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IFR,-20-May-2006

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									Irene Freudenschuss-Reichl Irene.freudenschuss-reichl@bmaa.gv.at

Paper for: WEC 2007 ROME The Energy Future in an Interdependent World

Does Energy for the Sustainable Development of the World’s Poor Stand a Fighting Chance ?

Abstract Over the past few years, new developments have pushed energy even higher up the political agenda.

The EU now sees energy security for its inhabitants as a main foreign policy objective.

Climate change concerns have reached the political mainstream and create a push for big reduction projects that are cost effective. CDM-projects currently by-pass Africa for all intent and purpose.

International institutions continue to be ineffective to support major paradigm shifts on energy efficiency and renewables.

All these factors taken together may make it ever more unlikely for the poor to gain access to modern energy services in a timely and affordable manner. Yet without this access, attainment of the Millennium Development Goals will be elusive.

The paper summarizes positive developments both among donors and among partner countries to bring energy to the poor despite the mounting obstacles and points to areas for necessary future action.

2 Table of Contents

I. A More Challenging Environment to Bring Energy to the Poor

II. The New Energy Policy for Europe from a Development Perspective

III. Integrating Energy Interventions into Development Cooperation 1. A Donor’s Perspective on Energy in Development Cooperation

2. A Partner Country Perspective: Energy in National and Regional Development Strategies

3. A Perspective on African Energy Endeavors: GFSE-6: Africa is Energizing itself

4. The Perspective of Networks

5. A Perspective of International Organisations and UN Reform

IV. Energy Actions in the Years to Come

3 I. A More Challenging Environment to Bring Energy to the Poor

In 2002, at the Johannesburg World Summit on Sustainable Development, the international community agreed that affordable access to modern energy services was a prerequisite for the attainment of all Millennium Development Goals, first and foremost that of reducing by half the number of people living in absolute poverty.

In the four years since the World Summit on Sustainable Development, rising oil prices; US military intervention in Iraq and the ensuing situation; repeated Russian gas price manoeuvres vis-à-vis Ukraine and Belarus that heightened European customers’ nervousness; a growing awareness of energy related pollution; and the ever more visible signs of climate change have all contributed to bringing energy higher up on the political agenda.

Even if concerns about energy security in industrial countries may lie at the heart of many of these political considerations, in a globalized world energy security cannot be attained in isolation. In its paragraphs on a New Energy Policy for Europe, the European Council of March 2006 emphasizes that “foreign and development policy aspects are gaining increasing importance to promote the energy policy objectives with other countries”.

Under the circumstances described above, do the poor of this world stand a fighting chance to better their perspectives to gain access to affordable energy services or will they be crowded out from world energy markets by ever more oil- and gasguzzling industrial countries and emerging powers like China, India or Brazil ? And what is being done or should be done by the international energy community ?

II. The New Energy Policy for Europe from a Development Perspective In the context of the EU’s ongoing endeavours to define a New Energy Policy for Europe a highly interesting Conference „Towards an EU External Energy Policy to Assure a High Level of Supply Security“ took place in Brussels , 20-21 November 2006. To a large degree, it revolved around the ideas of

4 - external projection of the EU internal energy market in widening circles (initially to the countries of South Eastern Europe; Northern Africa; and individual cooperation partners);

- securing sufficient supplies of hydrocarbons to meet the projected rising demand of the EU;

- putting in place emergency (including solidarity) mechanisms in the case of supply disruptions.

From the point of view of development cooperation, a number of additional issues seem pertinent and should be pursued vigorously: 

Efforts should be undertaken to flesh out the concept of energy interdependency (including supply, demand and transit security) and to replace the somewhat unrealistic approach of ensuring security of supplies in an autonomous fashion; this should include collaborative approaches to diversification and Research & Development;



the nexus of poverty eradication and energy policy interventions established since the Johannesburg Summit 2002 needs to be kept high on the agenda of decisions-makers at the national and international levels;



the nexus of climate change objectives (including adaptation) and interventions to address local and regional energy needs in ways that are sustainable needs to be brought to the forefront;



the nexus of development and peace needs to be explored and worked on much more systematically (many of the country cases before the Security Council have a strong energy component);



the nexus of energy security and non-proliferation objectives becomes ever more relevant, in the context of a re-emergence of nuclear energy and of terrorism.

