Moving the Energy Agenda Ahead

President Wolfowitz and Infrastructure VP Kathy Sierra arriving for Energy Week.

That will come in New York from May 1-12 when U.N.’s Commission on Sustainable Development (CSD) holds its 14th session.  Energy Week, an annual staff learning event, departed from tradition this year to serve also as an international forum to prepare for the large New York meetings, which will lay out plans on expanding energy use for greater development over the next few years.

If there was one over-arching concept reinforced at Energy Week, whose theme was “Clean Energy for Development”, it was what one participant called “the felicitous convergence of energy security, climate change, and poverty reduction.”  Audiences agreed on the centrality of energy issues in development work, but differed in the emphasis they gave to respective areas of action.

Jamal Saghir, the Bank's Director of Energy and Water,  with Albert Butare, Minister of Energy of Rwanda, meeting Paul Wolfowitz.

Energy security and sustainable development

One key message out of Energy Week, said Sierra, was the link between energy security and sustainable development.  Clean energy alternatives are becoming increasingly cost-efficient and available to developing countries.  This can lead to what President Wolfowitz, in his keynote address, called a “double dividend”: meeting the essential energy needs of countries to get on the path to sustained growth and poverty reduction, while at the same time preserving or enhancing the environment.

“Indeed,” said Wolfowitz, “these are not conflicting goals. It’s very hard to fight poverty if you then, in the process, destroy the environment. What we're after, in fact, is sustainable growth.  The decisions we make today on energy policies and technology will have major consequences for the sustainability of growth and for the health of our environment.”

Rwanda's Minister of Energy Albert Butare, Uganda's Energy Minister Syda Bbumba, and Agnes Van Ardenne, Minister for Development Cooperation of the Netherlands.

Banish the darkness

Another core message from the discussions at Energy Week was the importance of access to energy, particularly in Africa.  Some 1.6 billion people around the world, mainly in Africa and south Asia, lack access to network electricity.

In her opening plenary talk, Agnes Van Ardenne, the Dutch Minister for Development Cooperation, said “at night … while other continents light up, Africa’s night is dark.”  She called for more action from the international community, specifically addressing OPEC countries:  “Why not let your ODA percentage rise with the oil price and spend that aid on energy for development?  If there ever was a niche for you in development cooperation, this is it.”

Energy Week participants from China explain renewable energy options to Syda Bbumba, Minister of Energy from Uganda and Jamal Saghir, the Bank's Director of Energy and Water.

While African ministers present applauded intentions, they also rang the alarm bell.  Uganda’s Energy Minister, Syda Bbumba said in her plenary address that “this crisis has now occurred in Africa over the last 50 years.  It's terrible.  Economic growth in Africa is coming to a standstill if we don't get assistance immediately from our friends. So, please come and support us on the medium and long-term sustainable measures to get us out of the current electricity and general energy crisis in Africa.”

Albert Butare, Minister of Energy for Rwanda, agreed that the African night is dark, but added “in Africa, they cannot even turn on the light to banish the darkness.”  The energy crisis on his continent, he said, means developed countries risk seeing “energy refugees” arriving on their doorsteps if more action is not taken immediately.

Corruption and governance

Several sessions at Energy Week dealt with corruption and governance, a third major topic of the meeting. The energy sector is particularly prone to corruption for a variety of reasons: the contractual complexity of large energy projects, the many individuals working on projects, and the large number of certifications and approvals required for most projects. 

In large infrastructure projects, though, said Neil Stansbury, Leader of the Infrastructure Initiative at Transparency International, “we are at the end of phase 1, knowing that corruption is wrong and getting a sense of its dimensions, and we are at the beginning of phase 2, asking ourselves ‘what are we going to do about it.’”

Participants agreed that corruption is one of the main reasons why so many people in the world remain in poverty, but said a firm but collaborative approach that is monitored among government, the private sector, civil society, and international organizations is the best way to tackle the issue.

What the Bank brings

The Bank’s annual lending in the energy sector will reach about $2 billion in this fiscal year, with portfolio commitments at nearly $10 billion for almost 150 projects.  Our analytical and knowledge work, though, is increasingly in demand, and participants at Energy Week called on the Bank to remain engaged and active in helping set the framework and the agenda for future discussions.

Jamal Saghir, Director of Energy and Water in the Infrastructure VPU, said that while it is important to recognize Energy Week as a learning event for staff, this year’s version also served as a “think tank” and “a platform” for the pressing issues on the international agenda.

“Business as usual,” he said, “is not sustainable”, pointing to the need to scale up the work of all participants in providing reliable, affordable, economically viable, and environmentally sustainable energy.  In doing so, he said, countries will benefit twice: by obtaining the energy infrastructure necessary for businesses to invest and grow, ensuring economic growth, but also by directly benefiting the poor who lack access to basic energy services.

This article was prepared by Roger Morier, Senior Communications Officer, Infrastructure Network.