United NationsDepartment of Economic and Social Affairs Sustainable Development

Major Group: Business & Industry

for the IPM (26 Feb ? 2 Mar 2007)
27 FEBRUARY 2007
Access to modern energy services is a key ingredient in reducing poverty and
providing essential services including education, food preservation, communications
and health care. Currently, approximately, 2.4 billion people do not have access to
modern energy services and rely on traditional energy sources. Lack of access to
energy hinders development (including the achievement of the Millennium
Development Goals), undermines economic growth and poses strains on the
Business is actively committed to contributing to reliable access to energy at
affordable prices with acceptable impacts. Further, businesses, as consumers of
energy, are actively engaging in consuming energy more efficiently and in producing
products, which are more energy efficient. Engaging with both locally and investing
businesses and their significant operational, technological and financial capacity in
energy policy development and implementation is essential for sustainable delivery
and consumption of energy.
Business would like to highlight the following:
�� All energy sources should be assessed on their merits and relative
attributes, recognising that each faces issues, barriers and opportunities
including cost, performance, safety, environmental impact, primary
resource depletion and energy security. This will enable countries to address
their particular energy needs in line with their respective resource bases and
long-term development objectives.
�� Business supports energy efficiency to help reduce energy costs, energy
consumption and negative environmental impacts, in particular climate
change. Energy efficiency also contributes to energy security by reducing energy
demand and possible supply chain losses, and extending resource life. In order
to promote and enhance energy efficiency, business supports the following
? The establishment of energy efficiency programmes and partnerships through
international cooperation.
? The adoption of energy efficiency strategies by Government, business and
civil society in their own operations.
? The promotion and enhancement of energy efficiency along value chains.
? The provision of incentives for actions where the direct benefits of energy
efficiency improvements are not gained.
�� The business community can best contribute to addressing energy
challenges when enabling framework conditions are in place. Key features
of enabling frameworks include:
? Open markets;
? Strong institutions and sound governance;
? Risk management;
? Protection of intellectual property;
? Due diligence;
? Rule of law and honouring contracts;
? Cost effective, consistent policies and regulations based on transparent,
stable, economic and uniformly enforced regulatory systems.
�� Significant investment is required to maintain, grow and deliver the energy
supplies required to meet future demand in a sustainable manner.
Business (as a major investor), other investors and governments need to
collaborate and work in partnership in order to promote energy access and meet
growing energy demand. Governments can promote and enable investments in
energy for sustainable development by leveraging official development
assistance, promoting technological cooperation and exploring innovative
financing arrangements. Further, additional financial resources to replace and
expand energy infrastructures have to be sourced from donors, multilateral
agencies, and through foreign direct investment, particularly for developing
countries. Finally, Governments and donor agencies are urged to assist
innovative partnerships (between local governments, the private sector and civil
�� Business is investing resources towards technology advancement and
deployment of lower carbon, renewable and more efficient technologies.
Developing and utilizing both existing and new energy technologies are critical to
improve access to energy, promote energy efficiency and reduce greenhouse
gas emissions. Governments need to support business technological
development and deployment activities by:
? Funding R&D activities directly (research centers) and indirectly (universities);
? Assisting in capacity-building initiatives by streamlining processes for
international cooperation and participation;
? Supporting R&D and technology transfer across borders, by lowering tariffs,
maintaining strong intellectual property right protection and establishing trade
? Providing an R&D friendly environment by guaranteeing a workable effective
patent system;
? Engaging major stakeholders in discussions on the advancement of
innovation and new technologies.
�� Business believes that voluntary multi-stakeholder partnerships can
address energy challenges. Successful partnerships allow the strengths and
areas of participants to be combined for practical and visible results. The
business community works with partners to identify, develop, commercialize and
deploy technologies suited to individual national priorities, resource availability
and development strategies. Business will continue to play an important role in
finding solutions, within its sphere of responsibility, in partnership with other
stakeholders. Governments, business and civil society need to partner to
leverage resources to provide training, share knowledge and skills, share more
sustainable energy technologies and cooperate to accelerate their dissemination.
Further, Governments need to continue to support partnerships by:
? Participating in partnerships and offering local expertise as well as financial
resources and infrastructure;
? Establishing a regulatory environment that supports the formation of