Commission on Sustainable Development

Ninth Session

3^rd Meeting (PM)

SUSTAINABLE DEVELOPMENT COMMISSION HEARS PROPOSALS FOR BETTER ACCESS TO ENERGY

Access, availability and acceptability were the three A’s of energy, a panellist representing the business community told the Commission of Sustainable Development this afternoon as it began its first multi-stakeholder dialogue session on “Achieving Equitable Access to Sustainable Energy”. 

These dialogues aim to bring together all major participants in the fields under discussion, notably representatives of businesses, non-governmental organizations, trade unions, local authorities and science community.  They are seen as a means of generating new partnerships, involving all groups in assessing progress in particular areas, and building consensus on possible action.

Speaking about the need to provide access to energy for the world’s

2 billion people currently without such access, another panellist representing

the business community said that an annual investment of only $30 billion over

20 years would make it possible to connect them.

Those that did not have access to modern energy should have key institutionalized roles in energy decision-making at all levels, a panellist representing non-governmental organizations explained.  A primary obstacle to the use of more sustainable forms of energy was an enormous amount of government subsidies that perpetuated myths of fossil fuels and large-scale hydropower as cheap, or nuclear power as clean.  If external costs related to energy production, such as health, environmental and social implications, were included, it was apparent that renewable sources of energy were in fact much cheaper than these technologies.  Initiatives and funding were needed for conservation and renewable energy sources, she said.

A representative of trade unions said that, in pursuit of clean and sustainable energy, workers needed to be certain that they would not be taken advantage of through their participation.  Great change would remain a dream as long as workers continued to worry about their jobs, work tools, health and the possibility of threats from employers.  Peace and solidarity between and within nations and compliance with basic labour norms were necessary.  The social dimension must be mainstreamed through the development of new tools, and everybody must commit to the goal of poverty eradication.

In a lively discussion that followed panellist presentations, speakers stressed the need to ensure access to environmentally clean fuels and create renewable and clean technologies.  Among issues discussed in the debate were decentralized forms of energy production, development of local institutional

capacity; appropriate economic policies, innovative programmes for poverty alleviation and creating incentives for the use of new sources of energy.  Some proposals advocated a market-oriented approach, while others stressed the need for strong regulation and public ownership.  Common participation and capacity-building at all levels were seen as very important.

The Commission will resume its work at 10 a.m. tomorrow (17 April) when it is scheduled to hold a multi-stakeholder session on sustainable choices for producing, distributing and consuming energy.

Background

This afternoon, the Commission on Sustainable Development met to open a multi-stakeholder dialogue on sustainable energy and transport.  The interactive dialogue -- with participation of many stakeholders -- is entitled “Achieving Equitable Access to Sustainable Energy”.  For background information on the Commission and its main focus during the ninth session, which began this morning, see Press Release ENV/DEV/563 of 12 April.

Statements from Panellists

The Chairman of the Commission, BEDRICH MOLDAN (Czech Republic), said that the dialogues were unique to the Commission, bringing together various players involved.  The dialogue segment would have four sessions, each starting with short presentations by the five major groups, followed by responses from governments. 

Speaking on behalf of the business community, P.J. ADAM, Chairman of the World Energy Council Executive Assembly, said that 2 billion people currently without access to commercial energy must be given access, in a just world.  Equitable access to sustainable energy was  a worthy goal, not just for the United Nations, but for business as well.  Access, availability and acceptability were the three A’s of energy.  Access meant that energy should be provided for all at affordable prices with workable payment systems.  A vast majority of energy users could afford to pay the full cost of energy services -- a condition essential for the continued investment needed to ensure energy sustainability.  However,

2 billion without access to commercial energy could not afford to pay the full cost.  The gap between cost and affordability should be closed. 

Solutions proposed in the past involved providing broad subsidies, he continued, but they did not work, for subsidies led to artificially low prices.  The largest portion of any subsidy went to energy suppliers or to the wrong energy users.  Subsidies also encouraged energy waste and drove demand to unacceptable levels and many nations could not afford them in the long run.  New ideas to promote access were needed.  Security of supply and reliability were also important.  All energy options should be open to ensure reliability.  Energy development, production and delivery should be ensured in an environmentally-friendly manner. 

