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Improved 'New Lao' stove (left), showing main differences with traditional Lao stove (right).

The Groupe Energies Renouvelables, Environnement et Solidarités (GERES) set up the Cambodian Fuelwood Saving Project (CFSP) which has developed a cheap charcoal stove, the 'New Lao' stove. This uses at least 22% less charcoal than the 'Traditional Lao' stoves which are commonly used in Cambodia. More than 130,000 New Lao stoves have been produced by 14 entrepreneurs and sold in Phnom Penh, the capital of Cambodia, over the past three years.

About 95% of Cambodians cook with biomass fuels. This is costly, has adverse health effects and is bad for the environment. Cambodia's great natural biodiversity is threatened by uncontrolled wood consumption. Much of this demand is for timber and a significant amount is turned into charcoal which is the preferred cooking fuel in cities, used by 40% of the population of Phnom Penh. The area of forest is diminishing but the price of charcoal has hardly increased over the last ten years, reflecting a thriving (but largely illegal) trade, and lack of taxes and other constraining factors.

One way of reducing the unsustainable wood consumption is by reducing the demand for charcoal. CFSP have worked with stove users and producers to develop a stove which is more efficient and durable than the conventional bucket-type stoves because of better insulation and controlled air flow. More than 130,000 New Lao stoves have now been sold. The 14 producers work to strict quality standards and are currently producing about 7,000 stoves per month. Although a New Lao stove costs about three times as much as a traditional stove, users are willing to pay for one because they recoup the difference in price within two months through savings on the purchase of charcoal. A network of distributors and retailers has been established and a trade organisation set up that oversees pricing and quality.