1 Energy for Development: the Benefits and Lessons of the EU Approach Yuriy Zaytsev University – Higher School of Economics (Moscow)

2 EU role in international engagement for development DAC OECD members: USD121.5 billion in 2008; G7 members: USD82.5 billion in 2008; DAC EU countries: USD70.9 billion in 2008; EU ODA: USD14.7 billion in 2008 (17% increase from 2007).

3 EU role in international engagement for development: concepts EU development assistance policy: – The Concept of soft power – The Concept of multi-level governance USA development assistance policy: – National priorities explain geography and sector- specific approach Development assistance policy in Russia: – No legislation and institutional model

4 EU role in international engagement for development: European Consensus on Development (2005) focus on Millennium Development Goals to meet such challenges as development, HIV/AIDS, security, conflict prevention, forced migration to bring about equitable globalization; integration of Europe’s democratic values into development of the poorest countries; responsibility of developing countries for their own development.

5 Methodological framework of the study Functional approach: – domestic political management, – deliberation, – direction setting, G8 collective action – decision-making at global level – global governance development – delivery describes country’s own approach +1 indicates full compliance with the stated commitment, 0 is awarded for partial compliance or work in progress -1 is reserved for those countries that fail to comply

6 Main sectors of energy assistance for development Ensuring developing countries’ access to modern energy sources; Clean energy technologies development; Ensuring efficiency in raw energy resources management; Assistance in adaptation to climate change

7 EU and other G8 members’ (the Russian Federation and USA) average compliance with commitments on energy for development

8 EU and G8 countries’ (the Russian Federation and USA) average compliance with commitment on energy and related issues

9 Ensuring developing countries’ access to modern energy sources EU (competitions arranged and assessed by the European Commission ): – EU Energy Initiative for Poverty Eradication and Sustainable Development (EUEI): New Partnership for Africa’s Development (NEPAD), Johannesburg Renewable Energy Coalition (JREC), Global Village Energy Partnership (GVEP), Global Network on Energy for Sustainable Development (GNESD), Renewable Energy and Energy Efficiency Partnership (REEEP), Global Forum on Energy for Sustainable Development (GFSE). – ACP-EU Energy Facility, – Africa-EU Energy Partnership. USA (national instruments): – Afghanistan Clean Energy Program (ACEP); Russian Federation (G8 initiative): – Global Village Energy Partnership (USD30 million for 2007 – 2011)

10 Clean energy technologies EU: – United National Framework Convention on Climate Change (UNFCCC); – COOPENER (Intelligent Energy – Europe programme) (EUR17 million); – GEEREF (Global Energy Efficiency and Renewable Energy Fund) (USD80 million); – Bilateral cooperation (Malaysia-EU business cooperation, EUR ); USA: – Bilateral cooperation (USA-China climate partnership, USD60 million); Russian Federation: – World Bank Investment Framework for clean energy and sustainable development bilateral and multilateral mechanisms to tackle the problem of climate change at the global level

11 Clean energy technologies (2) G8 summit commitments EUUSARussian Federation G8 Average Compliance with commitment on energy for development G8 average compliance 2005 Gleneagles summit commitment Saint- Petersburg summit commitment Aquila summit commitment Average compliance

12 Raw natural energy resources sustainable management (1) EU (main areas of activity): 1) support in decision-making at the international level through participation in international treaties, and programs of international institutions; 2) managing a wide range of international development assistance instruments, which support programs directed at environment protection and natural resources management. – EU instruments: – Thematic Programme on Environment and sustainable management of Natural Resources, including Energy (ENRTP) – dialogue between EU and Caribbean Forum (CARIFORUM) (USD2.25 million) – EU strategy for supporting disasters risk reduction in developing countries Russian Federation: – Bilateral forms of cooperation (China and Iran) EU is implementing the most coherent and comprehensive actions in assisting developing countries to manage their raw energy materials Both traditional and emerging donors implement programs in this area through bilateral forms of engagement

13 Raw natural energy resources sustainable management (2) G8 summit commitments EUUSA Russian Federation G8 Average Compliance with commitment on energy for development G8 Average Compliance 2007 Heiligendamm summit commitment [1] [1]

14 Environment protection (1) EU: – the Principle of Common But Differentiated Responsibilities (global level); – EU comprehensive strategy on integration of the environment into the EC economic and development cooperation (European level); USA: – Climate Investment Funds (USD2 billion) Russian Federation: – participates in a wide range of international discussions on climate change adaptation, but does not mobilize substantial resources to help developing countries adapt to climate change

15 Environment protection (2) G8 summit commitments EUUSA Russian Federation G8 Average Compliance with commitment on energy for development G8 Average Compliance 2008 Hokkaido summit commitment [1] [1]

16 Conclusions and Recommendations (1) Most of the instruments applied by the EU in assisting the poorest countries to develop most of energy related areas are intersecting and even overlapping Linking interconnected projects is profitable from the economic perspective; Blending different sources of grants can also contribute to increasing the efficiency Why not pooling different programs in related and interconnected areas to develop larger initiatives?

17 Conclusions and Recommendations (2) EU experience in assisting the poorest countries to develop energy is a high priority for Russian Federation; Factors of the efficiency of EU policy in development cooperation: – A thorough identification of regional and sectoral priorities; – The division of labour in assisting the poorest countries to develop energy sources; – Establishing coherence of national policies of partner countries with national development assistance policy; – A long-term planning of development assistance resources

18 Thank you!