Energy Sector Development and

Climate Mitigation

Ajay Mathur
SenergyGlobal
New Delhi, India
 Overview
Energy sector development focuses on enhancing access,
economic productivity, energy security, and environment
quality

There are a wide range of interventions in use which lower

the emissions trajectory while helping achieve these goals;
they compete with high-GHG emitting interventions

International cooperation can promote and prioritize these

mitigation options within energy sector development;
prioritization would depend on the appropriateness of the
option to a countrys current level of development

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Bonn, June 19, 2004
 Goals of Energy Development
Energy sector development focuses on enhancing:
access to clean energy services
1.6 billion people do not consume any
electricity, and very little kerosene or LPG
Household energy consumption is 212
kgoe/cap (compared to 651 kgoe/cap in
industrialized countries); about 25% comes
from biomass used traditionally

quality of the local environment

Indoor air pollution kills 2 million women and
children prematurely
Only 15% of cities in developing countries
have acceptable urban air quality

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Bonn, June 19, 2004
 Goals of Energy Development
Energy sector development focuses on enhancing:
economic productivity
Non-household energy intensity in
developing countries is 0.36 kgoe/$-
GDP (compared to 0.19 kgoe/$-GDP
in industrialized countries)
Competitiveness and opportunity
costs of supply expansion drive
energy efficiency initiatives

security of energy supply

Energy imports are a large fraction of
exports
Volatility in international prices leads
to macroeconomic instability

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Bonn, June 19, 2004
 Emissions Trajectory Reduction
could be a Co-Benefit
Emissions increases will occur due to:
Transition from traditional biomass energy to fossil fuels in the
household sector; and
Energy needs associated with the growth in the economic sectors -
manufacturing, services and transport

More than half of the infrastructure for the

generation and use of energy in developing countries
is yet to be built
Prioritizing interventions that promote clean energy
technologies would lead to lower emissions trajectories

These energy needs and climate mitigation

objectives - can be met through, for example:
Promotion of modern biomass technologies
Facilitating energy efficiency
Enhancing the share of renewables in the energy mix
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 Promotion of modern biomass
technologies
Rural household and commercial energy needs can be
met by modern biomass technologies rather than fossil
fuels: this transition contributes heavily to emission
increases 200

India - Household Sector Emissions

Initiatives in several 180

160
Current Transition

Asian and African

Accelerated Modern Biomass

140

countries

Million Tonnes CO2

120

100

Technology adaptation, 80

market development, 60
Period of Intervention

and financing risks

40

20

are high 0
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020

Adoption driven by enhancements in productivity and in

indoor air quality
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 Facilitating energy efficiency
New investments in power, industry, transport and
building infrastructure can be substantially more efficient
than existing stock; economic growth is powering a rapid
increase in these sectors, and associated emissions
Almost all countries exhibit
declining energy intensity trends
for the economic sectors; most
countries have some initiatives to
promote energy efficiency in these
sectors
Technology integration, support,
and financing risks are high
Adoption is driven by quality and
productivity increases
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 Enhancing the share of renewables in
the energy mix

Some renewables could effectively augment

commercial energy supply, e.g., wind and small hydro
A few countries have aggressive
programs to promote electricity from
renewables; many countries have
demonstration programs
Grid integration risks are high; cost
reduction is scale dependent
Adoption is driven by national goals
and remunerative tariffs

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 Assess Risks & Prioritize opportunities
Separate out the use of energy in households and the economic
sectors
Energy use per capita in households will rise; however it can be partially delinked
from emissions growth
Energy use in the economic sectors will rise; however the intensity of use is
declining and the decline can be accelerated

There is a diversity of options that can meet energy-sector goals

and lower the emissions trajectory depending on the risks that can
be addressed at the current level of development
Penetration of clean technologies, especially in the household sector
Lowering energy intensity of economic activities
Creation of demand for clean energy

International cooperation through risk sharing - can promote and

prioritize mitigation options within energy sector development
GEF and CDM both provide risk sharing at the project level

SBSTA-18
Bonn, June 19, 2004