# Presentation: 178676

## Efficient Energy for Sustainable Development

**Mayors Asia Pacific Environmental Summit**

**Efficient Energy for Sustainable Development**

**Larisa Dobriansky****Deputy Assistant Secretary****Office of National Energy Policy****U.S. Department of Energy**

**Public-Private Partnerships for Poverty Reduction through the Clean and Efficient Supply, Delivery and Use of Energy**

**Honolulu, HI**
** ****September 22, 2003**
**Monday Plenary Session, 8:00 a.m.**

## The Problem of Inefficient Energy

**In many developing economies, the percentage of expenses for energy can be as high as 70%**
**Efficiency losses for generation, delivery and use of energy range from 20 to 50%**
**Energy demand is growing exponentially in these countries**
**Even modest efficiency gains could free up some $30 billion a year to address broader social and development goals**

**The Problem of Inefficient Energy**

## Economic Growth Requires Energy Poverty Breeds Global Insecurity

**0.1**

**1**

**10**

**100**

**0.1**

**1**

**10**

**100**

**1000**

**Energy Consumption Per Capita (10****6**** Btu/Person)**

**GDP Per Capita ($1000/Person)**

- Burkina Faso

- Bangladesh

- El Salvador

- China

- Mexico

- United Kingdom

- France

- Japan

- Russia

- Poland

- South Korea

- USA

- Source:  International Energy Annual 2000 Tables E1, B1, B2; EIA Country Energy Data Reports

## FRAMEWORK FOR SUCCESSTurning Forces of Globalization to Sustainable Development

- Sustainable Community Development
- Building and Developing Peer to Peer Alliances
- US/China cooperation on a “Sustainable Development Proposal”
- International Energy Center for Sustainable Development Proposal
- Sustainable Financing
- “Financial Intermediaries” and Risk-Targeted Policy and Financial Incentives to close gap between private capital and development projects
- Integrated Public-Private Finance Projects in Mexico, Philippines, Poland bundling energy efficiency projects and pooling financing
- APEC Energy Security Initiative:  Financing component to engage financial institutions in clean energy technology investments
- Technology Transfer and Knowledge Management
- Brazil Bio-diesel Project
- DOE-led USG multi-agency East Africa Geothermal Project
- Eco-Industrial Economic Development Projects for Fossil and Non-Fossil Energy Sources

##  World Summit on Sustainable Development (WSSD)

***Johannesburg, South Africa August 26 – September 4, 2002***

*“**The World Summit has a unique opportunity to advance the new approach to development that I embraced...based on shared accountability among developed and developing nations.”*
*“**Clean water, modern energy, good health, and productive agriculture...can lead us to a *_*world without poverty*_*....  We will stand together in Johannesburg to bring our full support to this important battle.”  *
*-- President George W. Bush, August 19, 2002*

** ****World Summit on Sustainable Development (WSSD)**

## Clean Energy Initiative (CEI)

**Clean Energy Initiative (CEI)**

- Launched at the WSSD, the U.S.-led CEI is comprised of three performance-based, market-oriented partnerships focused on putting sustainable development dialogue into action:

** ****Efficient Energy for Sustainable Development (DOE)**
*20% energy intensity reduction, 20 countries over 10 years*
** ****Global Village Energy Partnership (USAID)**
*     **New energy access for 150 million people*
** ****Healthy Homes and Communities for Children (EPA)**
*Reduce 3 million deaths attributable to air pollution*

## Clean Energy Initiative (CEI): Partnerships for Sustainable Development

**Clean Energy Initiative (CEI):**** Partnerships for Sustainable Development**

**Efficient****Energy for****Sustainable****Development****(led by DOE)**
** ****Efficiency**

**Global****Village****Energy****Partnership****(led by USAID)**
** ****Access**

**Healthy Homes and****Communities for Children****(led by EPA)**
** ****Air Quality**

**Developing Countries****Donor Governments****International Organizations****Financial Institutions****Clean Energy Industry****Civil Society**

