy o Uganda was ormuated by the Ministry o Energy and Minera Deveopment in 2002 and broady
ooks into the energy sector in Uganda via the oowing categories: power, petroeum, new and renewabe sources
o energy and atomic energy. The poicy has a reativey supportive tone or grid connected power and eporation
o oi and gas reated sectors. The ist beow provides the nancia resources (required and committed) as per Anne 1
o the document:
Power generation (hydro power, minihydro and bagasse cogen project): $1.61 miion
Rura eectrication and soar PV projects: $357 miion
Improvement o transmission & distribution network: $184 miion
Petroeum eporation and deveopment o suppy chain: $179 miion
Environmenta impact, energy governance and administration: $30 miion
Promotion o the use o Renewabe Energy (RE) and Energy Eciency (EE): $16 miion
Renewable Energ Polic
Approved by the cabinet in 2007, the Renewabe Energy Poicy o Uganda was an outcome emerging rom the need
to ocus on RE in the Energy Poicy o Uganda. The objective o the poicy is to increase the use o modern RE rom
4 percent to 61 percent by 2017, driven chiefy by a 3.5od increase o renewabe power generation rom 412 MW in
2007 to 1420 MW in 2017 (o which 1285 MW constituted arge and minihydro). For charcoareated technoogies,the scaingup is as shown in the Tabe 2 beow:
Table 2: Planned increase o modern energy services
There is no data avaiabe on the current status (2012) o the abovementioned services.
MoDERN ENERGY SERVicES FoR
hoUSEholDS 2007 2012 2017
Improved woodstoves 170,000 500,000 4,000,000
Improved charcoal stoves 30,000 100,000 250,000
Institutional stoves 450 1,500 5,000
Baking ovens 60 250 1,000
Kilns 10 30 100
Source: Rura eectrication agency 2007 (Mentioned).
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4.2. POlICIES AND PROGRAMMES
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Environmental PoliciesThe countrys three important environment poicies are the Nationa Environment Act (1995), the Nationa Environment
Action Pan (1994) and Nationa Environment Management Poicy (1994). Together they provide strategies to guide
and assist decision makers and users to determine nationa environmenta priorities at nationa, sectora and individua
eves, incuding the private sector. The poicies integrate environmenta concerns with socioeconomic deveopment
and hence orm an important guidance or decision making.
More importanty, the poicies recognize the importance o sectorspecic attention and as a resut, sectorspecic
rameworks have been deveoped. These incude the 1995 Water Poicy, the 1996 Nationa Wetands Management
Poicy, the 1996 Widie Poicy, the 2000 Fisheries Poicy, the 2001 Forestry Poicy and severa district environment
management poicies deveoped since 2000.
National Forestr Polic
The Uganda Nationa Forestry Poicy (NFP) was set orth by the Ministry o Water, lands and Environment (MWlE)
in 2001 with the view to sustainaby manage orests, woodands and trees, providing ecoogica and socia services,
producing economic goods or present and uture generations o Ugandans, and making a contribution to the goba
community. The key issues tacked in the poicy which have a direct impact on charcoa production are:
Sustainabe management and protection o permanent orest estate under government trusteeship
Promote the deveopment and sustainabe management o natura orests on private and
Promote protabe and productive orestry pantation businesses
Promote a modern, competitive, ecient and wereguated orest products processing industry
Deveop coaborative partnerships with rura communities or the sustainabe management o orests
Deveop and promote treegrowing on arms in a arming systems, and innovative mechanisms or the deivery
o orestry advisory services
Promote urban orestry
Support sustainabe orest sector deveopment through appropriate education, training and research
Deveop innovative mechanisms or the suppy o high quaity tree seed and improved panting stock
However, the poicy does not eaborate on how the key issues wi be tacked and overcome. This ack o eaboration
about impementation remains an important setback to most o the abovementioned poicies. There is a cear need
to propose a wedened roadmap and specic agenda or the promotion o sustainabe orestry and environmenta
management in the country.
