International conference to increase renewable energy globally

Summary: June 4, 2003: International conference outlines steps to increase renewable energy globally (Brussels)

The first International Conference of the "Johannesburg Renewable Energy Coalition" (JREC) at ministerial level ended today in Brussels. The outcome of the conference is a set of strategic priorities that the Coalition will pursue in its work, including strengthening the financial instruments promoting renewable energy, and a road map outlining the Coalition's activities in the run-up to next year's World Conference on Renewables in Bonn. JREC was founded during last year's World Summit on Sustainable Development in Johannesburg. It brings together more than 80 countries that are willing to increase the share of renewable energy in the overall energy mix by using concrete targets and deadlines. "The result-oriented outcome of this conference, the inspiring discussions and excellent ideas put forward have filled me with confidence that we will achieve our goal," said Environment Commissioner Margot Wallström, who chaired the conference. "This conference has high-lighted once again that renewable energy is at the heart of sustainable development and that it can contribute to reducing poverty in developing countries. The Coalition has the potential to increase its use, which will make a real difference."

The one-day JREC conference was organised as part of the European Commission's annual Green Week, which this year takes place from 2 to 5 June. It encompasses 26 conference sessions, workshops, exhibitions and events evolving around environmental issues. The largest forum of environmental debate and interactive exchange of views between stakeholders in the EU, Green Week 2003 is dedicated to turning the commitments made at the Johannesburg Summit into concrete action.

More than 150 delegates participated in the JREC conference. The participants included ministers and other representatives of governments at different levels, regulators and representatives of the private sector from the fields of environment, energy and economy. Among them were German Environment Minister Jürgen Trittin, Norwegian Environment Minister Børge Brende, UK Parliamentary Under-Secretary for Sustainable Energy Lord Whitty, as well as Ministers or State-Secretaries for Environment and Energy from Botswana, Brazil, Comores, Iceland, the Netherlands, New Zealand, Norway, St. Lucia and Uganda. The President of the European Investment Bank Philippe Maystadt also attended.

Discussions were focused on the status of renewable energy and strategies to promote their use in the different countries and regions. Special emphasis was put on identifying mechanisms that would increase investments in renewable energy sources and the development of the market for renewable energies.

While it was concluded that the public sector has to play an important role to stimulate the flow of investments, there was overall agreement that the private sector has to become the engine driving the development of renewable energies.

With support from participants the chair, Mrs Wallström, outlined a number of conclusions (see annex). At least four regional conferences and regional workshops and two international conferences before the World Renewable Conference scheduled to take place in June 2004 in Bonn. The Bonn conference is expected to produce agreement on the targets for renewable energy use and the timetables to meet them.

"This conference has been an important step towards increasing support for renewable energies world-wide and in implementing the Johannesburg Plan of Implementation - from words to action," said Mrs. Wallström. "We are determined to set ambitious targets for the use of renewables. We have discussed innovative ideas for financing that we will elaborate on over the months to come."

Background

The Plan of Implementation agreed at the Johannesburg World Summit states that there is a need to, "with a sense of urgency, substantially increase the global share of renewable energy sources with the objective of increasing its contribution to total energy supply." But it falls short of setting fixed targets and timetables.

As a consequence, the European Union and its Member States, being strong advocates of renewable energies and having experienced significant benefits from using targets and timetables, launched in Johannesburg a Coalition of like-minded countries that are committed to promoting renewable energy by using quantifiable targets and deadlines. Its membership has grown from 66 to over 80. Today, Botswana, Columbia, South Africa and The Gambia joined the Coalition.

Today's conference was the first gathering of the Coalition at ministerial level since it was founded.

Renewable energy is at the heart of sustainable development as the conventional patterns of energy production based on fossil fuels are unsustainable. The combustion of fossil fuels produces global warming, air pollution and deforestation, which threaten human health and the environment. The import of expensive fossil fuels also puts a heavy financial strain on many developing countries, which do not have any fossil fuel reserves.

Energy use has increased 20-fold during the 20th century and continues to rise. Since the end of last century, the EU's demand for energy has been steadily growing at a rate of between 1 and 2 percent per year. At the moment, the share of renewable energies in the EU's energy mix is about 6%. The European Community target for 2010 is 12% of gross national energy consumption, and 22% for electricity produced from renewable energy sources in total Community electricity consumption. The renewables included in this definition are wind, solar, geothermal, wave, tidal, hydropower, biomass and landfill gas energy. An additional target has been set of 5.75% of biofuels in total petrol and diesel consumption in transport by 2010, up from 0.5% today.

