Commission on Sustainable Development

Fifteenth Session

2^nd & 3^rd Meetings* (AM & PM)

IMPROVING ACCESS TO MODERN ENERGY SERVICES FOR ALL FUNDAMENTAL CHALLENGE,

SUSTAINABLE DEVELOPMENT COMMISSION TOLD AS IT BEGINS FIFTEENTH SESSION

The fundamental challenge for the international community was how to achieve the multiple objectives of improving access to modern energy services, promoting sustainable industrial development, significantly reducing air pollution and effectively combating climate change, Qatar’s Energy Minister told the Commission on Sustainable Development today, as it began its fifteenth session.

Abdullah Bin Hamad al-Attiyah, who is also Chairperson of the Commission’s current session, added: “There is no intergovernmental body other than [the Commission] that is better equipped to take on this fundamental challenge.  Let us work together, in partnership, and chart an action-oriented course for the coming years.  If we work together, we surely can make a difference.”

Noting that the present world was not a sustainable one, with one third of the global population without access to modern energy, he called on the Commission to focus on areas where value could be added, and urged delegations to identify those policy options and actions that offered win-win solutions.  He also called on United Nations agencies to step up support to developing countries, and invited civil society to make their contributions.

The Commission’s fifteenth session, expected to conclude on 11 May, attempts to chart a sustainable course of action on the interlinked issues of energy, climate change, air pollution and industrial development.  Building on the outcomes of the fourteenth session, the Commission will aim to take policy decisions on practical measures to advance long-term energy solutions that can fuel economic and social development, while reducing air pollution and the greenhouse gas emissions responsible for climate change.

Under-Secretary-General for Economic and Social Affairs José Antonio Ocampo told delegations this morning that the first challenge was how to guarantee access by the poor to modern energy services, as that access was necessary for eradicating poverty and achieving all the Millennium Development Goals.  Global warming was clearly attributable to human activities, he said, noting that the effects of climate change had ranged from agricultural impacts to sea-level rise.  Since current consumption and production patterns were not sustainable, he called for a major policy push to promote energy efficiency, generate new energy technologies and promote cleaner technologies from both renewable sources and fossil fuels.

Speaking on behalf of the “Group of 77” developing countries and China, Pakistan’s representative stressed that implementation remained the Achilles’ heel of the global development agenda and called for the provision of additional resources for development, equitable international trade and financial systems, as well as the liberalization of restraints on technology transfer to developing countries.  He supported comprehensive reform of the international financial architecture and urged funding for research and development on the priority problems for developing countries.

Germany’s representative set out the European Union’s priorities, saying that the outcome of the current session should contain time-bound targets at the national and regional levels.  It should also contain commitments to increase energy efficiency and the share of renewable energies, as well as access to energy and the integration of such sustainable energy policies in national sustainable development strategies, poverty reduction strategies or other planning frameworks by 2010.  It should endorse a clear and effective review arrangement that should be based on real data, and initiate the process for an international agreement on energy efficiency, among other things.

The representative of Grenada, speaking on behalf of the Alliance of Small Island States (AOSIS), stressed that the four thematic issues, if not adequately addressed, presented serious threats to the security and sustainable development of small island developing States, threatening the very existence of some of them.  The Alliance supported establishing regional risk insurance facilities for small island developing States, and called for more comprehensive implementation of such risk management initiatives.  Also, a global renewable energy fund was urgently needed to assist in the dissemination of renewable energy to developing countries.

Also today, the Commission held interactive discussions with the representatives of the nine major groups given important roles to play as partners in sustainable development -- women, children and youth, indigenous people, non-governmental organizations, local authorities, workers and trade unions, business and industry, scientific and technological communities, and farmers –- as well as with representatives of regional development banks and United Nations regional commissions.

The Commission completed its bureau today with the election of Luis Alberto Figueiredo Machado ( Brazil) as Vice-Chairperson and Alaid Edouard Traore ( Burkina Faso) as Rapporteur.  The other Vice-Chairpersons are Jiři Hlaváček ( Czech Republic) and Frances Lisson ( Australia).

In addition, the Commission adopted its provisional agenda and organization of work contained in document E/CN.17/2007/1, and heard the introduction of the Chairman’s draft negotiating document, based on the Intergovernmental Preparatory Meeting held from 26 February to 2 March.

Also today, delegations were informed that Ambassador Viveka Bohn of Sweden, who had long been a champion of sustainable development, had been tragically injured while in Africa.  A moment of silence was observed in that connection.

Statements were also made today by the representatives of United Sates, Sudan (on behalf of the African Group), Antigua and Barbuda (on behalf of the Caribbean Community), Switzerland, Austria, Japan, Norway, Denmark and Papua New Guinea (on behalf of the Pacific Islands Forum).

The Commission will meet again at 10 am tomorrow, 1 May, in parallel sessions to discuss the thematic issues of energy and air pollution/atmosphere.

Background

The Commission on Sustainable Development met today to open its fifteenth session, which will aim to take policy decisions on practical measures to bolster programme implementation in energy for development, industrial development, air pollution and climate change, amid heightened concerns over the implications of global warming, environmental stress in poor countries, and the influence of fossil fuel burning and other human activity on the environment.

The Commission, the United Nations forum that brings countries together to consider ways to integrate the key facets of sustainable development -- economic growth, social development and environmental protection –- will hold its highly-anticipated discussions through 11 May, with delegations set to consider timely issues such as renewable energy sources, trans-boundary air pollution, cropland degradation, scarcity of fresh water and fuel switching, among others.

Established by the General Assembly in 1992 to promote full implementation of “Agenda 21” -- a comprehensive blueprint for social justice and a healthy planet, drawn up by Governments at the 1992 Rio Earth Summit -- the 53-member forum is a functional commission of the Economic and Social Council.  It also monitors worldwide efforts to implement the outcome of the 2002 World Summit on Sustainable Development.

The Commission’s programme, based on two-year cycles with a clear set of thematic issues, provides the global community a unique opportunity to focus in-depth attention on specific topics.  Building on the outcomes of the fourteenth session, where the Commission focused on its 2006-2007 themes -- energy for sustainable development, industrial development, air pollution/atmosphere and climate change -- the fifteenth session is a “policy year”, and will strive to be forward-looking and action-oriented.

Delegations will have before them the report of the Intergovernmental Preparatory Meeting (document E/CN.17/2007/9), reports of the Secretary-General and other relevant inputs.  The preparatory meeting, held at Headquarters from 26 February to 2 March, agreed on a “Chairman’s negotiating document” containing policy options Governments could use to expedite programme implementation in line with the priority themes, and encouraging Governments to strengthen technology cooperation, including collaboration on clean energy research and development, as well as the transfer of new technologies.

By the Chairman’s text, the Meeting reaffirmed that eradicating poverty, changing unsustainable patterns of production and consumption and protecting and managing the natural resource base of economic and social development are overarching objectives of, and essential requirements for, sustainable development.  It called on Governments and the United Nations system, working in partnership with major groups and other stakeholders, to take specific actions related to energy for sustainable development, industrial development, air pollution/atmosphere and climate change.

The Secretary-General’s report on policy options and possible actions to expedite implementation: energy for sustainable development (document E/CN.17/2007/2) highlights measures that could be taken at the international level with regard to improving access to energy, encouraging energy efficiency and promoting the use of advanced and cleaner energy technologies and other energy-related topics.  It also lays out policy options to encourage fuel switching from traditional biomass to modern energy services for cooking and heating as a means for improving living standards, health and access to social services, including education for women and children.

