Transcript Slide 1
Pre-Conference Workshop on Clean Cooking Fuels
31st IAEE International Conference
Istanbul, 16-17 June 2008
Clean Gas Delivery for Poverty Reduction
Andrew Yager
United Nations
Presentation Outline
Context for sustainable energy
• Energy access
• Millennium Development Goals
LP Gas Rural Energy Challenge
• Barriers to access
• Solutions (income, investment)
Alternative Gas Supply Options
LP Gas Investment Facility
Concluding remarks
Context
Sustainable energy supply is a precondition for economic and social
development and achievement of the
Millennium Development Goals (MDGs)
Investment capital required for business
development (both public and private)
Capacity building for local energy service
delivery (policy makers, entrepreneurs,
lenders, consumers)
Rural Energy: Traditional Fuels
Access to Sustainable Energy Services
Support energy activities that reduce
poverty
Promote rural energy services to
support growth and equity
Promote clean energy technologies
Increase access to investment
financing
Sustainable Energy Link to the MDGs
No specific MDG on energy
However, energy is key for meeting
basic human needs
• Domestic uses (heating, cooking)
• Productive purposes (brick and ceramics
firing, metal working, fish smoking)
• Reducing drudgery (water pumping,
grinding, milling)
• Social services (health care, education)
Fuels for Cooking
Respiratory disease from
cooking on traditional
fuels kills nearly 5,000
people daily world-wide
Energy Poverty: Annual Deaths
3
2.8
2
millions
1.6
1.2
1.3
Malaria
Smoke from
biomass
1
0
Tuberculosis
HIV/AIDS
Source: World Energy Outlook 2006 (OECD/IEA)
There is a need to provide clean
modern affordable energy services
to reduce poverty.
LP Gas Rural Energy Challenge
Public private partnership
UN Department of Economic and Social Affairs (DESA)
United Nations Development Programme (UNDP)
World Liquefied Petroleum Gas Association (WLPGA)
Designed to create viable and sustainable
markets for LP Gas delivery and consumption
Directly targets rural and peri-urban areas with
the objective of expanding access to cleaner LP
Gas
thereby contributing to sustainable energy
solutions that can improve people’s lives in
developing countries and achieve the MDGs
Barriers to LP Gas Market Development
Lack of confidence for private sector
investment (business development,
policy advocacy)
Affordability (need cash)
Availability (need roads and other
infrastructure such as electricity)
Lack of consumer awareness (e.g.
fear of accidents)
Achievements
Public private partnership established
Access to governments enables
dialogue (national consultations)
Technical, socio-economic,
environmental and energy access
issues addressed successfully
Kenya case study
Policy framework that encourages
and supports investment in energy
services (stability, confidence, risk)
Subsidies (government provides seed
capital and guarantees for microfinance institutions)
Tax holiday (20% VAT removed)
Standards for equipment
Turkey case study
Upper middle income country
Medium level HDI (MDG health and education are
least achieved)
Need income generating activities to sustain
village life
•
•
•
•
•
Tree planting
Wood processing
Handicrafts
Agriculture, animal husbandry and products
Energy efficiency in buildings
Need long-term rural development strategy to
modernize rural energy supply
Alternative Gas Supply Options in Africa
Exploitable gaseous resources available in Africa:
Small oil and gas deposits (e.g. Mozambique,
Namibia, South Africa, Rwanda, Ethiopia, Somalia,
Cameroon, Congo (Brazzaville), Cote d’Ivoire,
Ghana, Senegal, among others)
Dissolved methane gas in Lake Kivu (DRC,
Rwanda); Lakes Nyos and Monoun (Cameroon).
Biogenic gases formed in swamps and marshes
(Botswana, Niger, DRC)
Landfill gas (various countries)
Gas Flaring reduction at oil and gas production
facilities (Nigeria, Angola, others)
Biogas from animal, agricultural and human waste
LP Gas Investment Facility
The Facility is intended to provide pre-investment
capital:
• To give entrepreneurs an opportunity to develop their
service offering
• Aimed at reducing the risks associated with the
establishment of energy service delivery businesses.
The donor community recognizes that working in
poor and low population density areas makes it
more difficult for private entrepreneurs to sustain
a profitable operation.
• Therefore the United Nations partners will engage in
activities that remove barriers and enhance investor
confidence by reducing risk.
LP Gas Investment Facility (inputs)
Provide seed capital for activities that
enable clean gas supply and distribution
networks to develop. Specifically:
• Support business plan preparation
• Support local capacity development to
provide energy services
• Support capacity building aimed at
sustainable market development
LP Gas Investment Facility
The projects supported by the Facility
will integrate:
1) the private sector’s contribution in service
delivery and investment financing with
2) governments facilitating the enabling
environment for creating new relationships
and policy dialogue and
3) local NGOs providing the critical support
function at the project implementation
level.
LP Gas Investment Facility
As the partnership succeeds
• communities and individuals benefit
through increased access to clean fuel
and energy services
• governments are able to fulfill social and
economic development objectives, and
• private enterprises expand business
opportunities,
resulting in a triple-win situation that
is the aim of the facility.
Concluding remarks
Clean affordable energy supply is
needed to achieve the MDGs
There are many indigenous sources
of energy
Local capacity exists to deliver
energy services
Both public and private sector
resources are required to develop
the alternatives
Thank you!
Andrew Yager
[email protected]
Division for Sustainable Development
http://www.un.org/esa/sustdev/index.html