Increasing the use of renewable energies can make a major contribution toward achieving sustainable energy management. Renewable energy sources can also help overcome global inequalities with regard to access to energy services. Currently, more than 2 billion people, the majority of them living in rural and suburban areas in the developing world, have no access to commercial forms of energy supplies, which contributes to perpetuating poverty. Renewable energy technologies are often the lowest cost option for providing power for households and villages. By focusing on renewable energy in the EU, the EU has the possibility to assist the developing countries in increasing their use of renewable energy technologies.

Annex

1st International Johannesburg Renewable Energy Coalition Conference, June 4th 2003, Brussels

Conclusions by the Chair

This Conference reiterated the strong commitment by all participants to deepen and further increase the momentum of the Johannesburg Renewable Energy Coalition. Participants underlined the benefits that all countries can draw from enhancing the share of renewables in the energy mix in terms of enhanced security of energy supply and reduced costs for energy imports, better access to energy services including in rural and remote areas and environmental protection. Renewable energy can play an important role in strategies to reduce poverty. The importance of political commitment and a vision for the development of renewable energies as well as of specific regional and national targets supported by transparent monitoring procedures was stressed.

Strategic priorities

The following elements on the policy context emerged from the discussion:

The commitment to set targets is at the heart of the Johannesburg Renewable Energy Coalition and assures the accountability of policies to promote renewables. Therefore, targets should be adopted - eventually also for the longer term - and stocktaking of existing and new targets is desirable to be reported at the Bonn 2004 conference.

Actions to stimulate the exchange of experience, adoption and implementation of accompanying policies such as trade based systems for renewable energy certificates, carbon credits (JI and CDM) as well as feed-in tariffs will benefit all countries and should be encouraged.

The critical importance of stimulating regulatory frameworks conducive to the development of renewable energies.

The importance to internalize the external benefits related to the use of renewable energy such as the mitigation of climate change, the protection of human health, the efficient use of natural and energy resources etc. and to establish a market value for environmental benefits. In this context energy subsidies and trade related matters need to be addressed.

The responsibility of industrialized countries to further develop the markets for renewable energy technologies in order to bring down the costs - this will ease renewable energy investments both in developing and industrialized countries.

The importance of looking at the broad portfolio of sustainable renewable energies including wind, solar, biomass, geothermal, hydropower and other technologies.

Sustainable biomass based solutions are key in particular for developing countries.

Financing instruments

Accepting the need to strengthen the range of financial instruments in support of renewable strategies, the following elements on finance were prominently present in the discussion:

The importance of focusing on renewable energy investments that are financially viable and manage risk appropriately;

The increased role of market-based solutions while recognizing the particular circumstances of developing countries and the role of public funds, including ODA, as a complementary financial resource;

The need to facilitate a closer cooperation between the finance world and project developers, and to exchange best practice;

The attraction of equity fund constructions in which the public as well as the private sector participate;

The importance of transparently managing equity funds to enhance their credibility and sense of ownership by the investors and by the general public;

The importance of a regional approach in the use of funds.

Roadmap

To deliver on these priorities, the following road map has emerged including:
Three key International Conferences: i.e.
The Danish RE Conference (17-19/9/03)
The 4th Session of the Global Forum on Sustainable Energy (Austria, Jan/Feb 2004)
The German World RE Conference (1-4/6/2004)
At least 4 Regional Meetings: i.e.
The Latin American and Caribbean Conference (Brazil, October 2003)
The African Energy Conference (Nairobi, Fall 2003)
The European Renewable Energy Conference (Berlin, Jan 2004)
The Asian Renewable Energy Conference (TBD, Fall 2003)
Regional workshops
The Renewable Energy and Energy Efficiency Partnership (REEEP) meetings in Asia, Africa and Latin America (Fall, 2003)
To support the upcoming activities and to ensure an adequate level co-ordination the Commission accepts to function as a secretariat.
The Coalition welcomed the new members that joined on the occasion of this Conference, i.e. Botswana, Colombia, The Gambia and South Africa.

Ref: EC03-144EN
EU source: European Commission
UN forum:
Date: 4/6/2003

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