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4.2. POlICIES AND PROGRAMMES
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Programmes on Biomass and Related SectorsThe Promotion o Renewabe Energy and Energy Eciency Programme (PREEEP) is being impemented by the
MEM with the support o the Deutsche Geseschat r Internationae Zusammenarbeit (GIZ), the German Financia
Cooperation (KW) and the Centre or Internationa Migration (CIM). The programme oers support in deveoping skis,
resources and capacities in the eds o energy poicy, disseminating modern biomass energy technoogies, promoting
energy eciency and rura eectrication.
The EU Energy Init iatives Partnership Diaogue Faciity and GIZ are unding the Biomass Energy Strategy (BEST)
initiative to deveop short, medium and ongterm interventions to achieve sustainabe management o biomass
energy resources and provide better energy services to the peope.
The UNDP Country Programme Action Pan (CPAP) (20102014) or Uganda is ocused on strengthening the eorts
and capacities o oca governments, civi society organizations (CSOs) and communities to hep them to sustainaby
manage and utiize natura resources, integrate cimate change adaptation and mitigation in their activities and buid
cimate change resiient societies. This is epected to be achieved through deveoping, pioting and impementing
initiatives in biodiversity and ecosystem management, sustainabe and management, ecient energy technoogies
and reduction in GHG emissions, as we as buiding cimate change resiient communities.
The low Emission Capacity Buiding (lECB) Programme is part o a arger UNDP ow emission cimate programme that
buids on initiatives aready deveoped by the UNDP and the EU. The veyear programme ocuses on the deveopment
o NAMAs, greenhouse gas inventory systems and MRV in 24 countries. Uganda has been shortisted or the lECB
programme with an emphasis on three areas, namey the energy, transport and waste sectors.
Uganda has aso been chosen as a potentia piot country or the CeanStart programme, a new UNDP and United
Nations Capita Deveopment Fund (UNCDF) joint initiative, which aims to support 2.5 miion poor peope in gaining
access cean energy through micronance across Arica and Asia. An assessment or Uganda has aready been
undertaken and the Government sha be provided with a strategy and a business pan to impement activities or
ogrid energy access under a uture potentia NAMA on energy use.
The GEF is the argest pubic unding agency or projects reated to improving the goba environment. In partnership
with 182 countries, institutions and the private sector, the GEF provides grants or projects reated to biodiversity,
cimate change, internationa waters, and degradation, the ozone ayer and persistent organic poutants. In Uganda,
the GEF has approved 25 projects in the areas o cimate change, biodiversity, and degradation and others, with
a tota grant o $73 miion and conancing o up to $585 miion. One o the recenty approved projects in the
charcoa sector reates to addressing barriers to the adoption o improved charcoa production technoogies and
sustainabe and management practices through an integrated approach.
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4.2. POlICIES AND PROGRAMMES
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4.3. INSTITUTIONAL FRAMEWORKThe Ministry o Energy and Mineras and the Ministry o Water and Environment are the two governmenta institutions
in charge o poicies reated to charcoa. The institutions invoved with charcoa and orestryreated issues are compe
at present. Whie the trees are standing, the charcoa vaue chain is under purview o the Nationa Forestry Authority,
which as under the MWE. Ater the trees are cut or charcoa production, jurisdiction o the charcoa vaue chain shits
to the MEM. As charcoa pertains to energy use, the MEM is in a better position to strengthen the charcoa vaue chain.
The abiity to sustain itse nanciay is crucia when proposing any institution as the coordinating and managing
entity or any potentia NAMA. Athough the MEM is ocused on promoting grid connected power and a greater roe
o ossi ues in the countrys energy baance, it empoys individuas who have an understanding o charcoareated
issues and, more importanty, understand the need to incude sustainabe charcoa production in the countrys short
and mediumterm energy strategy panning. The discovery o oi and gas reserves may cause MEM to reeamine their
priorities; however, it wi sti take some time beore Uganda organizes its ossi ue sector given the reativey imited
eperience it has had unti now.