He went on to say that the cost of access was not large.  It was possible to connect the 2 billion, and provide 500 kWh per year to each, with an annual investment of only $30 billion over 20 years -- less than a 10 per cent increase on current investment.  Other possible measures included reforming markets and market regulation; keeping all energy options open; reducing political risks of energy investments; and improvement of energy efficiency .  Neither poor, nor rich nations, could do it alone.  A partnership was needed.   But were the wealthy nations willing to help with limited energy investments for the poor?  Were poor nations willing to subscribe to market reform and create regulations favourable to foreign investment?  It was important to be realistic about the needs and provide the necessities.  The answers to those questions would provide solutions.  Access could improve health, education, productivity and the environment.  The business community was pleased to be represented at the dialogue.  It had a broad range of expertise and could contribute to the partnership.

R.K. PACHAURI, President of the Tata Energy Research of India, said that in the developed world, access to energy had been defined by the spread of markets, deregulation and efficiency improvements.  In developing countries, markets had not spread for a variety of reasons.  A large number of developing countries were energy importers and therefore vulnerable to price increases in the global market.  Large rural populations had no access to commercial forms of energy, resulting in dependence on biomass forms of energy, often with serious environmental implications.  It was necessary to think in terms of the existing situation in developing countries and to see how science could alleviate problems.  One way to do that was by bringing about improvements in energy efficiency.  Consumption experts often pressure prices upward, globally affecting consumption in developing countries.  If rural areas were to be connected, it was essential that modern transport be extended to those locations.  Transport technology was still dependent almost solely on the use of fossil fuels.

Even in applications such as cooking, the use of kerosene and other petroleum products was a clean option as opposed to the use of poor quality biomass fuels, he said.  Since a large part of rural populations used biomass energy, they often suffered from serious environmental problems.  It was necessary to assure that those populations had access to clean fossil fuels.  It was also important to use decentralized forms of energy production.  Local institutional capacity must be established.  It was necessary to develop institutional capability at the local level, which would empower local communities to take energy-related decisions locally.  Also necessary was the establishment of appropriate economic policies.  There was also need for innovative programmes for poverty alleviation which directly targeted impoverished communities, particularly in rural areas.  A major programme of technology development worldwide for lowering costs and improving efficiency of renewable energy options was now overdue.  Partnerships were vitally important.  Unfortunately, the commitment to research by developed countries was currently on the decline.  The scientific community was disturbed by those trends.

MAMOUNATA CISSE, Assistant General Secretary of the International Confederation of Free Trade Unions of Burkina Faso, said that workers had always supported and participated in the production of every aspect of transport services and energy.  The idea of workers and work places should be a priority so that trade unions could act together to implement sustainable development objectives.  Objectives should play a role in any work place and must include oversight and reporting mechanisms.  The Commission should encourage workers to participate.   Great change would remain a dream for millions of workers as long as they continued to worry about their jobs, work tools, health and the possibility of threats from employers.  Workers needed to be certain that through their participation they would not be taken advantage of. Workers must have rights.  Peace and solidarity between and within nations was important.  Compliance with basic labour norms was necessary.  The social dimension must be mainstreamed into sustainable development through the development of new tools.  All must commit to the goal of poverty eradication.  Statistics showed that some 250,000 workers died due to work related transport accidents.  She urged countries to ratify the International Labour Organization (ILO) conventions.  With the absence of consensus on climate change, many people could not envisage their futures.  If workers did not participate, support for public policies would fail.  The Commission must establish the link between its work and the 2002 Rio+10 Conference and the 2000 Copenhagen Conference on social development.

