© 2009 German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) Climate Change and Energy Policy in Development Cooperation The

© 2009 German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

Climate Change and Energy Policy in Development Cooperation

The contribution of renewable energy

Anna Pegels

16.05.2009

2© 2009 German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)

Outline

Development and energy

Development and climate change

Renewable energy

Financing renewable energy


Development Policy

Foremost aim: Promote developmentMillenium development goals (by 2015):

– 1: Eradicate extreme poverty and hunger– 2: Achieve universal primary education – 3: Promote gender equality and empower women – 4: Reduce child mortality – 5: Improve maternal health – 6: Combat HIV/AIDS, malaria and other diseases – 7: Ensure environmental sustainability – 8: Develop a Global Partnership for Development


Energy and MDG 1

MDG 1: Eradicate extreme poverty and hunger (Renewable) energy can

– Create/extend opportunities for income generation:

• Machinery increases productivity• Lighting permits income generation beyond daylight hours • Local energy supplies can be provided by small-scale, locally

owned businesses creating employment• reduce the work required for biomass collection, free up time

for other productive activities

– Reduce food shortage / enhance agricultural productivity:

• pumping for supplementary irrigation• greater proportion of farm waste to be returned to the soil • Reduced post-harvest losses through better preservation


Energy and MDG 2

MDG 2: Achieve universal primary education Less time pressure on children to collect wood, fetch

water, and participate in agricultural work Electricity is essential:

• Lighting permits learning beyond daylight hours

• Higher availability of teachers through access to modern energy services, in particular electricity that enable a minimum quality of life and connectivity

• Electricity is basis for access to educational material, distance learning, and continuing education for teachers and students

• Access to energy provides the opportunity to use equipment for teaching (overhead projector, computer, printer, photocopier, science equipment)


Energy and MDG 3

MDG 3: Promote gender equality and empower women Less time and effort spent by women and young girls

gathering solid fuels and water, more free time for other income-producing activities, family subsistence, education

Enhanced productivity of women‘s activities, e.g. agricultural processing

Clean cooking fuels reduce exposure to indoor air pollution and improve health

Electricity – is basis for ICT, eases political engagement for women

(mostly unable to travel far from home / village) – Lighting permits home study and allows evening classes– Street lighting improves women’s safety


Energy and MDG 4 + 5

MDG 4: Reduce child mortality

MDG 5: Improve maternal health– Reduced workload and heavy manual labor (carrying

heavy loads of fuelwood and water)

– Reduction of lung diseases from indoor air smoke

– Pumped clean water and purification (boiling)

– Effects on Health care infrastructure:

• Refrigeration essential for vaccines

• Electricity essential for many medical instruments, medical record keeping, communication (alert button), medical training, illumination

• Higher availability of qualified health care personnel


Energy and MDG 6

MDG 6: Combat HIV/AIDS, malaria and other diseases

Effects of advanced energy sources:

– Education and awareness campaigns, including radio and television, to educate at-risk populations about prevention and treatment options

– Substituting for labor in areas where labor shortages exist as a result of HIV/AIDS

– Energy is needed to develop, manufacture, distribute and store drugs, medicines, and vaccinations


Energy and MDG 7

MDG 7: Ensure environmental sustainability

Renewable energy leads to reduction of

– Land degradation, erosion and desertification

– Indoor air pollution

– Local air pollution

– Greenhouse gas emissions

Increased agricultural productivity reduces need to expand quantity of land under cultivation


MDG 8 and Energy

MDG 8: Develop a Global Partnership for Development

Develop a Global Partnership for Clean Energy!


Development and Climate Change

97% of the projected increase in emissions between now and 2030 comes from non-OECD countries – three-quarters from China, India and the Middle East alone (Source: IEA 2008)


Climate Change and Development

More and stronger extreme weather events (Storms, floods, droughts)

Changes in precipitation patterns, negative impacts on agricultural productivity

Poorest are most vulnerable!

Multiple reasons for renewable energy in developing countries:• Greenhouse gas mitigation• Job creation• „Clean“ energy source• Diversification of energy sources, less dependency• Improved access to energy especially in rural

areas (off-grid)


RE: What technologies?

Requirements:– Scalability– Cost-effectiveness– Simple use– Simple maintenance / repair– Robustness

Best-practise cases


Solar cooker


Solar-powered lanterns


Domestic Biogas


Solar water heaters


Off-grid electricity solutions


RE: What challenges?

Lack of consideration of local needs and interests:

– Support of local leaders has to be ascertained

– Projects often threaten existing ways to obtain power

– Sometimes changeresistant villagers

– Lack of local ownership and capacity: Donation of money or equipment is not sufficient

Government subsidies for fossil fuels have held down prices in many DCs, difficult to change (impact on poverty)

Expensive RE technology:

– RE technologies still have to move down the learning curve

– Prices for PV panels have surged due to higher demand from industrialized countries


Financial gap

Possible sources: NGOs, Private sector, public sector (national + international)

NGOs: Small-scale solutions, best-practise cases Provision of energy services to poor populations

rarely profitable no easy market solution RE not profitable compared to fossil fuels no

easy market solution Public sector must create conditions and

incentives for private sector engagement Inclusion of RE in national and regional

development strategies —enabling investment conditions, regulation, ODA + climate finance


Climate financing sources

Climate Financing –

Main sources

World Bank GroupUSD 1.9 billion

(FY 09)

Climate Investment

Funds USD 5-10 billion

Other MDBs~ USD 3 billion

(FY 09)Global Facility f. Disaster

Reduction & Recovery

USD 70 million

EU Global Climate AllianceEUR 300 million

UNDPUSD 190 million for adaptation

Adaptation Fund~USD 100

million (FY 09)

GEFUSD 250 million

(FY 09)

Carbon Market (CDM/JI)

USD 5 billion (FY 09)

mitigation

bothadaptation

Source: World Bank


Conclusions

Energy is essential for development Conventional energy supply causes GHG

emissions DCs cannot follow same development path as

industrialized countries RE can be a solution to emissions problem and

grid connection problem

IF the right technology is implemented at scale with– local involvement – capacity building and– international financial support.


Thank you

Documents

© 2009 German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE) Climate Change and Energy Policy in Development Cooperation The