Coal and Sustainable Development David Cain of Rio Tinto for the World Coal Institute UNECE Ad Hoc Group of Experts on Coal and Thermal Power Geneva, November 2002

Outline Introductions: –World Coal Institute –Rio Tinto Sustainable development Energy’s crucial role WSSD outcomes Coal in sustainable development Coal and the future

World Coal Institute Non-profit, non government association of coal producers and consumers Only international coal industry body A voice for coal –international policy debates on energy and the environment –improve public awareness

Rio Tinto Leading diversified mining and minerals processing company Major international coal producer and exporter –200Mt/a: Australia, USA and Indonesia Rio Tinto is committed to SD –Improving its own operations –Working with key stakeholders –Internationally: Promoting product stewardship along the coal chain Encouraging programs to improve the use of coal

Sustainable development “Meeting the needs of the present generation without undermining the capacity of future generations to meet their needs” “A better quality of life for everyone, now and for generations to come” Integrates economic, environmental and social priorities in decision-making

The vital role of energy in SD “ Reliable energy is a key component of economic and social development …. Lack of energy is among the key forces slowing down poverty reduction and growth of the rural sector” Improved energy services can - enhance indoor air quality - reduce health hazards - boost income - provide educational opportunities (World Bank)

Energy and Poverty 1.6 billion have no access to electricity 2.4 billion rely on primitive biomass for cooking and heating In 30 years time (without new policies) these numbers will be 1.4 billion and 2.6 billion respectively (IEA)

How to meet energy needs 95% of population growth in developing countries in next 30 years will be urban Centralised generation needed for urban poor Distributed generation is part of the answer for the rural poor (IEA)

Which Energy? “There are no “either-or” solutions [fossil fuels vs. renewables] …. The real challenge is how to use carbon fuels more efficiently and …. reduce the environmental impacts…. Fossil fuels are part of sustainable development” (UNDP)

WSSD negotiations Sustainable development focus –Not just the environment as previously –Focus on combating poverty WEHAB –Water, energy, health and biodiversity Diverse views on renewables target –Not simply North vs. South –G77 split –US vs. EU Positive focus on energy

WSSD Outcome improve access to reliable and affordable energy services …. Energy facilitates the eradication of poverty (Para 8) diversify energy supply by developing cleaner energy technologies, including fossil fuel technologies …. and …. transfer to developing countries (Para 19 e)

Coal Recent reassessment of coal’s role in sustainable development: Social and economic Advantages –Available –Secure –Affordable –With us for the long term Need to improve environmental performance

The need for coal Main fuel for electricity generation in China, India, South Africa etc Major electricity source USA and Australia… 23% of world’s primary energy; 38% of electricity; 70% of steel Demand has grown steadily - up 50% in 25 years. 70% of world’s fossil fuel reserves

Coal and electrification China: –700 million people connected in two decades –98% electrification South Africa: –doubled access to electricity in two decades –nearly 70% electrification Sub-Saharan Africa: –lowest rate of electrification in world - 13% outside South Africa

Coal production in developing countries Mined in over 50 countries Employs over 7 million people worldwide –90% in developing countries $7bn annually in export revenues Saves up to $60bn annually in energy imports

Coal and the environment Meet environmental challenges within a SD context New technology offers higher efficiencies, lower emissions –emissions reductions of up to 33% by use of best current technology Potential for zero emissions electricity generation –cost effective CO 2 control option –vast potential for emissions reduction –US target of commercial designs by 2015

Industry commitment to sustainable development WCI report to WSSD –Identifies areas for improvement as well as successes –Sets out goals for CIAB Survey top four priorities: –Reduce environmental impacts –Provide secure energy –Develop new emissions control technologies –Provide low cost energy

Coal and the future World demand will continue to grow Challenge is to use coal within a SD context Growing industry commitment to sustainable development