Speaking on behalf of local authorities, PARKS TAU from Johannesburg, South Africa, said that access to energy for poorest populations was of utmost importance.  Electric power stations were among major pollutants, which exacerbated the problem.  Many illnesses were a direct result of air pollution, leading to the loss of many working hours.  A pilot project with solar heating panels was being implemented to address the problem in his city.  Technology in clean and renewable energy was quickly advancing, but local access to those sources was not adequate.  Promotion of decentralized supply of clean energy should be promoted, but local authorities often lacked the financial means to do that.  Local governments also needed community support for their projects.

Also speaking for local authorities, CESAR MAIA, Mayor of Rio de Janeiro, Brazil, said that funds earmarked for research and promotion from international funds and agencies should be used for promotion of clean and sustainable energy, for it was important  to eliminate negative impacts on the environment.  For that reason, environmental education of municipal workers was very important.  Sustainable urban development programmes were being sought in Rio.  For transportation, replacement of obsolete buses and cars with newer, cleaner models was underway, as well as development of an underground, and tram systems.  His government was also trying to save energy by recycling waste.  He also highlighted that donor countries should support the production of clean decentralized energy, which could increase energy efficiency.  Public funds must be used to satisfy energy demand. 

On behalf of non-governmental organizations, SHANTI SACHITHANANDAM, of Christian Aid of Sri Lanka, said that a working definition of sustainable energy involved energy with minimum negative social, health and environmental impacts, supplied continuously to future generations on earth.  Based on such a definition, energy systems using nuclear power, fossil fuels and large-scale hydropower were unsustainable.  Both current and advanced nuclear systems posed serious, scientifically-established dangers.  Nuclear waste was the most long-lasting toxic material on earth.  Uranium was not an infinite resources, unlike renewable sources of energy, including solar and wind ones.  Nuclear power was also capital intensive and, especially in the case of developing countries, was likely to create long-term increases in international debt. 

Regarding fossil fuels, she said that they had negative ecological, social and economic impacts.  The most advanced fossil fuel extraction technologies had been proven to be unsafe, causing damage to water, soil and air.  Governments must support an immediate moratorium on oil exploration and extraction in environmentally and socially sensitive areas.  Along with the corporate sector, they must shift toward renewable technologies, relying heavily on conservation in order to avoid a chain of damage at every step.  Countries should consider implementing a tax based on carbon content, to induce a shift from coal and oil.  Small-scale hydropower was a sustainable source of energy, but large-scale hydropower, although renewable, was not sustainable. 

Those lacking access to modern energy should have key institutionalized roles in energy decision-making at all levels and in all sectors.  The primary obstacle to the use of more sustainable forms of energy was the enormous amount of government economic subsidies that perpetuated the myths of “cheap” fossil fuels and large-scale hydropower, or “clean” nuclear power.  If external costs related to energy production, such as health, environmental and social costs, were included, it became apparent that allegedly expensive renewable sources of energy were in fact much cheaper that the existing  technologies.  Government subsidies should be phased out under a five-year time-frame.  Initiatives and funding should be provided for conservation and for the development of renewable energy sources.   Some of the resources should be redirected to finance the establishment of a new United Nations agency for sustainable energy.

The representative of Pakistan said that one of the pillars of sustainable development was social development.  He understood the negative impact of subsidies in some cases.  He proposed a focussed approach to giving subsidies, rather than doing away with all subsidies.  Given social and economic situations, energy pricing should be centrally regulated.

The Commission Chairman, Mr. MOLDAN (Czech Republic), summarizing the presentations, stressed the importance of the harmonized development of the three pillars of social development.  Among the specific issues addressed was the question of decentralized systems of energy supply.  It was an overarching question that should be addressed.  Speakers had also emphasized the need to consider the under-represented members of society -- namely the poor, children and women.  In general, he was pleased that the discussions so far had been focussed on energy use, rather than developing energy sources.  Energy pricing and the sensitive issue of energy subsidies had also been mentioned. 

Dialogue

A representative of a non-governmental organization in the United States said that over the next five years, the United States Government would spend some $12 billion on energy subsidies and provide around $15 billion in tax breaks.  The most recent budget proposal advocated an additional $2 billion to implement clean coal technologies, which did not work.  Some tax break incentives had considered non-conventional fuel credits.  In some cases, oil and gas companies could deduct their entire profits.

