Promoting Rural Energy as Climate Solution at UNFCCC Side Event

TIANJIN (Oct. 4, 2010) – Global Environmental Institute (GEI) held a side event during the United Nations Framework Convention on Climate Change (UNFCCC)’s 14th Session of the Ad-Hoc Working Group of the Kyoto Protocol (AWG-KP) and the 12th Session of the Ad-Hoc Working Group on Long-Term Commitment to Action (AWG-LCA). The side event was entitled: “Rural Energy at the Core of the Climate Solution.”

The side-event gathered a distinguished and diverse audience – GEI 2010

During the event, GEI program officer Li Ming introduced GEI’s study on rural energy. In his talk, he pointed out that the growth of fossil fuel consumption in China’s rural areas has surpassed that in urban areas. In 2007, for example, rural fossil fuel consumption had grown by an average rate of 9.42% annually, compared to the 5.47% in urban areas. In addition, Mr. Li also noted that the energy structure of rural areas in China has been centered around fossil fuels. For example, fossil fuel use grew from 41% to 71% from 2001 to 2007 while non-fossil fuel energy use shrank from 59% to 29%.

In the face of such an important challenge, breakthrough solutions are needed in both technology and finance. Towards this end, Dr. Xiao Yunhan of the Research Center for Energy and Power at the Institute of Engineering Thermophysics of the Chinese Academy of Sciences offered a summary and analysis of several key rural energy technologies, and shared the center’s research developments in renewable energy technologies suited to rural areas of the developing world.

Following Doctor Xiao’s talk, Marion Verles of GERES-Cambodia and Nexus Carbon for Development offered a detailed introduction to GERES’ efforts in disseminating 1 million New Lao cook stoves– improved, energy efficient cook stoves—throughout Cambodia, replacing non-renewable biomass, helping to reduce deforestation and improving local household livelihoods.

To address the financial challenges, Dr. Michael Lesser of the Small Scale Sustainable Infrastructure Development Fund (S3IDF) introduced S3IDF’s “Social Merchant Bank” model in South India. The aim of the Social Merchant Bank model is to build a bridge between rural technology providers and financiers to scale up rural energy technology financing and improve the capacity of local enterprises in alleviating poverty and protecting the environment. Following Dr. Lesser’s talk, Marion Verles introduced the Nexus Carbon for Development network, which focuses on linking carbon market financing with rural energy projects.

Finally, Dr. Zhang Jiqiang of the US-based Blue Moon Fund emphasized the importance of the rural energy challenge in the fight against climate change, calling for more, larger scale investments in rural energy.

Throughout the event, participants from organizations like the Asian Development Bank engaged the panel discussed micro-finance and other finance-related issues.