Lack of access to energy a key hurdle for wiping out poverty

Singapore, Jan 23 (UNI) Providing access to energy is a pre-requisite for reducing poverty in the Asian region, a senior Asian Development Bank (ADB) official said here at the Delhi Sustainable Development Summit.

''Lack of access to energy is severely affecting the productivity and health of the poor,'' said ADB (Regional and Sustainable Development Department) Director General Bindu N Lohani.

Mr Lohani said, ''Asian economies need to make large investments in energy conservation, energy efficiency, alternative energy sources, clean technology and energy for the poor.'' Mr Lohani, who is also special advisor to the ADB President on Clean Energy and Environment, said there are five major issues that Asia must address in meeting its energy needs.

First, there is the need to promote energy conservation and efficiency in residential and industrial buildings and transport, as the residential consumption in non-organisation for Economic Co-operation and Development (OECD) countries is projected to double by 2030.

Also, with Asia's motorised vehicle fleet doubling every five to seven years, well designed mass public transport systems will be needed in major cities. Although this will require substantial investment, the benefits will be large, including reduced oil consumption and pollution levels, Mr Lohani added.

Second, countries need to adopt new technologies and invest in renewable energy. Trading credits under the Kyoto Protocol and donor support offer the chance to reduce the relative high costs of renewable energy. But the choice of technology adopted now is important as, for example, an average coal fired power plant is likely to last for about 50 years.

His third point was that with the first quarter of 2006 seeing carbon market transactions reaching 7.5 billion dollars, work needs to be done to ensure that developing countries can benefit.

China alone would generate carbon credits that would earn it up to 2.25 billion dollars per year, which could fund extra generating capacity of 1,500 MW in wind power per year.

''A clear policy on the use of coal is needed to lower carbon emissions effectively,'' he said, adding that the global community should also look beyond the arrangement under the Kyoto Protocol to avoid investment risk perception.

His fourth issue was that Asia must accelerate investment to increase poor people's access to energy. ''Meeting the minimum energy needs of the poor to enable them to share the benefits of economic growth is as important as a shift toward a low carbon economy,'' he said.

Lastly, he said that Asia should integrate adaptation to climate change into its future planning and investment. ''Climate change is already taking place, and many of its effects are already visible,'' he said. Hence, governments should take into consideration climate risk management strategies while planning for long-term investments.

As a major multilateral development institution focused on poverty reduction and supporting sustainable growth in Asia and the Pacific, ADB is actively engaged in promoting environmental sustainability at local and regional levels.

ADB's current Clean Energy and Environment Program comprises several initiatives, including the Renewable Energy, Energy Efficiency and Climate Change Program, Energy Efficiency Initiative, under which ADB's investments in energy efficiency and renewable energy will be expanded to one billion dollars per year, and the new Carbon Market Initiative.

In addition, ADB since last year has been setting up regional knowledge hubs to tap into the potential of vast yet largely unorganised knowledge and promote information exchange, sharing, and networking among regional institutes, government agencies, and academic institutions.

The first such hub on clean energy was established in June 2006 at the Energy and Resources Institute (TERI), organiser of DSDS, which runs from 22 to 24 January.

More than 500 participants from governments, development agencies, and the private sector are attending the annual conference, which focuses on sharing experiences and promoting workable solutions to the region's natural resource problems.

A special theme this year is assessing progress on the UN Millennium Development Goals, focusing on the natural resource implications of sustainable development.

UNI