The report also identifies a menu of policy options and possible actions to improve access to national electricity grids, including those aimed at lowering costs.  It also notes that enhancing energy efficiency can reduce air pollution and regional and global atmospheric impacts, as well as contribute to industrial development efforts.  Among other things, policy options and possible actions to overcome market-related and institutional barriers to enhancing energy efficiency are identified, along with ways to improve and transfer energy-efficiency

The report on industrial development (document E/CN.17/2007/3) notes that industrial development has rarely occurred by virtue of free market forces alone and that Government policies and investments have played an important supportive role.  Trade can help boost industrial development through access to imported technologies and through the scale and learning economies of access to global and regional markets.  The openness of the international trade regime to developing a country’s industrial exports is an important enabling condition.  Public investment in basic infrastructure, research and development, as well as in education can support industrial development.

According to the report, public support to venture financing can encourage greater risk-taking by entrepreneurs in exploring new product markets.  Measures to encourage investments by the private sector, in training of the workforce, can be important to facilitating technology transfer.  The specific challenges facing small- and medium-sized enterprises can be remedied through targeted Government programmes.  The internalization by enterprises of principles of corporate, social and environmental responsibility and accountability can help relieve the enforcement burden on Governments, as can an active civil society.  Governments would benefit from technical assistance to strengthen monitoring and enforcement capacity of workplace and environmental regulations.

The report on air pollution/atmosphere (document E/CN.17/2007/4) states that most air pollution is a consequence of industrial development, energy production and use and transportation.  Efforts directed at adopting cleaner production processes, cleaner energy technologies and cleaner fuels, therefore, contribute to improving air quality and protecting the atmosphere.  Policy options and possible actions are available for reducing air pollution, both indoor air pollution from traditional biomass fuels that adversely affect the health of women and children, and ambient air pollution from all industrial, energy and transport sources. 

Among policy options and possible actions, the report suggests that the Partnership for Clean Fuels and Vehicles should be supported in its efforts to complete the global elimination of leaded gasoline.  Capacity-building for the development of innovative economic and policy instruments for dealing with air pollution at the local level should also be supported, as should the establishment of regional and subregional cooperative agreements to reduce transboundary air pollution.  Studies to identify ways to effectively and economically reduce both aviation and shipping emissions also merit support.

On climate change, the Secretary-General’s report (document E/CN.17/2007/5) notes that the increasingly evident impact of climate change lends the issue a particular sense of urgency.  International cooperative efforts can help ensure that timely and effective action is taken to mitigate the causes, as well as the effects of climate change, to further the implementation of Agenda 21 and the Johannesburg Plan of Implementation, and to achieve the goals of sustainable development.  A comprehensive climate change strategy, including coherent policies and actions regarding energy, industry, forestry and waste management, could yield multiple benefits for greenhouse gas mitigation and sustainable development objectives.

The report states that countries vulnerable to the adverse impacts of climate change, especially least developed countries and small island developing States, require increased assistance for the development and implementation of adaptation strategies.  This could include improving the dissemination of information, enhancing resilience to the adverse impacts of climate change and climate variability, and integrating adaptation measures into national sustainable development strategies and planning.

According to the report, policy options and possible actions could include a combination of improved energy efficiency, increased renewable energy use, better agricultural practices and sustainable forest and waste management.  Such a strategy could also include stable incentives and measures to enhance the use of market-based mechanisms, including scaling up the carbon market and expanding the range of clean development mechanism activities.

The report on interlinkages and cross-cutting issues (document E/CN.17/2007/6) underlines the strong interlinkages among the four issues.  Providing access to reliable, affordable, economically viable, socially acceptable and environmentally sound energy services may advance industrial development, reduce air pollution and lower greenhouse gas emissions.  Most cross-cutting issues identified at the eleventh session of the Commission on Sustainable Development, including those related to the means of implementation, are also relevant in the context of the thematic cluster of issues.  The report identifies interlinkages and cross-cutting issues.  Its annexes provide contributions from the African region, the Economic Commission for Europe (ECE) region, the Latin American and the Caribbean region and the Asia and the Pacific region.

For further background on the session, see Press Release ENV/DEV/925 issued on 26 April.

Statements

ABDULLAH BIN HAMAD AL-ATTIYAH, Minister of Energy of Qatar and Chairman of the Commission, said there was unanimity on the importance of the issues before the Commission and that there existed a lot of common ground.  Last year’s session had succeeded in identifying barriers and constraints, as well as lessons learned in the thematic areas.

“Let there be no doubt –- the Commission can only succeed in its work when all Member States work together in a constructive spirit of partnership.  We have a historical responsibility to current and future generations to make progress here, and we have a historical opportunity to do so,” he stated.  The international community had become increasingly aware that, in order to achieve the Millennium Development Goals, there must be improved access to modern energy services.  Over 2 billion people still depended on traditional biomass to meet their energy needs.  Women and children still trekked for miles to gather firewood and fell victim to poor health, as a result of indoor air pollution.  Developing countries must have improved access to modern energy services in order to improve the livelihoods of the poor and to achieve their sustainable development goals.

Energy also drove industrial development, he said.  It was important that developing countries had access to the latest, most efficient and environmentally sound technologies.  Favourable conditions must be created for technology transfer and to foster a broader competitive environment that encouraged industries to improve efficiency.  Further progress on the trade agenda could also be helpful.  “More sustainable patterns of production and consumption will contribute to energy efficiency, while also being vitally important to reducing air pollution, combating climate change and promoting sustainable industrial development.”

He called on the Commission to focus on areas where value could be added and urged delegations to identify those policy options and actions that offered win-win solutions.  He also called on United Nations agencies to step up support to developing countries, and invited major groups to make their contributions, saying: “Combining your enthusiasm, your expertise and your resources, the nine of you can do a lot.”

The present world was not a sustainable one, he said, with one third of the global population without access to modern energy.  The fundamental challenge was how to achieve the multiple objectives of improving access to modern energy services, promoting sustainable industrial development, significantly reducing air pollution and effectively combating climate change, through both mitigation measures and long-term adaptation strategies.  “There is no intergovernmental body other than CSD that is better equipped to take on this fundamental challenge.  Let us work together, in partnership, and chart an action-oriented course for the coming years.  If we work together, we surely can make a difference.”

JOSÉ ANTONIO OCAMPO, Under-Secretary-General for Economic and Social Affairs, said the topics of energy for sustainable development, atmosphere and climate change were at the centre of current international debates.  How to guarantee access by the poor to modern energy services was the Commission’s first challenge, as that access was necessary for eradicating poverty and achieving all the Millennium Development Goals.  Also needed urgently were additional resources and innovative financing, as well as improved service delivery.  Effective action on modern energy access would serve to cut indoor air pollution, improve the health of women and children and improve prospects for education in rural areas.

With regard to climate change, global warming was clearly attributable to human activities, he said, noting that the effects of climate change had ranged from agricultural impacts to sea-level rise.  Those consequences would have serious implications for food security and access to safe drinking water, among other things.  Noting that current consumption and production patterns were not sustainable, he called for a major policy push to promote energy efficiency, generate new energy technologies and promote cleaner technologies from both renewable sources and fossil fuels.  Estimates had indicated that global investment in energy-related research and development projects should, at least, double.

Recalling the United Nations Framework Convention on Climate Change and the Kyoto Protocol, he said the transfer of cleaner energy technologies could boost economic productivity.  Adaptation to climate change impacts required major investments.  Investigation of new sources of financing, particularly through the carbon market, could help ensure that vulnerable communities cope with those impacts.  An enhanced longer-term carbon market was essential, as it was the most cost-effective instrument in meeting mitigation commitments.  Enhanced international energy cooperation could help reduce price volatility and keep oil and gas markets working efficiently, he said.

