Public Disclosure Authorized MYANMAR WOODFUELS SECTOR Public Disclosure Authorized ASSESSMENT JUNE 2020 Public Disclosure Authorized Public Disclosure Authorized Report No: AUS0001529 . Myanmar Country Forest Note WOODFUELS SECTOR ASSESSMENT . June 2020 . Environment, Natural Resources and The Blue Economy Global Practice . © 2020 The World Bank 1818 H Street NW, Washington DC 20433 Telephone: 202-473-1000; Internet: www.worldbank.org Some rights reserved This work is a product of the staff of The World Bank with external contributions. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for noncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2020. Myanmar Woodfuels Sector Assessment. © World Bank.” All queries on rights and licenses, including subsidiary rights, should be addressed to World Bank Publications, The World Bank Group, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail: [email protected]. ii TABLE OF CONTENTS Acknowledgments .................................................................................................................................................. v Acronyms ............................................................................................................................................................... vi Executive Summary .............................................................................................................................................. vii Context.............................................................................................................................................................. vii Woodfuel consumption ................................................................................................................................ vii Woodfuel value chains ..................................................................................................................................... vii Promote appropriate alternative fuels ................................................................................................ viii Support sustainable woodfuels production ........................................................................................ viii Reduce energy loss across the value-chain. .......................................................................................... ix Build an enabling framework for sustainable woodfuels ...................................................................... ix 1. Introduction .................................................................................................................................................... 1 1.1. Context of the study ............................................................................................................................... 1 1.2. Background to the woodfuels sector ...................................................................................................... 1 Historical perspectives ............................................................................................................................ 1 Woodfuels in Myanmar .......................................................................................................................... 3 1.3. Study objectives and methodology ........................................................................................................ 6 1.4. Study limitations and recommendations for future work ...................................................................... 6 2. Woodfuel consumption .................................................................................................................................. 9 2.1. Household consumption ......................................................................................................................... 9 Main energy sources for cooking ............................................................................................................ 9 The energy ladder and fuel stacking ..................................................................................................... 12 Household woodfuel demand .............................................................................................................. 15 2.2. Commercial catering ............................................................................................................................. 18 2.3. Industrial sectors .................................................................................................................................. 19 Garment manufacturing ....................................................................................................................... 19 Industrial food and beverage production ............................................................................................. 21 Fish paste and dry shrimp production .................................................................................................. 23 Brickmaking........................................................................................................................................... 24 Other industries .................................................................................................................................... 25 Total industrial woodfuel demand ....................................................................................................... 26 2.4. Woodfuel demand summary ................................................................................................................ 27 3. Woodfuel value chains ................................................................................................................................. 28 3.1. Charcoal value chains ........................................................................................................................... 28 Supply to Yangon and Mandalay .......................................................................................................... 28 Charcoal exports ................................................................................................................................... 34 iii 3.2. Firewood value chains .......................................................................................................................... 37 4. Impacts of Woodfuels on Forests and climate ............................................................................................. 39 4.1. Overview of the modeling approach .................................................................................................... 39 4.2. Results ................................................................................................................................................... 39 4.3. Carbon footprint of woodfuels in Myanmar......................................................................................... 42 5. Intervention Options .................................................................................................................................... 43 5.1. Promote appropriate alternative energy sources ................................................................................ 43 Support switching to clean cooking fuel ............................................................................................... 43 Potential of rice husk for industrial use ................................................................................................ 48 Perspectives on wood pellets ............................................................................................................... 53 Charcoal briquettes for commercial catering ....................................................................................... 53 5.2. Support sustainable woodfuels production ......................................................................................... 54 Large-scale plantations residues........................................................................................................... 54 Tree plantations at village and household level ................................................................................... 55 Modernization of charcoal production ................................................................................................. 61 5.3. Support cleaner and more efficient woodfuel use ............................................................................... 64 Clean and efficient household cookstoves ........................................................................................... 64 Energy efficiency in industries .............................................................................................................. 67 5.4. Building an enabling framework for sustainable woodfuels ...............................................................