Rio+20 Must Address Energy Poverty
Ecoal, Vol 75, August 2011
In 2012, the 20th anniversary of that summit will be marked by another meeting, commonly known as Rio+20. This conference will again bring together the world's leaders to discuss the concepts of "green economy" and the institutional framework for sustainable development. It will also provide an opportunity for reflection on progress over the past 20 years to bring the world's poor out of poverty and address major environmental challenges.Since the 1992 Earth Summit there have been numerous international conferences, gathering world leaders to discuss similar issues, notably the Millennium Summit in 2000 and in Johannesburg in 2002 as well as the various climate negotiations.
International Development Goals and the Energy Challenge
Of these conferences, the Millennium Summit has probably been the most notable, due to the establishment of the Millennium Development Goals (MDGs), which set clear targets to be achieved by 2015 to address poverty in the developing world. The MDGs have set important targets in areas such as health services, environmental sustainability, education, addressing hunger and eradicating extreme poverty. Many of the targets set have in fact been reached, but many haven't, which means as preparations begin for Rio+20 next year, there is still a lot of work to be done. There will also need to be a reassessment of missed targets and how they can be achieved.
Many observers have commented that the MDGs are lacking in one significant area - energy access. Last year the International Energy Agency (IEA) reported that there are around 1.4 billion people across the globe that lack access to modern electricity. However even more concerning is the agency's forecast that without additional dedicated policies and international action, that number will still be around 1.2 billion by 2030.
This problem has very real consequences. The IEA also estimates that by 2030 more than 4000 people a day will die because of household air pollution through the use of traditional biomass necessitated by the lack of access to modern energy.
The Millennium Development Goals therefore need to include the challenge of access to energy. It's virtually impossible to achieve any of the MDGs without getting energy to those who currently lack it. Goals that rely on the provision of education and health services in particular also rely on electricity to deliver those services. Providing any sort of technology also requires electricity. Even at a higher level, the economic role played by energy is critical. It is essential for supporting industrial development to power factories, businesses and even micro-enterprises that provide employment and income to support communities and access to essential services.
Combating Climate Change and Poverty - Integrated Priorities
Some commentators see the challenge of addressing global poverty as a direct threat to the likelihood of achieving global climate goals. It has been argued that the development needs of the world's emerging economies will add significantly to global CO2 emissions, placing further stress on the climate, and so they should only use renewable energy sources. However many studies, including by the IEA, have shown that addressing the energy poverty challenge would result in only a modest increase in primary energy demand and by 2030, CO2 emissions would only be 0.8% higher than otherwise projected.
An effective response to the legitimate aims of economic and social development, including poverty alleviation, while heeding energy security considerations, will need to integrate with global action on climate and environmental concerns. The world's least developed countries need access to low cost energy, but they are also the most vulnerable to the impacts of policies aimed at reducing anthropogenic greenhouse gas emissions.
As both developed and developing economies continue to grow, the demand for energy will only increase. Secure, affordable and sustainable sources of energy are critical to addressing the challenges of energy security and poverty alleviation whilst also reducing greenhouse gas emissions. Significantly reducing poverty in developing economies is a necessary first step to reducing greenhouse gases. Without this first step, developing economies will not have the capacity to focus their attention on reducing their greenhouse gas emissions.
Coal, along with other fossil fuels, has fuelled economic and social development in the western world. There is no scientific or economic basis on which to deny this resource and its benefits to developing nations. It can bring economic and social development to the developing world and there is a technological pathway to receive these benefits without exacerbating global warming.
Coal and Sustainable Development
Ensuring secure, affordable and sustainable energy requires a diverse energy mix and coal is a key part of that mix. It is both an essential energy resource for electricity generation and a vital raw material for industrial production. The production of steel, chemicals and cement all rely on coal. Coal is vital for long-term sustainable development and can be used in a manner consistent with greenhouse gas reduction goals.
Coal plays an important role in the economies of many developing countries and it provides a significant direct contribution to economic development at the community level. Coal is currently mined in over 50 countries, and the industry directly employs around seven million people worldwide. Much of the coal industry in developing countries is export-oriented and is therefore a major source of foreign currency earnings. Its accessibility also reduces the need to rely on importing expensive energy from elsewhere.
The contribution of mining - of coal and other natural resources - to economic and social development in the developing world must therefore be recognised. Mining supports development in local communities through creating jobs and building infrastructure. Many mining companies also make additional investments in the communities in which they operate beyond the needs of the mining project itself. The Rio+20 conference should play an important role in recognising the contribution of natural resources like coal to sustainable development and poverty alleviation.
What needs to happen at Rio+20?
Importantly, the Rio+20 conference will also be taking place during what the UN has mandated as the "International Year of Sustainable Energy for All". Throughout 2012 there will be a focus on delivering energy to those 1.4 billion people who lack it. The opportunity provided by hosting the Rio conference in this important year is significant. Access to energy should be a key topic for discussion, and more importantly agreement. Whatever kind of outcome arises from the Rio conference, it clearly must include a target for universal energy access.
Even more importantly than the adoption of a target however, is a plan for how that target is to be met. Providing clean cooking fuels and establishing small scale solar and wind electricity generators is important and will have quick and direct benefits in poverty alleviation. For true poverty eradication to occur however, it is essential that more robust and reliable sources of baseload electricity can be provided and this will require the deployment of electrical grids in developing countries.
Those grids will be fed by a variety of energy sources including renewables and fossil fuels. Many developing countries have vast reserves of coal, much of which has not yet been utilised. The ability to tap these reserves will be essential for ensuring an energy supply to support economic and social development that is affordable and meets energy security needs.
Governments and other international institutions must place affordability and energy security considerations, alongside climate objectives when considering how to support implementation of an energy access target. This means that international development institutions, and particularly development banks, such as the World Bank must support the deployment of efficient, modern and cleaner coal-fired electricity generation technology where that is the logical choice in a developing country. They must also ensure that such plants are built ready for the later operation of CCS technology, or support first-generation deployment of that technology, which would help developing countries become future industry leaders in CCS.
Conclusion
A major opportunity is presented by bringing together world leaders to discuss these important issues, and that opportunity should not be missed. The important role of energy in improving livelihoods and eradicating poverty needs to be recognised and the role that coal can play in meeting these challenges must not be ignored. The outcomes of the Rio+20 conference need to be ambitious, but they also need to be realistic and achievable.
