National Inter-Ministerial Dialogue on Climate Change
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National Inter-Ministerial Dialogue on Climate Change. Assessing and Developing Policy Options for Addressing Climate Change Mitigation in the Energy Sector of Liberia Augustus V. Goanue National Consultant. Cape Hotel Monrovia, Liberia June 25, 2009.

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National Inter-Ministerial Dialogue on Climate Change

Assessing and Developing Policy Options for Addressing Climate Change Mitigation in

the Energy Sector of Liberia

Augustus V. Goanue

National Consultant

Cape Hotel

Monrovia, Liberia

June 25, 2009

Why the Energy Sectoris Key for Liberia

  • It is cross-sectoral and serves as a vital input for social, economic and political development;

  • Propels industrial and commercial activities – mining, agriculture, manufacturing, information & communication technologies, small & medium enterprises etc.;

  • Enhances the delivery of basic social services –health, education, water & sanitation, etc.;

  • Affects the environment due to the emission green house gases (GHGs).

Description of the energy sector
Description of the Energy Sector

  • The sector is dominated by the use of woody traditional biomass, petroleum products and electricity;

  • Very limited use of modern renewable energy technologies;

  • The GOL has for the first time formulated a National Energy Policy (NEP) as the first step to reforming and ensuring the viability of the energy sector

Annual Petroleum Products Consumption Trend in Liberia, excluding petroleum-based lubricants, etc. (2000 – 2008)

Source: LPRC (2000 – 2008 Annual Reports)

Energy Sector GHG Emissions in 1999

Source: Environmental Protection Agency of Liberia, 2007

Description of the Energy Sector Cont.

Share of Energy Production Per Source (2008)

  • The energy sector share of GDP is about 0.8%

  • The sector also contributes considerably to: employment, trade, fiscal revenues, food security, and regional and sub-regional development.

  • Excessive use of woody biomass gives rise to deforestation, forest degradation, indoor air pollution.

Source: Center for Sustainable Energy Technology

Proposed Mitigation Options for the Energy Sector

  • Government, donors, and private investors should go beyond demonstration projects and scale up the commercial application of renewable energy technologies – hydro, biomass, solar and wind;

  • Active participation in the Clean Development Mechanism (CDM) and global carbon market by both public and private sectors;

  • Government should set up regulatory framework for promoting energy efficiency;

  • Government should support transport policy and programs that promote biofuels for transport and mobility options.

Proposed Mitigation Options Cont.

  • Government and its development partners should support the new Rural and Renewable Energy Agency (RREA) to contribute to more investment in renewable energy technologies;

  • Government should provide fiscal and tax incentives for renewable energy project developers and businesses;

  • Government and its partners should provide funding for the implementation of the National Energy Policy (NEP) to meet the nation’s targets for renewable energy, energy efficiency and emissions reduction.

An estimated US$1.3 billion investments in various clean (renewable) energy technologies and energy efficiency are needed over the next 6 years to address the effects of climate change across the energy sector.

Key Issues for Assessing Investment and

Financial Flow (I&FF) for the Energy Sector

  • Limited institutional framework human resources, and relevant tools;

  • Inadequate baseline data and other relevant information;

  • Need to increase networking among existing energy institutions including those that are inherently linked to the energy sector pending the full functionality of the RREA, NEC and other institutions proposed by the NEP;

  • Collection of baseline information on energy sources, services, consumption patterns, and monitoring.

Recommendations for Conducting Assessment

of I&FF for the Energy Sector

  • The Government should take the following actions:

  • Use the newly re-organized National Energy Committee (NEC) as institutional framework for conducting the I&FF;

  • Set up a central repository for information on energy sector investment and financial flow;

  • Establish a technical sub-committee within the NEC to maintain regular linkages and coordinate with key stakeholders in I&FF;

  • Introduce special levies on transport sector, petroleum companies, and forestry sector for more investments in renewable energy technologies.