Energy Poverty

Maritta Koch-WeserLondon Clean Energy Roundtable, April 7, 2005

www.earth3000.org; www.gexsi.org

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 2

Energy Poverty

• Significance

• Characteristics“Bottom-of-the Pyramid” Clean Energy Needs

• Systemic Opportunities

• A 2015 Clean Energy Drive?

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 3

Energy Poverty-Significance

Johannesburg UN WSSD 2002concept advanced – but slow take-up

London 2005

?

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 4

Energy Poverty-Significance

• 1.7 bn people without electricity

• Unreliable energy supplies undermine “value added” development path of some 50% of world population - vast hinterland regions

• The poor are disproportionately affected by polluting energy sources (indoor & transport pollution)

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 5

Energy Poverty-Significance

Clean Energy

at the core of The United Nations “Millennium Development Goals” (MDGs)

to halve extreme poverty by 2015

employment education

health communication

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 6

Energy Poverty-Characteristics“Bottom-of-the Pyramid Needs”

• Rural: Decentralized, largely off-grid systems– Low Cost / accessible Purchase Plans– Sturdy & Easy to maintain– Culturally compatible– Integrated solutions (e.g. waste & energy, hybrid renewable energy sources)– Fast, un-cumbersome solutions for scaling up

• Energy+ – Internet– TV– Mobile telephony– Education-by-satellite– Distance Health Care– Local production units

• Urban– Clean Transport– Clean Heat & Cooking

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 7

Energy PovertySystemic Opportunities

• Potential Power of Public-Private Interplay:– Regulatory Advances (public)– Banking (Microfinance)– Technological Innovations (industry R&D)– Local Leadership & Social Organization (NGOs, Social Entrepreneurs)

• Citizen & Corporate Social Investment & Giving, e.g.– E-Giving (utilities offer major opportunities)– Orsa Model (1% of turnover)– Social Investment & Venture Funds– Social Investment Intermediaries

• Ambition beyond Pilots– From AID to (a huge) real Market– Scale, Pace, Space

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 8

Energy PovertySystemic Opportunities

Opportunities vs. Bottlenecks

• Potential Power of Public-Private Interplay:– Regulatory Advances do not focus on poorest– Governance, transparency– Banking: shy of workload, technical & social risks– Waste of time: Technological Innovations wait too long before they are picked up in the market– Local Leadership & Social Organization (NGOs, Social Entrepreneurs) – opportunity not picked up

by investors

• Citizen & Corporate Social Investment & Giving, e.g.– E-Giving – not taken to scale– CSR more cosmetic than Orsa Model (1% of turnover)– Social Investment & Venture Funds lack Investment Guarantee Instruments– Social Investment Intermediaries – not yet part of market routine

• Beyond Pilots– AID projects are not designed in consultation with industry– Many excellent pilots remain “pilots forever”

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 9

Energy PovertyA 2015 Clean Energy Drive?

London 2005

Could a common 2015 MDG

Energy Poverty Platform

make a difference?

London Clean Energy Roundtable, April 7, 2005, Dr. Maritta Koch-Weser, The Global Exchange for Social Investment 1

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Energy Poverty

Thank you