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Enhancing China's Energy Cooperation with Africa and Beyond

This presentation discusses the role of South-South and Triangular Cooperation in enhancing China's energy-sector cooperation with Africa and other regions. It highlights the achievements, stakeholders, and action areas of the Sustainable Energy for All initiative.

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Enhancing China's Energy Cooperation with Africa and Beyond

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  1. J Dr. Kandeh K. Yumkella Under-Secretary-General UN Secretary-General’s Special Representative & CEO Green Transformation in China and South-South and Triangular Cooperation CCICED Annual General Meeting December 3, 2014

  2. Presentation based on Jointly prepared contribution to CCICED: South-South and Triangular Cooperation: Enhancing China’s Energy-sector Cooperation with Africa and beyond Kandeh Yumkella, CEO and SRSG of the UN SE4ALL Initiative and Achim Steiner, Executive Director, UNEP

  3. SE4All Sustainable Energy for All Initiative • One Goal: Achieving Sustainable Energy for All by 2030 • Three targets:

  4. Starting point for SE4ALL goals can be established on this basis China Energy Access Rate: National, urban and rural electrification almost 100 % with some 3 million left without electricity (IEA WEO 2014) China’s rate of non-fossil fuel share: 8.3 % in 2010 and 20% projected for 2030

  5. China saved as much energy as it consumed over the last 20 years

  6. Key components and Multiple Stakeholders All parties must act… …and work together to realize a world with Sustainable Energy for All Global Network of Partners committed to promote and support the scaling up of action and investments in a number of Action Areas in support of the SE4ALL objectives Governments National governments Public institutions Cities and municipalities Multilateral organizations Bilateral development partners Advisory Board Committees in key areas to mobilize multi-stakeholder partnerships, commitments and investment in support of three objectives Country Action to accelerate progress toward nationally-tailored sustainable energy for all objectives, based on country’s own needs and priorities Businesses Energy companies Financial players All companies Energy access Renewable energy Energy efficiency Civil society Organization Academic institutions Individuals Global Tracking Framework to recognize achievements, share lessons and ensure accountability 6

  7. Key Achievements To-Date Political momentum has grown in support of Sustainable Energy for All • International Year of Sustainable Energy for All (2012); Oslo Conference on Energy for All, World Future Energy Summit, Conference of Energy Ministers of Africa, EU Sustainable Energy for All Summit, SIDS Ministerial Conference on Achieving SE4All, The 3rd Clean Energy Ministerial, Rio+20, UN Decade on Sustainable Energy for All (2014-2024) Some 80 countries have opted-in to Sustainable Energy for All • Stock-taking/gap analysis has been completed in over 40 countries. Several countries preparing Action Plans and Investment Prospectuses to scale up action and investments Hundreds of actions and commitments are under way in support of Sustainable Energy for All • Businesses and investors committed more than USD $50 billion toward the initiative’s three objectives. Additional billions were committed by other key stakeholders – governments, multilateral development banks, and international institutions – to catalyze action in support of the initiative. More than an a billion people will benefit from these commitments. Strong leadership by businesses are driving key High Impact Opportunities • Gas flaring reduction (Statoil, World Bank etc); Clean cooking (Global Alliance for Cook Stoves etc) Finance (Bank of America etc) Energy and Women's Health (WHO, UNF, UN-Women etc); Off-grid lighting (USDOE, UNEP etc); Sustainable bioenergy (Novozymes etc); Many more High Impact Opportunities under development; Leveraging the Power of Civil Society • Civil Society Roadmap; Joint outreach and advocacy events; Rapidly expanding network of civil society actors in support of the initiative (e.g. through Practitioners' Network) Establishment of Global Tracking Framework to keep track of progress towards Sustainable Energy for All targets • A set of indicators for energy access, energy efficiency and renewable energy • Joint work of over 20 globally respected organization, led by IEA and the World Bank • Global launch in May 2013 at Vienna Energy Forum

  8. Building the Initiative Brief Update • Advisory Board – chaired by the UN Secretary General and the President of the World Bank – China among its members • A Global Tracking Report – led by the World Bank and the International Energy Agency to be issued on annual basis to track progress on milestones • Political Process - Governments negotiating the post-MDG development agenda - one SDG (SDG 7) dedicated to sustainable energy in proposal • Global Facilitation Team office - established in Vienna as of July 1, 2013 to support global work in various streams including politcal process • Advisory Board Committees – Four committees – composed of Advisory Board and external members - established to provide overall guidance and support in each of thre goals and finance • Regional and Thematic Hubs – Several Hubs established to provide resources, technical support and closer contact with regions and expertise • Over 80 countries engaged in partnership with SE4ALL – Many of these are in process of formulating Action Agendas and Investment Prospectuses • Hundreds of Actions and Multi-stake holder Engagement – Many of these driven by Country Action work stream or Advisory Board Committee work plans, e.g. Global Energy Efficiency Accelerator Program

