J Dr. Kandeh K. Yumkella Under-Secretary-General UN Secretary-General’s Special Representative &...

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J Dr. Kandeh K. Yumkella Under-Secretary-General UN Secretary-General’s Special Representative & CEO Green Transformation in China and South-South and Triangular Cooperation CCICED Annual General Meeting

Transcript of J Dr. Kandeh K. Yumkella Under-Secretary-General UN Secretary-General’s Special Representative &...

J

Dr. Kandeh K. Yumkella Under-Secretary-General

UN Secretary-General’s Special Representative & CEOGreen Transformation in China

and South-South and Triangular Cooperation

CCICED Annual General Meeting December 3, 2014

Presentation based on Jointly prepared contribution to CCICED:

South-South and Triangular Cooperation:Enhancing China’s Energy-sector Cooperation

with Africa and beyond

Kandeh Yumkella, CEO and SRSG of the UN SE4ALL Initiativeand

Achim Steiner, Executive Director, UNEP

03 December 2014

SE4All Sustainable Energy for All Initiative

One Goal: Achieving Sustainable Energy for All by 2030

Three targets:

Starting point for SE4ALL goals can be established on this basis

Percent

Proxy indicator

Universal access to modern

energy services

Doubling global rate of improvement of energy efficiency

Doubling share of renewable energy in

global energy mix

Percentage of population with

electricity access

Percentage of population with

primary reliance on non-solid fuels

Rate of improvement in energy intensity

Renewable energy share in TFEC

1990 76 47–1.3

16.6

2010 83 59 18.0

2030 100 100 –2.6 36.0

China Energy Access Rate: National, urban and rural electrification almost 100 % with some 3 million left without electricity (IEA WEO 2014)China’s rate of non-fossil fuel share: 8.3 % in 2010 and 20% projected for 2030

China saved as much energy as it consumed over the last 20 years

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Key components and Multiple Stakeholders

Advisory Board Committees in key

areas to mobilize multi-stakeholder

partnerships, commitments and

investment in support of three objectives

Global Network of Partners committed to promote and support the scaling up of action and investments in a number of Action Areas in support of the SE4ALL

objectives

BusinessesEnergy companiesFinancial playersAll companies

GovernmentsNational governmentsPublic institutionsCities and municipalitiesMultilateral organizationsBilateral development partners

Civil societyOrganizationAcademic institutionsIndividuals Global Tracking Framework to

recognize achievements, share lessons and ensure accountability

Country Action to accelerate progress toward nationally-

tailored sustainable energy for all

objectives, based on country’s own needs

and priorities

All parties must act… …and work together to realize a world with Sustainable Energy for All

Energy efficiency

Renewable energy

Energy access

Key Achievements To-Date

International Year of Sustainable Energy for All (2012); Oslo Conference on Energy for All, World Future Energy Summit, Conference of Energy Ministers of Africa, EU Sustainable Energy for All Summit, SIDS Ministerial Conference on Achieving SE4All, The 3rd Clean Energy Ministerial, Rio+20, UN Decade on Sustainable Energy for All (2014-2024)

Political momentum has grown in support of Sustainable Energy for All

Stock-taking/gap analysis has been completed in over 40 countries. Several countries preparing Action Plans and Investment Prospectuses to scale up action and investments

Some 80 countries have opted-in to Sustainable Energy for All

Businesses and investors committed more than USD $50 billion toward the initiative’s three objectives. Additional billions were committed by other key stakeholders – governments, multilateral development banks, and international institutions – to catalyze action in support of the initiative. More than an a billion people will benefit from these commitments.

Hundreds of actions and commitments are under way in support of Sustainable

Energy for All

Gas flaring reduction (Statoil, World Bank etc); Clean cooking (Global Alliance for Cook Stoves etc) Finance (Bank of America etc) Energy and Women's Health (WHO, UNF, UN-Women etc); Off-grid lighting (USDOE, UNEP etc); Sustainable bioenergy (Novozymes etc); Many more High Impact Opportunities under development;

Strong leadership by businesses are driving key High Impact Opportunities

Civil Society Roadmap; Joint outreach and advocacy events; Rapidly expanding network of civil society actors in support of the initiative (e.g. through Practitioners' Network) Leveraging the Power of Civil Society

A set of indicators for energy access, energy efficiency and renewable energyJoint work of over 20 globally respected organization, led by IEA and the World BankGlobal launch in May 2013 at Vienna Energy Forum

Establishment of Global Tracking Framework to keep track of progress

towards Sustainable Energy for All targets

Building the InitiativeBrief Update

Advisory Board – chaired by the UN Secretary General and the President of the World Bank – China among its members

A Global Tracking Report – led by the World Bank and the International Energy Agency to be issued on annual basis to track progress on milestones

Political Process - Governments negotiating the post-MDG development agenda - one SDG (SDG 7) dedicated to sustainable energy in proposal

Global Facilitation Team office - established in Vienna as of July 1, 2013 to support global work in various streams including politcal process

Advisory Board Committees – Four committees – composed of Advisory Board and external members - established to provide overall guidance and support in each of thre goals and finance

Regional and Thematic Hubs – Several Hubs established to provide resources, technical support and closer contact with regions and expertise

Over 80 countries engaged in partnership with SE4ALL – Many of these are in process of formulating Action Agendas and Investment Prospectuses

