Articulating a Vision on Sustainable Energy for All

The experience of countries around the world indicates the relationship that subsists between industrial development and economic growth on one hand and with environmental degradation on the other hand. 

Given the myriad challenges of environmental degradation and climate change, current policy advocacy centre on strengthening legal, regulatory and political institutions that guide domestic and international investment activities.ⁱ Further, discussions on a Post-2015 development agenda brought to fore issues of economic, social and environmental sustainability. 

For instance, with respect to international capital movements, in as much as foreign direct investment (FDI) holds the promise of positive externalities, there is also the tendency that FDI may induce negative externalities (pollution, natural resource degradation, inadequate protection of worker health and safety, and complicity in the violation of human rights all of which confound the tenets of sustainable development)ⁱⁱ that could cause pervasive damage to the development prospects of the host country thus resulting in fundamental economic distortions. 

This policy essay underscores the essence of sustainable energy in the global economy and highlights some strategies that can be employed to fulfil the underlying objectives of the decade of sustainable energy for all.ⁱⁱⁱ

Sustainable energy has been defined as the provision of energy that meets the needs of the present generation without compromising the ability of future generations to meet their need. Sustainable energy provision has implications for promoting renewable energy sources over and above the use of non-renewable energy sources. 

The objectives of sustainable energy are: universal access, energy efficiency and renewable energy share (the latter two referred to as the twin pillars of sustainable energy).^iv Technologies that promote the objectives of sustainable energy include hydroelectricity, solar energy, wind energy, geothermal energy, amongst others.^v

Energy is needed for development as it is the fuel of industrial productivity. The availability and affordability of energy supply impacts on optimal productivity regardless of geographical location. Developing countries, usually marked by low levels of energy consumption, exhibit low levels of industrial productivity. 

However, if productivity will be sustainable standards of environmental impact must be adhered to. Towards sustainable development, investments in energy delivery and utilizations systems should provide energy needed for development with minimal negative environmental and social spillovers. 

This justifies the consideration of energy development policies at local, national and regional levels as a matter of importance in development planning and environmental management.^vi

The sustainability of energy will require promoting requisite concerns in matters related (but not limited) to international trade, economic policy, climate change measurement and assessment, international investment moves and natural resources management. 

This will involve technology cooperation efforts through bilateral and multilateral negotiations, knowledge sharing as well as project funding with provision for technical advisory services to developing country contexts.^vii

If the vision of sustainable energy for all will be actualized, countries need to be committed to the use of eco-efficient technologies. As countries seek alternative energy sources there is the need to increase investment on clean technologies for energy generation from wind, solar, geothermal alongside other clean technologies.^viii 

Countries should plan transition from fossil fuel energy generation methods by incrementally lifting the share of renewable energy in their energy production grid mix.

The rippling effect of climate change affects food security, infrastructure, sustainable water supply and global production inter alia. Thus, the declaration of a decade of sustainable energy for all is apt in stimulating developing thinking for possible interventions in the international community. In order to promote sustainable energy for all, there is a call to action to:

Increase access to modern energy sources by

§  Promoting private investments in energy generation, distribution and billing infrastructure.

§  Developing and deploying appropriate renewable energy technologies for rural, peri-urban and selective urban electrifications and heating.

§  Creating incentives and concessions for independent power providers to promote renewable power generation

§  Promoting rural electrification projects

§  Promoting inclusive solution for rural energy provision. Increasing investment in energy provision should be viewed as a means to poverty alleviation.

§  Replicating inclusive and innovative projects that promote improved energy access and creates opportunities for rural development

Improve energy efficiency by

§  Embarking on public awareness campaigns on energy saving options in the built environment

§  Providing industrial tax relief to firms who purchase and use energy-efficient technologies

§  Ensuring continued consumer orientation in the purchase and use of energy efficient appliances

§  Increasing financial investments to promote clean energy investment projects

§  Promoting eco-efficient business solutions, noting that investment in energy efficiency creates employment opportunities, stimulates economic growth and improves energy security

§  Providing a guidebook for energy efficiency for industry and households

Multiplying the share of renewable energy in the global energy mix by

§  Providing incentives to facilitate the utilisation of alternative energy resources – hydro, solar, wind, biomass, coal and nuclear

§  Providing incentives to encourage local manufacturing and production of consumables used in the energy sector

§  Building viable and inclusive models that foster multi-stakeholder partnerships for sustainable energy. By utilizing a mix of instruments such as taxes, subsidies, regulations and partnerships, governments can encourage clean-energy innovation

§  Educating and sensitizing youth on global climate change and call for inputs towards harnessing alternative sources of energy.

§  Promoting research and development on alternative energy sources and uses.

§  Encouraging sustainable foreign direct investment in the area of clean investment

§  Evaluating and analyzing policies, regulations and programmes that influence the energy system and create incentives to increase flow of clean energy investments. Projects that periodically evaluate country level energy system with a view to: improving energy supply infrastructure, analysing energy consumption patterns across various sectors of the economy and situating the role of clean energy investment should be financed.

§  Promoting the culture of ‘turning waste into energy’.

§  Promoting development of smart grids, low-carbon cities, mass transit, efficient transport and zoning polices, integrated storm-water management, mini-grids for rural electrification as well as solar cookers and lanterns

§  Phasing out inefficient fossil fuel subsidies that encourage wasteful consumption

§  Ensuring all clean energy end use and supply technologies imported into domestic economies conform to international standards.

Since renewable energy products and services constitute a rapidly growing segment of the international marketplace, governments and regional groups should be encouraged to launch sustainable energy policies and commit to their implementation. If the effect of climate change will be minimized then activities that result in abundant carbon emissions must of a necessity be reduced. 

As more developing countries discover reserves of crude oil for exploration, they are advised to diversify economies structurally such that reduction in demand for oil as a source of energy does not plunge the economies into negative growth experiences.^ix 

As late industrializers, developing countries can avoid the negative consequences of climate change by early adoption of environmentally friendly practices. The development of knowledge sharing mechanisms and increased South-South technology cooperation in the provision of sustainable energy solutions should be encouraged.

In sum, the pursuit of the decade of sustainable energy for all (2014-2024) should: 
(a) Ensure the efficient delivery of sustainable, adequate, qualitative, reliable and affordable energy; 
(b) Emphasise an enhanced role of the private sector in the supply side of energy backed by requisite institutional frameworks provided by the government. 
(c) Promote eco-efficient industrial investments in domestic economies. 
(d) Institute creative and transparent fiscal and market incentives to encourage end use technology consumers and supply technology investors.

The discussion continues...

--

i UNCTAD (2004)

ii Zarsky and Gallagher (2003); Ola-David (2013)

iii Ola-David (2013)

iv Prindle and Eldridge (2007)

v http://en.wikipedia.org/wiki/Sustainable_energy

vi Dayo (2008)

vii Dayo (2008)

viii NPC, 2009;

ix National Planning Commission, 2009