The MWE on the other hand has a wide reach, ranging rom orestry (through the Nationa Forestry Authority), cimate
change (through the Cimate Change Unit and the Designated Nationa Authority) to energy (through district energy
ocers). The MWE has aso recenty set up environment poice mandated to prevent iega deorestation. The Nationa
Forestry Authority has undertaken studies based on a geographic inormation system (GIS) in order to understand
the impact o deorestation rom timber production. Thus, it is uy aware, through the use o GIS, o the country sdeorestation activities. Simiary the Cimate Change Unit (CCU) was a decisionmaker in deveoping the country s
environment programmes, incuding the deveopment o a nationa NAMA strategy to identiy the most suitabe
NAMAs or uture deveopment and government support.
Any potentia NAMA on sustainabe charcoa, thereore, needs to consider both ministries when setting up an
institutiona structure to benet rom the epertise and resources that each o them bring in (See Section 6 or
discussions on a proposa or the most appropriate institutiona ramework.).
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4.3. INSTITUTIONAl FRAMEWORK
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The overarching objective o a charcoa NAMA shoud be to baance the demand or wood or charcoa production
with the quantity o wood that can be sustainaby harvested or that purpose. In most countries, the demand or
wood eceeds the amount o wood that can be sustainaby harvested. As a consequence, the coection o wood
or charcoa production is oten a key driver o deorestation.
This section wi ook at technoogy options that can be used to improve charcoa production and, thereore, reduce
the demand or wood.
5.1. BASELINE PRODUCTION
In the absence o intervention, virtuay a o the charcoa consumed in owincome countries and lDCs is produced
by the inorma sector rom wood on the basis o unimproved technoogies. The inorma sector is characterized
by the use o traditiona kins that require no investment besides abour. The individuas or group o individuas
invoved in charcoa production are not ormay registered or reguated by the authorities or the production and
suppy o charcoa products or reated services.
The unimproved technoogies, aso reerred to as traditiona technoogies, used by the inorma charcoa makers
are earth mound kins, pit kins or equivaent openend technoogies soey made o branches and soi. They do not
incorporate parts made o meta and/or masonry.
The main probem with the baseine charcoa production is the ow conversion eciency o the wood used as both
ue and eedstock or the pyroysis process. The ratio between the mass o charcoa obtained and the mass o biomass
used or its production (ideay epressed on an ovendry basis) is caed the charcoa yied. As mentioned previousy,
the eciency o traditiona kins is 10 to 22 percent whie eciency can be increased to as high as 30 to 42 percent.
A second athough more minor probem associated with the production o charcoa is the production o methane
during the pyroysis gases. Depending on the source, between 0.027 and 0.045 tonnes o methane are emitted per
tonne o charcoa in the pyroysis gases (Mer and Michaeowa 2011).
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5. TECHNOlOGY OPTIONS FOR IMPR OVED PRODUCTION, 5.1. BASElINE PRODUC TION
5. Technoogy Options or
Improved Production
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5.2. TyPES OF TECHNOLOGy INTERVENTIONSThe oowing types o technoogy improvements can reduce the specic consumption o wood per tonne o
charcoa consumed:
i. Fuel switch: Whie virtuay a o the charcoa is produced on the basis o wood ogs, charcoa can aso be
produced rom other sources o biomass. For eampe, biomass waste, such as agricutura waste, can be used instead
o wood. An estimated 1.7 Mt o agricutura waste was ound to be avaiabe in Uganda (MEMD 2001). Whie this
amount is certainy not sucient to repace a the 4.0 Mt o wood consumed or the production o charcoa in 2006,
the switch to biomass waste can substantiay reduce the pressure on the countrys wood resources. One tonne
o charcoa produced rom aternative sources o biomass can uy avoid the harvest o wood, which in the baseine
woud have been needed to produce this tonne o charcoa (estimated at 5 tonnes o wood per tonne o charcoa).
ii. Agglomeration (or switch): Ony a ew biomass types, such as wood ogs, coconut husks and bamboo in the
orm o arge chunks, can directy orm arge pieces o charcoa. Most other sources o biomass consist ony o sma
partices. In order to produce useu pieces o charcoa, such as briquettes, an aggomeration process is needed.