5

At the above mentioned Conference speakers emphasized the desirability of reducing demand, increasing the contribution of renewables to the overall energy-mix and promoting energy efficiency. A radical departure from existing energy system patterns was, however, not argued for.

With currently available knowledge, a linear extension of existing energy-system features to developing countries with their 2,4 bn people currently lacking access to modern energy services would be ecologically disastrous.

If we seize the opportunity as donor community to assist developing countries in the development of socially and ecologically more benign energy systems, this should not be done to stabilize an unsustainable energy system in industrialized countries. A shift to a more ecologically sound energy system in developing countries will require changes also at home: there will be a need to buy-down renewables and to propagate energy efficiency standards via market-mechanisms much more aggressively including in our own industrialized countries, in addition to doing more on energy in direct development cooperation.

An new push for a New Energy Policy for Europe was made in early 2007 when the European Commission submitted an integrated package of energy proposals to enhance sustainability, security of supply and competitiveness in the European Union while mitigating emissions at the same time. The Communication proposes   the formation of a true internal market on energy, including through the unbundling of energy generation and distribution; the accelerated transition towards energy carriers that are lower in CO2 emissions; goals of 20% renewables in total energy production and of a minimum of 10 % for biofuels are set for 2020;  the aggressive improvement of energy efficiency with the goal of reducing the overall consumption of primary energy by 20 % by 2020.

Internal measures in the three areas listed are to be complemented by coherent and credible external policies. In particular, the Communication proposes the

6 establishment of a coherent energy partnership with Africa and the pursuit of a new legal instrument in the area of energy efficiency.

III. Integrating Energy Interventions into Development Cooperation 1. A Donor’s Perspective on Energy in Development Cooperation

An important re-evaluation of energy use in development cooperation and by developing countries has taken place in synchronicity with the larger political reorientation, both by the donor community as within partner countries. The international conference, Renewables2004, in Bonn (which was followed by a major meeting in Beijing in fall 2005 and will be followed by a meeting in Washington) and the Dutch Energy for Development Conference in 2004, Nordwijck, contributed to putting renewables higher up on the agenda. While renewables are to be promoted because of concerns for sustainability (both in terms of social and environmental sustainability), they become more attractive also in the current context of energy security considerations, since they support diversification and hence decrease dependency on a limited number of fossil fuel sources. At the same time, the development community – in my views, rightly so - approaches energy interventions in a pragmatic way. Renewables are an important part of the solution and reliance on renewables should be increased. A step up on the energy ladder, however, may already be an important step towards greater sustainability as long as renewables remain elusive for reasons of affordability or local capacity.

The European Union, whose rotating presidency Austria held in the first half of 2006, has taken a number of important steps to give energy its due weight in development cooperation, notably the European Consensus on Development Cooperation; the EU Energy Initiative and its Energy Facility; and the Infrastructure Partnership (complete with a Trust Fund) with Africa.

In late 2005, the three pillars of the EU, the Council (representing the intergovernmental dimension), the Commission and the Parliament agreed on a

7 seminal document that lays down the priorities of the EU in development cooperation (European Consensus on Development Policy). These priorities will be henceforth applied both by Commission and Member States. Energy is listed among the areas where the Commission is seen to have a particular comparative advantage. We can expect therefore that more energy cooperation can be financed in the future through Commission funds. Community policy should focus on supporting a sound institutional and financial environment, awareness raising, capacity building, and fund-raising in order to improve access to modern, affordable, sustainable, efficient, clean (including renewable) energy services. The strategic policy guidance contained in the European Consensus will be operationalized when it comes to programming the European Development Fund 2008-12 as well as other external actions.

Also in the course of 2005, EU member States decided to give additional clout to the EU Energy Initiative launched at the Johannesburg Summit by creating an Energy Facility and endowing it with 220 million €. This money is available for projects in the ACP countries, many of which are among the group of Least Developed Countries, subsequent to a call for proposals. The main activity of the Facility will be to cofinance projects that deliver energy services to poor rural areas, and in this way also attract additional financing (leverage). In addition, the Facility will also be able to support better governance and management in the energy area and to facilitate large scale investment in cross-border energy infrastructure, in this way also linking up to the Africa-EU Partnership on Infrastructure. The financial resources of the Facility will have to be committed before the end of 2007.

