EU Pledges to Increase Sustainable, Affordable Energy in African, Caribbean, Pacific Countries
November 9, 2009 // Published as a news service by IHS
Following the first implementation phase, the European Union (EU) and the African, Caribbean and Pacific (ACP) Group of States agreed to set aside €200 million to continue activities to improve access to sustainable and affordable energy services for the poor while contributing to the fight against climate change by focusing on renewable energy solutions and energy efficiency measures.
IHS Climate Change & Clean Energy Services Solar Photovoltaic Standards Wind Energy StandardsIn most ACP countries, access to sustainable and modern energy services is as low as 10% in rural areas, where the use of traditional fuels generates indoor air pollution and can cause health problems or even death. Moreover, the misuse of natural resources used for these fuels leads to environmental degradation as a result of deforestation in these areas.
The new ACP-EU Energy Facility will tackle these issues by co-financing projects to increase access to improved energy services for the rural poor in ACP countries.
In line with the fight against climate change, the facility will give priority to projects encouraging the use of renewable energy sources, such as solar systems, wind farms, hydropower, biomass (biofuels and biogas) and geothermal systems. It will also give priority to projects promoting energy efficiency in public and private buildings - for example, the replacement of energy-consuming light bulbs with more efficient ones.
"If we are going to see real economic and social development for the world's poorest, there must be access to reliable energy services. The Energy Facility will contribute to helping to reach this goal whilst also encouraging greater energy efficiency and clean energy solutions, which are critical as developing nations also take up the fight against climate change," said Karel De Gucht, EC commissioner for development.
The ACP-EU Energy Facility will also fund operations in support of governance and capacity building in the energy sector at the local, national and regional level.
The new facility will co-finance projects through calls for proposals, the first one being launched this month, and two new co-financing instruments - namely, a pooling mechanism involving financing institutions and the private sector plus financial support to energy governance through the EU Energy Initiative-Partnership Dialogue Facility.
The ACP-EU Energy Facility has already proven its efficiency in leveraging millions of co-financing from the private sector, non-governmental organizations, EU member states and international financial institutions. Almost 7 million people have benefited from the 74 projects financed from the ACP-EU Energy Facility for a total amount of €196 million out of total project costs of €430 million, the remaining €230 million mobilized by co-financing from the public and private sectors.
Some 97% of the funded projects focused on energy generation based on renewable sources and hybrid solutions. The new ACP-EU Energy Facility, empowered with new co-financing instruments, is expected to reach even more beneficiaries living in rural and semi-urban areas.
Background
The ACP-EU Energy Facility was created in 2004 as a financing instrument for the implementation of the EU Energy Initiative (EUEI) for Poverty Eradication and Sustainable Development.
The EUEI was launched in 2002 during the World Summit on Sustainable Development in Johannesburg as a confirmation of the EU's commitment to the achievement of the Millennium Development Goals.
The ACP-EU Energy Facility is also an implementing instrument of the Africa-EU Energy Partnership, which is part of the EU-Africa Joint Strategy and Action Plan adopted in Lisbon in December 2007.
Source: European Commission (EC).