UN-Energy held its second session on 12 December 2004 in Noordwijk, The Netherlands, during the Conference on Energy for Development held 12-14 December 2004. The Conference on Energy for Development was organized and hosted by the Government of Netherlands and represents a major event between the World Summit on Sustainable Development and the 14th and 15th sessions of the Commission on Sustainable Development to be held in 2006 and 2007. The issues under consideration at the Conference follow-up the decisions taken at WSSD, and provide a guide for the UN on implementing JPOI decisions. Many members of UN-Energy actively participated in the Conference, including the Chair, and the Conference’s core organizing group expressed interest in working with UN-Energy on ensuring that outcomes are further promoted internationally and implemented. By this ‘soft launch’ of UN-Energy, awareness of its existence has grown.
The Chair addressed the Conference in its final session and stressed the importance of sharing lessons learned and challenging the development community to work together on energy as it has done so successfully on other issues. He emphasized that cooperation for development means resisting the temptation for organizations to position themselves but, rather, focusing on solid activities with tangible outcomes. He announced the formation of UN-Energy and efforts underway by the UN system to work together on implementing goals on energy for development.
A panel discussion on the implications of higher oil prices
started the second session of UN-Energy with an analysis of potential
effects of higher and more volatile oil prices on developing countries.
Discussions centered on the relevance to achieving the JPOI objective
of improving access to energy and the MDG goal on poverty eradication.
Current high prices may be the start of a transition from low
cost energy to high cost energy and it is important for this transition
to be undertaken smoothly. It was noted that while higher prices
would encourage investment and lead to more exploration, improvements
in technology and the economic viability of alternative sources,
oil-importing developing countries face higher import costs that
strain foreign reserves and worsen balance of payment positions.
Moreover many countries, especially the least-developed countries,
find it difficult to pay for energy services needed for meeting
basic needs and economic development.
Current forecasts predict prices to settle at around $38/barrel
(b) in the first half of 2005. It is estimated that for low income
oil-importing countries each additional dollar in the average
price of oil costs more than $1 billion each year, or around one
percent of their GDP. Many saw the increased price of oil as a
“tax” and it was noted that the differential between
the long term price of oil of $20/b and the current price of $40/b,
or “tax”, would be $584 billion. Some developing countries
such as China, India and Brazil are in better positions to cope
with higher prices, while for other countries the widespread use
of biomass actually shields them somewhat from adverse impacts.
It was also noted that to some extent increases in oil prices
represent a redistribution in income among developing countries
since many oil exporting developing countries gain from higher
revenues. There are many differences between the situation today
and that experienced in the seventies, and the recent devaluation
of the dollar softens the impact of higher prices for some countries.
However, the effects of price volatility include uncertainty about
whether investment decisions will cover costs and the importance
of a strengthened consumer-producer dialogue was noted. There
was some discussion about security of supply and how it relates
to energy access and the goals elaborated in the JPOI.
It was agreed that higher oil prices contributes to the urgency
of work to improve access to energy and that analysis, dialogue
and practical follow-up is needed. The UN-Energy work programme
is covering many aspects of transitioning from low cost energy
to high cost energy and that UN-Energy work on developing national
tools could help to ease adverse impacts of this transition. UN-Energy
inputs to the CSD and Millennium Summit processes could also provide
an opportunity to address this issue.
1. Inputs to UN processes
The opportunity for UN-Energy to contribute to the SGs report for the Millennium Summit 2005 was viewed as a way to promote energy in the MDG framework as well as a means of highlighting the role that UN-Energy can play in the international arena. While energy will most likely not be the major focus of the Summit, it could set the stage for CSD14 and CSD15 for which “energy for sustainable development” is a major theme. It was noted that the shared material of the Conference on Energy for Development and would be relevant sources for such an input. Since SG reports are typically limited to 16 pages, the UN-Energy input would need to be concise.
It was decided that UN-Energy would prepare a brief input of about one page to the SGs report focusing on access to energy and the relevance of energy to each Millennium Development Goal. An outline of the input will be circulated to the group.
14th and 15th Sessions of the Commission on Sustainable Development (CSD)
DESA outlined the decisions of 11th session of CSD that laid the ground rules for the current two-year cycle of CSD and the guidelines for preparing the SGs report to the Commission. CSD14 and CSD15 will cover the themes of energy for sustainable development, air pollution/atmosphere, climate change and industrial development as well as the cross-cutting themes identified in the decision of CSD11. A separate SG report will be written for each theme under consideration. CSD 14 will be a review and assessment of relevant goals in Agenda 21, the Programme of Action to Further Sustainable Development, CSD decisions and the JPOI. UN agency inputs to the report are very much welcome, and DESA has sent a formal letter to the agencies requesting input. A scoping exercise that details relevant decisions for the review and assessment has been undertaken and the results were made available to UN-Energy members. DESA will provide further guidance on inputs based on the scoping exercise.
