The EU Energy Initiative – a brief introduction

Access to modern and affordable energy services is a prerequisite for achieving the Millennium Development Goals, in particular for poverty eradication. The EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI) was launched at the 2002 World Summit for Sustainable Development in Johannesburg as a joint commitment by the EU Member States and the Commission to give priority to the important role of energy in poverty alleviation, and is a catalyst for action. The Initiative will raise political awareness among high level decision makers, encourage the coherence and synergy of energy-related activities and attract new resources (capital, technology, human resources) from the private sector, financial institutions, civil society and end-users. The Initiative is a framework for policy dialogue with Developing Countries and other partners, and also for specific actions and partnerships, supported by the Commission and Member States , and developed in close collaboration with Developing Countries.

• Goals
• Background
• A demand-led approach
• Working together
• Financing
• Organisation
• International dialogue

Goals

The goal of the Initiative is to contribute to providing the access to energy necessary for the achievement of the Millennium Development Goals, particularly, but not exclusively, that of halving the number of people in extreme poverty by the year 2015.

By creating a focus on energy and poverty the EUEI intends to:

• Raise political awareness among high level decision makers of the important role energy can play in poverty reduction.
• Clarify the need for energy services for poverty reduction and sustainable development.
• Make apparent the need for energy services in national/regional development strategies.
• Encourage the coherence and synergy of energy-related activities.
• Stimulate new resources (capital, technology, human resources) from the private sector, financial institutions, civil society and end-users.

Background

Limited access to energy services and heavy reliance on traditional biomass are hallmarks of poverty in developing countries. Currently, 1.6 billion people do not have access to electricity, and 2.4 billion people rely on traditional biomass – wood, agricultural residues and dung – for cooking and heating. Better access to sustainable energy services is necessary for economic growth and to develop businesses and income-generating activities. Homes, schools and health centres need adequate energy for lighting, communication, water supply, heating and cooling. Streetlights improve safety at night, better fuels and cookstoves are necessary to end the exposure of women and children to indoor air pollution and reduce daily work load on collecting wood.

In response to this challenge, the European Union launched the EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI) at the World Summit on Sustainable Development (WSSD) in September 2002 as a joint commitment of the EU Member States and European Commission to support improved access to sustainable energy services in developing countries.

Through the Initiative, the EU proposes to work with developing countries towards creating the necessary conditions in the energy sector to achieve their national economic, social and environmental objectives, in particular by maximising energy efficiency, including more efficient use of fossil fuels and traditional biomass, and increasing the use of renewable energy.

A demand-led approach

Activities implemented under the Initiative are driven by the needs and priorities of the participating developing countries. The EC and EU Member States invite developing countries and other stakeholders to participate in the further development and implementation of partnerships at the national and regional level. The Initiative enables the EU and its developing country partners, to work together in partnership with the private sector, financial institutions and civil society to achieve effective improvement of the energy situation in partner countries. Ownership of activities by the partner country is a key feature. Local participation will be encouraged from end-users, communities, businesses and other stakeholders in both the planning and implementation stages.

The EU is taking the Initiative forward through open dialogue with partner governments at country level through its EC Delegations and Member State country offices. The situation may vary from one country to another The Commission facilitates in countries where energy is a focal sector for EC Programmes, and Member States facilitate in those countries where they are active in energy-related projects and programmes, coordinating with each other. The EU and partner country dialogue is followed by or in parallel with dialogue with the private sector, financing organisations, civil society and end-users. Partnerships will develop in response to the energy needs of developing countries and regions.

Working together

An important first step is working with developing countries to highlight the role of energy within their development strategies, such as National Poverty Reduction Strategy Papers, Country Strategy Papers, Regional Strategy Papers, National Indicative Programmes, or other national Sustainable Development Strategy documents. The Initiative is helping to integrate energy issues into sectoral strategies and programmes (such as, education, health, water and sanitation, the creation of income-generating activities) as they are developed or revised, thus encouraging a cross-sectoral approach to energy.

Financing

The Initiative is mobilising appropriate combinations of public and/or private resources for specific actions and instruments, both from domestic and international sources, following the procedures and priorities established with respect to development strategies.

The Initiative will strive to attract a major contribution from private sources. The 220 M Euro Energy Facility is one of the EUEI instruments to attract resources for delivery of energy services in rural areas. Official Development Assistance (ODA) provides a basic funding framework attracting private resources for further investment.

Organisation

The EU Advisory Group is made up of Member State and Commission officials and experts in energy and development. It is the forum for presentation of specific inputs to the Initiative from Member States and the Commission. It takes an overview of activities, identifying gaps in co-ordination, as well as new opportunities. The group serves as a vehicle for seeking complementarity between this and other initiatives and programmes and to develop networking.

Working Groups are identified as the need arises to aid development of appropriate activities. These working groups operate either in a virtual manner by electronic means, or in a physical manner by meeting and working together, developing thematic papers, concepts, proposing solutions and exchanging views and experiences.

The EU Secretariat established in the Commission’s Development Directorate to co-ordinate the Initiative. The Secretariat draws upon staff from both the Commission and Member States. The Secretariat facilitates and stimulates co-operation and synergy between EU donors and partner countries and regions, communicates with other donors and initiatives participates in international fora, reports on activities, provides a promotional and communication role through a Web site and other promotional tools, and provides a point of contact for the Initiative.

International dialogue

The Initiative has an ongoing dialogue with other international energy initiatives, such as the Forum of Energy Minister of Africa (FEMA), the New Partnership for Africa ’s Development (NEPAD), the Johannesburg Renewable Energy Coalition (JREC), the Global Village Energy Partnership (GVEP), the Global Network on Energy for Sustainable Development (GNESD), the Renewable Energy and Energy Efficiency Partnership (REEEP)  and the Global Forum on Energy for Sustainable Development (GFSE).

The EU Energy Initiative participates in the energy and development dialogue within the UN Commission for Sustainable Development (CSD) and other global fora.