An aggomeration process can either be depoyed beore the carbonization (to orm biomass briquettes to be
carbonized) or ater the carbonization (to aggomerate charcoa partices into briquettes).
iii. Increase in ield: More advanced charcoa kins enabe higher yieds in the wood to charcoa conversion. Under
optima conditions, surprisingy high yieds in the magnitude o 30 percent can be achieved rom traditiona
technoogies. In practice, however, yieds rom charcoa made rom unimproved technoogies are about 20 percent.In the case o Uganda, the yied o traditiona technoogies has been ound to be around 15.6 percent (Nturanabo et a.
2010). Improved technoogies not ony achieve higher yieds but aso are much more constant in the yieds achieved.
iv. Reduction in specifc methane emissions: The methane emissions resuting rom the pyroysis process can
either be reduced or combusted with or without energy recovery.
a. Methane ormation avoidance: As methane emissions are negativey correated with the eciency o the
wood to charcoa yied (Kammen and lew 2005), opting or a more ecient technoogy wi resut in ower
methane emissions. So ar, specic methane emissions per tonne o charcoa have ony been measured or
a imited number o kins. As such, there are sti arge uncertainties about the scae o methane emissionsreductions rom various technoogies. Determining the methane ormation avoidance requires determining,
on a basis o samping, the specic CH4
emissions per tonne o charcoa in the project.
b. Methane destruction with or without energ recover: When pyroysis gases are uy captured and
combusted, methane emissions, which woud otherwise have occurred as the resut o the pyroysis process, can
be uy avoided. As the pyroysis gas stream has a substantia energy content, it can be combusted to produce heat
either as process energy or the pyroysis reaction or or other uses, such as power generation. In the case o methane
destruction, the methane can be assumed to be competey destroyed i pyroysis gases are uy combusted.
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5.2. TYPES OF TECHNOlOGY INTERVENTIONS
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5.3. SELECTED TECHNOLOGIESAthough many technoogies or the improved production o charcoa eist, it was decided not to ist a options but
instead to emphasize the most adequate and prominent technoogies or the oca contet. Technoogies can be
divided in three broad categories:
i. Carbonization technoogies
ii. Briquetting technoogies
iii. Integrated (carbonization and briquetting) soutions
Carbonization technologies:
Many carbonization technoogies eist, but their eciency varies (For the most costecient, see Tabe 3). For eampe,
brick kins can commony achieve eciencies o 30 percent. Compared to the Adam kin reguar, brick kins are suboptima
as the cost, scae and dicuty o adoption is simiar whie achievements are ower (ower yied and much ower
reduction in methane emissions). Aso, many thirdgeneration retort ki ns eist.
Table 3: Carbonization technologies
NAME ADAM REToRT kilN
Type Retort kiln - Brick kiln advanced 2nd
generation kilnsCapacity per kiln 47 tonnes per year
Cost per unit $1,200+ license cost o $2,000 + $40 per kiln
Yield 35-40% Adam 2009
Specic cost USD 25/t
Power consumption None to be conrmed
CH4
emission actor 0.0036 kg/t charcoal based on an estimated 88% reduction rate Adams n.d.
Strengths Small scale: easier adoption at the level o communities
Can be built with locally sourced material and labour
High yields can be achieved
Very low specic cost per tonne produced
Weaknesses Large range o yields: sampling required to determine the real achieved yield
Need or trained operators
Not transportable
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5.3. SElECTED TECHNOlOGIES
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NAME EURo kilN (GREENPoWER)
Type Twin Retort 3rd generation kilns
Capacity per kiln 500 tonnes per year
Cost per unit $39,000
Yield 35-40%
Specic cost $78/t
Power consumption up to 0.55 kW/hr Greenpower 2012b
CH4
emission actor 0 kg/t charcoal assuming ull faring
Strengths Automated operations
High and steady yields
Moderate to low specic cost per tonne produced
High quality o products over 90% carbon content with wood charcoal
Weaknesses Import o equipment
Large scale which cannot be easily integrated to communities
Sedentary large scale: need to transport wood to the kiln
Need or source o power
NAME EURo kilN (GREENPoWER)
Type Improved traditional kilns advanced 1st generation kilns
Capacity per kiln 50 tonnes per year
Cost per unit $200 per portable chimney + training cost
Yield Up to 30% Energypedia 2012
Specic cost $4/t
Power consumption None
CH4
emission actor Unknown
Strengths Micro scale: easy adoption at the level o communities
Simple equipment which can be produced locally
Good yieldsVery low specic capital cost per tonne produced
Portable: also adequate or hilly and mountainous areas
Weaknesses Unknown specic methane emissions
Need or operator training
Additional eort to cut and pile logs in specic stacked 50 cm length pieces
Limited technical lietime
Source: Authors.