The EU has embarked on a strategic partnership with Africa. The EU Strategy for Africa recognises that limited access to transport and communication services, water and sanitation, and energy constrains economic growth, and that these limitations, together with the missing links in cross-border connections and regional networks, are a barrier for Africa’s development. The EU has therefore established a Partnership for Infrastructure to support and initiate programmes that facilitate interconnectivity at continental level to promote regional integration. This infrastructure initiative deals with various trans-border linkages, in energy, water, transport and ICT. In the energy area, the Partnership will also support the Forum of Energy Ministers in Africa (FEMA) and regional institutions and stakeholders, such as

8 regional Power Pools, for developing cross-border and regional energy infrastructure, including the enhanced exploitation of renewable and other sustainable local energy sources and services. To finance the EU-Africa Partnership on Infrastructure, a Trust Fund has been created by the European Commission together with the European Investment Bank. The Trust Fund shall be open to member states’ contributions. The EU-Africa Partnership on Infrastructure will work closely with the World Bank led Infrastructure Consortium for Africa.

As a special initiative during the Austrian presidency, my department organized a senior level seminar on “Energy in the Context of Development Cooperation”. Based on the deliberations of this seminar, the Council adopted conclusions which include ten Principles/Considerations for Integrating Energy into Development Cooperation (full text will be made available upon request). These Principles/Considerations deal with the following issues:           1) Energy is an enabling factor. 2) Energy services should be demand-side driven. 3) Unequal access to energy services should be balanced out. 4) Energy efficiency and conservation need to be fostered. 5) The choice of technologies is to be made in a very conscious fashion. 6) Socially balanced economic solutions are to be implemented. 7) Local/National authorities should be supported in their efforts to create an enabling environment. 8) Access to energy needs to be combined with opportunities to earn additional income. 9) Energy projects should be integrated into national energy plans and into poverty reduction and development plans. 10) Local disparities should be overcome with regional and crossborder solutions.

As we look ahead, a number of important questions call for reflection and a stand to be taken:

- How can we ensure that the infrastructure approach to energy under the EU-AfricaInfrastructure Initiative is complemented systematically with energy interventions to

9 alleviate poverty (access to energy, in particular in rural areas, energy for small productive businesses)?

- Might it be necessary/desirable to think about a continuation of the Energy Facility beyond the 9th EDF to finance energy interventions that transcend national envelopes (e.g. in the area of energy efficiency) ?

- Is there scope for revitalizing the hydro-power discussion from a developmental point of view, in particular with regard to mobilizing Africa’s hydro-power potential ? - How can the “climate change”- agenda dovetail better with the “energy for sustainable development/poverty alleviation”-agenda ? - How can development cooperation contribute to turning the “resource curse” into a “resource blessing”? How can we get governance right in the extractive industries in particular in those countries in Africa which have just discovered large oil or gas deposits and have the chance to set things up from zero ?

2. A Partner Country Perspective: Energy in National and Regional Development Strategies

Mirroring the increased emphasis on energy in development cooperation on the EU side are very encouraging developments in developing countries in particular on the African continent. Frameworks for regional power pools are being created in several African regions. In addition to the creation of a West-African power pool, the members of ECOWAS have adopted a “White Paper” on energy access to the rural and peri-urban populations of the ECOWAS sub-region. For CEMAC, the Brazzaville Declaration on the Integration of Energy into Poverty Reduction Strategy Papers (PRSPs) takes an important step for accessing of development funding for energy projects in the region. With assistance from the EU, work is ongoing in the Eastern African Community (EAC) on a regional policy to strengthen access to modern forms of energy for rural and peri-urban populations. The African conference on hydropower, hosted by South Africa in March 2006, created significant political

10 momentum to consider hydropower as a politically and economically viable energy source on the African continent.

