Energizing theMillennium Development Goals

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United Nations Development Programme

The views expressed in this publication do not necessarily represent those of the member countries of theUNDP Executive Board or of those institutions of the United Nations system that are mentioned herein.The designations and terminology employed and the presentation of material do not imply any expression oropinion whatsoever on the part of the United Nations concerning the legal status of any country, territory,city or aea, or of its authorities, or of its frontiers or boundaries.

Photo credits—front cover:Upper left: Nepal, PANOS/ C. PennUpper right: Ghana, PANOS/ G. MansfieldLower left: Bangladesh, PANOS/H. NetocnyLower right: Mali, UNDP

Copyright © UNDP 2005All rights reserved

United Nations Development ProgrammeOne United Nations PlazaNew York, NY 10017

August 2005

1

In September 2000, at the United NationsMillennium Summit, world leaders agreed toa set of time-bound and measurable goals andtargets for combating poverty, hunger, illiter-

acy, gender inequality, disease, and environmentaldegradation. The eight goals that were eventuallyagreed upon are what the development communi-ty now refers to as the Millennium DevelopmentGoals (MDGs).

While there is no MDG specifically on ener-gy, access to energy services is a prerequisite tothe achievement of all eight MDGs. This wasrecognized at the World Summit for SustainableDevelopment (WSSD) in Johannesburg in 2002.Unfortunately, much greater quantities andmuch greater quality of energy services will berequired to meet these goals than are presentlyavailable in developing countries. Worldwide, 2.4billion people rely on traditional biomass as theirprimary source of energy and 1.6 billion peopledo not have access to electricity.

To ensure that a lack of adequate energy doesnot become a bottleneck to achieving theMDGs, urgent action is needed to move beyond

the ‘business-as-usual’ approach to energy. It isno longer sufficient to think of energy usage asbeing driven by economic development. Thetime has come to begin assessing the role ofenergy versus other inputs as a means of stimu-lating human development. If approached as anintegrated part of MDG strategies, access toenergy services can be an important instrumentin helping promote economic growth, socialequality, and environmental sustainability.

This guide has been designed to help develop-ment practitioners ask the relevant questionsneeded to bring about this change. It offers anoverview of the some of the most pertinent issuesregarding development and energy and providessuggestions and examples on how to address energy within broader efforts to reach the MDGs.

Susan McDadeSustainable Energy Programme ManagerEnergy and Environment GroupBureau for Development Policy

Foreword

Contents

Foreword . . . . . . . . . . . . . . . . 1

Introduction to Energy and Development . . . . . . . . . . . 2

MDG 1 . . . . . . . . . . . . . . . . . . . . 8

MDGs 2 & 3 . . . . . . . . . . . . . 10

MDGs 4, 5 & 6 . . . . . . . . . . 12

MDG 7 . . . . . . . . . . . . . . . . . . 14

MDG 8 . . . . . . . . . . . . . . . . . . 16

Conclusion. . . . . . . . . . . . . . 18

El Salvador, IFAD/L. Dematteis

Figure 1. Energy chain

Source: Adapted from WEA

Introduction to Energy and Development

2

Q&A

Is energy important to the poor?

Yes. Energy deeply influences poorpeople’s lives. It is central to practical-ly all aspects of human welfare,including access to water, agricultural

productivity, health care, education, job creation,and environmental sustainability. Yet, millions ofhouseholds in the developing world still lack

access to safe and reliable energy and pay highprices for poor-quality substitutes. Moreover, poorpeople spend much of their income on energy,more than a third of household expenditures insome countries. They also devote a large portionof another important asset, their time, on energy-related activities—women and young girls spendupwards of 6 hours a day gathering fuelwood andwater, cooking, and agro-processing. Access tomodern energy services can make a real differenceto poor people’s lives.

What are energy services?

The term ‘energy services’ is used todescribe the benefits that energy useoffers. For households, these benefitsinclude lighting, cooked food,

refrigeration, telecommunications, educa-tion, and transportation. Energy services canalso include other benefits such as mechanicalpower. All of these services represent the last linkof what is commonly referred to as the ‘energychain’. (See Figure 1.) The energy chain beginswith the extraction or collection of primary ener-gy sources that, in one or several steps, may beconverted into energy carriers that are suitable forend use. Energy carriers include fuels and electric-ity and can be derived from both conventional andrenewable energy sources. From the perspective ofthe consumer, it is the availability and afford-ability of energy services, not merely the source ofenergy itself, that is important.