He noted that industrial development had contributed to economic growth over the past half century, but remained elusive for some areas, particularly Africa.  For industrial development to contribute to sustainable development, it must yield improvements in productivity and per capita incomes, and be socially inclusive.  A focus on job creation and training was fundamental to an inclusive industrial policy.  Governments could support industrialization by stimulating innovation, he added, noting that entrepreneurs should be assured of reaping rewards from pioneering new branches of industry and developing new markets.  He hoped the Commission would take decisions to spur action on energy, industrial development and the other challenges, to assist countries in achieving sustainable development goals.

Debate on Thematic Cluster

FARUKH AMIL (Pakistan), speaking on behalf of the “Group of 77” developing countries and China, said the Commission was uniquely placed to successfully address challenges in the areas of energy for sustainable development, industrial development, air pollution/atmosphere and climate change, and further review progress in the implementation of Agenda 21 and the Johannesburg Plan of Implementation.

Recalling the 2002 World Summit on Sustainable Development, he stressed the need for policies that would enable developing countries to bridge the widening gap between the rich and poor.  Although progress had been made through various agreements and summits, implementation remained the Achilles’ heel of the global development agenda.  He called for faithful implementation of commitments.

Economic, social and environmental goals at the national and international levels should be promoted in consistent ways, he said, calling for the provision of additional resources for development, equitable international trade and financial systems and the liberalization of restraints on technology transfer to developing countries.  In that context, he regretted that official development assistance (ODA) had declined in 2006 from the previous year.  Similarly, significant progress had not been achieved regarding technology transfer, due in part to intellectual property rights, or in realizing capacity building in developing countries.

Moreover, there was insufficient focus on the development dimension of international trade in the Doha Round of trade talks, and it was clear that constraints had been placed on development by the trade-related intellectual property rights (TRIPS) regime.  He supported comprehensive reform of the international financial architecture, stressing the need to fund research and development on the priority problems for developing countries.

Adequate policies should consider the special needs of Africa and the least developed countries, he stated, noting it was imperative to speed up implementation of commitments made to Africa.  He also recognized extensive difficulties faced by peoples under foreign occupation.  In addition, urgent implementation of the Bali Strategic Plan for Capacity Building and Technology Transfer was an essential element to foster knowledge transfer for developing countries.

An effective response to challenges required clear analysis, policy clarity and the political will to implement agreed policies, he said.  He asked the Commission Chairman to present a compilation text of proposals made during discussions, as it would help delegations engage in talks.  He expected the Commission to address global sustainable development challenges in an integrated manner.

STEPHAN CONTIUS, Federal Ministry for the Environment, Nature Conservation and Nuclear Safety of Germany, speaking on behalf of the European Union, said he was encouraged by the work of the preparatory session in March and looked forward to two fruitful weeks of negotiations.  There was growing recognition of the interlinkages between industrial development, energy, climate change and air pollution.  Those issues were at the very heart of ensuring long-term sustainable development, in particular for achieving the Millennium Development Goals and reducing poverty. 

He said the outcome of the current session should contain time-bound targets at the national and regional levels.  It should also contain commitments to increase energy efficiency and the share of renewable energies, as well as access to energy and the integration of such sustainable energy policies in national sustainable development strategies, poverty reduction strategies or other planning frameworks by 2010.  It should endorse a clear and effective review arrangement that should be based on real data that would make it possible to better identify practices and gaps, and initiate the process for an international agreement on energy efficiency.  The session should also devote time to review and follow up on energy for sustainable development at its sessions in 2010-20011 and 2014-2015.

On industrial development, he recommended increasing resource efficiency, enhancing technological innovation and decoupling economic growth from resource use.  The Commission should also pursue progress in the field of sustainable production and consumption patterns.  He favoured strengthening business capacity to address unsustainable industrial practices.  The outcome should also include strengthening industry support institutions, such as United Nations Environment Programme (UNEP) - United Nations Industrial Development Organization (UNIDO) cleaner production centres.

With regard to air pollution, the Commission should recommend the use of preventive measures and worldwide extended application of the integrated approach to air pollution on the basis of the experiences gained under the Convention on Long-range Transboundary Air Pollution.  On the issue of traffic-related emissions, the Commission should recommend the establishment of emission limit values for different mobile and stationary sources.  Indoor air pollution in developing countries and its severe health impacts were of crucial importance for the international agenda.  The Commission should highlight instruments and incentives for switching from solid fuels to cleaner cooking fuels and raise awareness of the negative health impacts of indoor air pollution, in particular on women and children.

Noting that the Climate Change Convention and the Kyoto Protocol were the main instruments to address climate change, he said the Commission should complement the work of the Convention and provide momentum for efforts to address climate change at all levels.  It should also recommend the integration of policies addressing climate change within national and international development policy and planning, including mitigation and adaptation measures.  As for interlinkages, he said, “To talk about real progress and practice in implementation, we need to work for improving access to financial resources, including by creating the right investment climates and achieving good governance.”  It was also necessary to promote technology development and cooperation and to build capacity through education and the provision of relevant information.

DANIEL REIFSNYDER ( United States) said the Commission’s strength stemmed from its efforts to promote real change on the ground for those most in need.  Noting that concern with international environmental governance ran deep, he recalled a study that noted that the international environmental governance system had paid little attention to whether agreements had any impact.  The current session of the Commission provided a precious opportunity to focus on implementation.  The measure of success must be whether collective efforts delivered concrete results that improved lives.

Noting successes, including partnerships launched since the 2002 World Summit on Sustainable Development, he said the Partnership for Clean Fuels and Vehicles had helped all 49 sub-Saharan African countries to stop refining and importing leaded gasoline by the end of 2005.  Through United States support for the Global Village Energy Partnership and other programmes, 19.1 million people had received improved access to modern energy services.

Despite progress, more work was needed, he said.  The Commission was tasked to produce a short decision document, and the United States would negotiate in good faith.  The Commission had become a more implementation-focused body and must think about what a successful decision document would look like.  Such a document should send political signal-reaffirming commitments negotiated over the past 15 years, as well as look to the future.

On thematic issues, he said many points had been drawn from previous agreements and there was room for consolidating the document.  On the Commission’s task to launch specific projects and activities, his delegation would highlight various actions to deliver on-the-ground results.  The United States Department of State would host, in 2008, the Washington International Renewable Energy Conference, which would be an important opportunity to advance energy security, climate change and air quality goals by promoting renewable energy technologies.

AKEC KHOC ( Sudan), speaking on behalf of the African Group, said he looked forward to successful negotiations based on a spirit of understanding and consensus.  Africa was the most vulnerable region with regard to mitigation of negative impacts, capacity to develop and tap related potential benefits and development of infrastructure to address the issues.  He called on the Commission to give due consideration to the special needs of African countries.  The four thematic issues, he noted, should be considered very carefully, taking into account their individual and collective impacts on sustainable development, poverty alleviation and the achievement of internationally agreed development goals, including the Millennium Development Goals. 

He said the priorities of Africa included access to affordable, environmentally sound energy sources and services for both rural and urban populations, technology transfer, harmonization of regional energy policies and the diversification of energy sources.  He noted that, although Africa contributed the least to climate change, it was the most adversely affected by its impacts, including through loss of biodiversity, rapid deterioration in land cover and depletion of water resources, as well as drought and desertification.  He highlighted the importance of gender mainstreaming when addressing the four themes, and to design policies that supported and empowered women.

He then described the various activities through which Africa had been engaged in addressing the issues, including through partnership mechanisms such as the New Partnership for Africa’s Development (NEPAD).  He called on the Commission to recognize Africa’s regional efforts, and called on Africa’s development partners to provide financial and technical assistance and resources to support the implementation of Africa’s agreed programme of action.  Special attention should be given to the needs of countries emerging from conflict, he added. 