With the creation of FEMA, Forum of Energy Ministers of Africa, African leaders have given themselves an important platform. On 15 September 2005, at the Heads of State Dinner of the UN Summit, the then Chairperson of FEMA, the Hon. Syda Bbumba, Minister of Energy and Mineral Development, Uganda, expressed the concern of FEMA about the current low access of energy in Africa which has negative impact on meeting the Millennium Development Goals and other international development goals. She reminded the high political gathering that Africa’s energy sector is characterized by  low per capita consumption of modern energy at an average of 350 kWh (compared to East Asia with about 1000 kWh and Europe 3 750 kWh; OECD Countries over 8000 kWh);     overdependence on Biomass (about 67 %); low access to modern energy at an average of 8 % (the lowest in the World) declining infrastructure investments; low utilization of hydropower resources; even though Africa is ranked among the continents with the highest hydropower potential in world, only 7 % of hydropower resources have so far been developed.

FEMA set itself three main goals to be attained within the next ten years - Goal 1: 50 % of Africans living in rural areas and using traditional biomass for cooking should have access to modern energy services such as improved cook stoves; - Goal 2: 50 % of urgan and peri-urban poor should have access to reliable and affordable modern energy services for their basic energy needs such as cooking and lighting, as well as for productive uses; - Goal 3: 50 % of schools, clinics, and community centres should have access to modern electricity services for provision of lighting, refrigeration, information and communication technology.

In order to achieve these three goals, FEMA will promote energy policy changes, engage in advocacy, evolve investment policies to attract private capital and private

11 sector expertise and advance regional integration. FEMA estimates that the level of investment required will be of the order of 4 billion US $ per annum, or 40 billion before 2015.

At the Sixth Meeting of the Global Forum on Sustainable Energy (GFSE-6, 29 November – 1 December 2006, Vienna, Austria), the Minister of Energy of Uganda Daudi Migereko, who is currently also Chair of the Forum for Energy Ministers of Africa (FEMA), presented FEMA as a platform for political leadership and advocacy for sustainable energy in Africa and outlined FEMA’s work plan, including establishing an energy emergency fund. He identified drought, increased fuel prices, the poor state of transmission systems, and limited financial resources as challenges to energy security within Africa. Migereko urged action by African governments, including enhancing cross-boundary cooperation, diversifying energy sources and using innovative products to attract financing.

3. A Perspective on African Energy Endeavors: GFSE-6: Africa is Energizing itself (www.gfse.at ) In response to the many initiatives, originating both from within the African continent and from the donor community, the 6th Meeting of the GFSE focused solely on Africa. It brought together some 180 participants – representatives from African and European governments, agencies, UN bodies and international organizations, academia, business and industry, civil society and financing institutions. GFSE-6 provided a vibrant picture of regional and thematic initiatives on energy for sustainable development across the African continent. It also endeavoured to identify ways and means of supporting African aspirations at the 15th Session of the Commission on Sustainable Development (CSD) in May 2007 in New York.

In addition to Daudi Migereko, key-note addresses were given by the Permanent Secretaries in the Ministry for the Environment and for Foreign Affairs, Werner Wutscher and Johannes Kyrle.

Werner Wutscher highlighted five reasons why sustainable energy use is an important component of the political agenda, namely: increasing energy demand and lack of energy access in the developing world; the linkage between climate change

12 and energy policy; the lack of technology transfer, financial and human capacity in developing countries; and the need to increase dialogue between the public and private sectors to encourage capital investment.

Johannes Kyrle stressed the importance of renewable energy within the current energy agenda, underscoring increasing concern for energy access, sustainability and security due to the reliance on fossil fuels. He highlighted the steps taken in Africa to increase the use of modern energy, to improve energy access and heighten energy security. He recommended that specific issues be forwarded to CSD-15, since there are already many generic proposals on the CSD agenda.

Participants at GFSE-6 then met in nine plenary sessions to hear presentations and engage in discussions on a variety of topics, including: the “African regional landscape on energy”; a regional focus on western, southern, eastern and central Africa; biofuels and hydropower; CDM opportunities in Africa; how GFSE can contribute to CSD-15; financial engineering for energy in Africa and a concluding session on the way forward, during which the current initiative, anchored at IIASA, for a Global Energy Assessment was presented.

