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Energy and Poverty Energy is essential for economic growth; the lack of electricity services, for example, is a “major and frequently severe obstacle to doing business.” Poor energy choices damage the natural environment. Lack of energy effects basic human needs for education, health and gender equity. This is unacceptable. The WBG is coordinating global efforts to address the problems of investment in clean and efficient solutions for the “plus 5” and many others.
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Energy WeekWashington, D.C.
March 8, 2006
What We Heard at What We Heard at Energy WeekEnergy Week
Jamal SaghirDirector of Energy and Water
The World Bank
Outline
Energy, Poverty & Africa Clean Energy & Low Carbon Energy Security Governance and Anti-corruption Gender & Energy
Energy and Poverty
Energy is essential for economic growth; the lack of electricity services, for example, is a “major and frequently severe obstacle to doing business.”
Poor energy choices damage the natural environment.
Lack of energy effects basic human needs for
education, health and gender equity. This is unacceptable.
The WBG is coordinating global efforts to address the problems of investment in clean and efficient solutions for the “plus 5” and many others.
Energy and Poverty in Africa
Africa is and must remain a priority.
“Africa is not looking for a handout, but a hand up”
“Light means freedom”
Need to redouble our scale-up efforts must start now!
Clean Energy: Challenges “What has seemed too hard becomes what simply must be done.”
“ “Business as usual” is not sustainable.
1.4 billion people without electricity in 2030 is unacceptable!
Leapfrogging - a path to globally coordinated mitigation.
We are a long way from stabilizing atmospheric concentrations.
There is no single solution for a sustainable energy future - We need a broad portfolio of options.
Clean Energy: Energy Efficiency
Energy efficiency: “Low hanging fruit.” Focus on output-based goals (e.g. energy savings) as opposed to input-based goals, such as money lent.
A variety of tools and approaches are required and projects need to be flexible, as EE projects are labor-intensive.
Potential to achieve EE gains in the design and implementation of other, broader projects (e.g. in industry, urban development or transportation). It takes political commitment, the right legal and institutional frameworks, innovative financing, and risk mitigation
Clean Energy: The Private Sector and Implementation
RE market now populated by those who wish to make money.
Institutional barriers need to be addressed, however.
The importance of community involvement cannot be understated. People must share a stake in the process.
Government and NGO support also is critical.
There is no time to wait for perfection in policy!
Clean Energy: Biofuels
Ethanol from sugarcane in Brazil is arguably the first and only commercially viable biofuel, and it took Brazil 30 years to get there.
The volatility of world oil and crop prices makes
long-term commercial viability of biofuels from agricultural crops challenging.
For GHG emission reduction, lignocellulosic feedstocks are much more promising than agricultural crops for biofuel production.
Energy Security: Key Points Discussed
Recent oil prices have brought energy security to forefront.
Interdependence, not Independence! [There is a common interest for all in achieving energy security]
The strong linkage between energy security and climate change agendas should be the core of international action.
Energy Security: Demand Side
Energy Consumer Perspective: Fundamental issue is how to secure adequate energy to
support economic growth. Concerns about resource adequacy, dependency on imports
and environmental issues, among others. Policy responses include energy efficiency and diversifying
energy by primary resource and geographic origin. International cooperation in energy technology, energy
trade and policy issues are crucial.
Energy Security: Supply Side
Producer Perspective: OPEC aims to continue to secure the regular supply of oil to consumers at stable prices and in a sustainable manner. Recent oil prices encouraged producers to invest in the entire oil supply chain. Demand security important for suppliers.
Operating company perspective: Energy security can be realized through reliance on open markets, sound policies, robust technological development and broadening the scope of energy efficiency.
Governance and Anti-corruption
Corruption is a major reason why people remain in poverty and poor health, and why infrastructure costs are too high.
Infrastructure is particularly vulnerable to corruption due to the “contractual tree” and is vulnerable at every branch.
Companies don’t want to engage in corruption! Political will is necessary and enforcement measures must
have teeth in order to be effective! There must be alliances between government, NGOs and
the private sector to establish ethical codes and project integrity standards across the board.
Gender & Energy
Ownership of Assets Participation in Community
Government New Deal for Women in Energy
Sector
Bank Lending for Energy has Rebounded
Analytical and Advisory Activities (AAA) in the Energy and Mining sector
0
20
40
60
80
100
FY01 FY02 FY03 FY04 FY05 FY06*
Num
ber o
f pro
duct
s
ESW Non-Lending TA
Breakdown by Region (FY01-05)
22%
19%
11%
31%
10%7%
AFR EAP SAR ECA MNA LCR
Strong AAA Program
Thank You!