JOHN W. ASHE ( Antigua and Barbuda), speaking on behalf of the Caribbean Community (CARICOM), stressed the centrality of energy to economic activity and social advancement.  Changes in the international energy market could have profound impacts on CARICOM countries, due to their high-level of economic vulnerability.  Sourcing low-cost energy through interregional cooperation, diversification of energy sources and support for that diversification was needed.

On industrial development and climate change, he said all countries had the right to decide their industrial development strategies.  In addition to increased cooperation, he would like to see climate change mainstreamed into industrial policies, especially those of developed countries.  CARICOM members, who had been at the vanguard of the climate change phenomenon, urged countries to respond to the devastating impacts of climate change, specifically by taking steps to reduce emissions.  He stressed that developed countries should take responsibility for the damage caused by climate change.  He also welcomed support to the Caribbean Catastrophe Risk Insurance Facility (CCRIF) to address future disasters, noting further support was needed.

The ability of CARICOM countries to absorb the impacts of climate change was challenged by a shortage of financial resources, country size and the close relationship of populations to the natural environment.  International action was needed to help CARICOM meet the costs of adaptation and mitigation, build capacity for disaster preparedness and promote urban development.

FRANX XAVER PERREZ, Federal Office for the Environment of Switzerland, said the Commission was founded 15 years ago to address the challenges of increasing environmental degradation and poverty, and the unjust distribution of economic wealth.  Today, there was an unprecedented destruction of natural resources, unacceptable poverty and growing disparity of wealth.  The Commission had not lived up to expectations and hopes.  The current session had to make a difference.  It should not simply be another session with a lot of discussions and all-night negotiations; it should add value to what had been done in the past.

He said the session’s four themes were crucial.  None of the Millennium Development Goals would be realized without ensuring access to sustainable energy sources for everyone.  Also, industrial development and economic growth should be decoupled from environmental degradation.  Regarding air pollution and atmosphere, the Montreal Protocol on Substances that Deplete the Ozone Layer had been an impressive success.  He added that the Climate Change Convention, as well as the Kyoto Protocol, should be supported.

The basis for the session’s work –- the draft outcome text –- should be more focused and concrete, he said.  One way to make it so would be to include only new and additional measures and to avoid any repetition of previously agreed recommendations.  The challenges faced were complex, multidimensional and globally interlinked, and needed commitments at every level. 

ELFRIEDE-ANNA MORE ( Austria), noting that the Sixth Meeting of the Global Forum on Sustainable Energy focused solely on Africa, said participants had discussed the African regional landscape on energy and financing for energy in Africa, among other topics.  Following the meeting, a comprehensive report with policy recommendations was submitted to the Commission’s Bureau.

Discussing those findings, she noted that Africa offered a vast energy potential that had been largely unexploited, especially with respect to hydro-power development.  African Governments should be encouraged to develop refining capacities, she said, also highlighting the importance of integrating energy into national poverty reduction strategies.  Further, energy security could be promoted, at best, by regional initiatives and regional integration.  Coordination among all partners should be promoted, and the Forum of Energy Ministers in Africa (FEMA) should be supported as a holistic, high-level political body dealing with all aspects of energy in Africa.

Synergies should be found between the major infrastructure projects, on the one hand, and small-scale energy access projects, on the other, she said.  The findings also had highlighted the importance of biomass and the potential of energy efficiency and conservation.  Efforts to increase Africa’s capacity to use the Clean Development Mechanism should be further intensified.  The Global Forum on Sustainable Energy (GFSE) had provided a platform for dialogue, aimed at promoting awareness on the role of energy in sustainable development, and had grown out of the outreach efforts of the World Energy Assessment.

JIRO KODERA ( Japan ) briefed the Commission on the Tokyo International Conference on African Development (TICAD) Ministerial Conference on Energy and Environment for Sustainable Development, held last month in Nairobi.  The Conference had drawn more than 500 participants from some 80 countries, 30 international and regional organizations, as well as some 30 non-governmental organizations.  The aim of the Conference was to share experiences and lessons learned, and to put forward proposals and recommendations to address key energy and environment issues for sustainable development.  It concluded that many African countries were trapped in a vicious circle of environmental degradation, lack of energy generation and access and poverty.  Conference participants had also affirmed the potential negative impacts of environmental degradation and energy crises on the achievement of the Millennium Development Goals. 

He then addressed some general agreements reached, which were based on the key perspectives of building ownership, promoting regional cooperation and deepening partnership.  Since Africa was too ecologically and socially diverse to be treated as a single entity, each country should devise its own targets.  It was essential that Governments integrated issues of energy and environment into their development and poverty reduction strategies.  It was also important to raise awareness at the community level and to build institutional and human capacity for sustainable development. 

Regional cooperation must be promoted, especially since Africa was a rich mosaic of ecosystems that often extended across borders, he noted.  Much could be learned from Asian regional initiatives in that regard.  Both Africa and Asia faced the challenge of translating national and regional consensus into investment programmes.  Partnerships must be strengthened. It was vitally important for different stakeholders to optimize the use of resources.  Public-private partnerships were also crucial.  In such partnerships, it was important that companies upheld the principle of corporate social responsibility, and that Governments acknowledged the contributions of the private sector and created enabling frameworks for them.

ANNE KARI HANSEN OVIND ( Norway) said the recent Oslo Conference on good governance and social and environmental responsibility had been motivated by a joint call to advance the sustainability agenda in an era of unprecedented economic growth.  Under the threat of climate change, business as usual was no longer an option, she added, noting that a change of mindset was needed.  Gaps in Government implementation still remained, and concerted Government action was vital to pulling hesitant companies into compliance.  Respecting human rights, applying environmentally friendly business practices and improving transparency was needed, and employment should be put on the sustainable development agenda.

Discussing key messages of the Conference, she said delegates had expressed a common sense of urgency to move forward on sustainability and corporate social responsibility issues.  Addressing the needs of the poor in a way that promoted sustainability was essential.  Models for wealth creation should encompass economic and social aspects, ensure broad participation and provide a social safety net.

Increased efforts were needed by Governments and companies to fill the implementation gap, she added.  Further, strengthening existing voluntary international instruments and mechanisms on corporate social responsibility was key to creating a level playing field.  Moreover, she said broad alliances between Governments, international organizations and local authorities to secure implementation were needed, as was enhanced support for science to address poverty and environment challenges.  Three areas of unrealized potential for improving sustainability included the advancement of corporate social responsibility by respecting human rights, developing environmentally friendly practices and improving transparency.

ELLEN VON ZITZEWITZ, Federal Ministry of the Environment, Nature Conservation and Nuclear Safety of Germany, reported on the Ministerial Conference, under the German Presidency of the European Union, on “Renewable Energy and Energy Efficiency: Innovative Policies and Financing Instruments for the EU’s Southern and Eastern Neighbours”, which had taken place in Berlin on 19 April and had been attended by delegations from 35 countries, including 15 countries at the ministerial level.

She said the Conference had expressed growing concern over energy security, climate change and access of the poor to modern energy services.  Energy security was becoming a central priority for all nations as a factor in healthy economic growth, as well as in external and internal security.  The Conference had discussed best practices and possible options for the future role of renewable energy and energy efficiency in the context of the main energy policy goals of sustainable development, climate change, security of energy supply and competitiveness.

Participants were committed to sustaining the natural environment and, thereby, the basis for economic growth and social welfare by limiting the global average temperature increase to below 2°C.  She then went into details about some of the Conference’s recommendations, including fair pricing mechanisms in renewable energies, energy efficiency and grid access.  The Conference had, among other things, emphasized creating an enabling environment based on a regulatory framework, including cost-reflecting tariffs, grid connection agreements, building codes, standards and labelling, as well as awareness-raising.  It had also recognized the need for significant financial resources, both public and private, to be invested in renewable energy.

