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Stakeholder Meeting, 23rd
July 2002, Brussels, on the EU Energy Initiative for Poverty
Eradication and Sustainable Development
Summary of the Meeting
This meeting was organised jointly by the Danish Presidency of the European Union and the European Commission (DG Development-DEV and DG Transport and Energy-TREN). It was called to encourage dialogue with stakeholders on the EU Energy Partnership Initiative "Energy for Poverty Eradication and Sustainable Development", to be launched at the World Summit on Sustainable Development. The meeting was attended by over 75 people, 34 from developing countries, 14 from the private sector and NGOs, and 29 from European governments, administrations and institutions. (List of participants) The meeting was chaired first by Mr Theodorakis (Deputy Director General, DG DEV), followed by Mrs Sloth Carlsen for the Danish Presidency, with the afternoon session being chaired by Mr Henningsen (DG TREN). The objective of the meeting was to initiate discussion with a range of stakeholders on the EU Energy Initiative. Ambassador Nielsen (Danish Presidency) opened the meeting outlining the context of WSSD, and explaining that Type II initiatives/ partnerships were one of the forms of outcome of WSSD that could complement and go beyond, but not replace, commitments between governments. He emphasised that the launch of the EU Energy Initiative in Johannesburg was the start of a process. Mr Theodorakis opened for the Commission, thanking the Danish Presidency for co-hosting this event; he outlined the key supporting role that energy plays in achieving the Millenium Development Goals, and the links between energy and the six priorities of the Community development co-operation policy. Mr Theodorakis explained that the Initiative would: 1) help to raise political awareness of the importance of energy services as a key horizontal aspect of poverty reduction strategies; 2) would improve the efficiency of energy-related development by providing a platform to co-ordinate and streamline existing and future activities in this area; 3) would actively involve the private sector and civil society. Finally he emphasised the need for open dialogue, and expressed the wish for stakeholders to associate themselves with the Initiative and contribute to it, as specific national/regional partnerships develop . The Commission presented an outline of the Communication to the Council and the European Parliament on "Energy co-operation with the developing countries" adopted the week before the meeting by the Commission. In addition, the process that had lead to the development of the EU Energy Initiative was outlined. The Commission then explained the concepts that underpin the Initiative, which provides a broad framework within which partnerships between developing countries and regions and the EU (Member States and the Commission) will be developed, with the active involvement of financing institutions, the private sector and civil society. The main objective of the Initiative is to facilitate the achievement of the Millennium Development Goal of halving the number of people in extreme poverty by 2015, through the provision of adequate, affordable, sustainable energy services. A key principle is that developing countries should maintain ownership by defining their own priorities. The Initiative would work through existing bodies and mechanisms, with EU donors providing support through their development co-operation instruments, following established procedures. The initial phase of the Initiative will identify specific energy needs of developing countries, and ways to meet these needs, and will define priorities and roles for particular national/regional partnerships. Implementation will follow in the second phase. The Initiative will be open to the full menu of technical and institutional options, though emphasis will be given to the potential contribution that energy efficiency and energy demand management as well as renewable energy can make to the development of energy systems in developing countries. Possible activities of the Initiative, including capacity building and assistance in the development of appropriate policies and regulatory frameworks, were outlined. The need for good co-ordination at the EU level, as well as with other energy activities and initiatives, was emphasised. During the first session EU Member States and developing countries outlined their views. Brazil emphasised the need for both Type I and Type II outcomes, and presented their proposal for a concrete target for new renewable energy sources (i.e. excluding large hydro and traditional biomass). Brazil is planning an energy initiative (for further information see links page). France highlighted the importance of governments in defining objectives for the development of the energy sector. They expressed support for the EU Initiative and outlined the specific French inputs that are planned. South Africa thanked the EU for presentation of this initiative, which provided a good basis for moving forward. The involvement of NEPAD in particular was encouraged. Finland outlined a partnership to promote renewable energy sources and energy efficiency that they are developing, under the umbrella of the EU Initiative, with countries of Central America, with the active involvement of the private sector; core funding would be available from the Finnish Government. Italy outlined an initiative being developed, together with Morocco and France, also with the objective to encourage energy efficiency and the use of renewable energy sources for the Mediterranean region. Germany explained that they are in the process of re-orienting the priorities of their bi-lateral programme on energy, which would be associated with the EU Initiative. Ambassador Saliou Cisse from Senegal highlighted the importance of energy in African development, welcomed the EU Initiative, and expressed his desire for a fruitful partnership with the EU on energy. During the second session panels from financing institutions, private sector