## EESD Mission:Reduce Poverty by Modernizing Energy Services

**EESD Mission:****Reduce Poverty by Modernizing Energy Services**

**The EESD Partnership will work internationally to:**
-  Improve the productivity and efficiency of energy systems
-  Save money for residents, industry and government
-  Reduce pollution and waste
-  Improve reliability of energy systems
-  Use less energy intensive products
-  Use more energy efficient processes

## Modernizing Energy ServicesThrough Market Development

- Turn forces of globalization to poverty reduction
- Technology
- Information
- Capital
- Assist Rapidly Industrializing Countries “Leapfrog” Technology
- Get ahead of development curve through peer-to-peer leadership, innovative financing and technology
- Move from government initiatives to market-driven energy efficient projects, processes and products
- Help build foundation for economic development in nascent developing economies
- Integrating efficient energy into basic services
- Diversifying energy sources
- Institutionalizing for infrastructure development
- Bilateral and Multilateral Engagement

## EESD Services

**Leadership –** Promote public leadership that spurs demand for efficient energy products, processes and technologies through:
- Institutional capacity building
- Efficient energy projects at public facilities
- Technical standards, policy and regulatory reform
**Finance** **– **Facilitate locally managed financial programs to attract affordable and sustained financing
**Technology** **–** Build capacity to access and adopt cleaner and more efficient technologies
**Tracking Performance** – Help design performance metrics and assessment methods

## EESD Objectives

**Efficiency gains in the supply, delivery and use of energy through:**
- Clean energy technologies in energy production
- More efficient industrial and agricultural operations
- Efficient energy projects in public facilities
**Capacity development through:**
- -- Policy and regulatory reforms
- -- Adoption of technical standards, labeling and testing procedures
- -- Knowledge exchange and management
- -- Facilitating market development through sustained financing mechanisms
**Tracking Performance and drawing on Lessons Learned**

## EESD Desired Outcomes

**Use of energy savings as an asset to address broader social and development objectives access cleaner and more efficient technologies**
**20% energy intensity reduction in up to 20 host countries over 10 years**
**10:1 leveraging of U.S. Government funding**
**Federal Energy Management Plans saving at least 20% of central budget overhead costs in up to 10 countries**

## EESD Desired Outcomes (continued)

**Establish U.S. Community Partnerships in up to 8 countries **
**Financial facilities that support upgrades to 10,000 schools, 5,000 medical facilities and 10,000 low income multi-family buildings in up to 10 countries**
**Energy Efficient building codes established in up to 15 developing countries. **
**CLASP in up to 20 countries**
**WATERGY in up to 20 countries**

## EESD Benefits

| Local Communities | Spend less on energy, more on community
Efficient energy infrastructure creates jobs
Higher incomes and better quality of life from improved energy and social services |
| --- | --- |
| Local NGO’s and Entrepreneurs  |  Access to training and project financing
Technical Assistance on project feasibility and market development
 Seed capital for projects |
| Host Country Governments  | Reduced poverty, improved economy and environment, enhanced energy security
Increased foreign investment
Access to project planning and technologies
Policy and regulatory reform consultation for market development |
| Financial Institutions  |  Investment portfolio expansion
Financial Intermediation
 Partner and project connections |
| Private Sector Companies  |  Seed capital for pre-feasibility study
 Access to partners and country expertise |

## EESD Partnership Commitments

**Develop new business and financing models for sustainable development and clean energy projects**
**Promote integrated sustainable development by optimizing forces of the new global marketplace**
**Form new alliances with governments, international organizations, industry and civil society**
**Provide capacity building and technical and managerial assistance**
**Monitor, evaluate and report results**

**EESD Partnership Commitments**

## Financing – Local Leadership is Key 

- The public sector (hospitals, schools, public housing) is often the biggest user of energy and water.
- Budgets alone are rarely adequate to address all energy and water needs.
- Barriers to finance include small projects, credit risks and cost of capital.
- Significant energy savings may be achieved by upgrading facilities, pumps and other equipment.  Energy savings are public assets, and may be used as "anchor" for financing approaches.
- Financial intermediaries or "SPE's" serve as a conduit between good public projects and interested lenders.
- SPE's bundle projects, standardize process, help address risk and cost for both borrower and lender.  Every U.S. state has some form of SPE for environmental projects.

