1. Energy Week Washington, D.C. March 8, 2006 What We Heard at Energy Week Jamal Saghir Director of Energy and Water The World Bank

2. Outline  Energy, Poverty & Africa  Clean Energy & Low Carbon  Energy Security  Governance and Anti-corruption  Gender & Energy

3. Energy and Poverty   Energy is essential for economic growth; the lack of electricity services, for example, is a “major and frequently severe obstacle to doing business.”   Poor energy choices damage the natural environment.   Lack of energy effects basic human needs for education, health and gender equity. This is unacceptable.   The WBG is coordinating global efforts to address the problems of investment in clean and efficient solutions for the “plus 5” and many others.

4. Energy and Poverty in Africa   Africa is and must remain a priority.   “Africa is not looking for a handout, but a hand up”   “Light means freedom”   Need to redouble our scale-up efforts must start now!

5. Clean Energy: Challenges   “What has seemed too hard becomes what simply must be done.”  “  “Business as usual” is not sustainable.   1.4 billion people without electricity in 2030 is unacceptable!   Leapfrogging - a path to globally coordinated mitigation.   We are a long way from stabilizing atmospheric concentrations.   There is no single solution for a sustainable energy future - We need a broad portfolio of options.

6. Clean Energy: Energy Efficiency   Energy efficiency: “Low hanging fruit.”   Focus on output-based goals (e.g. energy savings) as opposed to input-based goals, such as money lent.   A variety of tools and approaches are required and projects need to be flexible, as EE projects are labor- intensive.   Potential to achieve EE gains in the design and implementation of other, broader projects (e.g. in industry, urban development or transportation).   It takes political commitment, the right legal and institutional frameworks, innovative financing, and risk mitigation

7. Clean Energy: The Private Sector and Implementation  RE market now populated by those who wish to make money.  Institutional barriers need to be addressed, however.  The importance of community involvement cannot be understated. People must share a stake in the process.  Government and NGO support also is critical.  There is no time to wait for perfection in policy!

8. Clean Energy: Biofuels   Ethanol from sugarcane in Brazil is arguably the first and only commercially viable biofuel, and it took Brazil 30 years to get there.   The volatility of world oil and crop prices makes long-term commercial viability of biofuels from agricultural crops challenging.   For GHG emission reduction, lignocellulosic feedstocks are much more promising than agricultural crops for biofuel production.

9. Energy Security: Key Points Discussed   Recent oil prices have brought energy security to forefront.   Interdependence, not Independence! [There is a common interest for all in achieving energy security]   The strong linkage between energy security and climate change agendas should be the core of international action.

10. Energy Security: Demand Side Energy Consumer Perspective:   Fundamental issue is how to secure adequate energy to support economic growth.   Concerns about resource adequacy, dependency on imports and environmental issues, among others.   Policy responses include energy efficiency and diversifying energy by primary resource and geographic origin.   International cooperation in energy technology, energy trade and policy issues are crucial.

11. Energy Security: Supply Side Producer Perspective:   OPEC aims to continue to secure the regular supply of oil to consumers at stable prices and in a sustainable manner.   Recent oil prices encouraged producers to invest in the entire oil supply chain.   Demand security important for suppliers. Operating company perspective:   Energy security can be realized through reliance on open markets, sound policies, robust technological development and broadening the scope of energy efficiency.

12. Governance and Anti-corruption   Corruption is a major reason why people remain in poverty and poor health, and why infrastructure costs are too high.   Infrastructure is particularly vulnerable to corruption due to the “contractual tree” and is vulnerable at every branch.   Companies don’t want to engage in corruption!   Political will is necessary and enforcement measures must have teeth in order to be effective!   There must be alliances between government, NGOs and the private sector to establish ethical codes and project integrity standards across the board.

13. Gender & Energy   Ownership of Assets   Participation in Community Government   New Deal for Women in Energy Sector

14. Bank Lending for Energy has Rebounded

15. Strong AAA Program

16. Thank You!