IllluminationCookingRefrigerationCommunicationMechanicalpowerPumped waterTransportation

Services

Light bulbStoveMachineryFurnacePumpAutomobile

End-useEquipment

ElectricityKeroseneDieselPropaneHydrogen Biofuels

CarriersCrude oilNatural gasCoalBiomassFlowing waterWindSolar radiationNuclear

Sources

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How are the fuels used togenerate energy servicesrelated to development?

Most poor households in developingcountries lack access to modernfuels. They instead rely on tradi-tional biomass fuels like crop

waste, dung, and wood to meet their basic ener-gy needs. When used with inefficient devices theselow-quality fuels often result in harmful health andenvironmental impacts. Traditional fuels representthe lowest rungs on the ‘energy ladder’. (See Figure2). The order of fuels on the energy ladder corre-sponds to their efficiency and ‘cleanliness’ at enduse. More efficient and ‘cleaner’ fuels such as char-coal, coal, kerosene, liquefied petroleum gas(LPG) and finally modern biofuels such as ethanoland methanol represent successively higher rungson the ladder. Although modern fuels tend to bemore costly—at least from a monetary perspec-tive—than traditional fuels, they do provide peoplewith far greater opportunities for income genera-tion. Climbing the energy ladder towards moremodern fuels, therefore, is a challenge most poorpeople in developing countries must face in orderto improve their overall standard of living.

Is electricity the most important energy carrier for the poor?

No, not necessarily. Electricity and fuelscan produce different energy services.Electricity is essential for moderncommunications, supporting modern

industry and the provision of public services suchas public lighting, education, and health care.Fuels, on the other hand, are essential for allhouseholds, rich and poor alike, in so far as allpeople need cooked food and boiled water. Unlessbasic fuel needs are met, electricity is a luxury item

few can hope for or afford. As such, the impor-tance of electricity versus fuels varies based on thedifferent needs of the poor and the economic andsocial circumstances that enable their use. Sensi-tivity to the differential impact that electricity canhave on the poor is crucial to planning and prior-itizing energy-related programmes and projects.

Introduction to Energy and Development

Q&A

4

Increasing prosperitySource: UNDP

Figure 2. Relationship between fuel usageand prosperity

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How many people areimpoverished by lack ofmodern energy services?

It is estimated that worldwide there are 2.4billion people—more than one-third ofhumanity—who rely on wood, charcoal, anddung as their principal source of energy for

cooking and heating1. At least 1.6 billion people

have no access to electricity 2 in their homes andconsequently are without means for electric light-ing, mechanical power, and telecommunications.Although people from both rural and urban areassuffer from a lack of access to modern energy serv-ices, those in rural areas are especially deprived. Itis estimated that four out of five people withoutelectricity live in rural areas of the developingworld, mainly in South Asia and Sub-SaharanAfrica. According to the International EnergyAgency (IEA) these figures will remain largelyunchanged in 2015 unless new policies are adopt-ed to expand investment in rural energy infra-structure. In fact, the IEA estimates that a total ofUS$200 billion worth of investment in electrici-ty will be needed to help halve the proportion ofpeople living on less than US$1 a day by 20153.This amount is in addition to the US$5.8 trillionneeded just to meet existing projections in elec-tricity demand4.

Is energy a gender-neutral issue?

No. Women, especially those in ruralareas, are disproportionately bur-dened by lack of access to modernfuels and electricity. Gender-ascribed

roles and cultural practices tend to make womenand girls responsible for the most labour-intensiveand time consuming household chores. Hundredsof millions of women and young girls spend hoursa day just gathering fuelwood and carrying waterfor basic subsistence needs. These are often thesame women and girls who have to spend consid-erable amounts of time and effort manually processing—threshing, dehusking or grinding—staple foods before theycan be cooked andeaten. The time spenton these sorts of activ-ities represents a huge‘opportunity cost’ forwomen. Because ofthese demands ontheir time, women andyoung girls are deniedopportunities for othermore productive activi-ties such as employment and education, not tomention much needed time for rest.They also suf-fer considerable damage to their health by havingto cook indoors on poorly vented stoves and withlow-quality fuels. It is estimated that 1.6 milliondeaths per year (of which 60 percent are female)in developing countries are associated with theinhalation of indoor smoke from the use of solidfuels5. For all these reasons, energy services such asheat for cooking and power for food processingare particularly important for women and girls.

1 International Energy Agency. 2002. World EnergyOutlook 2002. OECD/IEA. Paris.

2 idem3 International Energy Agency. 2004. World Energy

Outlook 2004. OECD/IEA. Paris.4 idem.5 World Health Organization. 2002. The World

Health Report 2002. Geneva.