## Technology

- Demonstration & Deployment
- Commercialization of private innovation
- Commercialization of public innovation
- Public – Private Partnerships
- Project Implementation
- Sustainable Market Development
- Technology Standards & Regulations
- Innovative Strategies Clearinghouse

## US/Australian Partnership through APEC

**Linked initiatives at the WSSD to address development needs through modernizing energy services**
**Maximize energy sector’s contribution to development; minimize environmental impacts of energy supply and use**
**Focus on building regional cooperation through APEC’s Energy Working Group and institutions**
**Help host countries get ahead of their development curve by:**
**Promoting institutional and policy agendas for investment in clean energy technologies**
**Structure self-supporting financing to create market demand**
**Empower local entrepreneurs to participate in the marketplace**

## BUILDING REGIONAL COOPERATION ON  SUSTAINABLE DEVELOPMENT through APEC 

**FINANCING:  **
**“****Financial Intermediation” to close the gap between private capital and qualified energy and environmental projects**
**PUBLIC FACILITIES/FEMP:  **
**Creating a market for energy efficient products and services through Government Energy Management Programs and alternative financing**
**CLASP:  **
**Energy Efficiency Standards, Labels and Testing – A cost-effective policy tool for sustainable development**
**SISTER COMMUNITIES/”SUSTAINABLE CITIES”:  **
**Peer to peer leadership on an institutional and policy agenda for sustainable investments, products and services and technology transfers**

## EESD Partners

**EESD Partners**

- Australia, Botswana, Brazil, China, India
- Mexico, Nigeria, Philippines, Uganda, U.K.
- Asia Pacific Economic Cooperation Forum’s Energy Working Group
- International Energy Agency
- G-8 Energy Working Group
- Bilateral Energy Working Groups with Japan, EU, Russia, China, India, Ukraine, Venezuela and others
- US-Mexico-Canada Energy Working Group
- Global Environment & Technology Foundation
- Energy Conversion Devices

- Resource Mobilization Advisors
- World Federation of Engineering Organizations
- Sparber & Associates
- Edison Electric Institute’s International Power Partnership
- Business Council for International Understanding
- Business Council for Sustainable Energy
- International Council for Local Environmental Initiatives
- North American Development Bank
- FE Clean Energy Group, Inc.

## Partnership Activities

**– **Innovative underwriting of efficiency improvements to public facilities in Mexico, Russia and Eastern Europe and Asia Pacific Region
**Community Partnerships**** **
**– **US states and communities to collaborate on projects with their sisters in the developing world; exchange information and provide policy and technical assistance (“Sustainable Cities” – Beijing, Uganda, India)
**Natural Gas Flaring Reduction**** **
**– **Captured gas generating electricity for local use / economic activity (Angola)
**Eco-Industrial Development**
**– **Integrated project development for fossil and non-fossil energy sources (Asia Pacific and Africa)
**FEMP & CLASP**
**–** Asia Pacific, Latin America, Central and Eastern Europe
**Renewable Energy Production**
**– **Biodiesel in Brazil; Geothermal in Kenya

**Partnership Activities**

## Contact Information

- Larisa Dobriansky 	Larisa.Dobriansky@hq.doe.gov
- Deputy Assistant Secretary for National Energy Policy
- Sid Anderson		Sid.Anderson@ hq.doe.gov
- Assistant to the Deputy Assistant Secretary Dobriansky
- Steve Richards	Steve.Richards@hq.doe.gov
- Director, Office of International Energy Market Development
- Telephone:	202-586-4391
- Website:  www.state.gov/g/oes