  9. SE4ALL ACHIEVEMENTS: Financing So Far • EU target 500 million people by 2030 €400 million aid blending facilities €80 million Africa ( AA and IP) • OFID USD $1 billion per year • AfDB USD $1 billion per year • IADB USD $1 billion so far (USD $5 billion /5years) • BoA USD $500 million Green Bond • USA USD $7 billion for Africa • Norway USD $ 336 million (NOK 2 billion) for EE and RE Pipeline • EU €2 billion to leverage it to €10 billion • EBRD €5 billion • Six financing instruments under preparation

  10. SE4ALL Partners’ Commitments to reduce Energy Poverty by 50%, by 2030 EU + Germany: 600 million less energy poor People US – Power Africa: 300 million less energy poor EU: €3 Billion to leverage €13 Billion Finance US: €7 Billion to leverage €29 Billion Others: China, India,…

  11. African Context 1. Demographics • About a 900m to 1 billion population in 2013 • 700 million below 30 years old • 420 million in absolute poverty • Projection is 1.4 billion pop by 2030and 2.2 billion by 2050 • Growth and Opportunity • Commodity Boom • SSA economy almost doubled from 2000-2013 to $2.7 trillion • 4-10% GDP growth rates (5/6% on average) • Rising incomes • Rapid urbanization but only 37% now live in urban areas (63% Rural) • Rising demand for cars • 750 million mobile connections • Economy is expected to quadruple by 2040 • Energy demand to increase by 75%

  12. SSA-Electricity Situation • SSA on-grid capacity is 97 GW in 2012 (50% in South Africa) • 42% coal (Mainly SA) • 20% hydro • 23% oil • 15% gas (mainly Nigeria) • electricity consumption grew by 40% since 2000 • 620 million w/o electricity in Africa • 70-80% of pop rely on Biomass for cooking • 600,000 premature deaths from HHAP • Economies will diversify and industrialize • Population to double in 25 years • Energy demand to increase by 75%

  13. SSA-Oil and Gas Situation • SSA holds about 7% of world conventional oil and 6% of gas resources • 200 billion barrels of recoverable oil resources • oil production doubled since 1990 reaching about 6 mb/d in 2011 • 10 countries export crude though they import finished productsGas • 80 bcm of gas produced in 2013, • 28 bcm consumed • 25 bcm exported • 27 bcm flared • estimated proven gas reserves in SSA have increased by 80% since 2000 and now stand at 9tcm (5% of global total). • One quarter is associated with oil and is mostly flared. • an estimated total of 1 Tcm has been flared to date. • nearly 30% of new discoveries in the past 5 years were in SSA • 5tcm discovered in Mozambique and Tanzania in the past 5 years

  14. The role of external assistance in Africa • Over a third of global aid goes to Africa. • 34% of all energy-related development aid is directed to Africa Total development aid to the energy sector, by region, 2012

  15. The role of external assistance in Africa South South collaboration is needed to better address the energy access challenge. Total grants and loans to the energy sector (2001–2010)

  16. China’s South-South Cooperation Diverse approaches …..Various sectors …… Multiple ministries e.g. Geographical distribution of China’s Foreign Assistance Funds (2010-2012) Source: China’s Foreign Aid, 2014

  17. China’s South-South cooperation and its role in Africa • China White Paper on Foreign Aid (2014) • Share of China’s foreign aid going to Africa increased from 45.7% (2009) to over 50% (from 2010 to 2012). • China’s FDI in Africa grew at an annual rate of 20.5% between 2009 and 2012 (mostly in energy and mineral sectors) • China’s South-South cooperation with Africa through aid, investment, trade and capacity building (towards SSTC with SE4ALL)

  18. Where China can make a difference • Africa’s vast energy endowments remain highly underutilized. • SE4ALL can tap into support from several partners, e.g. : • African Development Bank is the Africa SE4ALL Regional Hub • Other principal partners e.g. UNDP, UNEP, UNIDO, FAO, the World Bank, and the European Union and its member countries. • In several African countries, SE4ALL Action Agendas are being formulated with very concrete proposals on the actions and types of investments needed. • China’s impressive improvements in energy access, RE and EE in the last two decades, expertise and technology can make a great contribution to improving Africa’s energy landscape.

  19. Recommendations • SE4ALL as a useful platform to scale up existing South-South cooperation • Explore how the SE4ALL platform might help accelerate a sustained transformation of Africa’s energy systems through sustainable energy-related (power and transport) infrastructure development. • Subject to the interest of the Government of China, SE4ALL could proceed to explore with African governments (through the country UN Resident Coordinators) on interest for this platform. • Subject to interest of China, do a detailed assessment of potential interest of partners to join the Triangular Collaboration platform of SE4ALL-Africa –China.

  20. Recommendations 5. SE4ALL would assess the interest of UN agencies and financial institutions to join the proposed SE4ALL-Africa-China TC platform. 6. Subject to a positive response on above, prepare and present a report to the Government of China through the UN RC by end January 2015. 7. Potential of the G20 workstream on EE for this proposed SSTC platform on SE4ALL-China-Africa.

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