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Is there evidence linkingenergy to overall humandevelopment?

Yes. Energy’s importance to develop-ment is not merely a matter of conjec-ture or wishful thinking. There is anempirical basis to the relationship

between access to modern energy and humandevelopment. To better understand this relation-ship it is helpful to think of energy in relation tosome measure of development. Figure 3 displaysthe relationship between a country’s human devel-opment index (HDI)6 ranking and per capita ener-gy use, with energy consumption used as a proxyfor energy services. Energy is strongly linked tohuman development; as evidenced by the upwardsloping trend in the graph. The graph also illus-trates that countries that develop over time do so intandem with improvements in energy. In fact, nocountry in modern times has substantially reducedpoverty without a massive increase in its use ofenergy and/or a shift to efficient energy sources.

How is energy security related to development?

The earth’s energy resources are morethan adequate to meet demand throughat least the first half of the 21st century.Reserves of traditional commercial

fuels—oil, gas, and coal—will suffice for decadesto come. This does not mean that the world’senergy outlook is secure. Energy resources are notevenly distributed across the world nor are theirdifferent usages all environmentally benign. Ener-gy-importing countries face geopolitical, market,social and environmental forces that, in one ormore ways, make securing adequate and afford-able energy a challenge. This challenge is particu-larly important to developing countries, wherefuture energy demand is predicted to increase themost. The dependence of some developing coun-tries on imported fossil fuels depletes scarce for-eign exchange and increases exposure to the bal-ance of payment impact of oil price shocks. With-out measures to increase the sustainability andavailability of energy supplies—through, forexample, the improved management and develop-ment of renewable energy resources—financialexchange and other financial shocks will continueto undermine many developing countries’ abilityto service foreign debt and attract foreign invest-ment, issues closely tied to the welfare of poorpeople in developing countries. Having said this,traditional commercial fuels are likely to remainthe backbone of the poorest countries’ energyinfrastructure despite the decreasing costs inrenewable energy.

Introduction to Energy and Development

Q&A

6

Figure 3. Relationship between HDI and energy consumption

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Note: Figure 3 depicts the relationship between energy consumptionand the HDI among a selected group of countries. This pattern is typical across most developing countries.

Source: IEA; UNDP analysis

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Is energy’s importance todevelopment adequatelyreflected in national development frameworksand monitoring and reporting processes?

No. Many development strategies treatenergy only within the context oflarge-scale infrastructure projects.Energy access issues are conspicu-

ously absent, leaving important linkages withproductivity and cross-sectoral applicationsunaddressed7. Development strategies also tendto focus only on electricity while ignoring issuessuch as fuel availability and rural energy develop-ment. Less than half of all national PovertyReduction Strategy Papers (PRSPs) in Sub-Saharan Africa, for example, include explicit tar-gets and timeliness to meet the energy prioritiesof the poor. Only one third of PRSPs actuallyallocate budgetary resources to national energy

priorities in their Mid Term Expenditure Frame-works (MTEFs). Energy issues are also under-stated in national monitoring and reportingprocesses such as those found in MDG CountryReports. Out of 80 MDG Country Reports8 only10 mention energy outside of discussions pertain-ing to environmental sustainability. Little atten-tion is actually paid to energy’s role in reducingpoverty. Much of the reporting on energy occursin the context of energy efficiency and decreasingcarbon dioxide and other greenhouse gases(GHGs). (See Figure 4.)

Although energy is certainly important to theenvironmental agenda and to macroeconomicgrowth, it receives little attention within nationaldevelopment frameworks and reporting processescompared to other dimensions of developmentsuch as poverty reduction, gender equality, educa-tion and health. Access to energy is indeed a pre-requisite to meeting all the MDGs but its impor-tance as a means of stimulating development istoo often overlooked.

7

6 The HDI is a summary composite index that meas-ures a country's average achievements in threebasic aspects of human development: longevity,knowledge, and a decent standard of living.

7 This is the finding of a forthcoming report by the World Bank, ESMAP.

8 Although 100 MDG Country Reports are availableonline at www.undg.org, 20 were either inaccessi-ble or presented technical difficulties.Therefore,only 80 MDGRs were used for this review.

Source: UNDP

Figure 4. Percentage of MDG reports that discuss energy

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Eradicate Extreme Poverty and Hunger

MDG

1

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Poverty is a global challenge and itsalleviation is at the heart of MDG 1– Eradicating Extreme Poverty andHunger. While energy services, by

themselves, are not sufficient to eradicateextreme poverty, they are necessary for creatingthe conditions for economic growth and improv-ing social equality.