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5.3. SElECTED TECHNOlOGIES
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When considering the cost o kins, its epected ietime and the operation and maintenance costs need to be considered.For instance, the chimneys used in the Casamance kin may ony ast or 3 to 5 uses, i ow cost ocay produced chimneys
are used. Adam and Euro kins, on the other hand, may have ietimes spanning a number o years.
Briquetting technologies:
A arge seection o briquetting technoogies eist (For a sampe o the briquetting technoogies, see Tabe 4). From
a short review o briquetting technoogies, the oowing acts can be highighted:
i. The observed cost or briquetting equipment ranges rom $4.4 to $20 per tonne o charcoa, depending on
whether briquetting takes pace beore or ater carbonization
ii. The cost o briquetting is sma when compared to the na charcoa price. For eampe, charcoa briquettes in
Kampaa cost around $380/tonne (converted rom UGx 1,000/kg charcoa) whie briquetting equipment soey
cost $10/tonne
iii. A major barrier to the depoyment o briquetting technoogies remains the ack o an avaiabe eectricity grid. In
countries with very ow eves o rura eectrication, such as Uganda, charcoa briquette projects wi either need
to generate their own eectricity or be sited where a connection to grid eectricity is possibe
iv. The biggest chaenge remains how the technoogy can be either imported or deveoped/repicated and
maintained ocay
Table 4: Briquetting technologies
NAME
Type Charcoal particles briquettingSel-made briquetting machine meat mincer + 1 horsepower electric motor
Capacity unit 30 tonnes o charcoal powder briquetting per year rom 10 kg per hourShri AMM 2010
Cost per unit $363 per unit
Specic cost $12.1 per tonne o charcoal particles turned into briquettes per year
Power consumption 0.75 kW rom 1hp
Strengths Simple technologyLow cost per unit o outputUse o charcoal dust possible
Weaknesses Consumption o power limited availabilityImportant need o labor
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5.3. SElECTED TECHNOlOGIES
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NAME JUMBo 90
Type Biomass briquettingLarge automated briquetting press
Capacity unit Ma. 10,500 tonnes biomass per year rom 1.5 t per hour Radhe, n.d.
Cost per unit n.a.
Specic cost 7.2/t biomass per yearEquivalent to $/20 tonne o charcoal per year assuming a 35% yield
Power consumption 68 kilowatt equivalent converted rom 91 horsepower
Strengths Automated
No need or binding materialCan use a variety o particle sizes
Weaknesses Consumption o power limited availabilityImportant need o labor
NAME PYRo 7
Type Retort kiln advanced 3rd generation kiln
Capacity per kiln 1,850 tonnes charcoal per year
Cost per unit $317,000 ecluding labour Reinaud 2008
Yield 33%
Specic cost $169/t capacity per year
Power consumption Sel-generation o power rom pyrolysis gasesPossibly additional power ree or local supply
CH4
emission actor 0 kg/t charcoal assuming ull faring
Strengths Sel-generation o power consumedFull abatement o methane emissionsGood yieldsAutomated productionIntegrated feible production rom any biomass wastesEnables limited electrication
Weaknesses Cost per unitAdvanced technology epertise and maintenanceImport o equipmentSedentary large scale: need to transport the biomass to the kiln
Integrated solutions: Briquetting and carbonization
Integrated soutions aow the production o charcoa briquettes rom a wide range o biomass. As pyroysis gases can be used
or the generation o eectricity, such autonomous aciities coud be estabished even where access to power is not avaiabe.
