STATEMENT BY OSITADINMA ANAEDU OF NIGERIA ON BEHALF OF G-77 AND CHINA BEFORE AD HOC OPEN-ENDED INTERGOVERNMENTAL GROUP OF EXPERTS ON ENERGY AND SUSTAINABLE DEVELOPMENT

New York, 6 March 2000

Mr. Co-Chairman,

            The Group of 77 and China congratulates you and your Bureau on your election.  It is a remarkable honour taken with full realization of your diplomatic skills and competence to carry out this important task successfully.  The Group commends the efforts of the Secretariat in reaching out to Member States in respect of the compilation of key issues and detailed analysis of the report of the Secretary-General. The Group also appreciates the detailed report presented by Professor Jose Goldenberg on World Energy Assessment.    While showing understanding of the constraints of the Secretariat, the Group wants the Secretariat to ensure that the official reports are duly received by the delegates in accordance with the rules and procedures of the United Nations Charter.   It is not enough for Governments to take decisions on the basis of the advance unedited report.

            The Group recognizes that the elements contained in the Secretary-General’s report represents the views of only a small number of those Governments, mainly developed countries, which responded to the inquiries of the Secretariat.  The Group notes the importance attached to the main issues already identified in the report, such as access to energy services, accelerated development and use of renewable sources of energy, improved energy efficiency, cleaner fuel technologies, liberalization and privatization, finance and investment, economic instruments and international cooperation.  What is, however, crucial to developing countries on sustainable energy development is the method of application of these elements with due recognition of the level of development in developing countries. 

The Group emphasizes that as we are in a preparatory process, more time should be given for inputs from various sources, including inputs of regional perspectives, which are not reflected in the Secretary-General’s report and World Energy Assessment Report.  The text of the world energy assessment report is one sided. It approaches issues of energy as if the whole of problems of energy related pollution are derived from developing countries.   It presented the problems of sustainability with the impression that they have been solved in developed countries.  We need a process in which the experts of developing countries will give their inputs to ensure fair balance in the energy sector.

Mr. Co-Chairman,

For developing countries, the critical issues demanding immediate attention remain: transfer of technology in energy and energy related sector, in particular the elimination of barriers in transfer of technology; capacity building especially human resources and training facilities; access to financial resources, including official development assistance (ODA), private investment flow into energy infrastructure and related services and debt overhang; and persistent issue of poverty.  

                  The Group considers the eradication of poverty as overriding and long-term goal of development for developing countries.  The inequities of the present system with some 1.3 billion people in developing world living on less than one dollar per day and therefore without access to electricity is unsustainable. The relationship between energy demand and poverty is two-way: the quality and quantity of energy services, and how they are achieved have direct effect on both environment and the people living in that environment.  The lack of affordable and accessible energy services for people in most developing countries could have unfavourable social and economic impact on energy and sustainable development.  Those living in poverty inevitably have to use traditional fuels for cooking and other uses.  This pattern of consumption tends to keep people living in poverty to be more impoverished.  It is highly unlikely that a situation such as this will reinforce any great expectations arising from the introduction of the various economic instruments. In other words, without addressing the issues creating the vicious cycle of underdevelopment, the objective of achieving sustainable energy development will remain a mirage.

                  The Group is strongly of the view that the energy sector requires increased flow of financial resources from the international community.  While it is expected that, with privatization and liberalization, which most developing countries have undertaken as part of measures to implement national policies, will continue to improve the flow foreign direct investment, the borrowing through international capital markets; these are totally inadequate to address intensive capital requirements for energy producing and consuming infrastructure.   Our development partners should display their commitment to sustainable energy development by meeting their agreed target of ODA, which still remains the main source of funding for the implementation of Agenda 21. 

                  The multilateral organizations, such as the United Nations system, the World Bank, IMF and Global Environmental Facility (GEF) should increase the level of funding required for capacity building, research and analytical studies and projects for increased and efficient use of traditional energy in developing countries.  Both the multilateral and bilateral creditors must come to the realization that the debts of developing countries is unsustainable and therefore demand outright cancellation.  This will release more funds for development and give meaning to various economic policies being introduced in the energy sector in developing countries.

Mr. Co-Chairman,

                  The reality of present energy situation should be taken into consideration by placing emphasis on transfer of technology.  The transfer of technology should be put into the process as a critical issue.  Developing countries require technologies that will facilitates minimizing of the adverse affects of pollutant fuels with a view to replacing them with cleaner, affordable conventional and new and renewable sources of energy.  

                  We should endeavour to create a predictable market for supply and demand of energy, including conventional fuels.   We should resist any attempt to create artificial energy situation through manipulation or interference in world energy market with a view to guaranteeing stability.   Security of supply without corresponding security of demand could prove detrimental to market stability and sustainable energy development in developing countries.

                  We must recognize the fact that eighty per cent of energy consumption and pollution comes from the utilization of energy in developed countries.  Yet attempt is being made to ask developing countries to leapfrog to modern technologies although the gap in transfer of technology and finance, as a prerequisite for such advancement has not been solved.  We should explore every avenue to develop clean and affordable conventional energy as well as new and renewable energy alternatives.

                  I thank you.