1. 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

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

3. 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

4. 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

5. 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

6. 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)

7. 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)

8. 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)

9. 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)

10. Positive focus on energy
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

11. 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)

12. 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

13. 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

14. 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

15. 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

16. 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 CO2 control option
vast potential for emissions reduction
US target of commercial designs by 2015

17. Industry commitment to sustainable development
WCI report to WSSD
Identifies areas for improvement as well as successes
Sets out goals for 2012
2002 CIAB Survey top four priorities:
Reduce environmental impacts
Provide secure energy
Develop new emissions control technologies
Provide low cost energy

18. 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