Modern energy services help drive economicgrowth by improvingproductivity andenabling local incomegeneration through im-proved agriculturaldevelopment and non-farm employment.When they are availableto all incomes groups,modern energy servicesare also an invaluablemeans of improvingsocial equality.

Productive uses ofenergy are particularlyimportant to economicgrowth. Modern fuelsand electricity, forexample, help boosthousehold income by

providing lighting that extends livelihood activitiesbeyond daylight hours. They power machines thatgenerate valuable time savings and increase outputand value added. By providing additional oppor-tunities for employment, energy services alsoenable farmers to diversify their income sources,and thus mitigate against the inherent risks asso-ciated with agriculture-dependent livelihoods.Energy is important in supporting productiveactivities in both the formal and informal sectors.

Another way modern energy services con-tribute to economic growth is by reducing unitcosts. Due to the inefficiency of commonly useditems such as batteries, candles, kerosene, andcharcoal, the poor often pay higher unit costs forenergy than do the rich. The use of more effi-

“Energy for jobs,agriculture, and a

decent standard of living is an indis-

pensable part ofthe MDG recipe.You cannot have

pro-poor economicgrowth without

access to modernenergy services.”

Shoji Nishimoto, Assistant Administrator and Director, Bureau

for Development Policy, UNDP

CHILE:Wind technology for rural electrification reduces the costof electrical energyThe cost of electricity on Chile’s island of Isla Tachas dropped by 75-90% with the arrival of anew wind-diesel electric system. Before thearrival of electricity, islanders were paying theequivalent of approximately 2,500 pesos perkWh for small batteries, candles, small enginegenerators, and kerosene lanterns. They nowpay anywhere between 211 pesos to 650 pesosper kWh.

Source: UNDP

MALI:Mechanical power increaseswomen’s income generatingopportunitiesIn Mali, roughly three quarters of the popula-tion survives on less US$1 per day. It is has beenestimated that since 1996, when small dieselengines (or so called ‘multifunctional plat-forms’) began to be introduced in rural villages,women have been earning an additionalUS$0.32 per day as a result of having access tomechanical power—a tiny amount by thestandards of the industrialized economies, buta huge increase in income for the beneficiaries.This additional income is being used to investin increased agricultural output, education, andheath care.

Source: UNDP

9

cient fuels can reduce the large share of house-hold income spent on cooking, lighting, andkeeping warm, thus saving families much neededincome for food, education, health services, andother basic needs.

Modern energy resources are also importantfor alleviating hunger. Use of commercial fuelsand improved cookstoves, for example, canincrease agricultural productivity and food secu-rity by allowing farmers to use more of their

farm waste as a source of soil nutrients ratherthan as an inefficient source of fuel. With 95 per-cent of all food requiring cooking in order to beeaten, the role of modern fuels in alleviatinghunger is significant. Coupled with the fact thatmost modern farming practices such as plowingand pumping irrigation water require fuel, mod-ern fuels are one of the most basic energy needsof the world’s poor.

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Achieve Universal Primary Education and Promote GenderEquality and Empower Women

MDGs

2&3

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Worldwide, an estimated 115 mil-lion children of primary schoolage are still not enrolled inschool9—a situation that under-

scores the challenge of achieving universal pri-mary education by 2015. Access to modern ener-gy services can play a critical role in improvingeducational opportunities for children. Electricityfor lighting, for example, allows children to study

at night, increases secu-rity, and enables the useof diverse educationalmedia both at schooland at home, includinginformation and com-munication technol-ogies. It also helpsattract teachers toremote communities byincreasing the standardof living in rural areas.

The disproportion-ate amount of time andeffort women andyoung girls spend onbasic subsistence activi-ties like agro-process-ing, cooking, and col-lecting fuelwood andwater has profoundimplications for gender

equality. The responsibility of girls to assist theirmothers with domestic chores is often one of themost important reasons—along with inadequateincome—that young girls do not regularly attendschool. Lack of schooling among girls in turnresults in lifelong harm to the literacy and eco-

nomic opportunities ofadult women.

Access to modern energy services is particular-ly important to empowering women and increas-ing girls’ opportunities for education. Mechanicalpower, for example, can reduce the drudgery ofhours of food grinding and threshing, thereby free-ing young girls to pursue more regular schooling.The same is true for cooking fuels. Access to mod-ern fuels like kerosene, biogas, and LPG help dra-matically reduce the time and effort women andyoung girls devote to collecting dung, fuelwood,and agricultural wastes. Water pumping is anotherpotential source of time savings for women andyoung girls. The combined amount of time andeffort these services can save women—upwards of6 hours in some countries—underscores the criti-cal role that modern energy services have in reduc-ing the gender bias of energy poverty.

