Select Committee on International Development Minutes of Evidence

Further supplementary memorandum submitted by the Department for International Development


  1.  DFID/DEFRA have a number of initiatives ongoing that are related to reduction of carbon dioxide emissions in developing countries. These initiatives are grouped around four main work areas:

    —  Cross departmental coordination and working;

    —  Influencing the international agenda;

    —  Knowledge and research projects;

    —  Country projects.

A brief outline of each of the work areas is given below.

Cross Departmental Coordination and Working

  2.  A cross departmental working group related to energy efficiency and climate change, The Energy Efficiency and Developing Countries Working Group was set up in 1997. Since its launch, the group has expanded to include representatives from FCO and DTI. The main emphasis of the group is on taking a strategic approach to wide policy issues relating to climate change and developing countries.

Influencing the International Energy and Climate Change Agenda

  3.  DFID is engaged in the international climate change negotiations under the UNFCCC. We work closely with DEFRA, the UK lead department, to ensure that development issues are sufficiently integrated into UK and EU positions, thereby influencing UN decisions. DFID is also represented on the UNFCCC Least Developed Countries Expert Working Group, a sub committee of the UN framework that focuses on climate change and development policy issues. DFID is engaged with the developing international debate on the clean development mechanism and how this relates to mainstream development work. This will inform a coherent policy in due course.

Knowledge and Research Projects

  4.  DFID has a number of ongoing knowledge and research projects which address issues related to promoting clean energy use in developing countries. These include:

  i.  Encouraging CDM energy projects to aid poverty alleviation. Being carried our by University of Surrey, Centre for Environmental Strategy, the purpose is "To contribute to the design of the Clean Development Mechanism (CDM) so that poverty focused projects are encouraged to provide some capacity building in host countries (Ghana, Kenya and Tanzania) in order to implement these small scale projects under the CDM."

  ii.  Moving Towards Emissions Neutral Development. Being carried out by EcoSecurities, the purpose is "To work with small-medium developing country (Bangladesh, Colombia, Ghana and Sri Lanka) governments and key stakeholders in defining needs for CDM frameworks to optimise developmental benefits and to provide DFID and other Donors with guidance on how to assist this process."

  iii.  Development of Simplified procedures for CDM Small Scale projects—The project aims to develop a simplified system of "fast track" small scale projects that would provide organisations with incentives to carry out small scale CDM projects. The results will feed into EU discussions on the procedures for the CDM.

Country Projects

  5.  A number of projects are ongoing within country programme that are aimed at energy efficiency. Ongoing projects include:

    —  Andhra Pradesh Power Sector Restructuring Programme—Reform of the state electricity utility aimed at commercial viability and reduced losses.

    —  Orissa Rural Community Electricity Supplies Project —Reducing technical and commercial losses on rural electricity systems through establishing formal commercial arrangements for customers, including proper metering and billing. This is resulting in a substantial reduction in electricity wastage. DFID is in partnership with the private sector owner and operator of the utility.

    —  China - GEF Energy Efficiency Project—The Energy Conservation Project will support the introduction of a market-based approach to financing energy conservation investments, energy performing contracting, which has the potential to overcome some of the major impediments to energy conservation in China. Secondly, the project will support the introduction of a new energy information program, providing consumers with information on financially attractive energy conservation investments.

    —  Kyrgyzstan Tariff Policy Project State Property Fund—implementation of an energy policy tariff policy which ensures long term financial sustainability and takes account of the GoK's social, environmental and commercial objectives.

    —  Clean Energy Network: Reducing Fuel Poverty and Building Civil Society in Central and Eastern Europe and the newly independence States - the project aims to reduce fuel poverty and increase family energy use efficiency, thereby improving the lives of poor people.

Department for International Development

May 2002

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