Speaking on behalf of Trade Unions, another speaker said that employment and income security, health and safety in the energy and transport sectors held a central focus in the ILO’s agenda.  Increasing numbers of workers were not protected.  Even where standards did exist, health and safety was still seen as a luxury.  Energy and transport workers still fought for basic human rights.  Societies needed security and predictability to function efficiently.  One of every three workers was unemployed.  Sustainable development meant measuring social development in concrete terms.  Workers could say yes to a market economy and no to a market society.

A speaker said that common goals were needed to bridge the gap between various points of view.  The discussion so far demonstrated the main areas of agreement and disagreement on the main points.  The proposals ranged from a pure market-oriented approach to advocacy of strong regulations and public ownership.  Common participation and capacity building at all levels were seen as very important.  There should be a focus on modern energy access in rural areas, energy conservation and clean production.  It was also important to internalize external costs and remove unsustainable energy subsidies.

A representative of a non-governmental organization said that the interests of indigenous peoples should be addressed.  Energy was a crucial part of development.  However, for indigenous peoples, it was often a source of environmental degradation, and policies were often carried out without their consent.  Indigenous people had low access to energy, and their rights were not being respected.  Large dams were often a source of conflict.  The rights-based approach was needed, with assessment of risks and alternatives.  Equity, efficiency and participation were important in determining where to build major dams.  Experience of indigenous people should be taken into account.  Sustainable energy development should be pursued in a correct way.

A representative of the business community addressed the question of sustainable solutions to access to energy for the poor, especially in rural communities.  Successful solutions should be implemented on a broad scale.  Such projects required the willingness and participation of all stakeholders.

A representative of Saudi Arabia said that it was very important to recognize the points of view of developing and developed countries.  For the developing countries, first and foremost was the eradication of poverty and then sustainable development.  Sustainable development was impossible without sustainable energy.  The developed countries concentrated on the economic, social and environmental issues, for they did not have the same level of poverty.  Energy patterns also varied from country to country.  Speaking about access, it was important to address the question of access for all.

A representative of Indonesia said that achieving equitable access was important.  Almost 2 billion people relied completely on traditional energy sources.  Uneven distribution of energy created numerous problems in the modern world.  International deliberations to address disparities between developing and developed countries were crucially important.  To meet energy requirements of developing countries, cooperation must be promoted at all levels.  Cooperation could accelerate growth and create better living conditions.  Indonesia was devoted to sustainable energy production and the implementation of Agenda 21 – the Earth’s Summit’s statement of objectives.  Enhancing public awareness and applying appropriate standards for the use and production of energy was important for her country.  The Government had introduced incentives and energy price subsidies.  Opportunities were being provided for small businesses.  Increased capital investment should be promoted.  The donor community should facilitate access to energy for developing countries.  Evaluation of their needs also needed to be improved.

A representative of the non-governmental organization community said that the question was how to bring sustainable energy to the local community level.  Sustainable energy technologies should be part of the package presented to local communities.

A representative of Pakistan said that, as a developing country, he was not afraid of the “marketization” of the development sector.  In some cases, production had increased as a result of the withdrawal of certain subsidies.  Some countries lacked the capacity to switch to more sustainable means of energy.  One solution was the regulation of the energy market to ensure the provision of energy to all sectors of society.  The market had been manipulated to increase prices so governments would buy energy at higher prices.

On the social aspects of energy production, a representative of the business community said that social assessment was rightly a key pillar of sustainable development.  The ultimate aim was to develop safer working practices for local communities.  Statistics showed that industry had become a much safer place to work.

A representative of a non-governmental organization said that energy was a pressing concern for African women.  It was critical that women be able to participate in sustainable energy use.  Participation should be accompanied by initiatives in capacity-building.  Programmes to improve sustainable energy access should be given priority.

A representative of an academic institution in China said that energy consumption was increasing in China and other more populous nations.  The impact on the environment of the emission of carbon dioxide was becoming unbearable.  Populous nations must change their ways of living and find ways to reduce their level of energy consumption.  In China, people were increasingly using private cars and air conditioning.  Populous nations could not rely on renewable sources of energy, which accounted for only a small portion of energy consumption.