MALI:Time and labour saving deviceshelp promote girls’ educationIn Mali, girls typically handle domestic choresfrom the age of eight on and even earlier forcertain chores like carrying water—a situationthat limits their ability to attend school. Sincetheir inception in 1996, multifunctional plat-forms have been providing villagers with alter-native means (for example, mechanical servic-es) to handle the tasks that would otherwise behandled by girls, thus releasing them from thisdaily burden. The success of the multifunction-al platform in freeing young girls of the drudg-ery of basic subsistence work has helpedincrease the girl-to-boy ratio in some schoolsby as much as 90 percent while boosting theproportion of girls entering secondary educa-tion by 7 percent.

Source: UNDP

“Reducing drudgeryin women’s lives by

providing clean,affordable fuels for

food grinding,waterpumping,cooking

and transportationis one of the most

important chal-lenges to achieving

universal primaryeducation and

gender equality.”Susan McDade, Manager,

Sustainable Energy Programme, UNDP

9 United Nations. 2005. Millennium Development Goals Report 2005. New York.

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Reduce Child Mortality, ImproveMaternal Health, and CombatHIV/AIDS,Malaria and other Diseases

MDGs

4,5&6

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The health of the world’s people can be nobetter than the health of its food, water,and air or than the opportunities peoplehave for health care. Much of what

enables these resources to advance human welfareis the availability of adequate and clean energy.

This availability of adequate clean energy isparticularly important in reducing child mortality.Modern fuels and electricity help reduce malnutri-

tion-related mortalityby boosting food pro-duction and householdincomes.They also helpreduce the incidence ofwaterborne diseases bypowering equipmentfor pumping, boiling,and treating water.Replacing traditionalstoves that burn woodand dung with moremodern appliances thatburn kerosene, LPG, ormodern biomass fuelsfurther reduces the riskof child mortality byreducing harmful in-

door air smoke and the risk of respiratory disease.Access to modern energy services is critical forkeeping the food, water, and air that children con-sume both safe and in adequate supply.

Modern sources of energy are also a key com-ponent of a functioning health care system; thusthey contribute to improving maternal and childhealth and reducing the incidence of HIV/AIDS,malaria, and other major diseases. Electricity, forexample, enables health clinics to refrigerate vac-cines, operate and sterilize medical equipment, andprovide lighting so that clinical services can be pro-

vided after sunset. It allows the use of modern toolsof mass communication needed to fight the spreadof HIV/AIDS and other preventable diseases.Access to electricity also helps attract and retainhealth and social workers, especially when it pro-vides lighting in their accommodations.

KENYA:Improved cookstoves reduceindoor air pollutionOver 16,000 improved cookstoves have beeninstalled in western Kenya as part of a projectaimed at improving the living and working con-ditions of women in rural households. Since theirintroduction in 1995, fuel efficient cookstoveshave led to a 60 percent reduction in indoorsmoke, contributing to a 65 percent reduction inacute respiratory infections among mothers anda 70 percent reduction of conjunctivitis amongchildren under five. Lower incidences of healthproblems have enabled women to save theequivalent of US$4 per year in avoided healthcosts—a small, but not trivial, amount of money.

Source: UNDP

PHILIPPINES:Rural electrification contributesto maternal healthA statistical analysis of 15,000 townships, orbarangays, in the Philippines indicates that thereis a significant relationship between maternalhealth and access to electricity. Data from thePhilippine’s 1998 National Demographic andHealth Survey (NDHS) shows that, after control-ling for income and other demographic factors,women with access to electricity have a 17 per-cent higher probability of having a doctor-assisted birth than those without electricity.

Source: UNDP

“Delivering healthcare services and

educating the popu-lation about HIV/

AIDS requires elec-tricity and modern

communications.MDGs 4, 5, and 6 willrequire better ener-

gy services if theyare to be met.”

Elhadj Sy, Director,HIV AIDS Group, UNDP

13

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Although energy’s potential for cat-alyzing growth and development isunquestionable, current patterns ofenergy production and consumption

are threatening the environment on both localand global scales. Emissions from the burning offossil fuels are major contributors of urban air pollution, acidification of land and water, andthe unpredictable effects of climate change.

