World Bank closes consultation on position on renewables
NEW YORK, New York, US, 2004-07-21 (Refocus Weekly)
The World Bank will promote the use of renewable energy and energy efficiency to combat climate change, according to a draft response to its internal review of extractive industries.
The review was announced in 2000 as a comprehensive assessment of its
activities in oil, gas and mining production, and included an independent
stakeholder consultation process headed by Emil Salim. Salim’s report produced
a number of recommendations which were considered “very seriously” by the
Bank Group as it “sought to balance the often diverse views of many
stakeholders including governments, civil society and industry.”
Directors of the Bank “agree with the majority of its recommendations” and
share its objective to reduce poverty, protect the environment, improve people’s
lives and support equitable growth.
The Bank will respond to the recommendations by taking “speedy movement” in
its strategy on renewables to use programs and policies “to ensure that
renewable energy and energy efficiency are seen as economically viable and
essential ingredients in the energy choices of our member nations, not marginal
considerations.” It will commit to a target of at least 20% average growth
each year in commitments to both energy efficiency and renewables over the next
five years, and then reassess its goal.
The Bank is also prepared to “convene or participate in a steering group of
nations, academic and research institutions, civil society and industry that can
help frame a broader agenda on renewable energy (including policy reform,
research, and financing)” and it welcomes ideas and suggestions for this
coordinating mechanism.
To foster greater collaboration across national and institutional lines, the
Bank will commit to report its annual performance in renewables against the
figures of other leading organizations and will provide sector-specific
information to engage stakeholders on trends in the use of wind, solar,
geothermal, hydroelectric or biomass technologies.
“Finally, we will increase not only our staff capacity, but also the resources
at their
disposal and incentives within their programs, so that we can more effectively
help our country and sector teams succeed in renewable energy and energy
efficiency projects, as well as more rapidly transfer best practices across
sectors and regions,” says the draft.
“We recognize that consumption of fossil fuels increases GHG emissions that
are believed to contribute to climate change, and the Bank Group already has
leveraged about $10 billion for renewable energy and energy efficiency in
developing countries through its investments and technical support,” it adds.
For the Bank, supporting sustainable energy means assisting its partner
countries to access the “most cost-effective, best-performing and reliable
sustainable energy technologies that are economic, affordable, and best suited
to their needs.”
“The Extractive Industries Review has drawn further attention to the
importance of
renewable energy for sustainable development and has recommended an even
stronger Bank Group role,” it says. “This is fully consistent with the
direction in which we are headed, and we will redouble our efforts. This is an
area, however, in which the entire international community must act, as
renewable energy currently represents only 2% of the world’s energy
investments.”
The review and Salim’s report “had an important and beneficial impact on the
Bank Group’s approach to the sector,” and future investments in extractive
industries will focus on the needs of poor people. “We will take major steps
to increase our own support, as well as to encourage and advocate for more
global support, for renewable energy and other clean fuels” in order to help
developing countries provide their citizens with access to sustainable energy
sources and to ensure that extractive industries contribute to sustainable
development and poverty reduction.
The review recommended that the Bank withdraw from investments in oil and coal
in developing countries, but that suggestion was rejected because many
developing countries rely on oil, gas and mining as economic assets. “While
all forms of energy have a role to play, and we strongly support a major scaling
up of renewable and clean energy sources, oil and coal will inevitably continue
to be major fuel sources for the world’s poorest peoples for the foreseeable
future.”
The draft Management Response will be considered by a subcommittee of the Bank
and then by the main Board within the next month, before it is finalized.
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