Hundreds of Actions and Multi-stake holder Engagement – Many of these driven by Country Action work stream or Advisory Board Committee work plans, e.g. Global Energy Efficiency Accelerator Program

SE4ALL ACHIEVEMENTS: Financing

So Far•EU target 500 million people by 2030

€400 million aid blending facilities €80 million Africa ( AA and IP)

•OFID USD $1 billion per year•AfDB USD $1 billion per year•IADB USD $1 billion so far (USD $5 billion /5years)•BoA USD $500 million Green Bond •USA USD $7 billion for Africa •Norway USD $ 336 million (NOK 2 billion) for EE and REPipeline•EU €2 billion to leverage it to €10 billion •EBRD €5 billion•Six financing instruments under preparation

SE4ALL Partners’ Commitments to reduce Energy Poverty by 50%, by 2030

EU + Germany: 600 million less energy poor

People

US – Power Africa: 300 million less energy poor

EU: €3 Billion to leverage €13 Billion

Finance

US: €7 Billion to leverage €29 Billion

Others: China, India,…18/04/23 10

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African Context1. Demographics

About a 900m to 1 billion population in 2013 700 million below 30 years old 420 million in absolute poverty Projection is 1.4 billion pop by 2030

and 2.2 billion by 20502.Growth and Opportunity

Commodity Boom SSA economy almost doubled from 2000-2013 to $2.7

trillion 4-10% GDP growth rates (5/6% on average) Rising incomes Rapid urbanization but only 37% now live in urban areas

(63% Rural) Rising demand for cars 750 million mobile connections Economy is expected to quadruple by 2040 Energy demand to increase by 75%

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SSA-Electricity Situation SSA on-grid capacity is 97 GW in 2012 (50% in

South Africa) 42% coal (Mainly SA) 20% hydro 23% oil 15% gas (mainly Nigeria) electricity consumption grew by 40% since 2000 620 million w/o electricity in Africa 70-80% of pop rely on Biomass for cooking 600,000 premature deaths from HHAP Economies will diversify and industrialize Population to double in 25 years Energy demand to increase by 75% 13

SSA-Oil and Gas Situation SSA holds about 7% of world conventional oil and 6% of gas

resources 200 billion barrels of recoverable oil resources oil production doubled since 1990 reaching about 6 mb/d in 2011 10 countries export crude though they import finished products

Gas 80 bcm of gas produced in 2013, 28 bcm consumed 25 bcm exported 27 bcm flared estimated proven gas reserves in SSA have increased by 80%

since 2000 and now stand at 9tcm (5% of global total). One quarter is associated with oil and is mostly flared. an estimated total of 1 Tcm has been flared to date. nearly 30% of new discoveries in the past 5 years were in SSA 5tcm discovered in Mozambique and Tanzania in the past 5 years

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The role of external assistance in Africa

• Over a third of global aid goes to Africa.• 34% of all energy-related development aid is directed to Africa

Total development aid to the energy sector, by region, 2012

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South South collaboration is needed to better address the energy access challenge.

Total grants and loans to the energy sector (2001–2010)

The role of external assistance in Africa

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China’s South-South Cooperation

Diverse approaches …..Various sectors …… Multiple ministries

e.g. Geographical distribution of China’s Foreign Assistance Funds (2010-2012)

Source: China’s Foreign Aid, 201403 December 2014

China’s South-South cooperation and its role in Africa

• China White Paper on Foreign Aid (2014)– Share of China’s foreign aid going to Africa

increased from 45.7% (2009) to over 50% (from 2010 to 2012).

– China’s FDI in Africa grew at an annual rate of 20.5% between 2009 and 2012 (mostly in energy and mineral sectors)

• China’s South-South cooperation with Africa through aid, investment, trade and capacity building (towards SSTC with SE4ALL)

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Where China can make a difference

• Africa’s vast energy endowments remain highly underutilized.

• SE4ALL can tap into support from several partners, e.g. :– African Development Bank is the Africa SE4ALL Regional Hub– Other principal partners e.g. UNDP, UNEP, UNIDO, FAO, the

World Bank, and the European Union and its member countries.

– In several African countries, SE4ALL Action Agendas are being formulated with very concrete proposals on the actions and types of investments needed.

• China’s impressive improvements in energy access, RE and EE in the last two decades, expertise and technology can make a great contribution to improving Africa’s energy landscape.

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Recommendations

1. SE4ALL as a useful platform to scale up existing South-South cooperation

2. Explore how the SE4ALL platform might help accelerate a sustained transformation of Africa’s energy systems through sustainable energy-related (power and transport) infrastructure development.

3. Subject to the interest of the Government of China, SE4ALL could proceed to explore with African governments (through the country UN Resident Coordinators) on interest for this platform.

4. Subject to interest of China, do a detailed assessment of potential interest of partners to join the Triangular Collaboration platform of SE4ALL-Africa –China.

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Recommendations

5. SE4ALL would assess the interest of UN agencies and financial institutions to join the proposed SE4ALL-Africa-China TC platform.

6. Subject to a positive response on above, prepare and present a report to the Government of China through the UN RC by end January 2015.

7. Potential of the G20 workstream on EE for this proposed SSTC platform on SE4ALL-China-Africa.

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