The use of fuelwoodand charcoal can beunsustainable when it leads to land degra-dation from fuelwoodgathering and to in-door air pollutionfrom biomass com-bustion. The earth’senvironment is in-trinsically linked tohow energy is sup-plied and consumed.

The burden of en-vironmental degrada-tion falls dispropor-tionately on devel-oping countries. Thepoor often live in themost ecologicallysensitive and margin-

al environments, which makes them especiallyvulnerable to environmental degradation and theadverse effects of climate change. In most cases,environmental damage can be directly or indi-

rectly mitigated byincreasing energy effi-ciency, introducingmodern technologiesfor energy production

and use, substituting cleaner fuels for pollutingfuels, and introducing renewable energy.

Land degradation, for example, is a substan-tial problem that affects nearly 2 billion hectaresof land worldwide and threatens the livelihoodsof a billion of the earth’s inhabitants10. Fuelwoodcollection is not the major cause of this globalproblem, but reducing it can play an importantrole in stemming and reversing land degradationand its local and regional impacts. Reducing theamount of fuelwood collected can be donethrough a combination of measures, includingthe introduction of modern biomass energy sys-tems, more fuel efficient cookstoves, fuelwoodsupply management, and fuel substitution.

Climate change represents one of the mostserious global environmental challenges facinghumankind in the twenty-first century. ReducingCO2 and other greenhouse gas emissions from

Ensure Environmental Sustainability

MDG

7

SENEGAL:

Fuel substitution helps alleviateland degradation

In an effort to address the dual problems ofland degradation and rural poverty, the govern-ment of Senegal has embarked on a programto help encourage the substitution of liquefiedpetroleum gas for biomass energy (e.g., fire-wood and charcoal). Through a series of energysector reforms and subsidy programs, the gov-ernment has helped increase LPG consumptionby an average annual rate of 11 percent since1974. The result has been a marked reduction in deforestation. In 2002, the consumption of100,000 tonnes of LPG led to 40,500 ha of avoid-ed deforestation, or the avoidance of the pro-duction of 337,500 tonnes of charcoal.

Source: ENDA

“Energy is critical in both how it

impacts the globalenvironment and

how it is needed toprotect the local

environment.Access to clean

energy is an essential compo-

nent of sustainabledevelopment.”

Olav Kjørven, Director, Energy and Environment Group, UNDP

14

10 UNEP/ISRIC. 1991. World Map of the Status ofHuman-Induced Soil Degradation (GLASOD).An Explanatory Note, second revised edition(edited by Oldeman, L.R., Hakkeling, R.T., andSombroek, W.G.). UNEP, Nairobi, Kenya, andISRIC, Wageningen, Netherlands.

the burning of fossil fuels is at the heart of cur-rent efforts to halt this global phenomenon. Theuse of cleaner, more efficient energy systems willcertainly help pave the path to a low-carbonenergy future. Developed countries—where percapita emissions have historically been far higherthan those of developing countries—are nowwell positioned to lead the way in investing inmodern energy services that do not rely so heav-ily on fossil fuels. Accelerated use of renewableand more energy efficient technologies can pro-vide ‘win-win’ options to tackle global and localdevelopment challenges. Strengthened coopera-tion between developed and developing coun-tries is critical to promoting technology transfer,capacity building, and increased financing formodern energy services.

15

LITHUANIA:

Geothermal water powers district heating systems whilereducing GHGs

After the collapse of the former Soviet Union,Lithuania faced a number of problems in itsenergy sector specifically related to heating,including high energy intensity, the need forenergy efficiency and conservation, and limiteddomestic energy resources. In 1992, the Govern-ment of Lithuania developed a geothermalplant as a means of providing hot water to theKlaipeda district heating system and reducingharmful emissions from the burning of fossilfuels. Overall, the heat supplied from the geot-hermal plant has reduced the amount of natu-ral gas and heavy fuel oil used for heating. It isestimated that the decline in the use of fossilfuels corresponds to an annual reduction of46,000 tons CO2; 2,100 tons of SO2; and 75 tonsof NOx emissions when heavy oil is replaced,and 33,500 tons CO2 and 94 tons of NOx whennatural gas is replaced. These declines in fossilfuel use have positive benefits to the local,regional, and global environments.

Source: World Bank & GEF

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Given the complex and imperfectnature of energy markets, marketforces alone cannot be expected todeliver energy services that are sus-

tainable and meet the needs of the most vulner-able communities. Cooperation and partnershipsbetween sectors and regions are needed to enablethe use of energy services as a means for meetingall of the MDGs.

