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Pre-Conference Workshop on Clean Cooking Fuels 31 st IAEE International Conference Istanbul, 16-17 June 2008 Clean Gas Delivery for Poverty Reduction Andrew Yager United Nations. Presentation Outline. Context for sustainable energy Energy access Millennium Development Goals

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Pre-Conference Workshop on Clean Cooking Fuels31st IAEE International ConferenceIstanbul, 16-17 June 2008Clean Gas Delivery for Poverty ReductionAndrew YagerUnited Nations

presentation outline
Presentation Outline

Context for sustainable energy

Energy access

Millennium Development Goals

LP Gas Rural Energy Challenge

Barriers to access

Solutions (income, investment)

Alternative Gas Supply Options

LP Gas Investment Facility

Concluding remarks


Sustainable energy supply is a pre-condition for economic and social development and achievement of the Millennium Development Goals (MDGs)

Investment capital required for business development (both public and private)

Capacity building for local energy service delivery (policy makers, entrepreneurs, lenders, consumers)

access to sustainable energy services
Access to Sustainable Energy Services

Support energy activities that reduce poverty

Promote rural energy services to support growth and equity

Promote clean energy technologies

Increase access to investment financing

sustainable energy link to the mdgs
Sustainable Energy Link to the MDGs

No specific MDG on energy

However, energy is key for meeting basic human needs

Domestic uses (heating, cooking)

Productive purposes (brick and ceramics firing, metal working, fish smoking)

Reducing drudgery (water pumping, grinding, milling)

Social services (health care, education)

Fuels for CookingRespiratory disease from cooking on traditional fuels kills nearly 5,000 people daily world-wide
energy poverty annual deaths
Energy Poverty: Annual Deaths

Source: World Energy Outlook 2006 (OECD/IEA)

lp gas rural energy challenge
LP Gas Rural Energy Challenge

Public private partnership

UN Department of Economic and Social Affairs (DESA)

United Nations Development Programme (UNDP)

World Liquefied Petroleum Gas Association (WLPGA)

Designed to create viable and sustainable markets for LP Gas delivery and consumption

Directly targets rural and peri-urban areas with the objective of expanding access to cleaner LP Gas

thereby contributing to sustainable energy solutions that can improve people’s lives in developing countries and achieve the MDGs

barriers to lp gas market development
Barriers to LP Gas Market Development

Lack of confidence for private sector investment (business development, policy advocacy)

Affordability (need cash)

Availability (need roads and other infrastructure such as electricity)

Lack of consumer awareness (e.g. fear of accidents)


Public private partnership established

Access to governments enables dialogue (national consultations)

Technical, socio-economic, environmental and energy access issues addressed successfully

kenya case study
Kenya case study

Policy framework that encourages and supports investment in energy services (stability, confidence, risk)

Subsidies (government provides seed capital and guarantees for micro-finance institutions)

Tax holiday (20% VAT removed)

Standards for equipment

turkey case study
Turkey case study

Upper middle income country

Medium level HDI (MDG health and education are least achieved)

Need income generating activities to sustain village life

Tree planting

Wood processing


Agriculture, animal husbandry and products

Energy efficiency in buildings

Need long-term rural development strategy to modernize rural energy supply

alternative gas supply options in africa
Alternative Gas Supply Options in Africa

Exploitable gaseous resources available in Africa:

Small oil and gas deposits (e.g. Mozambique, Namibia, South Africa, Rwanda, Ethiopia, Somalia, Cameroon, Congo (Brazzaville), Cote d’Ivoire, Ghana, Senegal, among others)

Dissolved methane gas in Lake Kivu (DRC, Rwanda); Lakes Nyos and Monoun (Cameroon).

Biogenic gases formed in swamps and marshes (Botswana, Niger, DRC)

Landfill gas (various countries)

Gas Flaring reduction at oil and gas production facilities (Nigeria, Angola, others)

Biogas from animal, agricultural and human waste

lp gas investment facility
LP Gas Investment Facility

The Facility is intended to provide pre-investment capital:

To give entrepreneurs an opportunity to develop their service offering

Aimed at reducing the risks associated with the establishment of energy service delivery businesses.

The donor community recognizes that working in poor and low population density areas makes it more difficult for private entrepreneurs to sustain a profitable operation.

Therefore the United Nations partners will engage in activities that remove barriers and enhance investor confidence by reducing risk.

lp gas investment facility inputs
LP Gas Investment Facility (inputs)

Provide seed capital for activities that enable clean gas supply and distribution networks to develop. Specifically:

Support business plan preparation

Support local capacity development to provide energy services

Support capacity building aimed at sustainable market development

lp gas investment facility1
LP Gas Investment Facility

The projects supported by the Facility will integrate:

1) the private sector’s contribution in service delivery and investment financing with

2) governments facilitating the enabling environment for creating new relationships and policy dialogue and

3) local NGOs providing the critical support function at the project implementation level.

lp gas investment facility2
LP Gas Investment Facility

As the partnership succeeds

communities and individuals benefit through increased access to clean fuel and energy services

governments are able to fulfill social and economic development objectives, and

private enterprises expand business opportunities,

resulting in a triple-win situation that is the aim of the facility.

concluding remarks
Concluding remarks

Clean affordable energy supply is needed to achieve the MDGs

There are many indigenous sources of energy

Local capacity exists to deliver energy services

Both public and private sector resources are required to develop the alternatives

Thank you!

Andrew Yager

Division for Sustainable Development