Clean energy for development Annual report 2009

Clean energy for development

In 2009, climate change was widely recognised as the most serious environmental
problem facing the globe. Still, fossil fuels remain our most important source
of energy. In order to prevent a rise in global temperatures of more than two
degrees Celsius, we have to reduce greenhouse gas emissions. This can only be
achieved through cleaner extraction of energy from fossil fuels, together with
increased deployment of renewable sources of energy.

Energy is vital for developing countries in their fight against poverty. At the same
time, the planet will not withstand poor countries using energy in the way that
the developed world has in the past. This is a challenge for all energy-related
development policy. Norway has expertise in the management of both fossil and
renewable energy sources. We are thus well-positioned to address these dilemmas
when we provide assistance in the energy field.

Energy has been at the core of Norway’s development assistance policy for many
years. This has resulted in the Clean Energy for Development Initiative and
the Oil for Development Initiative. Both initiatives can help increase economic
growth and prosperity in some of the poorest countries in the world.

The current annual report presents some of the activities and key achievements
of the Clean Energy for Development Initiative in 2009.

The Initiative has two main goals: access to affordable energy services based on
renewable energy sources, and reduction of greenhouse gas emissions.

In 2009, approximately 1.6 billion people did not have access to electricity.
Through Clean Energy for Development, we assist developing countries, at their
request, in their efforts to provide the whole population with energy services.
Such assistance should be followed up by policies that target the poor. Energy
access should encourage sustainable economic activity especially in the countryside
and can help women to live better lives. We believe that we can make
a difference based on our experience from developing our own energy system.
Norway has extensive expertise in hydropower development, electricity transmission,
energy policy and administrative planning.

In addition to bilateral cooperation within the field of clean energy, we also
cooperate with other donors, regional and multilateral institutions and nongovernmental
organisations.

We believe that engaging both local and international private investors is crucial
for economic development, including in the energy sector.

This report shows how the Clean Energy for Development Initiative makes use of
Norwegian and other relevant expertise to contribute to economic development
and the fight against poverty in our partner countries.

Erik Solheim
Minister of the Environment and International Development
Oslo, May 2010