A representative of the business community said that fighting poverty required more energy.  Poor nations were not in a position to choose between different kinds of energy.  The debate should not be one source of energy versus another.  All were needed.

The representative of the former Yugoslav Republic of Macedonia said that innovation of legislation in the energy field was essential.  The cost of innovation and research was high and, therefore, advantage should be taken of both.

The representative of the local authorities sector believed that all citizens could make contributions to reducing energy consumption.  Local authorities had tried to target those who could not afford to invest in low energy measures, by providing grants, for example.  Such measures not only helped to reduce energy costs but also raised awareness of the benefits of sustainability.  They had also tried to increase the use of renewable energy resources.  The removal of subsidies would provide a level playing field. 

A representative of an indigenous community in Alaska said that her community had everything to lose from gas or oil development in Alaska.  It was a place where life began not only for the caribou, but many other life forms.  It was a healthy tundra -- a place for migrating birds to nest.  Drilling for oil would not solve the energy problem in other parts of the country.  She proposed global cooperation for energy conversation.  

A trade union representative from Africa said that sub-Saharan Africa consumed only 3 per cent of world energy, yet had a large energy potential.  Africa faced serious problems in obtaining sources of energy.  The cleanest source of energy was electricity.  Access, especially in rural areas, was a problem.  Trade unions had found that privatization of public utilities usually made the problem worse.  Women and children were most vulnerable to a lack of safe energy.  The Commission should promote sustainable development of energy and the universal access to electricity.

A speaker said that the oil industry recognized the challenges of integrating sustainable development in business.  The world supply of natural gas was abundant.  Natural gas was a clean source of energy, which presented great opportunities for the international community.  It should become a part of a solution for access to energy worldwide.

Another speaker pointed out that intellectual properties rights agreements had important implications for the developing world population without access to sustainable energy.  Technology transfer was difficult, and strengthened intellectual royalty rights could make it even more costly.  Implementation of intellectual properties rights agreements should not amount to deprivation.

Representatives of local authorities were very proud of their accomplishments, another speaker said.  Many problems could be resolved at the local level.  In particular, the international council of local authorities had started a global campaign to reduce carbon dioxide emissions.  Local authorities were responsible for public transit, energy efficiency, land use, education and waste management.  They must commit to creating an inventory of emissions, identifying actions and producing results.  Subsidies had created an uneven playing field.  Now, it was important to create renewable and clean technologies, creating incentives for using new sources of energy.  Those incentives could be directed at the same companies and businesses that were responsible for non-sustainable use of energy now.

It was also pointed out that cost-effective transition to large-scale modern energy services was possible.  That was true for both rural and urban areas.  Innovative combinations were also possible between fossil fuels and newer sources of energy. 

Although the environmental record of the oil and gas industry was not perfect, a business representative said, it was among the pioneers developing new technologies.  Minimal impact operations were achievable in a number of environments, and research on this was under way.  The conflict between oil and gas exploration and production and local interests was of interest to the industry, which was issuing relevant guidelines.

Equitable access required education and training, political will, information and research, a speaker said.  International efforts were under way to promote all those elements.  International meetings on sustainable energy had taken place, including a summit on solar energy in Zimbabwe.  Renewable energy issues were also among the main issues considered by the United Nations Educational, Scientific and Cultural Organization (UNESCO).

Subsidies should not be restricted to support for polluting fossil-fuel sources of energy, another speaker said.  Subsidies for decentralized clean energy should be encouraged instead.  They could be provided with a mixture of small and tax-free loans, and involve some creative approaches.

A representative of the scientific community said that he was dismayed that the emphasis of the discussion had been on the energy per se, but not on the energy services.  Poverty and energy were connected, as had been pointed out.  Opportunities for addressing poverty should be developed, however, without compromising the purposes of achieving clean energy.

