GPPi publishes policy paper linking issues of energy access, climate change and energy subsidies
In a new policy paper, independent energy consultant Oliver J. Haas and GPPi’s Wade Hoxtell make the case that, if any progress is going to be made in enabling universal access to modern forms of energy while simultaneously mitigating global carbon emissions, a more holistic framework is needed that links climate finance, energy access and subsidy reform.
The research for this paper was funded by a grant from the European Commission. The paper is a result of a two-year research and dialogue project conducted with the Brookings Institution.
The lack of universal access to modern energy is one of the most pressing challenges of our time. Nearly 1.3 billion people worldwide still lack access to electricity. Another billion are believed to suffer from intermittent power supply. The universal provision of reliable and affordable electric power, a goal championed above all by the Sustainable Energy for All initiative of United Nations Secretary-General Ban Ki-moon, can open up new opportunities for development and growth, as well as revolutionize lifestyles in remote and rural areas by providing new opportunities in terms of information, communication and productive uses.
A number of considerable challenges remain to achieve universal energy access. First, huge investments are needed. The IEA estimates that approximately $49 billion is needed annually to achieve “Energy for All” in 20 years, though only $14 billion is expected. Second, there are legitimate concerns that promoting universal access to energy will lead to increased emissions of greenhouse gases, thus accelerating global warming. The concept of climate justice – or the belief that all have the right to energy and development – is still far from universally accepted. Third, neither energy access exclusion nor the mitigation of global carbon emissions can be meaningfully addressed when inefficient energy subsidies absorb state budgets and promote wasteful consumption.
The authors argue that the issues of energy access, climate change and subsidies are intertwined and cannot be solved on their own; climate and access goals cannot be achieved without eliminating wasteful energy subsidies, and inclusive energy systems and climate justice can, in turn, significantly contribute to the acceptance of a global climate consensus. Thus, taking steps to link these issues and capitalize on opportunities can help to achieve universal energy access and reduce carbon emissions while eliminating the harmful implications of wasteful subsidies. The authors provide a number of recommendations, including the need to:
- integrate energy access into the global climate framework, particularly by reforming climate finance to include access goals;
- promote the issue of equitable energy access in the subsidy reforms narrative;
- improve local and global governance institutions and mechanisms to more effectively steer and implement strategies for energy access provision;
- better understand the effects of “black carbon” and determine whether overall global greenhouse gas emissions can actually be reduced by increasing access to modern and cleaner energy services.
Read a summary and download the full policy paper.