KATRINE NOERLYNG ( Denmark), reporting on the Asia-Europe Environment Ministers Meeting in Copenhagen from 24 to 26 April, said participants had adopted a text which stated that reaching climate change goals by promoting renewable energy was both necessary and possible as countries also maintained economic growth.  Environmental measures could boost economic performance, while also reducing greenhouse gases and other air pollutants.

Countries had underscored the importance of improving energy consumption and production patterns, she said, noting that increasing the share of renewable energy in the energy mix should also be taken into account.  Moreover, it was essential to recognize national circumstances and promote the use of energy technologies.

Discussion with Major Groups

A representative of women said it was time for national energy and development policies to acknowledge the existing contributions of women in the energy sector and support basic energy infrastructure that women urgently needed.  Her delegation was concerned that the Chairman’s text did not reflect points raised by Kenya, Nigeria, South Africa, Fiji and other delegations on mainstreaming women’s needs into energy policies.  Capacity building, technical training and enterprise development for women should be emphasized.  Other recommendations included capacity-building for Government officials on integrating gender considerations into energy policies, gender budgeting, measures to enhance women’s access to financing and gender-responsive monitoring.

On climate change, she was pleased that the Chair had taken into account women’s particular vulnerability to that issue, and welcomed the section on industrial development that promoted the need for business opportunities for women.  It was crucial that national development policies work towards reducing long-term reliance on fossil fuels.  Emissions from industry and motor vehicles represented threats to women and children.  Climate change policies should take into account the potential social and environmental impacts that might negatively affect women and their families.

A representative of children and youth said her group would consider the current session successful if it included baseline, time-bound, measurable targets for energy efficiency, energy savings, energy access and the share of renewable energy in the energy mix.  Adaptation to climate change should be a priority for the Commission.  There should also be an agreement on the integration of sustainable development into all formal education curricula.  She feared an outcome that was one step back from the Johannesburg Plan of Implementation.  The involvement of major groups would be critical to the success of the session.  As youth was a large proportion of the world population, targeting youth for capacity-building would greatly enhance efforts to reduce poverty and advance the achievement of the Millennium Development Goals.

A representative of indigenous peoples said the outcome of the current session must address the enormous challenges posed by energy policy, industrial development and climate change.  A fundamental indicator for success would be the congruence of proposals put forward, Government decisions and the democratization of solutions.

The United Nations Declaration on the Rights of Indigenous Peoples was the minimum standard in ensuring indigenous peoples’ rights and well-being, and the Commission must welcome that development as part of its commitment to implement Chapter XXVI of Agenda 21.  Any partnership with indigenous peoples on energy and sustainable development, industrial development and climate change must be based on respect for their identity.  The session should produce robust frameworks and full accountability for social and environmental impacts.  Mitigating the impact of climate change required halting fossil fuel extraction and the release of carbon into the atmosphere.  Questions remained, including whether Governments could support indigenous peoples’ effective participation within climate impact assessments that also took into account indigenous knowledge systems, culture and language.

A representative of energy-related non-governmental organizations, noting that energy security was a dominant issue of discussion, said the Commission had a unique opportunity to bring together the issues of climate and energy.  A coordinated response to the energy and climate crisis was needed.  Global emissions must be reduced and the fossil energy system must be phased out, perhaps through the use of energy conservation and renewable energy.  Funding for that transformation was needed.  Moreover, it was important to phase out subsidies for fossil fuel energy sources and establish review mechanisms to ensure goals were met.  Countries that had made “energy revolution” a priority were at the vanguard of future energy technology markets, he said.  Some 1.6 billion people lacked access to energy services.

A representative of local authorities said that 50 per cent of the global population had lived in cities and towns, contributing to 75 per cent of global greenhouse gas emissions.  Policy outcomes of the current sessions should include incentives for renewable energy use and energy efficiency goals, greenhouse gas reduction targets and support for public transit.  Local authorities would also like to see financial incentives for use of renewable energy, and be given access to the Kyoto financial mechanisms.  He stressed that citizens were willing to make lifestyle changes and that successful climate change mitigation strategies contributed to the economic vitality and health of cities.

A representative of workers and trade unions called for the Commission to take ambitious and rapid decisions.  He proposed a requirement for democratic governance, as Governments must assume responsibility to regulate economic policies, and called for an abandonment of privatization policies.

He also stressed the need to promote decent work according to International Labour Organization (ILO) principles, noting that decent work would also help realize the Millennium Development Goals.  It was essential to establish a planned transition that would not be tantamount to a brutal restructuring of organizations.  Promoting sustainable systems of production was needed, he said, insisting that sustainable development was an opportunity for developing jobs, including “green jobs”.

A representative of business and industry, highlighting priorities for action, said the challenge of energy for sustainable development required cooperative solutions.  She encouraged the session to develop integrated recommendations.  Actions to address those challenges would be most effective when accompanied by enabling frameworks, including open markets, strong institutions, and the protection of human rights and intellectual property rights.  Further, the critical role of efficient, low-carbon technologies should be supported and energy efficiency should be addressed in all sectors.

Expanded supply networks and new market development were needed, she said, adding that technology innovation and voluntary partnerships also offered possibilities for capacity building worldwide.  Addressing climate change required a global solution and commitments from all participants.  Noting that major groups were not merely observers but partners, she encouraged Governments to support partnerships as part of the Commission’s ongoing work.

A representative of the scientific and technological communities said all energy sources should be on the table for consideration, including those focusing on advanced renewable energy and less-carbon intensive techniques.  The use of a given technology required analysis of environmental feasibility, he said, noting that the optimal energy mix of any country would depend on demand, growth and its technology and economic capacity status, among other things.  Solutions must address such diverse factors.  In the transport sector, actions to promote bio-fuels should be complemented by policies to reduce vehicle use, he said, noting that industrial development had helped to improve quality of life.  In countries where compliance with environmental protection requirements was high, support for clean technology transfer was needed.

Measures should be taken to cut greenhouse gas emissions, he added, stressing that more research was needed on understanding the regional impacts of climate change and boosting global observation systems.  Disseminating atmospheric modelling tools and pollution prevention technologies was also important.

A representative of farmers said he expected the Commission to fully recognize renewable energies from agricultural and forestry sources as a viable alternative source of energy.  Governments must establish policies on bio-energy that reflected the needs of farmers and create incentive mechanisms to reduce production costs for them.  Priority measures included those to make sustainable energy technologies cost competitive, improve access to investment capital and minimize risks.  Renewable energy represented an opportunity to both increase farmers’ income and fight rural poverty.

He called on Governments to initiate policy reforms to ensure that carbon credits be paid to farmers, as that would provide them an alternative source of income while promoting good agricultural practices.  Establishing a clear national strategy that addressed financial losses incurred by climatic events was also important.  Farmers were willing to build innovative partnerships with all stakeholders for developing sustainable energy sources and adapting to the adverse effects of climate change.

During the interactive discussion that followed, speakers underlined the importance of the major groups’ contributions.  Indeed, their continued cooperation and concrete proposals were essential in the process.  Speakers assured the major groups that their concerns would be reflected in the outcome, although one speaker noted that many concerns already had been incorporated in the draft negotiating document.

Several speakers welcomed the remarks regarding gender mainstreaming and access to decision-making processes.  One speaker asked the major groups to provide examples of how they had contributed to the promotion on the ground of the Commission’s past outcomes.  Another speaker, addressing the representative of non-governmental organizations, underlined the need for decarbonising economies in order to combat climate change and the importance of having clear targets for renewable energies, of which hydropower was the cleanest and most important.  Other speakers emphasized the importance of social responsibility on the part of the private sector, and welcomed statements that decent employment could make a contribution to sustainable development.