Another issue of discussion involved privatization, which, if not accomplished properly, could only lead to the increase in the profits of companies involved, another speaker explained.  Without trade union participation and government regulation, it caused job cuts and deterioration of the work environment, without improving the level of services.

Some subsidies could be preserved, a speaker added, and directed at achieving sustainability.  Centralized versus decentralized energy had also been raised in the discussion.  While many believed that decentralized sources of energy were more expensive, solar and wind home systems in areas without access to energy were infinitely cheaper than anything else. 

A representative of the business sector said that there had been consensus in the meeting that prices must be right.  When prices were right, the market worked.  However, despite many creative proposals, there were only ad hoc proposals on the table so far.  The Commission needed to examine how to structure decision-making processes so that the real risk associated with investment could be tested.  The market system had a cost for fossil fuel that did not reflect renewability.  The price of fuel must be reevaluated so that long-term risks could be determined and private costs and benefits be aligned with social costs.  He proposed specific proposals for concretely addressing decision-making paradigms.

Another speaker said that, although non-governmental organizations understood the goal of reaching consensus, the Commission should also debate more sensitive issues, including nuclear energy.  As long as the Commission tried to push nuclear energy as a sustainable energy source, the process of the Commission would fail.

A representative of business said that it was important to explore non-quantifiable benefits of renewable energy.  He urged the Committee to explore the issue of life-cycle costing.  In the absence of consensus, other initiatives should not falter.

Another representative of the non-governmental organization community said that every nuclear reactor was in reality a bomb factory.  It was a red herring to say that nuclear energy was a clean fuel.  It was not a clean fuel, and was probably the dirtiest trick that could be played on any country to provide some kind of sustainable energy. 

On pricing and energy saving, a trade union representative said that the electricity market in Sweden had been deregulated after an agreement in the parliament.  The largest trade union had been sceptical about the deregulation.  The agreement had affected the competitiveness of the electricity market.  The electricity market reform had meant that prices had fallen.  Some 23,000 trade union members had received considerable price reductions.  But the government had underestimated the inertia of the old market system.

A business community representative said that the nuclear business worldwide promoted equal access of all peoples to energy.  More people lived in cities rather than in rural communities.  How did one provide for environmental protection and adequate access to services without large-scale sources of electricity, either from nuclear or fossil units?  No one in the business community would promote the use of nuclear technologies where others were more suitable.  One person’s subsidy was another person’s incentive. 

A representative of the scientific community said that greater collaboration was needed in the area of science.  Looking at the problems of energy assessment required an interdisciplinary approach.  He was concerned about the need to develop science activity, particularly in developing countries.  The science community in those countries must be strengthened.

Another speaker said that in Chicago, the local authorities were paying attention to the climate change issue, including the changes posed by fluctuating levels in neighbouring lakes and devastating heatwaves.  Chicago continued to suffer from brownouts and reliable energy posed a great challenge.  Local authorities were bringing sustainable development to the major business areas, including in the form of tax credits and rebates for use of solar technologies.  Chicago was a trade union city.  She urged unions to share their commitment and information about the importance of sustainable development.  She knew of no local authority that would set up nuclear power plants.

A non-governmental organization representative said that indigenous people had received few benefits despite the many benefits they had brought to the area of sustainable development.  In adopting decisions, indigenous people had been marginalized.  The fact that they were not considered major stakeholders was evident most recently in Bolivia and Ecuador.  It was possible to establish norms for equitable distribution of benefits from energy found in indigenous areas. 

Representing the business community, a speaker said business and industry were primary distributors of new technologies and had a large role to play in capacity-building.

Representing trade unions, another speaker said that the energy system was socially unjust and environmentally unsustainable.  Changes in orientation of

subsidies were necessary.  Subsidies must be redirected to renewable energy forms.  Technology transfers from the North to the South must also take place.  The development of renewable sources of energy created jobs, but could also cause problems.  Mechanisms were needed to assist in a just transition.  Workers could support change, but assistance was needed. 

The Chairman, Mr. MOLDAN (Czech Republic) thanked the speakers for their statements and said that he would make a summary of presentations available to assist the Commission in its work.

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