Defining commonlyshared problems andchanneling resourcesand expertise requireseffective partnershipamong governments,public entities, devel-opment agencies, civilsociety, and the privatesector. Without suchpartnerships it is diffi-cult to secure the finan-cial capital, knowledgeand technology neces-

sary to expand energy services at the global,regional, and local levels. It is therefore criticalthat all sectors, public and private alike, cooperatetogether to ensure that cleaner, more efficientenergy systems—and the markets that are neededto sustain them—are available to the poor.

Partnerships are particularly important inhelping countries mainstream energy into broad-er development strategies and frameworks. Ener-gy is a cross-cutting issue by its very nature andthus requires participation from all developmentsectors in order to maximize its impact on devel-opment. To ensure that the poor benefit fullyfrom greater access to energy, energy planningshould be linked to development goals and prior-ities in other sectors.

Partnerships are also quite important formobilizing financial resources to expand energyinvestments and services. Public financing fromboth domestic resources and official develop-ment assistance, combined with private entrepre-neurship and investment, are needed to developenergy services for the poor. New forms of risksharing between the private and the public sec-tors should be developed under public-privatepartnerships as a way to attract private sectorresources in the area of sustainable energy. Offi-cial development assistance should be usedstrategically to build capacity, assess and prepareprojects, and support the creation of enablingpolicy environments.

Develop a Global Partnership for Development

MDG

8

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LP Gas Rural Energy Challenge

The LP Gas Rural Energy Challenge is a public-pri-vate partnership between the World LiquefiedPetroleum Gas Association (WLPGA) and theUnited Nations Development Programme(UNDP).The LPG Challenge, as it is known, targetsrural and peri-urban areas with the objective ofexpanding access to affordable liquefied petrole-um gas. The partnership draws on combinedstrengths and collective action to mobilize pub-lic and private sectors in ways that benefit socie-ty and investors, improving social and economicconditions, and creating viable new markets forliquefied petroleum gas products and services.The partnership integrates private sector contri-butions in service delivery and investmentfinancing with government facilitation of thenecessary enabling environment. Communitiesand local NGOs strengthen the effort by provid-ing a critical support function at the projectimplementation level. The development assis-tance community contributes by supportingtechnical assistance and capacity building.

Source: UNDPSene

gal,

UN

DP

17

GVEP is a voluntary partnership that brings togeth-er developing and industrialized-country govern-ments, public and private organizations, multilateralinstitutions, consumers, and others in an effort toensure that the poor have access to modern ener-gy services. It addresses linkages between access toenergy services and poverty reduction through

building capacity and encouraging the transfer oftechnology.The partnership now includes over 700partners, of whom 15 percent are from the energysector, with the bulk representing agriculture, edu-cation, environment, health, rural development,water, and other sectors.

Source: UNDP

Global Village Energy Partnership (GVEP)

Indi

a,J.

Sch

ytte

Energy’s important role in underpinningthe MDGs has yet to be fully recog-nized by the international developmentcommunity. Developing a new approach

to energy, where energy services are acknowl-edged not just as a result of development, but asan actual driver of development, will be crucial ifenergy is to play a more prominent role in strate-gies aimed at achieving the MDGs. The upcom-ing 2005 World Summit—to be held in NewYork in September 2005—presents an opportu-nity to provide real momentum in this direction.In 2006/2007 the Commission for SustainableDevelopment (CSD) will look at energy and sustainable development, presenting anotheropportunity to deepen the focus on energy andthe MDGs.

As such, awareness raised in 2005 on energy’slinkages to the MDGs could be further elaborat-ed into priority capacity building, financing,technical assistance, and technology issues to beadopted through the CSD process in 2006 and2007 as means to support the achievement of theMDGs. Breakthroughs made in linking access toenergy services to multiple development objec-tives would need to be further elaborated interms of technical options available, the mini-mum energy inputs needed to support eachMDG, the associated costs, and the related poli-cy and financial options of these alternatives.

Conclusion

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Ethiopia:L.Gabb

UNDP is the UN's global developmentnetwork, advocating for change andconnecting countries to knowledge,experience, and resources to help

people build a better life. We are on the ground in166 countries, working with them on their ownsolutions to global and national developmentchallenges. As they develop local capacity, theydraw on the people of UNDP and our wide rangeof partners.

World leaders have pledged to achieve theMillennium Development Goals, including theoverarching goal of cutting poverty in half by2015. UNDP's network links and coordinatesglobal and national efforts to reach these Goals.Our focus is helping countries build and sharesolutions to the challenges of:

• Democratic Governance• Poverty Reduction• Crisis Prevention and Recovery• Energy and Environment• HIV/AIDS

UNDP helps developing countries attract and use aid effectively. In all our activities, we encourage the protection of human rights andthe empowerment of women.