and NGOs outlined their views. The industry councils and associations expressed their pleasure at being offered the opportunity to become associated with the EU Initiative, and their interest in further dialogue . With regard to financing, the industrialists (ENEL, Alstom Power, e5, BP, EREC) not only emphasised the need to look for more intelligent combinations of public and private funding, and to use the available funds more efficiently, but also stated that more funds will be needed to meet internationally agreed goals related to the poverty agenda. It was suggested that the public sector could play an important role in helping the private sector to mobilise its capital, by helping to reduce financing risks through improving policy frameworks, strengthening political accountability, reducing corruption, enhancing regulatory frameworks, encouraging better governance, and providing public support for capacity building. Several of the industrial participants confirmed their interest in further dialogue and in taking their responsibilities with regard to developing and supplying sustainable technologies, and addressing the poverty and sustainable development agendas. They confirmed that the senior management in most major companies want to do the "right thing" and, although a number are already working in partnership with developing country governments and NGO's, there is still a need to clarify exactly what they should do, and to express it in business language. A number of participants emphasised the importance of establishing targets for renewable energy and for energy efficiency, as well as other general energy targets, as a means of focusing the future efforts of policy and decision makers. However, it was not clear from the discussions whether future policy objectives would best be served by establishing renewable energy targets which include or exclude the use of traditional biomass. The EU will be pressing for a target on renewable energy at WSSD. Representatives from the international financing community (European Investment Bank-EIB and Kreditanstalt für Wiederaufbau-KfW) confirmed that they were already using a significant proportion of their lending budgets for both large and small projects involving energy supplies and more efficient use of energy, and would certainly aim to bring support to the EU energy Initiative, where feasible under their operational mandates. These both cap their lending by geographical region and limit the extent to which they can offer low (soft) interest rates. Nevertheless, they expressed their willingness to examine synergies with other funders and innovative approaches, involving the public and private sectors, which aim to foster the development goals. In order to provide energy services which will really help with the sustainable development of the poorest communities in developing countries, it was emphasised that donor funding, and / or intelligent concession packages (for example, including rural electrification obligations) are needed, because the provision of such services is usually unable to produce the required returns on capital employed, on a normal commercial basis. This is a factor of particular relevance as liberalisation tends to pass the power sector over to private enterprise, with reduced state involvement. Further, it was pointed out that the privatisation of electricity utilities is not always easy, and is frequently subject to delays. Nonetheless, it may offer the opportunity for developing country governments to examine their goals - and strike a balance between immediate income or development obligations - and thus model concession agreements that may allow the private sector to achieve adequate economic returns from combinations of the more wealthy urban customers and poorer communities further afield. NGO representatives outlined their views. WWF highlighted the importance of strong Type I outcomes at WSSD, and stressed the need for adequate financing of energy activities in developing countries. The Fondem representative highlighted their extensive experience in the field, and stressed, inter-alia, the need to work with professionals in other sectors to achieve improvements in access to energy services. OVE (Danish Organisation for Renewable Energy) explained that true partnerships take a long time to develop; he looked forward to seeing further details of the partnerships as they develop. Mrs Sloth Carlsen (Danish Presidency) summed up the meeting, explaining that it had provided broad support and encouragement for the EU Energy Initiative. She re-emphasised that this is the start of a process, which is developing, and should eventually lead to energy finding its proper place in PRSPs and other poverty eradication strategies. Type I outcomes should be the foundations for the success of Johannesburg, while Type II outcomes, such as the EU Energy Initiative should be complementary to Type I, and would help to attract attention to certain issues, such as energy for poverty eradication. A target for renewable energy (Type I outcome) is a high priority for the EU in Johannesburg. The central need for appropriate policy and regulatory frameworks for energy, at country and regional level, had been identified during the meeting. On the process between now and WSSD Mrs Sloth Carlsen encouraged participants to associate themselves with the Initiative in general and to take part in further dialogue after WSSD to define their role in the specific national/regional partnerships that will be developed. The Initiative will be given a high profile launch at WSSD. Mrs Sloth Carlsen thanked the European Commission for their support in the organisation of the meeting. She expressed her gratitude for the involvement of the participants, and her pleasure at the positive tone of the meeting.
The following documents are available (pdf~20-1900K) : Speech by Mr Theodorakis, DG Development Presentation by DG Development Views of MS - Presentation France Presentation by Kreditanstalt für Wiederaufbau Presentation by European Business Council for Sustainable Energy Future (e5) |