FRANCES LISSON ( Australia), Vice Chairperson of the Commission, summarized the interactive discussion with the major groups, stressing that it had reaffirmed the critical importance of engaging all stakeholders at the local, regional and international levels.  Both major groups and Governments had acknowledged that the current policy session had the potential to succeed by setting time-bound targets and concrete measures in its policy decisions, especially on energy.  She then specified policy measures that had been addressed during the discussion.

Debate on Thematic Cluster

ANGUS FRIDAY (Grenada), speaking on behalf of the Alliance of Small Island States (AOSIS), reaffirmed that the thematic issues discussed during the current session, if not adequately addressed, had presented serious threats to the security and sustainable development of small island developing States, threatening the very existence of some of them.  He believed it was imperative to dedicate specific attention to the Barbados Programme of Action and the Mauritius Strategy for the Further Implementation of the Barbados Programme of Action in the current policy year of the Commission’s work.  He appealed for a dedicated section on the further implementation of the Mauritius Strategy, and called on the Secretary-General to further mainstream the Strategy in support of the special case of small island developing States.

Regarding funding, he urged donors to create special modalities of access for small island developing States that were reflective of their comparatively small size, limited capacity to develop project proposals and limited local financing mechanisms.  He encouraged small island developing States, development partners and the United Nations to formalize a mechanism to develop concrete projects, with the relevant innovative financing modalities, for implementation of Mauritius Strategy.

On climate change, he called for urgent action to fully operationalize the adaptation funds established under the Climate Change Convention and the Kyoto Protocol.  The Alliance supported establishing regional risk insurance facilities for small island developing States, and called for more comprehensive implementation of such risk management initiatives.  Also, a global renewable energy fund was urgently needed to assist in the dissemination of renewable energy to developing countries.  He emphasized the need for practical financing solutions to implement various programmes for sustainable development.

ROBERT G. AISI (Papua New Guinea), speaking on behalf of the Pacific Islands Forum, said the Forum’s members faced a broad and complicated array of threats, the most pronounced being energy security and climate change.  He noted that 70 per cent of people in the Pacific small island developing States had little or no access to affordable energy sources or any guarantee of energy security.  The gravity of that situation was dire, given heavy dependence on high-priced fossil fuels.

Energy security underpinned transportation, tourism, mining and agriculture, he added.  Some Governments had committed 40 per cent of their budgets to development strategies, which was a severe impediment to delivering basic social services.  While renewable energy had the potential to alleviate that burden, the lack of financial and technical support was a problem.

He said the adverse effects of climate change were most apparent in rising sea levels, increasingly unpredictable weather patterns and global warming.  The prevalence of diseases such as malaria was increasing in range across the region.  On energy security, he noted that responses had been developed at national and regional levels, supported by the implementation of the Pacific Plan.  Further, regional energy ministers had met from 25 to 26 April to discuss the seriousness of energy security for development, and had proposed practical ways forward.  He acknowledged significant support received from development partners, including over $10 million from the Italian Government for renewable energy projects, and the Government of India’s continuing commitments in the area of renewable energy technologies.

Regional Perspectives on Four Thematic Issues

JOSUE DIONE, Director, Sustainable Development and Food Security, Economic Commission for Africa (ECA), highlighted some of the key action areas of importance to Africa that had come out of a series of high-level meetings at the regional level.  Those meetings had underlined some key policy areas and action points.

As for the energy sector, he said main action points had included the design of an energy access scheme in rural and urban areas that had promoted productive and income-generating energy services.  Providing resources for the harmonization of the regional energy trade was also necessary.  Flexible investment schemes for alternative energy resources were needed, as was the promotion, where appropriate, of the development of nuclear energy as an alternative energy source.

He said that in the area of industrial development, there was a need for the facilitation of greater access to finance and technology transfers, as well as of strengthening of technical capacities in such areas as testing and quality assurance.  There was also a need for the development of industrial and environmental policies and guidelines, for addressing inadequacies in physical infrastructures and for the establishment of industrial information networks.  There was also a need to eliminate tariff and non-tariff barriers. 

He said the African continent had contributed least to the problems of climate change, but was the most vulnerable to its impacts.  The capacities of countries to carry out assessments and design adaptation to climate change must be increased.  Innovative technologies such as in farming, water conservation and non-polluting energy sources must be developed and increased.  Policy coherence on climate change and mitigation with a regional cooperation component must be enhanced, and climate change concerns must be mainstreamed in poverty reduction strategies.  There was also the need to establish a climate forum to enhance, among other things, an early warning.

On air pollution, he said there were calls for the implementation of international biosphere programmes and the establishment of a global atmosphere watch for sub-Saharan Africa.  There was also a need for enhancing capacity for, and promotion of, improved wood fuel stoves and cleaner energy sources for cooking.  Taking into account weak capacity in Africa, he stressed the need to mobilize adequate resources and to strengthen partnerships.  The promotion of bilateral and multilateral public-private partnerships was also crucial.

EMMANUEL NZABANITA, African Development Bank, said there were wide disparities in Africa’s energy situation, with heavy reliance on traditional energy sources and limited access to modern energy services.  The challenge was to lower the cost of energy production through economies of scale, but inadequate regulatory frameworks had hindered that goal, as did inadequate investment and limited human and institutional capacity.  In addition, Africa had small national grids that were costly to operate, a situation compounded by a high dependence on oil imports and the inefficient use of available resources.  In addition, social and environmental impacts from the extraction, transformation and use of current energy resources had left much to be considered.

He said Africa must work to improve its regulatory frameworks and begin supporting the commercial dissemination of renewable energy technologies.  In addition, the continent must widen access to cleaner fossil fuels and support investments in energy efficiency and conservation.

The Bank currently financed a number of projects, including rural electrification, power transmission and distribution, hydropower generation and wind power.  Mandated by African Heads of State and Government, the Bank had taken the lead in infrastructure development.  Already, it had financed some preparatory work in West Africa, Central Africa, the Nile Basin and the Horn of Africa for subregional electric power pools.  Between 1967 and 2005, the Bank had approved approximately $4.38 billion for the energy and power supply sector.  Some $2.72 billion was currently under review for 2007-2010.  While aggressively increasing access to energy, the Bank was also promoting a low-carbon energy path.  Future work by the Bank would focus on sustainability, affordability and environmental soundness.

In the discussion that followed, the representative of Cote d’Ivoire underscored his reservations on the development of hydroelectricity, as his country had recorded in recent years a steady drop in precipitation.  That decrease was such that cities faced problems in providing adequate energy for homes.  Further, his country was suffering from food constraints and was not able to meet its commitments to neighbours, due in part to its agreement to develop five dams.

The representative of Zimbabwe said that while efforts by the African Development Bank were commendable, the Bank’s impact on the ground was minimal.  Zimbabwe had experienced more black-outs than in previous years.  Rural electrification was not practical as there had been a huge power shortage.  Bringing rural areas access to modern energy services was an elusive endeavour, as the issue of affordability continued to pose serious problems.  She asked about efforts to make power affordable.

A representative of non-governmental organizations said nuclear energy was neither clean nor safe, as it produced huge volumes of waste.  He had urged States to think twice about considering it as an option, as it could not solve poverty or climate problems.  Further, exporting various technologies did not meet general criteria for sustainable development.

The representative of Senegal said Africa was far from being responsible for global warming.  Noting that his country had a low capacity for dealing with climate change, he stressed that countries such as Senegal should benefit from energy projects.

In response, Mr. NZABANITA said resources in Africa were scattered around the continent.  The African Development Bank did not support projects unless they had incorporated environmental impact mitigation measures.  On the issue of affordability, he said it was true that for the last 15 years, there had been a lack of investment in sub-Saharan energy projects.  It was important to meet national demand requirements and simultaneously address access.  Options included the development of energy resources in a coordinated manner.  Africa needed $11 billion in the energy sector, and investments from the private sector should be encouraged.  Solar power in Africa had not been harnessed, primarily due to a lack of resources.