Source: Authors.
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5.3. SElECTED TECHNOlOGIES
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The concept o a NAMA ramework is new and, thereore, designing a NAMA ramework provides both chaenges andopportunities. The design is chaenging as there is sti no specic denition o what constitutes a NAMA ramework,
and aso oers a degree o feibiity since the ack o a concrete denition provides potentia NAMA project deveopers
with the opportunity to dene the constituents. The type o actions that are proposed to be undertaken under a
NAMA can greaty vary and may incude dierent types o targets nationa emissions reduction targets in tonnes
o carbon dioide equivaent, nationa intensitybased targets, deviations rom businessasusua emissions and a
wide variety o actions nationa poicies and strategies, sectorocused poicy approaches and specic programmes
or projects.
Given the mutipe ayers o compeities invoved in deveoping a programme or sustainabe charcoa in Uganda,
the NAMA ramework provides an idea patorm to account or and unock the huge potentia or greenhouse gas(GHG) mitigation. This section provides a conceptua idea or setting up a NAMA on sustainabe charcoa production
in Uganda. The NAMA concept ocuses on the oowing issues:
Charcoa vaue chain stakehoders producers, middemen and consumers
Sustainabe woodot/orest management
Sustainabe charcoa production/seection o kin
Institutiona ramework
Creation o an enabing environment: charcoa poicies
Given the issues discussed in Section 1.2 and the ongoing ecient cook stove projects in Uganda and other
countries in Arica, there is a arge knowedge base regarding appicabe technoogy, project impementation
and monitoring, which has been ecuded rom urther discussion.
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6. THE NAMA CONCEPT
6. The NAMA Concept
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6.1. CHARCOAL VALUE CHAINThe NAMA proposa wi need to be taken into consideration throughout the vaue chain. Figure 6 demonstrates
the eisting vaue chain and specic items to be considered aong the vaue chain.
Figure 6: Eisting charcoal value chain and considerations or developing a charcoal NAMA
None o the actors in the charcoa vaue chain have any incentive to produce or promote the use o green
charcoa (See Bo 2). The rst step or deveoping the NAMA concept, thereore, invoves, understanding the
type o incentive structure that can be created to encourage the various actors to graduay shit towards the
use o green charcoa.
PRODUCERS
Earn less than
10% o the revenuerom the charcoal
value chain
Increase incomegeneration
potential orgreen charcoal
INTERMEDIARIES/
WHOLESALERS
Make the maimumprot rom charcoal
value chain
Carrot/stickapproach to
legalize activityStrengthen taation
RETAILERS
(Urban centric)
Mostlyunorganized
small scale retailers
Organize &incentivize retailers
to promote sale ogreen charcoal
CONSUMERS
(Urban centric)
No product
dierenciation Noincentive to choose
Green charcoal
Empower end-users to understand
impact o theirdesicion making
ExISTING CHARCOAL VALUE CHAIN
Considerations or developing the NAMA charcoal value chain
Source: Authors.
* Green charcoa denotes improved and sustainabe charcoa
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6.1. CHARCOAl VAlUE CHAIN
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Box 2: Charcoal types
Incentivizing Stakeholders
As with any new technoogy or new process, the introduction o green charcoa wi invove a period o transition.
The rst objective o the improvement o the charcoa vaue chain shoud be to bring a production, ega or
otherwise, into a singe scheme. This aows or greater contro over the entire vaue chain, enabes putting in
pace a robust MRV system and makes the chain more accessibe or invoving, educating and graduay shiting
producers rom conventiona to sustainabe charcoa production. In order to design this singe scheme, signicant
coordination with various ministries and stakehoders must rst occur. Stakehoder consutations shoud be hed
and the scheme design process and design shoud be made pubicy avaiabe. Eperts in technoogies, taation and
a reevant sectors shoud be invoved. This study provides suggestions o activities that coud be incuded in the
scheme design.