CSD-15 Vice-Chair for Africa, Alain Edouard Traoré (Burkhina Faso) emphasized that CSD-15 provides an opportunity to support African aspirations. He announced that a synthesis paper on proposed actions in Africa will be prepared by African countries prior to CSD-15.

Participants attending GFSE-6 also had the opportunity to attend side events on monitoring and evaluation for energy and development, biofuels in sub-Saharan Africa, and capacity development for expanding energy access in Africa. In addition participants visited a biodiesel plant in Vienna and a hydropower plant in Freudenau.

A detailed summary of the proceedings of GFSE-6 was commissioned from IISD and can be found at www.iisd.ca/ymb/gfse6/ . The agenda of the meeting as well as the different power-point presentations as well as background papers prepared for the meeting are posted at the GFSE-web-site, at www.gfse.at .

13 A number of issues had particular salience at GFSE-6: a) Africa’s current acute energy crisis – a result of wide-spread droughts that have disabled hydro-power generation schemes – comes on top of the structural weakness of the African energy sectors. The short-time crisis (which currently deprives the African economy of up to 4 % of annual GDP growth through power cuts and unreliable electricity) needs to be addressed while mid- and long-term solutions are elaborated.

b) was underscored that the African continent offers a vast and diverse energy potential which was largely unexploited, with great potential for electricity generation, interconnection and trade, large potential for energy efficiency improvements along the whole energy chain and – given that Africa has the lowest CO2 emissions in the world – a large potential market for carbon credits. Opportunities for technology leapfrogging are considerable and

investment opportunities seen to be significant

c) Notwithstanding the importance of integrating energy in national poverty reduction strategies, there was a general sense that endeavors to up-grade the energy situation in general and to foster energy security in Africa might be most successfully carried forward at the regional level, including enhancing generation capacity to power the grids (where suitable hydro-power projects were seen to be most promising). Solidarity instruments, such as the African Petroleum Fund created by the AU in January 2006 to help mitigate rising oil prices; the proposed creation of Centres of Excellence for Sustainable Energy (CESE) or the regionalization of some of WEC’s pertinent global activities; the creation of pan-African information systems, such as AFREC’s Africa Energy Information System; or the creation of regional agencies, such as the Regional Agency for Energy Access foreseen in the ECOWAS White Paper, could support regional energy integration. RECs should be supported through the strengthening of human and institutional capacities as they seek to advance regional energy integration within their mandates.

14 d) There was also a strong sense that as new oil and gas reserves are being discovered in several African countries, such as Uganda, Zambia and Tanzania or in the Gulf of Guinea, Africa should develop its own refining capacity in order to increase petroleum products from indigenous resources. In this context, it might be desirable to harmonize Production Sharing Agreements between African governments and the oil companies, and to pay particular attention in general to the governance of the energy sector in order to ensure that maximum benefits accrue to the African population. Gas flaring should also be addressed.

e) There was a sense that domestic resource mobilization for energy interventions needs to be mainstreamed by African governments and that there is continued scope for private-public partnerships given the limitations that most African governments will experience for some time to come in terms of mobilizing adequate public resources to invest in the development and extension of modern energy services. A variety of innovative financing tools and methods of financial engineering were presented to the meeting.

f) Participants expressed a general sense of impatience with the pace of project appraisal, decision-making and finally implementation of energy projects. There was also a sense that enough time had been devoted to simply build capacity in the African energy sector and that it was appropriate now to become more operational.

g) Repeatedly the view was expressed that synergies need to be found between the major, cross-boundary infrastructure projects envisioned by the EUAfrica-Infrastructure Initiative or the Infrastructure Consortium on the one hand and small- scale access for energy projects. It was proposed that work on access to energy should be scaled up according to three overarching goals:   Electricity for growth: by increasing coverage for enterprises and households; Powering the MDGs: by connecting public facilities – clinics, community centers, schools – using least cost mix of grid extensions and decentralized solutions;

15  Meeting basic needs: by equipping households with affordable, modern lighting; boosting the use of improved stoves; increasing access to cleaner fuels and making bio-mass fuel supply sustainable. It was highlighted that even in the implementation of projects to enhance access to energy for immediate human needs, care should be taken to allow for productive uses of energy (micro- and mini-enterprises; agro-processing; small scale industries) to enable the local population to earn additional income and to pay for energy services as used.