UNDP’s Approach to EnergyUNDP’s work on sustainable energy is concen-

trated on supporting achievement of the MDGs,especially the target of reducing by half the pro-portion of people living in poverty by the year2015. With offices in nearly every developingcountry and energy-related projects in 95 percentof country programmes, UNDP is uniquely placedto facilitate capacity building efforts in the area ofenergy that are vital to achieving the MDGs.

The corporate energy priorities of UNDP areas follows:1. Support national policy frameworks that

reflect the role of energy in poverty reductionand sustainable development;

2. Promote access to energy services, electricityor cleaner fuels in rural areas;

3. Increase use of low emissions energy tech-nologies including renewable energy, energy efficiency and/or advanced fossil fuel tech-nologies; and

4. Expand access to energy investment financingthrough the Clean Development Mechanismor public-private partnerships.UNDP’s country level assistance on energy is

supported by technical and policy advisors post-ed in Regional Service Centers in Bangkok,Beirut, Bratislava, Dakar, Johannesburg, Nairobi,and Panama. UNDP funds energy activitiesthrough its regular resources, as well as in its roleas an implementing agency of the Global Envi-ronment Facility (GEF). UNDP’s ThematicTrust Fund (TTF) on Energy and Environmentalso serves as a vehicle for mobilizing additionalresources for country-level activities.

For more information on UNDP’s activitieson energy, including its energy publications,cases studies, and lessons learned please visit:www.undp.org/energy

United Nations Development Programme (UNDP)

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1 Eradicate extreme poverty and hunger

Energy inputs such as electricity and fuels are essential to generate jobs,industrial activities, transportation, commerce, micro-enterprises, and agriculture outputs.

Most staple foods must be processed, conserved, and cooked, requiring energy from various fuels.

2 Achieve universal primary education

To attract teachers to rural areas electricity is needed for homes and schools.After dusk study requires illumination. Many children, especially girls, do notattend primary schools in order to carry wood and water to meet family subsistence needs.

3 Promote genderequality and empower women

Lack of access to modern fuels and electricity contributes to gender inequality. Women are responsible for most household cooking and water-boiling activities. This takes time away from other productive activities as wellas from educational and social participation. Access to modern fuels easeswomen’s domestic burden and allows them to pursue educational, economic,and other opportunities.

4 Reduce child mortality

Diseases caused by unboiled water, and respiratory illness caused by theeffects of indoor air pollution from traditional fuels and stoves, directly contribute to infant and child disease and mortality.

5 Improve maternalhealth

Women are disproportionately affected by indoor air pollution and water—and food-borne illnesses. Lack of electricity in health clinics, lack of illumination for nighttime deliveries, and the daily drudgery and physical burden of fuel collection and transport all contribute to poor maternal healthconditions, especially in rural areas.

6 Combat HIV/AIDS,malaria, and other diseases

Electricity for communication such as radio and television can spread important public health information to combat deadly diseases. Health carefacilities, doctors, and nurses, all require electricity and the services that it provides (illumination, refrigeration, sterilization, etc.) to deliver effectivehealth services.

7 Ensure environmental sustainability

Energy production, distribution, and consumption has many adverse effectson the local, regional, and global environment; these effects include indoor,local, and regional air pollution; local particulates; land degradation;acidification of land and water; and climate change. Cleaner energy systemsare needed to address all of these effects and to contribute to environmentalsustainability.

8 Develop a global partnership for development

The World Summit for Sustainable Development (WSSD) called for partner-ships between public entities, development agencies, civil society, and the private sector to support sustainable development, including the delivery ofaffordable, reliable, and environmentally sustainable energy services.

A Snapshot of Energy’s Linkages to the MDGs

MDG Energy Linkages

United Nations Development ProgrammeBureau for Development PolicyEnergy and Environment Group

304 East 45th StreetNew York, New York 10017 U.S.A.

www.undp.org/energyandenvironment/

Further ReadingWorld Energy Assessment Overview: 2004 Updatehttp://www.undp.org/energy/weaover2004.htm

Achieving the Millennium Development Goals: The Role of Energy Serviceshttp://www.undp.org/energy/achievemdg.htm

Energy for the Poor: Underpinning the Millennium Development Goalshttp://www.dfid.gov.uk/pubs/files/energyforthepoor.pdf

The Energy Challenge for Achieving the Millennium Development Goalshttp://esa.un.org/un-energy