It was noted that CSD14 represents the best way to highlight UN work to implement the JPOI on energy to the international community. Various ways for UN-Energy to be active in CSD14 include in panel discussions during the session and at side events. It was decided that an outline of a report to CSD 14 to be undertaken by UN-Energy would be drafted by the UN-Energy Secretary and would be circulated for on-line discussion. A working group would be established to contribute to the report.
2. Policy coherence and operational cooperation
To clarify the expectations of the concept papers requested at
the first session of UN-Energy and to provide a simple guide to
agencies drafting concept papers, it was emphasized that the concept
paper is intended to be a “work guiding” document.
If there is an idea about which the group feels strongly, interested
agencies share ideas on how they want to work together and relay
their plans to UN-Energy. The work is then given a green light,
or official endorsement, by UN-Energy. The concept paper is not
a think piece, and it differs from a project proposal in that
it provides details on how a group of agencies will work together
to accomplish a specific action in a given time period. The concept
note should be three or four pages in length.
UNDP presented its concept paper on energy access, and noted that it would be an advocacy activity. It was decided to include this under “tools for policy integration” and to revise the concept paper so that the output is useful for PRSPs. UNDP also agreed to another concept paper on energy access.
A note on UN-Energy Africa was circulated and UNIDO provided
information on the mandate and goals of the group. It was noted
that this type of inter-agency activity at the regional level
is welcomed and could make a significant contribution to implementing
the JPOI decisions on energy access. It was decided to endorse
UN-Energy Africa and to request ECA to provide a concept paper
according the above guide on its activities.
UNESCO presented its in-depth paper on renewable energy and it generated a lively discussion on the topic that drew on comments made prior to the session. It was noted that UN-Energy would not undertake such in-depth think pieces at this time but would, rather, focus on action to implement the JPOI. The Bonn Conference held recently as a follow-up to Johannesburg was noted as particularly important on work undertaken in this field. UNESCO indicated that a concept paper would be drafted and requested interested agencies to work together on it.
The concept paper on bio-energy with FAO as the lead agency was approved by UN-Energy. FAO agreed to provide additional information about specific activities to be undertaken.
As noted above, the concept paper by UNDP on energy access would be revised with greater focus on national poverty reduction strategies.
The concept paper on tools for policy integration at the national level with IAEA as the lead agency was approved by UN-Energy.
The concept paper on capacity building and awareness was presented by ESCWA and the feedback on the topic was positive. ESCWA agreed to redraft the concept paper according the above guide and to include the specific activities that each agency involved would undertake.
The paper on Energy, Globalization and SHD, a Complex Challenge requiring Convergence and Innovative Partnerships was presented by UNCTAD. UN-Energy indicated that it would welcome a concept paper on topics considered in the paper with details on specific activities of each agency to be involved.
3. Information and Knowledge Management
A proposal for the UN-Energy website was presented by the secretariat. The website would be enable the group to present a public face and, eventually, to engage the public in on-line discussions on various issues thus enhancing interaction with non-UN partners. It also would facilitate internal communications and would enable the group to a limited capacity to manage knowledge it creates both as individual agencies and as a group. More ambitious activities on knowledge management could be engaged at a later date. The website was approved and will be available at: www.unsystem.org/un-energy
4. Cooperation with non-UN partners
It was noted that UN agencies, programmes and entities engage with non-UN actors in the course of most of its normal work, including analytical, normative and capacity building. It was decided to engage non-UN partners in the panel discussion held on the implications of oil prices and that similar interfaces with non-UN partners would be useful. Decisions on such interaction would be made on an ad hoc basis. Also, the Chair’s participation in Conference on Energy for Development would be a further type of interaction that would be encouraged. Once activities detailed in the UN-Energy work programme are well underway, it may be possible to engage relevant non-UN partners on specific topics and there may be other opportunities to share and exchange views with stakeholders. Decisions on such interaction will be made on an ad hoc basis.
It was noted that a number of agencies were unable to attend the second session of UN-Energy owing to financial constraints, and it was decided that when meetings are held, video-conference facilities should be arranged whenever possible.
The third session of UN-Energy will be held in conjunction with The World Banks’s “Energy Week” scheduled for 14-16 March 2005.
Interaction, though not a formal meeting, may likely take place at some point during CSD 13, to ensure that UN-Energy is present at the very beginning of reflections on the CSD 14/15 process.
Additional sessions are tentatively scheduled in October 2005
and January or February 2006.