h) Biofuels are present in various forms in African countries, it was felt that biofuels, if properly harnessed to avoid conflicts over land use for “food, fuel and feed”, can play a significant role in meeting the growing energy needs in Africa. They can directly contribute to energy supply and rural electrification, and generate local employment, thereby combating poverty and promoting development.

i) Traditional biomass use in general was seen in great need of modernization, in particular through accelerated dissemination of clean and high efficiency stoves for cooking, accelerated penetration and reduced cost of LPG resources and equipment in rural areas and through modernizing the charcoal industry. (At its 5th Meeting in 2005, GFSE focused on biomass; see the Executive Summary for a list of recommendations, at www.gfse.at ).

j) Great expectations were put into the development of hydro-power in Africa. Currently only 7 % of Africa’s hydro-power potential is actually developed. Large hydro-power potential is present in many African regions (e.g. DRC, Guinea, Ethiophia, Mozambique, Uganda, Zambia) and lends itself to regional projects. Hydro-power is seen as a good way to increase the percentage of renewables in the overall African energy mix, provided projects are formulated in a bankable form and the social and environmental implications of larger projects are suitably addressed. In the latter area, UNEP’s Dams and Development Project had made significant progress on principles and concepts so that the way seemed open to move to more practical applications.

16 Small hydro power schemes were seen as useful for enabling access to electricity for communities not easily connected to the main grid.

k) Only very few registered CDM projects are currently located in Africa. Participants highlighted challenges (which were by and large the same as those facing foreign direct investment), such as the high cost of equipment; lack of data and statistics; lack of local capacity and awareness on CDM; low private sector participation; low carbon intensity of projects, high transaction costs due to small scale of most projects; risk aversion and a conservative approach when financing in Africa. l) The potential of energy efficiency and conservation in Africa – energy saved from efficiency programmes can be seen as one of the most economical sources of energy – was highlighted. Participants were of the view that endeavors should continue to increase the number of African CDM projects.

m) Coordination and cooperation between all (international and continental) partners should be promoted and FEMA should be supported as a wholistic, high-level political body dealing with all aspects of energy in Africa.

4. The Perspective of Networks

Networks encompassing both Northern and Southern governments and other actors have prospered over the last several years. At their ministerial meeting in Dubai, in February 2006, the Johannesburg Renewable Energy Coalition (JREC), now boasting 90 members, issued a strong statement to the CSD 14 and 15. JREC welcomed “the growing awareness on the multiple benefits of increased development and use of renewable energies for improving access to energy services, reducing greenhouse gas emissions, enhancing energy security, reducing the economic burden of energy imports, increasing job opportunities, improving air quality and public health, sustainable development, and eradicating poverty”, underlined that it was of key importance that further action on renewable energies feature amongst the key issues on the up-coming CSD agenda” and called on CSD to establish an

17 efficient arrangement to assess progress towards the global increase of renewable energies.

The Network REN21, formed pursuant to Renewables2004 in Bonn, underlines in its recent report “Energy for Development – The Potential Role of Renewable Energy to Meet the MDGs” that the rapid recent growth in solar, wind, geothermal and biomass energy, coupled with ongoing technology improvements and cost reductions, is making a growing array of renewable energy options available to help achieve the MDGs. The strongest renewable energy growth is observed in grid-connected power systems and liquid fuels for transportation. Several energy options that are currently in wide use in some regions are seen ready for large scale introduction in many areas of the developing world: - biogas for decentralized cooking and electricity - small hydro power for local electricity .- small wind power for water pumping and local electricity - solar photovoltaics for local electricity - solar collectors for water and space heating - ethanol and bio-diesel for agriculture and transportation - large hydro power for grid electricity - large wind power for grid electricity - geothermal energy for heat and grid electricity.

REEEP (Renewable Energy and Energy Efficiency Partnership, www.reeep.org) continues to expand its portfolio and its activities.

