© 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
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Outline
Development and energy
Development and climate change
Renewable energy
Financing renewable energy
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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
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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
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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)
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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
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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
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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
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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
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MDG 8 and Energy
MDG 8: Develop a Global Partnership for Development
Develop a Global Partnership for Clean Energy!
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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)
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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)
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RE: What technologies?
Requirements:– Scalability– Cost-effectiveness– Simple use– Simple maintenance / repair– Robustness
Best-practise cases
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Solar cooker
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Solar-powered lanterns
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Domestic Biogas
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Solar water heaters
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Off-grid electricity solutions
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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
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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
21© 2009 German Development Institute / Deutsches Institut für Entwicklungspolitik (DIE)
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
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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.
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