Producers
Charcoa producers are the ones who benet the east rom the charcoa economy and are the most important
actors in shiting production techniques rom BAU to green charcoa. The producers can be incentivized to under
take this shit to green charcoa through higher income generation potentia. As the charcoa producers constitute
the poorest o the poor, the incentive o a signicanty higher, stabe and assured source o income is epected to
be a key driver to shit towards green charcoa use.
Intermediaries
Intermediaries nanciay benet the most and are aso responsibe or the iega nature o activities incuding
evading evies and taes resuting in signicant oss o revenue to the state echequer. The transporters move
charcoa in overoaded trucks resuting in higher waste, operate on adhoc basis and avoid paying evy on charcoa.
Whoesaers receive the charcoa rom transporters and dea in buk purchase o (e.g. 50 and 100 bags per week)
rom where the individua retaiers source the charcoa suppy or na sae (e.g. 1 or 2 bags). Any NAMA concept
that competey cuts o the income source or the vaue chain invoving intermediaries, transporters and whoesaers
Source: Authors.
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6.1. CHARCOAl VAlUE CHAIN
In this study, charcoal production is classied into three types:
Sustainable charcoal: Involves both sustainable orest management and use o ecient kilns
Improved charcoal: Produced using ecient kilns where the eciency o charcoal production is higher than the
baseline o traditional kilns
BAU charcoal: Conventionally produced using traditional kilns
The term green charcoal is used to collective represent sustainable and improved charcoal
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woud resut in a backash or oca governments as they are oten infuentia poiticay, economicay and sociay.The incentive structure shoud invove a combination o incentives with sucient opportunities to adapt to the
new market scenario. The oowing actions shoud be considered:
Bring stakehoders into the mainstream charcoa vaue chain by encouraging them to secure icense/permits or
their activities and pay taes
Provide hasseree conditions or green charcoa and evy higher taes or iega charcoa
Encourage them to participate in green charcoa production, as they have the nancia resources and manpower
to invest in modern kins
Ensure stricter border contros between districts (e.g. poice orest roads, minor roads which are oten used by
transporters to evade taation)
Retailers/Wholesalers
Retaiers are oten unorganized and dependent on daiy changing conditions (e.g. suppy o charcoa entering
Kampaa, oca demand, presence o sma/arge charcoa retaiers in the vicinity) hence charcoa retaiing is not
oten their primary business. Most retaiers are sma shop owners, who purchase a coupe o bags o charcoa
rom whoesaers rom charcoa markets in the city. Retaiers then rese the charcoa in smaer bags o 1 to 5 kg,
making them aordabe to oca consumers. Increasing the proe o green charcoa retaiers through a system o
Governmentsupported cobranding schemes woud raise the visibiity o the new product. Some cost dierentiation
or the dierent types o charcoa wi need to occur in order to encourage consumer purchase o green charcoa.
Generating additiona business through saes is epected to be the key incentive or retaiers to promote green
charcoa, given that a other conditions remain the same.
6.2. SUSTAINABLE CHARCOAL PRODUCTION
The Government o Uganda reaizes the importance o charcoa in the countr ys energy panning and the need
or a comprehensive strategy to promote sustainabe charcoa production, as seen in eorts by the Ministry o Energy
and Minera Deveopment to initiate the deveopment o a BEST and the proposed Nationa Task Force or biomass
energy. However, given the socioeconomic importance o charcoa production, the shit rom conventiona charcoa
production to sustainabe production needs to be graduay introduced to avoid disturbing the eisting socia abric.
Charcoal Classifcation
As discussed in Section 6.1, charcoa has been broady cassied into three types (See Figure 7). The BAU charcoa
currenty produced using traditiona kins constitutes amost 100 percent o charcoa production in Uganda. With ow
eciencies ranging rom 10 to 15 percent, and a growing demand, the rate o deorestation has aso seen a signicant
upward trend.
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6.1. CHARCOAl VAlUE CHAIN, 6.2. SUSTAINABlE CHARCOAl PRODUCTION
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Figure 7: Charcoal types and the type o intervention
Use o the improved charcoa wi act as a rst step in red