Mr. DIONE said Africa was diverse in its capacities and opportunities.  He highlighted regional perspectives and the importance of exploring all options for tapping energy resources.

BRENT DARK, North American Representative Office of the Asian Development Bank, said the Bank took a three-pillar approach to addressing poverty reduction, which included pro-poor economic growth, social development and governance.  On private sector involvement, he added that the Bank promoted private sector equity and public-private partnerships.

The Bank also promoted regional cooperation in addressing environmental impacts, he said.  In reviewing its energy policy, the Bank discovered the need to address renewable energy in more detail.  In Asia, the Bank had seven pillars under its environmental programme: an energy efficiency initiative; a carbon market initiative; a sustainable transport initiative, which would be a major platform for urban development; an “Energy for All” initiative, which examined new financing instruments to mobilize the private sector in energy provision for the poor; a REACH initiative, addressing energy and climate change; knowledge hubs, to act as local think tanks; and an adaptation initiative, which would look at subregional cooperation programmes to address climate change.

In the discussion that followed, attention was drawn to the fact that the ESCAP covered more than 50 countries, including landlocked and developing countries.  Local differences should, therefore, be acknowledged.  Also, a mechanism should be designed for regional adaptation to climate change.  One speaker stressed the need for national and international multi-stakeholder processes on issues such as large dams in the Asian region, which should include options assessment as well as environmental impacts.  Those processes should also include the indigenous peoples affected.  More democratization was needed in the decision-making processes regarding climate change and energy.

KAJ BARLUND, Director, Environment, Housing and Land Management Division, Economic Commission for Europe (ECE), highlighted aspects of ECE’s Convention on Long-range Transboundary Air Pollution, which was designed as a framework to enable parties to discuss issues and reach agreement on various actions.  The framework had strongly emphasized science, and, as the scientific knowledge regarding air pollution became more refined, the scientific bodies of the Convention had become more organized and effective.  Science provided clear direction for political action, and scientific results were now used to guide negotiations.

He said two areas of work were important to ECE’s future deliberations: to extend its work geographically and to integrate air pollution-climate change strategies into its agenda.  The ECE had redoubled its efforts to develop air pollution control strategies in the less developed parts of the region.  Other work focused on persistent organic pollutants and heavy metals.

He said an interregional cooperative programme was being developed with support from Sweden, to facilitate ECE’s work with other United Nations agencies on a global scale.  In addition, the Global Atmosphere Pollution Forum was now bringing together representatives of agreements and programmes from most regions of the globe to discuss their common interests.  That forum was supported by the ECE Convention and regional offices of the UNEP, the Asian Development Bank and the World Bank.

He added that calculations by the European Union had shown that a combined strategy to reduce air pollution and cut carbon emissions by 10 per cent would cost only a bit more than one that would reduce air pollution alone.  But Governments were not acting on that message, requiring the ECE to continue the work of prompting Governments to act.  Meanwhile, there remained much to learn, and the ECE and parties to the Convention stood ready to play their part.  For example, there was a need to avoid strategies for tackling climate change that might result in worsening air pollution, such as increasing the use of wood as a domestic energy source because it was renewable.  That practice would cause an increase in the levels of fine particles in the air and other pollutants.

JEAN-CRISTOPHE FÜEG, Chairman of Committee on Sustainable Energy, Economic Commission for Europe (ECE), said policy objectives within the ECE region were to ensure energy security, address global climate change related to energy production and consumption and to liberalize energy markets.  Security of supply was of particular concern, with member countries acknowledging the potential role of the ECE as a platform for dialogue and cooperation.  On other fronts, countries saw huge potential for energy efficiency and energy savings, although more needed to be done to foster behavioural change, raise awareness and institute energy pricing reforms, among other things. 

He said the United Nations Foundation and others were currently supporting the “Energy Efficiency 21” project, through which the region hoped to attract investments in energy efficiency and climate change mitigation.  The project’s final report described the results of its five years of operation, including $60 million in energy efficiency investment project proposals.  For its part, the World Bank and others had approved financing for 18 investment projects in Belarus, Bulgaria, Russian Federation and Ukraine, totalling $14.9 million, seeking to reduce carbon emissions by an estimated 136,000 tonnes a year.

Still, he said, it was clear that investment requirements in that field were so significant that it would have to be funded “largely by the private sector”.  The highest level of funding in Europe, so far, had come from the Swiss Re European Clean Energy Investment Fund, amounting to €329 million.  It would provide capital for clean energy projects that reduce carbon emissions and generate carbon credits or tradable certificates throughout Europe.  The fund would also be used to finance wind, solar, hydroelectric and geothermal projects, while providing carbon market services.

He said the ECE had itself launched a €250 million “Eastern Europe Energy Efficiency and Renewable Energy Investment Fund”, receiving grants totalling $7.5 million from the United Nations Foundation, Fonds Français pour l’Environnement Mondial and the United Nations Global Environment Facility.  The ECE had also established a forum to facilitate an intergovernmental dialogue on investment and regulation for the promotion of cleaner electricity production from fossil fuels.

For sustainable energy use to take root in the future, the region must assist the poor with improved access to basic energy services, lower import dependence, improve energy efficiency and lower energy intensities, make energy prices reflective of its true costs and shift energy sources to those that were more environmentally benign.  It should also improve technologies for production and use of oil, coal and nuclear power.

In the discussion that followed, the representative of Saudi Arabia said his country would like to receive a consistent message from energy consumers.  Energy security not only meant security of supply, but also of demand.  On the one hand, his country was being asked to increase production to meet anticipated increases in global oil demand.  On the other hand, Saudi Arabia had heard calls to do away with fossil fuels and to replace them with alternative sources of energy, even if fossil fuels could be produced and consumed in a clean manner.  In that context, carbon capture and storage was encouraging.

A lack of consistency in the political messages regarding future demand would leave suppliers wondering whether it was necessary to make such huge investments to meet demand.  He was happy to hear calls for consumer-producer dialogue.   Saudi Arabia was ready to work together with others to supply clean petroleum energy to meet future demand.  “We call that energy evolution,” he said.

The representative of Iran highlighted several issues, including the dialogue between consumers and producers, investment in energy infrastructure, data exchange, energy efficiency and the development of cleaner fossil fuels.  He was happy that those issues were being addressed by the ECE.  However, like Saudi Arabia, his country was concerned at the interpretation of “security”, as it ignored the demand side.  For suppliers investing heavily in energy resources, it was difficult to face uncertainties on the demand side.  Demand should be predictable.  The question of security must address both supply and demand.

A representative of workers and trade unions said he had a major problem with the concept of public-private partnerships, as providing energy services was intended as a public service, not a money-making venture.  Privatization of the most basic services usually meant that the price of the service increased, while the quality decreased.  Public-public partnerships were a better model for the sustainable development of society.

The representative of the United States complimented ECE on its work, both in the region and beyond, in addressing pollution issues.  He looked forward to continued engagement in that effort.  His delegation welcomed the report by the energy committee of ECE, and thought greater cooperation with the private sector was needed.  Regarding Africa, he said the Clean Fuels and Vehicles Partnership had eliminated lead in gasoline.  He hoped to see the phase-out of leaded fuels within the ECE region as well.

Mr. FÜEG said fears voiced by Saudi Arabia and Iran that the world would rid itself of the demand for oil had proven to be far-fetched. Efforts in the ECE region to phase out oil had been compensated by demand growth in other areas of the world. 

On the question of privatization, he said energy subsidies had deprived certain segments of the population from electricity delivery.