4. A Perspective of International Organisations and UN Reform

Pursuant to its commitments undertaken at RENEWABLES2004, the World Bank has scaled up its lending on renewables considerably. Furthermore, at the 2006 Spring Meeting, the Bank presented a proposal on an investment framework for sustainable energy which will be further refined to take better into account the poverty-reducing dimension of energy policy interventions.

18 Internationals organisations – UNIDO, UNDP, FAO – continue their programmatic engagements on energy for sustainable development, and the UN interagency mechanism, UN-Energy, pursues its efforts to avoid duplication and overlap. By and large, however, UN institutions continue to be fragmented. UN-reform, in particular to enhance coherence in the environmental, humanitarian and developmental fields, is expected to have an impact on how energy is being dealt with by the UN-system. The Panel on System-Wide Coherence e.g., in its final report “Delivering as One” of November 2006, recommends primarily the consolidation of UN activities at the country level through one team, one team-leader, one program, one budget and (where feasible) common premises. A new Sustainable Development Board is to monitor the new country programs. The Administrator of UNDP is to be nominated “UN Development Coordinator” and UNDP’s future role would be mainly to manage the country systems, with limited substantive responsibilities in the areas of governance, crisis prevention, post-conflict and post-disaster situations and early recovery. Multi-year funding for UN country programs is to be ensured through a Millennium Development Goals (MDG) Funding Mechanism.

Regarding further reform measures at headquarter levels, an independent task force is proposed which would be asked to come forward with proposals regarding consolidation of mandates and organizations. In addition, the panel makes important recommendations on gender, the environment, and the interface of the UN with the Bretton Woods Organisations.

The following paragraphs relate in particular to the shifting role of UNDP and the concomitant need to rethink the work on various substantive issues: Para. 19: „UNDP will consolidate and focus its operational work on strengthening the coherence and positioning of the UN country team delivering the One Country Programme. As manager of the Resident Coordinator system, UNDP should set a clear target by 2008 to withdraw from sector-focused policy and capacity work for which other UN entities have competencies. (…)”

19 Para. 39: „UN agencies, programmes and funds with responsibilities in the area of the environment should cooperate more effectively on a thematic basis and through partnerships with a dedicated agency (my emphasis) energy, and renewable energy) (…)”. at the

centre (such as air and water pollution, forests, water scarcity, access to

Donors and partner countries alike should have an interest in following up on the above recommendations since they have the potential of a marked efficiency improvement in how the UN system supports endeavors to bring energy to the poor.

IV. Energy Actions in the Years to Come

Given the many emerging and budding initiatives in developing countries and the favourable international environment to accelerate action towards more sustainable energy systems, governments will hopefully have seized the opportunity provided by the Commission on Sustainable Development at its 15th session in May 2007.

Beyond CSD, energy actions in the years to come will have to respond to a number of objectives (conflicting at the surface) which will all somehow have to be met simultaneously if humanity is to navigate the 21st century without too much damage to itself and to the environment.

Energy action will have to address questions like these:  What is needed within the next 10 – 20 – 30 – 50 years to keep global warming within an acceptable range ?

Which realistic range can be defined as acceptable? What kind of actions are required, mainly in OECD-countries and in major CO2 emitting countries in the developing world ? 

If the world is increasingly characterized by unacceptably growing inequity, how can a restructuring of energy systems contribute to better distributing the benefits of globalization ?

20

What needs to be done to enhance the contribution of energy endowments to the (human, social, economic, political, democratic) development of countries and entire regions ? How can the resource curse be turned into a blessing ? 

How can we develop energy interdependence in such a way as to ensure the needed securities of supply, demand and transit ?

What needs to happen at the global level? What can happen at the regional and sub-regional levels ? 

What are the best three avenues to bring affordable modern and sustainable energy services to the poor, in particular in Africa, within a conscionable period of time (preferably by 2015, the time the international community has fixed itself for the attainment of the Millennium Development Goals) ?

How can we mobilize the required financing ? 

How can we influence energy demand and foster the emergence of new lifestyles that are more conducive to sustainable development across the globe ?

Major new undertakings have just been launched – such as the Global Energy Assessment (www.globalenergyassessment.org) and networking among existing Vienna-based institutions with energy mandates – which will contribute in a substantive way to answering these questions. By the time WEC will gather in Rome, reportable steps will have been taken.


								
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