JOSELUIS SAMANIEGO, Director, Sustainable Development and Human Settlements, Economic Commission for Latin America and the Caribbean (ECLAC), said his presentation was based on a consensus document that focused on regional opportunities and shared experiences.  Some measures could be adopted more easily if they were considered from a regional perspective. 

As for energy, he said cooperation was possible on such things as standards and labelling of household electrical appliances.  He stressed the importance of South-South cooperation for assessing investments in more efficient technologies and the facilitation of information exchange in legislation regarding bio-fuels.  It was important that the region develop its own renewable energies.

South-South cooperation was also important in the area of sustainable industrial development, he said.  Such cooperation could take place in areas such as improved industrial outputs, labelling and standards for recycling and energy efficiency.  Other possibilities for regional cooperation could include the introduction of some instruments that would increase transparency, such as a register for transfers of pollution.  There could also be a focus on the prevention of transboundary air and water pollution.  A dialogue with the private sector and business should also be fostered.  Cooperation could also be considered at the various levels of government to improve air quality in cities.

A subregional analysis of the impact of climate change and of post-disaster assistance was also possible, he continued.  There was an increased need for dialogue with the private and financial sectors to provide financing for projects to mitigate the effects of climate change.  Regarding cross-cutting issues, he highlighted the need for greater cooperation in the tax and trade areas.  Cooperation was possible among countries that could focus on common problems in standardizing environmental issues.  There was also a need for greater training for civil servants on the issues.

RACQUEL HERRERA, Programme Manager for the United Nations Development Programme’s (UNDP) Regional Bureau for Latin American Countries, said UNDP was represented on today’s panel because of its alliance with the Economic Commission for Latin America and the Caribbean.  She said UNDP was focusing on regional priorities, noting that cross-cutting environmental policies on the agenda could not be removed from the regional realities.  Much could be learned from South-South cooperation in the area of bio-fuels, clean development technologies.

In the discussion that followed, the representative of Chile said his country welcomed the strong presence of women on the podium, as their presence guaranteed work would be handled in a quality manner.  He congratulated ECLAC and UNDP for their work in the region, calling it a sign of inter-agency cooperation.  Further, it was appropriate that the United Nations had followed through with recommendations on system-wide coherence in the region.

Chile, he said, was establishing synergies between the State and the private sector, and the privatization of energy companies had led to an increase in the quality of services that were provided at a lower cost.  He underscored that an effective collective approach to sustainable development required regional cooperation.  Chile was focused on South-South cooperation, a key focus area for the “Group of 77” and China in the area of sustainable energy development.

The representative of Venezuela said his country was pleased with the energy integration process in Latin America.  He described the Petro-Caribe programme in which the Government provided oil payment facilities for countries in the region.  As an oil producer, his country believed that was necessary in the area of energy.  Regarding investments, he said Venezuela, Brazil, Ecuador and Colombia were working together and that partnership served as a model for South-South cooperation.

The representative of Argentina called for sufficient regional meetings, where each country could express its views and submit a document.

The representative of Ecuador stressed that progress had been made on the issues of innovative renewable energy policies and climate change.  It was important to remember that the region was in an economic recovery phase and that countries faced difficulties in meeting their development needs.

A representative of the scientific and technological communities said his group had partnered with the United Nations Educational, Scientific and Cultural Organization (UNESCO) to host a conference on engineering for sustainable development from 15 to 18 August in Rio de Janeiro.  Topics would include energy demand, supply and political reality.

The representative of Mexico said it was important to have a strong consensus position throughout the coming meetings on climate change, air quality and industrial development, among other issues.

Mr. SAMANIEGO, noting that ECLAC had considered integrated energy policies, said South-South cooperation would be vital to overcoming problems.  Individual action had made it difficult to work together on regional issues.  He said consensus would be enhanced by holding more frequent regional meetings, as preparation for events encouraged a collective response.

ANHAR HEGAZI, Director, Sustainable Development and Productivity, Economic and Social Commission for Western Asia (ESCWA), said that ESCWA had, on the basis of the outcome of last year’s session of the Commission on Sustainable Development, prepared a document on recommended policy options for Arab countries, which had been discussed, modified and agreed on in 2006.  Regarding energy, countries’ activities had included switching to natural gas, upgrading oil refineries, improving fuel specification and adopting vehicle inspection and maintenance programmes.  There had been many activities regarding renewable energy and energy conservation, as well as projects on electricity grid interconnection and gas distribution.

As for industrial development, she said the document had focused on the need to minimize waste.  Most Arab countries had adopted national environmental action plans, which included provisions for industry modernization and requirements for environmentally friendly technologies.  However, all those activities needed more financial resources. 

She said proposals to address the needs of the region included enhancement of investment in oil and gas exploration and production activities; using cleaner technologies; development of renewable energy technologies and promotion of their application; and assuring a stable global demand for energy resources.  As for industrial development, there was a need to encourage private sector development in sustainable industries and to extend financial and technical support to small- and medium-sized enterprises.   Air pollution monitoring needed to be upgraded through regional and international cooperation.  Although some programmes had been adopted for more sustainable transport systems, more was needed.  More regional cooperation was also needed regarding economic impact assessments of climate change.

FOUAD SHAKER, Secretary-General of the Union of Arab Banks, said it was important to support technological innovation and expertise sharing, underscoring that the banking sector had a great role to play in the Arab region.  There were 450 banks in the region with assets totalling $1.3 trillion.  With a liquidity ratio of about 50 per cent, banks had great opportunities to provide financing.  He called for greater coordination among banks, investors and international institutions.  However, risks were numerous, and it was important to identify and address them, as a lack of data was preventing the development of better risk management.

All participants had a role to play in developing alternative energies, he stated, highlighting the clear and defined role for developed countries in technology transfer and the promotion of research and development.  International organizations should design programmes to strengthen multilateral agreements, and financial institutions could develop instruments to minimize financial risks.  Moreover, he suggested the creation of a joint regional fund to provide financial and non-financial means to develop the alternative energy sector.

During the ensuing discussion, speakers emphasized the importance of energy diversification in the Arab region.  One speaker noted that, despite some reservations, nuclear energy should be part of that diversification portfolio.  Other speakers noted the level of regional cooperation in energy, drawing attention to the fact that a pipeline for natural gas originated in Egypt and crossed, among other countries, Syria, Lebanon and Jordan, to end up in Turkey.

Speakers underlined that the Arab region needed technology, as well as capacity-building and the experience of industrialized countries.  In order to solve the problems of desert and semi-desert countries, the region must be brought into the mainstream of electrical energy.  It was noted that ESCWA had established a special unit for countries emerging from conflict.  Special attention was also being paid to the needs of the Occupied Palestinian Territory.

Summarizing the afternoon’s discussion, Commission Vice Chairperson, Ms. LISSON ( Australia), said speakers had emphasized the importance of more effective action to provide access to energy services for the poor, primarily in sub-Saharan Africa.  In all regions, one of the priority concerns was the effective mobilization of financial resources for investment.  Many speakers had emphasized the importance of conducive regulatory frameworks, the role of public sector investment, the private sector and public-private and community partnerships.  The importance of a balanced energy mix, including increased use of renewable energy, had been underlined.

She said various opportunities for improving energy efficiency had also been addressed, including energy efficiency product standards and harmonization of testing protocols.  Regional cooperation in the joint development and sharing of energy resources had been highlighted, including cross-border energy trade, grid interconnection and the development and expansion of power pools.  Many new initiatives had been mentioned regarding regional sharing of experiences for greater capacity-building, in particular addressing the local, regional and interregional effects of air pollution and climate change.

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*     The 1^st Meeting was covered in Press Release ENV/DEV/898 of 12 May 2006.

For information media • not an official record